# EDGAR Filing Document

**Accession Number:** 0000720515
**File Stem:** 0001628280-26-025236
**Filing Date:** 2026-4
**Character Count:** 4900715
**Document Hash:** 8a1a69d9933bbc1f3a1f3e99d6f1a912
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-025236.hdr.sgml**: 20260415

**ACCESSION NUMBER**: 0001628280-26-025236

**CONFORMED SUBMISSION TYPE**: S-4

**PUBLIC DOCUMENT COUNT**: 68

**FILED AS OF DATE**: 20260415

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BASIN ELECTRIC POWER COOPERATIVE
- **CENTRAL INDEX KEY:** 0000720515

**ORGANIZATION NAME:**
- **EIN:** 450277395
- **STATE OF INCORPORATION:** ND
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-4
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295074
- **FILM NUMBER:** 26864474

**BUSINESS ADDRESS:**
- **STREET 1:** 1717 EAST INTERSTATE AVE
- **CITY:** BISMARK
- **STATE:** ND
- **ZIP:** 58501

**As filed with the Securities and Exchange Commission on April 15, 2026**

**Registration Statement No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-4**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**BASIN ELECTRIC POWER COOPERATIVE**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **North Dakota** | **4911** | **45-0277395** |
| **(State or other jurisdiction of incorporation or organization)** | **(Primary Standard Industrial**<br>**Classification Code Number)** | **(I.R.S. Employer**<br>**Identification Number)** |

---

**1717 East Interstate Avenue**

**Bismarck, North Dakota 58503**

**(701) 223-0441**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Todd Brickhouse**

**Chief Executive Officer and General Manager**

**Basin Electric Power Cooperative**

**1717 East Interstate Avenue**

**Bismarck, North Dakota 58503**

**(701) 223-0441**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**Copies to:**

---

| | |
|:---|:---|
| **James Horan**<br>**Senior Vice President and General Counsel**<br>**Basin Electric Power Cooperative**<br>**1717 East Interstate Avenue**<br>**Bismarck, North Dakota 58503**<br>**(701) 223-0441** | **Carl Lyon**<br>**Kyle Drefke**<br>**Orrick, Herrington & Sutcliffe LLP**<br>**51 West 52nd Street**<br>**New York, New York 10019**<br>**(212) 506-5000** |

---

Approximate date of commencement of proposed sale of the securities to the public: As soon as practicable after this registration statement becomes effective.

If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:

Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer) ☐

Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) ☐

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until this registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to Section 8(a), may determine.

------

The information in this prospectus is not complete and may be changed. We may not sell these securities or consummate the exchange offer until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION DATED APRIL 15, 2026

![cover1a.jpg](cover1a.jpg)

**Offer to Exchange**

**$700,000,000 aggregate principal amount of**

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055** 

**for**

**$700,000,000 aggregate principal amount of** 

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055** 

**that have been registered under the Securities Act of 1933, as amended (the "Securities Act")**

**The Exchange Offer will expire at 5:00 p.m., New York City time,** 

**on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026, unless extended.**

We hereby offer, upon the terms and subject to the conditions set forth in this prospectus and the accompanying letter of transmittal, to exchange up to $700,000,000 aggregate principal amount of our outstanding 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 (CUSIP Nos. 070101 AJ9 and U06865 AB2) (the "Original Bonds") for a like principal amount of our 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 that have been registered under the Securities Act (CUSIP No. 070101 AK6) (the "Exchange Bonds"). We refer to this offer as the "Exchange Offer." When we use the term "Bonds" in this prospectus, the term includes the Original Bonds and the Exchange Bonds unless otherwise indicated or the context otherwise requires. The terms of the Exchange Offer are summarized below and are more fully described in this prospectus.

The terms of the Exchange Bonds are substantially identical to the terms of the Original Bonds, except that the transfer restrictions, registration rights and additional interest provisions applicable to the Original Bonds do not apply to the Exchange Bonds. The Exchange Bonds will be secured equally and ratably with all our other obligations issued under the Amended and Restated Indenture, dated as of May 5, 2015, as amended and supplemented (the "Indenture"), with U.S. Bank Trust Company, National Association, successor-in-interest to U.S. Bank National Association, as trustee (the "Trustee"), by a mortgage lien on substantially all of our owned tangible and certain of our intangible properties, subject to certain exceptions and exclusions as described or referred to in this prospectus.

We will accept for exchange any Original Bonds validly tendered and not validly withdrawn at any time prior to 5:00 p.m., New York City time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026, unless extended (the "expiration date").

You may withdraw tenders of Original Bonds at any time before 5:00 p.m., New York City time, on the expiration date.

We will not receive any cash proceeds from the issuance of the Exchange Bonds in the Exchange Offer. The Original Bonds surrendered and exchanged for the Exchange Bonds will be retired and canceled. Accordingly, the issuance of the Exchange Bonds will not result in any increase in our outstanding indebtedness.

The exchange of Original Bonds for Exchange Bonds pursuant to the Exchange Offer generally will not be treated as a taxable exchange for U.S. federal income tax purposes.

No public market currently exists for the Original Bonds. We do not intend to list the Exchange Bonds on any securities exchange and, therefore, no active public market is anticipated.

Each broker-dealer that receives Exchange Bonds for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Bonds. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Bonds received in exchange for Original Bonds where such Original Bonds were acquired by such broker-dealer acquired as a result of market-making activities or other trading activities. We have agreed that we will make this prospectus available to any broker-dealer for use in connection with any such resale for a period of 180 days following the expiration date of the Exchange Offer or such time as such broker-dealers no longer own any Original Bonds. See "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>."

**See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" beginning on page <u>[13](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u> for a discussion of certain factors that you should consider before tendering your Original Bonds.**

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| | **Page** |
| <u>[A](#i0b5983c249b84b3db1dc97769c25fdb6_1403)[bout](#i0b5983c249b84b3db1dc97769c25fdb6_1403)[This Prospectus](#i0b5983c249b84b3db1dc97769c25fdb6_1403)</u> | <u>[ii](#i0b5983c249b84b3db1dc97769c25fdb6_1403)</u> |
| <u>[W](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[here You Can Find More Information](#i0b5983c249b84b3db1dc97769c25fdb6_1379)</u> | <u>[iii](#i0b5983c249b84b3db1dc97769c25fdb6_1379)</u> |
| <u>[F](#i0b5983c249b84b3db1dc97769c25fdb6_1384)[orward-Looking Statements](#i0b5983c249b84b3db1dc97769c25fdb6_1384)</u> | <u>[iv](#i0b5983c249b84b3db1dc97769c25fdb6_1384)</u> |
| <u>[C](#i0b5983c249b84b3db1dc97769c25fdb6_1391)[ertain Definitions](#i0b5983c249b84b3db1dc97769c25fdb6_1391)</u> | <u>[vii](#i0b5983c249b84b3db1dc97769c25fdb6_1391)</u> |
| <u>[S](#i0b5983c249b84b3db1dc97769c25fdb6_1398)[ummary](#i0b5983c249b84b3db1dc97769c25fdb6_1398)</u> | <u>[1](#i0b5983c249b84b3db1dc97769c25fdb6_1398)</u> |
| <u>[S](#i0b5983c249b84b3db1dc97769c25fdb6_9345848837508)[ummary Consolidated](#i0b5983c249b84b3db1dc97769c25fdb6_9345848837508)[Financial Data](#i0b5983c249b84b3db1dc97769c25fdb6_9345848837508)</u> | <u>[12](#i0b5983c249b84b3db1dc97769c25fdb6_9345848837508)</u> |
| <u>[R](#i0b5983c249b84b3db1dc97769c25fdb6_13)[isk Factors](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u> | <u>[13](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u> |
| <u>[Use of Proceeds](#i0b5983c249b84b3db1dc97769c25fdb6_16)</u> | <u>[28](#i0b5983c249b84b3db1dc97769c25fdb6_16)</u> |
| <u>[C](#i0b5983c249b84b3db1dc97769c25fdb6_19)[apitalization](#i0b5983c249b84b3db1dc97769c25fdb6_19)</u> | <u>[29](#i0b5983c249b84b3db1dc97769c25fdb6_19)</u> |
| <u>[Business](#i0b5983c249b84b3db1dc97769c25fdb6_10)</u> | <u>[31](#i0b5983c249b84b3db1dc97769c25fdb6_10)</u> |
| <u>[Properties](#i0b5983c249b84b3db1dc97769c25fdb6_22)</u> | <u>[50](#i0b5983c249b84b3db1dc97769c25fdb6_22)</u> |
| <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u> | <u>[54](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u> |
| <u>[Quantitative and Qualitative Disclosures About Market Risk](#i0b5983c249b84b3db1dc97769c25fdb6_67)</u> | <u>[75](#i0b5983c249b84b3db1dc97769c25fdb6_67)</u> |
| <u>[Legal Proceedings](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u> | <u>[78](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u> |
| <u>[D](#i0b5983c249b84b3db1dc97769c25fdb6_166)[irectors, Executive](#i0b5983c249b84b3db1dc97769c25fdb6_166)[Officers](#i0b5983c249b84b3db1dc97769c25fdb6_166)[, and](#i0b5983c249b84b3db1dc97769c25fdb6_166)[Corporate Governance](#i0b5983c249b84b3db1dc97769c25fdb6_166)</u> | <u>[79](#i0b5983c249b84b3db1dc97769c25fdb6_166)</u> |
| <u>[Executive Compensation](#i0b5983c249b84b3db1dc97769c25fdb6_169)</u> | <u>[83](#i0b5983c249b84b3db1dc97769c25fdb6_169)</u> |
| <u>[Certain Relationships and Related Transactions, and Director Independence](#i0b5983c249b84b3db1dc97769c25fdb6_178)</u> | <u>[91](#i0b5983c249b84b3db1dc97769c25fdb6_178)</u> |
| <u>[S](#i0b5983c249b84b3db1dc97769c25fdb6_175)[ecurity Ownership of Certain Beneficial Owners and Manag](#i0b5983c249b84b3db1dc97769c25fdb6_175)[e](#i0b5983c249b84b3db1dc97769c25fdb6_175)[ment](#i0b5983c249b84b3db1dc97769c25fdb6_175)</u> | <u>[92](#i0b5983c249b84b3db1dc97769c25fdb6_175)</u> |
| <u>[T](#i0b5983c249b84b3db1dc97769c25fdb6_34)[he Exchange Offer](#i0b5983c249b84b3db1dc97769c25fdb6_34)</u> | <u>[93](#i0b5983c249b84b3db1dc97769c25fdb6_34)</u> |
| <u>[D](#i0b5983c249b84b3db1dc97769c25fdb6_37)[escription of](#i0b5983c249b84b3db1dc97769c25fdb6_37)[t](#i0b5983c249b84b3db1dc97769c25fdb6_37)[he Exchange B](#i0b5983c249b84b3db1dc97769c25fdb6_37)[on](#i0b5983c249b84b3db1dc97769c25fdb6_37)[ds](#i0b5983c249b84b3db1dc97769c25fdb6_37)</u> | <u>[102](#i0b5983c249b84b3db1dc97769c25fdb6_37)</u> |
| <u>[B](#i0b5983c249b84b3db1dc97769c25fdb6_151)[ook](#i0b5983c249b84b3db1dc97769c25fdb6_151)[-Entry Settlement and Clearance](#i0b5983c249b84b3db1dc97769c25fdb6_151)</u> | <u>[105](#i0b5983c249b84b3db1dc97769c25fdb6_151)</u> |
| <u>[S](#i0b5983c249b84b3db1dc97769c25fdb6_157)[ummary of the Indenture](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u> | <u>[109](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u> |
| <u>[Certain U.S. Federal Income Tax Considerations](#i0b5983c249b84b3db1dc97769c25fdb6_160)</u> | <u>[129](#i0b5983c249b84b3db1dc97769c25fdb6_160)</u> |
| <u>[P](#i0b5983c249b84b3db1dc97769c25fdb6_154)[lan of Distribution](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u> | <u>[134](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u> |
| <u>[L](#i0b5983c249b84b3db1dc97769c25fdb6_1501)[egal Matters](#i0b5983c249b84b3db1dc97769c25fdb6_1501)</u> | <u>[135](#i0b5983c249b84b3db1dc97769c25fdb6_1501)</u> |
| <u>[E](#i0b5983c249b84b3db1dc97769c25fdb6_1507)[xperts](#i0b5983c249b84b3db1dc97769c25fdb6_1507)</u> | <u>[135](#i0b5983c249b84b3db1dc97769c25fdb6_1507)</u> |
| <u>[Financial Statements and Supplementary Data](#i0b5983c249b84b3db1dc97769c25fdb6_70)</u> | <u>[F-1](#i0b5983c249b84b3db1dc97769c25fdb6_70)</u> |

---

i

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**ABOUT THIS PROSPECTUS**

**You should rely only on the information contained in this prospectus. We have not authorized any person to give any information to you or to make any representation other than those contained in this prospectus in connection with the Exchange Offer and, if given or made, such information or representation must not be relied upon as having been authorized by us. You should not assume that the information contained in this prospectus is accurate as of any date other than the date on the cover of this prospectus. Our business, financial condition and results of operations may have changed since that date.**

In this prospectus, except as the context otherwise requires or as otherwise noted, "Basin Electric," "we," "us" and "our" refer to Basin Electric Power Cooperative and its subsidiaries that are consolidated under GAAP, except with respect to the Bonds, in which case such terms refer only to Basin Electric Power Cooperative.

ii

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 under the Securities Act relating to the securities covered by this prospectus. This prospectus is a part of the registration statement and does not contain all of the information in the registration statement. Whenever a reference is made in this prospectus to a contract or other document of ours, please be aware that the reference is only a summary and that you should refer to the exhibits that are a part of the registration statement for a copy of the contract or other document. You may review a copy of the registration statement through the SEC's website referred to below.

We are not currently subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a result of the offering of the Exchange Bonds, we will become subject to the informational requirements of the Exchange Act, and, in accordance therewith, will file reports and other information with the SEC. The SEC maintains a website at *www.sec.gov* that contains reports and other information regarding issuers that file electronically with the SEC. The information contained on or accessible through our website or any other website that we may maintain is not incorporated by reference herein and is not part of this prospectus or the registration statement of which this prospectus is a part.

In addition, for so long as any of the Bonds remain outstanding and are "restricted securities" within the meaning of Rule 144(a)(3) under the Securities Act, we have agreed that we will, during any period in which we are not subject to and in compliance with Section 13(a) or 15(d) of the Exchange Act, or do not make voluntary filings pursuant to such Sections, furnish at our expense, upon the request of any holder of a Bond, such information as specified in Rule 144A(d)(4) under the Securities Act to such holder and to a prospective purchaser of such Bond (or beneficial interests therein) designated by such holder, in each case in order to permit compliance by such holder with Rule 144A in connection with the resale of such Bond (or beneficial interests therein) in reliance upon Rule 144A. See "<u>[DESCRIPTION OF](#i0b5983c249b84b3db1dc97769c25fdb6_37)[THE](#i0b5983c249b84b3db1dc97769c25fdb6_37)[EXCHANGE BONDS](#i0b5983c249b84b3db1dc97769c25fdb6_37)</u>."

This prospectus contains summaries of the terms of several material documents. These summaries include the terms that we believe to be material, but we urge you to review these documents in their entirety. We will provide without charge to each person to whom a copy of this prospectus is delivered, upon written or oral request of that person, a copy of any and all of this information. All requests for information, including the information required to be delivered pursuant to Rule 144A(d)(4), should be directed to us at Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, Attention: Vice President & Treasurer or by calling us at (701) 223-0441. You should request this information at least five business days in advance of the date on which you expect to make your decision with respect to the Exchange Offer. In any event, you must request this information no later than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026, which is five business days prior to the expiration date of the Exchange Offer, in order to receive the information prior to the expiration of the Exchange Offer.

iii

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**FORWARD-LOOKING STATEMENTS**

Except for the historical information contained in this prospectus, certain matters discussed in this prospectus, including (without limitation) statements under "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>," contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Although we believe that, in making any such statements, our expectations are based on reasonable assumptions, any such statement may be influenced by factors that could cause actual outcomes and results to be materially different from those projected.

These forward-looking statements include statements relating to our anticipated financial performance and business prospects or statements preceded by, followed by or that include the words "believe," "will," "so we can," "when," "anticipate," "intend," "estimate," "forecast," "expect," "project," "should," "could," "may," "plan," "seeks," and similar expressions. Although we believe that in making the statements contained in this prospectus our expectations are based on reasonable assumptions, we can give no assurance that these expectations will prove to be correct or that we will achieve the financial results, savings or other benefits anticipated in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors, some of which may be beyond our control, that could cause our actual results, performance or achievements or industry results, to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors, including those disclosed under "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>," include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated variation in demand for electric capacity or energy or load forecasts resulting from changes in population and economic growth (and declines), consumer consumption and energy conservation efforts, including the impact on power supply plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of traditional load growth and potential large loads, including data centers, in our members' service territories and any decisions regarding the development of additional generation resources to meet the additional demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the market price of commodities, including natural gas, energy, crude oil, diesel and nitrogen-based fertilizer products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legislative and regulatory compliance standards and the cost and other burdens of complying with any applicable standards, including mandatory reliability standards, and potential penalties for non-compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new, amended, or existing laws, regulations, or administrative orders, including those related to environmental matters, carbon dioxide and other greenhouse gas emissions, water and coal combustion byproducts, and the costs of complying with these laws, regulations, and administrative orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of additional generation or transmission facilities to meet the needs of our members or changes in the anticipated retirement dates of existing generation or transmission facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• success or failure to consummate strategic transactions, including acquisition or divestiture activities, upon which we base financial or operational forecasts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome or consequences of strategic alternatives that we are, or may in the future, evaluate in connection with our subsidiary, Dakota Gasification Company ("Dakota Gas"), including asset impairments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in customer preferences for energy produced from cleaner generation sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continued efficient operation of our generation facilities by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our member systems to perform their obligations to us;

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the pricing and availability of an adequate and economical supply of fuel, water and other materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to hedge power, fuel and capacity to provide margin visibility and mitigate market volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in utility regulation and the allocation of costs within regional transmission organizations, including the Southwest Power Pool ("SPP") and Midcontinent Independent System Operator ("MISO");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pressures exerted by increasing levels of indebtedness caused by significant capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated changes in capital expenditures, operating expenses and liquidity needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our access to capital, the cost to access capital, and the results of our financing and refinancing efforts, including availability of funds in the capital markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of funding under any federal loan or grant programs for which we qualify and are awarded and our ability to meet the applicable loan or grant conditions and requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic, credit and capital market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supply chain challenges, including as a result of trade policies, tariffs, or other international trade restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of our information technology or operating technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the direct or indirect effect on our business resulting from cyber or physical attacks on us, our members or third-party service providers, vendors or contractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commercial banking and financial market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hazards customary to the electric industry and the possibility that we may not have adequate insurance to cover losses resulting from these hazards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation or legal and administrative proceedings and settlements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness of our risk management policies and risk strategies, including hedging, with respect to commodity prices, interest rates and counterparty credit and non-performance risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the credit quality or inability of various counterparties to meet their financial obligations to us, including failure to perform under agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated changes in interest rates or rates of inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acts of sabotage, wars or terrorist activities, including cyber or physical attacks on our assets or assets on which we rely;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• catastrophic events such as wildfires, earthquakes, floods, droughts, tornadoes, mechanical failures, explosions, pandemic health events, or similar occurrences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in technology available to and utilized by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant changes in critical accounting policies material to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant changes in our relationship with our employees, including the availability of qualified personnel; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• weather conditions and other natural phenomena.

For more information on these and other factors, see "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>." In light of these risks, uncertainties and assumptions, we caution you not to place undue reliance on any forward-looking statements. The forward-looking statements included in this prospectus are made only as of the date of this prospectus and we do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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**CERTAIN DEFINITIONS**

Except where otherwise noted, or the context otherwise requires, the following capitalized terms, abbreviations, and acronyms have the meanings set forth below:

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| | |
|:---|:---|
| **Abbreviations or Acronyms** | **Definitions** |
| AI | Artificial intelligence |
| ASC | Financial Accounting Standards Board (FASB) Accounting Standards Codification |
| Basin Cooperative Services | Basin Cooperative Services, a wholly owned subsidiary of Basin Electric that operates on a not-for-profit basis. Basin Cooperative Services provides certain nonutility property management services to us |
| Basin Electric, we, our, us, and similar terms | Basin Electric Power Cooperative and, in the case of GAAP financial statements, our consolidated subsidiaries |
| Board | The Board of Directors of Basin Electric |
| CCR Rule | Coal Combustion Residuals Rule |
| CFC | National Rural Utilities Cooperative Finance Corporation |
| Class A Members | Class A Members consist of ten wholesale G&T cooperatives, eight distribution cooperatives and one wholesale municipal provider that have entered into long-term wholesale power contracts with us |
| Class B Members | Class B Members consist of any municipality or association of municipalities operating within an area served by a Class A Member and which is a member of, and contracts for its electric capacity or energy from, that Class A Member, and which is not eligible for Class C Membership |
| Class C Members | Class C Members consist of distribution cooperatives and public power districts that are members of a Class A Member and contract for a portion of their electric power and energy from the Class A Member |
| Class D Members | Class D Members consist of electric cooperatives, municipalities, or associations of municipalities which purchase power directly from us on a basis other than as a Class A, Class B, or Class C Member |
| Clean Air Act | A U.S. federal law that regulates air emissions from stationary and mobile sources to protect public health and the environment |
| Clean Water Act | A U.S. federal law that governs water pollution, aiming to ensure clean surface waters by regulating discharges into navigable waters |
| CO2 | Carbon dioxide  |
| Code | Internal Revenue Code of 1986, as amended |
| Corn Belt | Corn Belt Power Cooperative, a Class A Member |
| Coteau | The Coteau Properties Company, a subsidiary of North American Coal Corporation |
| Coteau Lignite Sales Agreement | Dakota Coal purchases lignite coal from Coteau on a cost-plus basis pursuant to this sales agreement with Coteau |
| D.C. Circuit | United States Court of Appeals for the D.C. Circuit |
| Dakota Coal | Dakota Coal Company, a wholly owned subsidiary of Basin Electric that operates on a for-profit basis |
| Dakota Gas | Dakota Gasification Company, a wholly owned subsidiary of Basin Electric that operates on a for-profit basis |
| DC | Direct Current |
| DCS | Dakota Carbon Services LLC |
| DEF | Diesel exhaust fluid |

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| | |
|:---|:---|
| DFS | Dry Fork Generation Station |
| DOE | United States Department of Energy |
| DTC | The Depository Trust Company |
| East River | East River Electric Power Cooperative, Inc., a Class A Member |
| EPA | United States Environmental Protection Agency |
| ERISA | Employee Retirement Income Security Act of 1974 |
| ERISA Plan | Plan subject to Title I of ERISA or Section 4975 of the Code |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| FASB | Financial Accounting Standards Board |
| FATCA | Foreign Account Tax Compliance Act |
| Federal Power Act | Federal Power Act of 1920, as amended, and the rules and regulations adopted by FERC thereunder |
| FERC | Federal Energy Regulatory Commission |
| FIP | Federal Implementation Plan |
| Fitch | Fitch Ratings Inc. |
| Freedom Mine | A large lignite coal mine near Beulah, ND, operated by The Coteau Properties Company |
| G&T | Generation and transmission |
| GAAP | Accounting principles generally accepted in the U.S. |
| GHG | Greenhouse gas |
| Indenture | Amended and Restated Indenture, dated as of May 5, 2015, between Basin Electric and U.S. Bank Trust Company, National Association, as trustee, as amended and supplemented |
| IRS | United States Internal Revenue Service |
| kV | Kilovolt |
| kWh | Kilowatt-hour |
| LMP | Locational marginal pricing in an energy market |
| LRS | Laramie River Station |
| MBPP | Missouri Basin Power Project |
| McKenzie | McKenzie Electric Cooperative, Inc., a Class C Member |
| Members | Our electric distribution member systems, consisting of Class A Members, Class B Members, Class C Members, and Class D Members |
| MFI Ratio | Margins for Interest Ratio |
| Minnesota Valley | Minnesota Valley Electric Cooperative, a Class A Member |
| MIP | Member Investment Program |
| MISO | Midcontinent Independent System Operator, Inc. |
| MMbtu/day | Million British Thermal Units per day |
| MMcf/day | Million Cubic Feet per day |
| Montana Limestone | Montana Limestone Company, a wholly owned subsidiary of Dakota Coal |
| Moody's | Moody's Investors Services, Inc. |
| MRO | Midwestern Reliability Organization |
| MVAR | Megavolt-amps reactive |
| MW | Megawatt |
| MWh | Megawatt-hour |
| NAAQS | National Ambient Air Quality Standards |

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| | |
|:---|:---|
| Nemadji River Generation | Nemadji River Generation LLC, previous owner of a 30% undivided interest in NTEC |
| NEO | Named Executive Officers |
| NERC | North American Electric Reliability Corporation |
| New ERA | RUS Empowering Rural America Program |
| Northern Border | Northern Border Pipeline Company |
| NOX | Nitrogen oxide |
| NTEC | Nemadji Trail Energy Center, a proposed 600-megawatt natural gas-fired combined-cycle electric generation facility that was previously planned to be constructed in Wisconsin |
| PCAOB | Public Company Accounting Oversight Board (United States) |
| Pioneer Generation Station Phase IV | Pioneer Generation Station Unit 4, Unit 5 and Units 31-36 |
| PRECorp | Powder River Energy Corporation, a Class C Member |
| PRM | Planning reserve margin |
| PSCo | Public Service Company of Colorado |
| PURPA | Public Utility Regulatory Policies Act of 1978, as amended |
| RE Act | Rural Electrification Act of 1936 |
| RMR | Rocky Mountain region |
| RMSC | Risk Management Steering Committee of Basin Electric |
| RTO | Regional transmission organization |
| RUS | Rural Utilities Service, which provides funding for the development of rural utilities infrastructure such as water, waste management, power and telecommunications under the U.S. Department of Agriculture |
| S&P | S&P Global Ratings, a division of S&P Global Inc. |
| SEC | United States Securities and Exchange Commission |
| Section 45Q | Section 45Q of the Code, which provides a federal tax credit for carbon oxide (CO₂ and CO) capture and sequestration |
| Securities Act | Securities Act of 1933, as amended |
| SNG | Synthetic Natural Gas |
| SO2 | Sulfur Dioxide |
| SPP | Southwest Power Pool, Inc. |
| Synfuels Plant | Great Plains Synfuels Plant |
| Tri-State | Tri-State Generation & Transmission Association, Inc., a Class A Member |
| UGP | Upper Great Plains |
| Upper Missouri | Upper Missouri G & T Electric Cooperative, Inc., doing business as Upper Missouri Power Cooperative, a Class A Member |
| U.S. | United States of America |
| WAPA | Western Area Power Administration |
| WECC | Western Electricity Coordinating Council, a non-profit corporation that exists to assure a reliable Bulk Electric System in the geographic area known as the Western Interconnection |
| Western Fuels | Western Fuels Association, a non-profit Wyoming corporation founded by us and Tri-State |
| WMPA | Wyoming Municipal Power Agency, a Class A Member |
| WPP | Western Power Pool |

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Wright-Hennepin Wright-Hennepin Cooperative Electric Association, a Class A Member <br> Wyoming Lime Wyoming Lime Producers, a division of Dakota Coal

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**SUMMARY**

*This summary highlights selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that may be important to you. For a more complete understanding of our business and the Exchange Offer, you should read this entire prospectus, including "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>," "<u>[FORWARD-LOOKING STATEMENTS](#i0b5983c249b84b3db1dc97769c25fdb6_1384)</u>," "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u>" and our consolidated financial statements and the notes thereto included herein.*

**Overview**

We were formed under the laws of the State of North Dakota in 1961 as a not-for-profit generation and transmission ("G&T") cooperative corporation. We are based in Bismarck, North Dakota, and are principally engaged in the business of providing wholesale electric services to our members through long-term wholesale power contracts. These electric services generally represent the capacity and energy requirements of our members beyond that available to our members from other sources, primarily the Western Area Power Administration ("WAPA"), an agency of the United States Department of Energy ("DOE") that provides hydroelectric power and transmission services to our members. We are the largest G&T cooperative in the United States in terms of land area served by our members. Our G&T members provide wholesale electric service for 138 rural electric and small municipal electric systems to approximately 3.0 million people in the States of Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming.

We also have two significant wholly owned subsidiaries that operate on a for-profit basis: Dakota Gasification Company ("Dakota Gas"), which owns and operates the Great Plains Synfuels Plant (the "Synfuels Plant"), through which it produces and sells synthetic natural gas and other products of the coal gasification process; and Dakota Coal Company ("Dakota Coal"), which supplies lignite coal to us for fuel at Antelope Valley Station and Leland Olds Station, and to Dakota Gas for use at the Synfuels Plant.

The following diagram depicts our organizational structure as of December 31, 2025. This chart is provided for illustrative purposes only and does not purport to represent all legal entities within our organizational structure:

![summary1a.jpg](summary1a.jpg)

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**Our Members**

We are a membership corporation, and our members are not subsidiaries. Our 138 members are classified into four classes (Class A, B, C and D, respectively) depending upon how they are supplied with our electric services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class A Members consist of ten wholesale G&T cooperatives, eight distribution cooperatives and one wholesale municipal provider that have entered into long-term wholesale power contracts with us (the "Class A Members"). We supply power directly to and receive revenue directly from our Class A Members. Our operating revenue comes primarily from our Class A Members, and for the years ended December 31, 2025 and 2024, our Class A Members contributed approximately 90.5% and 88.1% of our electric sales revenue, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class B Members consist of any municipality or association of municipalities operating within an area served by a Class A Member and which is a member of, and contracts for its electric capacity or energy from, that Class A Member (the "Class B Members"). We currently have one Class B Member. We do not supply power directly to, or receive revenue directly from, our Class B Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class C Members consist of distribution cooperatives and public power districts that are members of our G&T Class A Members (the "Class C Members"). Our Class C Members do not purchase power directly from us, but rather from their respective G&T Class A Members. We currently have 117 Class C Members. We do not supply power directly to, or receive revenue directly from, our Class C Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class D Members consist of electric cooperatives that purchase power directly from us on a basis other than the long-term wholesale power contracts that we have with our Class A Members (the "Class D Members"). We currently have one Class D Member.

The following diagram depicts our membership structure:

![image_1.jpg](image_1.jpg)

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**Wholesale Power Contracts**

We supply our Class A Members, the primary purchasers of our power, through long-term wholesale power contracts. Pursuant to these contracts, we generally sell and deliver to each Class A Member, except Tri-State Generation & Transmission Association, Inc. ("Tri-State"), all of such member's capacity and associated energy requirements in excess of enumerated amounts of capacity and associated energy available to such member from other specified sources, primarily WAPA. Our wholesale power contracts with our Class A Members provide that capacity and associated energy are to be furnished in accordance with the member's normal annual load patterns and that our obligations are limited to the extent to which we have capacity, energy and facilities available. All of our wholesale power contracts with our Class A Members extend through 2075, with the exception of our wholesale power contracts with Tri-State, Minnesota Valley Electric Cooperative ("Minnesota Valley"), Wright-Hennepin Cooperative Electric Association ("Wright-Hennepin") and Wyoming Municipal Power Agency ("WMPA"), which extend through 2050. In 2025, revenues from electric sales to members with wholesale power contracts expiring in 2050 were approximately 10.1% of our total members sales. After maturity in 2050 or 2075, as applicable, these contracts remain in effect until terminated by either party giving the contractually required notice of its intention to terminate. Some of our Class A Members are themselves wholesale cooperatives like us, and with limited exceptions, the wholesale power contracts they have with their members align with or extend beyond the corresponding expiration dates as our contracts with their respective Class A Member. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990406)[—](#i1da15c2f072544dab31d87ca49a182c3_990406)[Wholesale Power Contracts](#i1da15c2f072544dab31d87ca49a182c3_990406)</u>."

**Power Supply and Transmission**

Our power supply resources are comprised of generating facilities that we own, lease or have undivided ownership interests in, and for which we have contractual power purchase agreements. As of December 31, 2025, we operated, directly or indirectly, approximately 5,859 megawatts ("MW") of generating capability in North Dakota, South Dakota, Montana, Iowa, and Wyoming. We currently own or lease interests in eight base load, coal-fired generating units, two oil-fired generating units, twenty-two natural gas-fired combustion turbine generating units, one natural gas-fired combined-cycle generating unit, eighteen natural gas-based reciprocating engines, one dual fuel (natural gas and oil) combustion turbine and 188 wind-powered turbines. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990405)[—Power Supply](#i1da15c2f072544dab31d87ca49a182c3_990405)</u>" and "<u>[PROPERTIES](#i7bb2d2d5f7dc48de884811708a35ea61_85453)[—Generating Facilities](#i7bb2d2d5f7dc48de884811708a35ea61_85453)</u>."

We also have purchase arrangements which supply us with approximately 4,198 MW of power as of December 31, 2025, including 309 MW from our Class A Member, Corn Belt Power Cooperative ("Corn Belt"), and many wind and solar generating facilities.

Our transmission resources are comprised of more than 2,500 miles of owned high-voltage transmission lines as of December 31, 2025, and 220 telecommunication sites. Additionally, we own or maintain equipment in 115 substation locations. Further, we both own and have long-term contractual rights to direct current ties enabling power transfers between the eastern and western interconnections. We are also participants in the Southwest Power Pool ("SPP") and the Midcontinent Independent System Operator ("MISO") regional transmission organizations ("RTOs"). See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990407)[—Transmission](#i1da15c2f072544dab31d87ca49a182c3_990407)</u>."

**Rate Setting**

Each Class A Member is required to pay us for capacity and energy furnished under its wholesale power contract with us in accordance with our established rates. Our wholesale power contracts with our Class A Members provide that our board of directors ("Board") will establish rates to produce revenue sufficient, together with all of our other revenue, to pay the cost of operation and maintenance of all our generation, transmission system and related facilities, the cost of any power and energy purchased for resale by us, the cost of transmission service, the cost of lease payments, interest expense and depreciation expense or principal repayments of ours, and to provide for the establishment and maintenance of reasonable financial reserves. Our Board sets our rates to our Class A and D Members at

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a level intended to achieve and maintain "A" category credit ratings and otherwise to comply with our Indenture covenants and other contractual commitments.

These wholesale power contracts require our Board to review our rates at least annually and to revise such rates as necessary to produce revenue as described above. We provide all Class A Members between 30 and 45 days' written notice of any rate schedule change. Changes to our rate schedule are generally not subject to the approval of the Rural Utilities Service ("RUS"). See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i7cce4c492328466982a0f3afea8b973f_129547)[—Key Factors Affecting Results](#i7cce4c492328466982a0f3afea8b973f_129547)</u>," "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990413)[—Rates and Regulation](#i1da15c2f072544dab31d87ca49a182c3_990413)</u>" and "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990408)[—Transmission](#i1da15c2f072544dab31d87ca49a182c3_990408)[Agreements and Coordination](#i1da15c2f072544dab31d87ca49a182c3_990408)</u>" for a description of the regulation of our rates. See also "<u>[LEGAL PROCEEDINGS](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u>" for a description of existing proceedings relating to our rates to our Class A Members and prior regulation by the Federal Energy Regulatory Commission ("FERC").

**Corporate Information**

Our principal office is located at 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564. Our telephone number is (701) 223-0441. Our website is *www.basinelectric.com*. Information on our website is not a part of this offering memorandum and is not incorporated herein by reference.

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**The Exchange Offer**

On October 14, 2025, we completed the private offering of $700,000,000 aggregate principal amount of 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055. As part of that issuance, we entered into an Exchange and Registration Rights Agreement, dated as of October 14, 2025 (the "Registration Rights Agreement"), with respect to the Original Bonds, with the initial purchasers in the private offering, in which we agreed, among other things, to deliver this prospectus to you and to use our reasonable commercial efforts to complete an exchange offer for the Original Bonds. Below is a summary of the Exchange Offer.

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| | |
|:---|:---|
| **The Exchange Offer**  | We are offering to exchange up to $700,000,000 aggregate principal amount of outstanding Original Bonds for a like principal amount of Exchange Bonds. You may tender Original Bonds only in denominations of $2,000 and any integral multiple of $1,000 in excess of $2,000. We will issue the Exchange Bonds promptly after the expiration of the Exchange Offer. In order to be exchanged, an Original Bond must be validly tendered, not validly withdrawn and accepted by us. Subject to the satisfaction or waiver of the conditions of the Exchange Offer, all Original Bonds that are validly tendered and not validly withdrawn will be accepted by us and exchanged. As of the date of this prospectus, $700,000,000 aggregate principal amount of Original Bonds is outstanding. The Original Bonds were issued under our Amended and Restated Indenture, dated as of May 5, 2015 (as amended and supplemented, the "Indenture"), between Basin Electric and U.S. Bank Trust Company, National Association, as successor-in-interest to U.S. Bank National Association, as trustee (the "Trustee"), as supplemented by the Forty-Second Supplemental Indenture thereto, dated as of September 15, 2025 (the "Forty-Second Supplemental Indenture"). If all outstanding Original Bonds are validly tendered for exchange, there will be $700,000,000 aggregate principal amount of Exchange Bonds outstanding after the Exchange Offer. |
| **Purpose of the Exchange Offer**  | The purpose of the Exchange Offer is to satisfy our obligations under the Registration Rights Agreement. |

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|:---|:---|
| **Expiration Date; Tenders**  | The Exchange Offer will expire at 5:00 p.m., New York City time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026, unless we extend the period of time during which the Exchange Offer is open. In the event of any material change to the Exchange Offer, we will extend the period of time during which the Exchange Offer is open as necessary. By signing or agreeing to be bound by the accompanying letter of transmittal, you will represent, among other things, that:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are not an affiliate of ours or, if you are our affiliate, you will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are acquiring the Exchange Bonds in the ordinary course of your business;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are not participating, do not intend to participate, and have no arrangement or understanding with anyone to participate, in the distribution (within the meaning of the Securities Act) of the Exchange Bonds;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are not a broker-dealer that purchased any of the Original Bonds from us or any of our affiliates for resale pursuant to Rule 144A or any other available exemption under the Securities Act; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if you are a broker-dealer that will receive Exchange Bonds for your own account in exchange for Original Bonds that were acquired by you as a result of market-making activities or other trading activities, you will deliver a prospectus (or to the extent permitted by law, make available a prospectus to purchasers) in connection with any resale of such Exchange Bonds. For further information regarding resales of the Exchange Bonds by broker-dealers, see the discussion under the caption "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>." |
| **Accrued Interest on Original Bonds**  | Any interest that has accrued on an Original Bond before its exchange in the Exchange Offer will be payable on the Exchange Bond on the first interest payment date after the completion of the Exchange Offer. |
| **Conditions to the Exchange Offer**  | Our obligation to accept Original Bonds tendered in the Exchange Offer is subject to the satisfaction of certain customary conditions. See "<u>[THE EXCHANGE OFFER—Conditions to the Exchange Offer](#i6e52320b39b649e1bdfaa36c4140e62f_111509)</u>." |

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|:---|:---|
| **Procedures for Tendering Original Bonds**  | A tendering holder must, prior to 5:00 p.m., New York City time, on the expiration date:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transmit a properly completed and duly executed letter of transmittal, including all other documents required by the letter of transmittal, to the Exchange Agent (as defined herein) at the address listed in this prospectus; or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if Original Bonds are tendered in accordance with the book-entry procedures described in this prospectus, the tendering holder must transmit an agent's message (as defined herein) to the Exchange Agent.<br>See "<u>[THE EXCHANGE OFFER—Procedures for Tendering](#i6e52320b39b649e1bdfaa36c4140e62f_111510)</u>." |
| **Special Procedures for Beneficial Holders**  | If you are a beneficial holder of Original Bonds that are registered in the name of your broker, dealer, commercial bank, trust company or other nominee, and you wish to tender in the Exchange Offer, you should promptly contact the person in whose name your Original Bonds are registered and instruct that nominee to tender on your behalf. See "<u>[THE EXCHANGE OFFER—Procedures for Tendering](#i6e52320b39b649e1bdfaa36c4140e62f_111510)</u>." |
| **Withdrawal Rights**  | Tenders may be withdrawn at any time before 5:00 p.m., New York City time, on the expiration date. See "<u>[THE EXCHANGE OFFER—Withdrawal Rights](#i6e52320b39b649e1bdfaa36c4140e62f_111511)</u>." |
| **Acceptance of Original Bonds and Delivery of Exchange Bonds**  | Subject to the conditions stated in the section entitled "<u>[THE EXCHANGE OFFER—Conditions to the Exchange Offer](#i6e52320b39b649e1bdfaa36c4140e62f_111509)</u>" of this prospectus, we will accept for exchange any Original Bonds that are validly tendered in the Exchange Offer and not validly withdrawn before 5:00 p.m., New York City time, on the expiration date. The corresponding Exchange Bonds will be delivered promptly after the expiration date. See "<u>[THE EXCHANGE OFFER—Terms of the Exchange Offer](#i6e52320b39b649e1bdfaa36c4140e62f_111512)</u>." |
| **Absence of Dissenters' Rights of Appraisal**  | Holders of Original Bonds do not have any dissenters' rights of appraisal with respect to the Exchange Offer. See "<u>[THE EXCHANGE OFFER—Absence of Dissenters' Rights of Appraisal](#i6e52320b39b649e1bdfaa36c4140e62f_111513)</u>." |
| **Certain U.S. Federal Income Tax Considerations**  | An exchange of Original Bonds for Exchange Bonds pursuant to the Exchange Offer generally will not be treated as a taxable exchange for U.S. federal income tax purposes. See "<u>[CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_160)</u>." |
| **Exchange Agent**  | U.S. Bank Trust Company, National Association is serving as the exchange agent (the "Exchange Agent") in connection with the Exchange Offer. The address and telephone number of the Exchange Agent are listed under the heading "<u>[THE EXCHANGE OFFER—Exchange Agent](#i6e52320b39b649e1bdfaa36c4140e62f_111514)</u>." |
| **Use of Proceeds**  | We will not receive any cash proceeds from the issuance of the Exchange Bonds in the Exchange Offer. The Original Bonds surrendered and exchanged for the Exchange Bonds will be retired and canceled. Accordingly, issuance of the Exchange Bonds will not result in any increase in our outstanding indebtedness. |

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| **Resale of Exchange Bonds**  | Based on existing interpretations of the Securities Act by the SEC staff set forth in several no-action letters to third parties and subject to the immediately following sentence, we believe Exchange Bonds issued under this Exchange Offer in exchange for Original Bonds may be offered for resale, resold and otherwise transferred by the holders thereof (other than holders that are broker-dealers) without further compliance with the registration and prospectus delivery provisions of the Securities Act. However, any holder of Original Bonds that is an affiliate of ours that does not comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds, that will not acquire the Exchange Bonds in the ordinary course of its business, or that intends to participate in the Exchange Offer for the purpose of distributing any of the Exchange Bonds, or any broker-dealer that purchased any of the Original Bonds from us or any of our affiliates for resale pursuant to Rule 144A or any other available exemption under the Securities Act, (i) will not be able to rely on the interpretations of the SEC staff set forth in the above-mentioned no-action letters, (ii) will not be entitled to tender its Original Bonds in the Exchange Offer and (iii) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of the Original Bonds unless such sale or transfer is made pursuant to an exemption from such requirements.<br>Any broker-dealer that receives Exchange Bonds for its own account in exchange for Original Bonds that were acquired as a result of market-making activities or other trading activities, must deliver a prospectus (or to the extent permitted by law, make a prospectus available to purchasers) in connection with any resale of such Exchange Bonds. See "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>." |

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| **Consequences of Not Exchanging Original Bonds**  | If you do not exchange your Original Bonds in the Exchange Offer, you will continue to be subject to the restrictions on transfer described in the legends on your Original Bonds. In general, you may offer or sell your Original Bonds only:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if they are registered under the Securities Act and applicable state securities laws;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if they are offered or sold pursuant to an exemption from registration under the Securities Act and applicable state securities laws; or<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if they are offered or sold in a transaction not subject to the Securities Act and applicable state securities laws.<br>Although your Original Bonds will continue to accrue interest, they will generally retain no rights under the Registration Rights Agreement. We currently do not intend to register the Original Bonds under the Securities Act. Under some circumstances, holders of the Original Bonds, including holders that are not permitted to participate in the Exchange Offer or that may not freely sell Exchange Bonds received in the Exchange Offer, may require us to file, and to cause to become effective, a shelf registration statement covering resales of Original Bonds by these holders. For more information regarding the consequences of not tendering your Original Bonds and our obligations to file a shelf registration statement, see "<u>[THE EXCHANGE OFFER—Consequences of Exchanging or Failing to Exchange the Original Bonds](#i6e52320b39b649e1bdfaa36c4140e62f_111515)</u>" and "<u>[THE EXCHANGE OFFER—Registration Rights](#i6e52320b39b649e1bdfaa36c4140e62f_111516)</u>." |
| **Risk Factors**  | See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a discussion of certain factors that you should carefully consider before deciding to participate in the Exchange Offer. |

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**The Exchange Bonds**

*The summary below describes the principal terms of the Exchange Bonds. Certain of the terms and conditions described below are subject to important limitations and exceptions. The "<u>[DESCRIPTION OF THE EXCHANGE BONDS](#i0b5983c249b84b3db1dc97769c25fdb6_37)</u>" section of this prospectus contains a more detailed description of the terms and conditions of the Exchange Bonds. In this summary, "Bonds" refers to both the Original Bonds and the Exchange Bonds.*

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| **Issuer**  | Basin Electric Power Cooperative |
| **Bonds Offered**  | Up to $700,000,000 aggregate principal amount of 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055.<br>The terms of the Exchange Bonds are identical to the terms of the Original Bonds, except that the transfer restrictions, registration rights and additional interest provisions applicable to the Original Bonds do not apply to the Exchange Bonds. |
| **Maturity Date**  | October 15, 2055. |
| **Interest Rate and Payment**  | We will pay interest on the Exchange Bonds at the annual rate of 5.850%, based on a 360-day year of twelve 30-day months, from the last date on which interest was paid on the Original Bonds, payable semi-annually in arrears on April 15 and October 15 of each year. |
| **Form and Denominations**  | The Exchange Bonds will be issued in global form in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. |
| **Ranking and Security for Payment**  | The Exchange Bonds will be secured equally and ratably with all our other Obligations issued under the Indenture by a mortgage lien on substantially all of our owned tangible and certain of our intangible properties, subject to certain exceptions and exclusions as described or referred to herein. As of December 31, 2025, we had approximately $5.0 billion of Obligations outstanding under the Indenture. See "<u>[SUMMARY OF THE INDENTURE](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u>." |
| **Certain Covenants**  | The Indenture obligates us to establish and collect rates for the use or the sale of the output, capacity or service of our system that, together with all other revenue, are sufficient to enable us to comply with all of our covenants under the Indenture. Subject to any necessary regulatory approvals, the Indenture also requires us to establish and collect rates that, together with all other revenue, are reasonably expected to yield an MFI Ratio equal to at least 1.10 for each fiscal year. We were in compliance with the MFI Ratio requirement for 2025. See "<u>[SUMMARY OF THE INDENTURE—Certain Covenants](#i6808b04634ac4a8389016f190701e059_295425)</u>." |
|  | In addition, the Indenture places certain restrictions on our ability to, among other things, make distributions, payments or retirements of patronage capital to our members, create liens or dispose of certain property subject to the lien thereof and engage in consolidations or mergers. See "<u>[SUMMARY OF THE INDENTURE—Certain Covenants](#i6808b04634ac4a8389016f190701e059_295425)</u>." |

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| **Optional Redemption**  | At any time or from time to time before April 15, 2055 (the date that is six months prior to the maturity date of the Exchange Bonds), we may redeem the Exchange Bonds at our option, in whole or in part, at a "make whole" redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• (a) the sum of the present values of the remaining scheduled payments of principal and interest on the Exchange Bonds to be redeemed discounted to the redemption date (assuming the Exchange Bonds to be redeemed matured on April 15, 2055 (the date that is six months prior to the maturity date of the Exchange Bonds)) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in this prospectus) plus 20 basis points less (b) interest accrued on the Exchange Bonds to be redeemed to the date of redemption; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of the principal amount of the Exchange Bonds to be redeemed;<br>plus, in either case, accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.<br>At any time or from time to time on or after April 15, 2055 (the date that is six months prior to the maturity date of the Exchange Bonds), we may redeem the Exchange Bonds at our option, in whole or in part, at a redemption price equal to 100% of the aggregate principal amount of the Exchange Bonds being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.<br>The Exchange Bonds will not be subject to repayment at the option of the holder at any time prior to maturity.<br>See "<u>[DESCRIPTION OF THE EXCHANGE BONDS—Optional Redemption](#ib948861666b14de8bde183fcb47af4ea_22209)</u>." |
| **Absence of an Established Market for the Bonds**  | We do not intend to apply for a listing of the Exchange Bonds on any securities exchange or any automated dealer quotation system. Although certain dealers currently make a market in the Original Bonds, and we expect that such market-making activities will extend to the Exchange Bonds, they are not obligated to do so, and may discontinue market-making activities in the Bonds at any time without notice. Accordingly, we cannot assure you that a liquid market for the Exchange Bonds will develop or be maintained. |
| **Trustee and Registrar**  | U.S. Bank Trust Company, National Association, as successor-in-interest to U.S. Bank National Association. |
| **Risk Factors**  | See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a discussion of certain factors that you should carefully consider before investing in the Exchange Bonds. |

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**SUMMARY CONSOLIDATED FINANCIAL DATA**

The following financial data presents historical information relating to our financial condition and results of operations as of the dates and for the periods presented. Summary financial data as of December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024, and 2023 that are presented below were derived from our audited consolidated financial statements. Prospective investors should read the summary financial data below in conjunction with "<u>[CAPITALIZATION](#i0b5983c249b84b3db1dc97769c25fdb6_19)</u>" and "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u>" in addition to the consolidated financial statements included in this prospectus.

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|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** |
| **Income Statement Data:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating revenue | $3087771 | $2815399 | $2887118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 2867378 | 2639824 | 2577431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 220393 | 175575 | 309687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 203270 | 220239 | 108408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and other charges | 277861 | 264857 | 255703 |
| &nbsp;&nbsp;&nbsp;&nbsp;Margin before income taxes | 145802 | 130957 | 162392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 6530 | (13037) | (6207) |
| Net margin and earnings including noncontrolling interest | 139272 | 143994 | 168599 |
| Net margin and earnings attributable to noncontrolling interest | (23000) | (23215) | (21083) |
| Net margin and earnings attributable to Basin Electric | $116272 | $120779 | $147516 |

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|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
| **Balance Sheet Data:** |  |  |
| Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net property, plant and equipment | $6655619 | $6060620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $9397657 | $8494782 |
| Capitalization and liabilities: |  |  |
| Capitalization: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Memberships | $22 | $22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patronage capital | 1523238 | 1476557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings of subsidiaries | 142776 | 125713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other equity | 294252 | 285113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 13463 | 4806 |
|  | 1973751 | 1892211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | 2676 | 2711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Equity | 1976427 | 1894922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt and finance lease obligations | 4952796 | 4592678 |
| Total capitalization | 6929223 | 6487600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | 1429804 | 997777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred credits and other | 1038630 | 1009405 |
| Total Capitalization and Liabilities | $9397657 | $8494782 |

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**RISK FACTORS**

*Investing in the Exchange Bonds involves risks. The following discussion reflects our beliefs and opinions as to risks and uncertainties that could affect our business, results of operations, financial condition or payments to be made with respect to the Exchange Bonds, or all of the above. This discussion is not exhaustive, should be read in conjunction with all other parts of this prospectus and should not be considered a complete description of all risks that could affect our business, payments on the Exchange Bonds, or both. References to past events are provided by way of example only and are not intended to be a complete listing or a representation as to whether or not such factors have occurred in the past or their likelihood of occurring in the future. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. If any of those risks actually occurs, our business, results of operations or financial condition could suffer. You should analyze carefully the information contained in this prospectus when evaluating whether to participate in the Exchange Offer. The risks discussed below also include forward-looking statements and our actual results may differ substantially from those discussed in these forward-looking statements. See "<u>[FORWARD-LOOKING STATEMENTS](#i0b5983c249b84b3db1dc97769c25fdb6_1384)</u>" in this prospectus.*

**Financial Risks**

***Our results of operations and financial condition are largely dependent upon our Class A Members, and two Class A Members individually account for more than 10% of our total Class A Member revenue.***

Our results of operations and financial condition depend on our Class A Members to satisfy their obligations to us in accordance with our wholesale power contracts with them. Electric sales to our Class A Members provided approximately 90.5% of our 2025 electric sales revenue. Upper Missouri Power Cooperative ("Upper Missouri") and East River Electric Power Cooperative ("East River") accounted for 42.7% and 12.8%, respectively, of our total Class A Member revenue in 2025. If one or more of our Class A Members were to default in the performance of its obligations to us under their wholesale power contract, our results of operations or cash flows could be adversely affected.

Most of our wholesale power contracts with our Class A Members extend beyond the maturity of the Bonds; however, our wholesale power contracts with Tri-State, Minnesota Valley, Wright-Hennepin and WMPA only extend through 2050, prior to maturity of the Bonds. These members represented in the aggregate approximately 10.1% of 2025 Class A Member sales. There cannot be any assurance that our wholesale power contracts with these Class A Members will be extended or replaced prior to the expiration of these contracts. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990406)[—](#i1da15c2f072544dab31d87ca49a182c3_990406)</u>*<u>[Whol](#i1da15c2f072544dab31d87ca49a182c3_990406)[esale Power Contrac](#i1da15c2f072544dab31d87ca49a182c3_990406)[ts](#i1da15c2f072544dab31d87ca49a182c3_990406)</u>*."

Financial difficulties, such as those resulting from challenges in passing through its costs to its customers, could affect a member's ability to perform its obligations under its wholesale power contract with us. Such challenges could arise from the failure of the member's board of directors to establish rates and charges sufficient to recover the member's costs, including power costs owed to us. If our cost of power were to become uncompetitive, large industrial customers of our Class A Members could seek to self-generate their power requirements or customers of the members could seek to cause our members to become subject to state rate regulation. Certain of our members, such as those located in Wyoming, are already subject to rate regulation by state regulatory authorities. New or additional state-level rate regulation of a member could potentially affect its ability to recover costs and meet its obligations to us. We cannot predict if or when any such state-level rate regulation will be implemented in the future in other states within our service territory or what the impact of future state-level rate regulation may be. To date, however, such state-level rate regulation has not prevented affected members from being able to recover their costs.

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***We have a substantial amount of indebtedness and expect to incur significant future capital expenditures. Constraints on our access to, or increases in our cost of, capital could adversely affect our results of operations and financial condition.***

Our substantial existing indebtedness and the significant capital expenditures planned through 2030 to construct, acquire, and make capital improvements to our generation and transmission facilities will require our continued access to the capital markets. As of December 31, 2025, we had total debt outstanding of approximately $5.8 billion. In the years 2026 through 2030, we forecast that we will invest approximately $7.5 billion in capital expenditures for the development and construction of new generation and transmission resources to serve existing and projected load growth and upgrades to our existing facilities. The scope and timing of these investments are subject to numerous uncertainties, including the forecasted electric demand of our members; the availability and cost of available power purchase options; our membership in regional transmission organizations and their applicable tariffs and policies; federal funding; and regulatory approvals and changes in law. For additional information, see the discussion under the caption "Projected Capital Expenditures" in "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u>."

We expect to incur significant indebtedness to fund this capital expenditure program. Failure to obtain financing may adversely affect our results of operations, liquidity and financial condition, and may result in development uncertainties for our generation and transmission business. Although we plan on exploring additional financing of projects from RUS, our ability to receive any such financing could be impacted by the terms set by RUS and, because RUS funding availability is dependent on Congressional appropriation, competition for RUS loans from other electric cooperatives may exceed available funds. In addition, a significant increase in our indebtedness is likely to increase the cost of electric service we provide to our Class A Members due to increasing interest expense as well as our objective to maintain "A" category credit ratings. If demand for electricity from our Class A Members is materially less than projected, we might not generate sufficient revenue to meet the MFI Ratio requirements in the Indenture or to service our indebtedness. If this occurs, we may be required to raise our rates, revise our plans for capital expenditures or restructure our long-term commitments. These actions may adversely affect our operations, and we may be unable to generate sufficient additional revenue to pay our obligations.

We also rely on access to short-term and long-term capital to meet our liquidity needs not funded by operating cash flows. Our access to capital, or cost of, could be adversely affected by various factors, and some market disruptions could constrain, at least temporarily, our ability to maintain sufficient liquidity and access capital on favorable terms, or at all. These factors and disruptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our credit ratings being downgraded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial markets view of our relationship with our members, including the outcome of litigation or regulatory proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges or delays related to rate changes for our Class A Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• some of the wholesale power contracts with our Class A Members only extending through 2050.

Broader economic and market conditions that may affect our access to, or cost of, capital include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical instability, economic downturns or market uncertainty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market pressures, including tightening of lending standards by commercial banks and other credit providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in prevailing interest rates due to changes in U.S. Treasury rates or credit spreads; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions in the energy industry and the generation and transmission cooperative sector.

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Even if we maintain access to the capital markets, capital may only be available on terms and conditions we consider unfavorable, including higher interest rates or more restrictive covenants and conditions to borrowing or events of defaults. If our ability to access capital becomes constrained, our ability to finance capital expenditures could be limited, our interest costs could increase, and our results of operations and financial condition could be adversely affected.

***The financial performance of our subsidiary, Dakota Gas, has a significant impact on our financial results and its future is uncertain. We continue to explore strategic alternatives and some of the alternatives could result in substantial costs or may result in an asset impairment.***

Our consolidated financial results are significantly affected by the performance of Dakota Gas, in which the Gasification operating segment accounted for 16.0% of our consolidated revenue in 2025. As of December 31, 2025, none of our equity represented retained earnings of Dakota Gas and our Gasification segment incurred net losses of $34.8 million and $31.3 million for the years ended December 31, 2025 and 2024, respectively. Historically, we have benefited from synergies with Dakota Gas, including economies of scale resulting from a shared coal supply that lowers our fuel cost and various shared services. Additionally, because Dakota Gas produces and sells natural gas and we purchase natural gas for electric generation, its natural gas sales offset part of the risk associated with our natural gas purchases, creating a natural hedge. Dakota Gas's financial performance remains exposed to significant commodity price volatility, and operating losses and negative cash flows could continue if commodity prices remain low.

We continue to evaluate various strategic options, including a potential sale of the equity or assets of Dakota Gas, in whole or in part. Dakota Gas's principal assets include the Synfuels Plant and pipelines currently used to transport carbon dioxide into Canada. There is no assurance that any transaction will occur. A sale or other strategic action could result in the loss of existing synergies with Dakota Gas. Decommissioning or repurposing the Synfuels Plant could require substantial costs including site reclamation, employee severances and the loss of our above-described synergies with Dakota Gas.

The nature and extent of risks associated with the future of Dakota Gas and its assets cannot be fully predicted and events relating to the Synfuels Plant may affect us in ways that we cannot currently anticipate. Although the value of the coal gasification assets of the Synfuels Plant has been written off, we could incur additional impairment charges related to our remaining non-coal gasification assets investments in Dakota Gas. If an impairment occurs, we expect that we would seek regulatory accounting treatment from RUS to amortize the resulting regulatory asset over a future period. Failure to receive such regulatory accounting treatment could materially adversely affect our results of operations, financial condition and cash flows. See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i7cce4c492328466982a0f3afea8b973f_129588)[—Key Factors Affecting Results—](#i7cce4c492328466982a0f3afea8b973f_129588)</u>*<u>[Future of Dakota Gas](#i7cce4c492328466982a0f3afea8b973f_129588)</u>*."

Any one or a combination of risks associated with Dakota Gas may have a material adverse effect on our results of operations, financial condition and cash flows.

***Changes in commodity prices, including natural gas, coal, purchased power, and fertilizers and other products produced by Dakota Gas, could adversely affect our cost of electric service and Dakota Gas revenue.***

We purchase power and fuel from other suppliers exposing us to market prices of various commodities that could increase our operating expenses. In 2025, natural gas units comprised approximately 20.0% of our maximum winter generating capacity. With the addition of Bison Generating Station, we forecast that in 2031 this amount will increase to approximately 35.0%. Historically, Dakota Gas has provided a natural hedge for us against price fluctuations of natural gas. However, as we add additional natural gas generation, we expect to burn more natural gas annually than what Dakota Gas produces and the value of this natural hedge may decrease. There can be significant volatility in market prices for fuel, power and other energy-related commodities, both in general and across geographies, because of broader supply chain challenges, geopolitical events or conflicts, and commodity availability

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constraints. Natural gas supplies may also be unavailable due to increased demand during periods of exceptionally cold weather and are also subject to disruption due to natural disasters and similar events or infrastructure failure. Further, purchasing electric power in the market exposes us, and consequently our members, to market price risk because electric power prices can fluctuate substantially over short periods of time. Increases in power and fuel prices related to natural gas or coal could significantly increase the cost of electric service we provide to our Class A Members and affect their ability to perform their contractual obligations to us.

Although our hedging activities help reduce some market price risk, Dakota Gas remains exposed to volatile commodity prices which could result in future losses. See also "<u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i0b5983c249b84b3db1dc97769c25fdb6_67)</u>." Additionally, Dakota Gas's products also are exposed to market risks other than pricing, particularly in the agricultural sector. Economic conditions in the agricultural sector directly influence demand for fertilizers, such as anhydrous ammonia, ammonium sulfate and urea, exposing Dakota Gas's revenues to downturns in this sector. Further, most market price risks related to products other than natural gas and tar oil cannot be hedged because no efficient derivative market exists for these commodities. As a result, changes in natural gas, fertilizer, and other commodity prices could adversely affect our results of operations and financial condition.

***Market or regulatory pressures may cause us to retire our coal-fired generating facilities earlier than the units' depreciable lives, which could result in substantial additional costs.***

As of December 31, 2025, our coal-fired electric generation facilities totaled approximately $2.0 billion of our net assets. We own, lease and operate coal-fired generating facilities with 3,665 MW of capacity as of December 31, 2025. Early retirement of these facilities could lead to substantial expenses, including accelerated depreciation, increased purchased power and capacity costs, or significant capital investments to replace lost capacity or repurpose existing facilities. Early retirement of these facilities could also create stranded assets unless we obtain regulatory accounting treatment approval from RUS to establish a regulatory asset to recover related costs over time. Without such approval, we could face substantial impairments to our members' patronage capital and other equities. Even with regulatory accounting treatment, amortization of these costs may require rate increases that could reduce the competitiveness of our service.

Early retirement would also accelerate reclamation and mine-related obligations, increasing both the timing and total amount of these costs. In addition, we could incur severance obligations for employees at the facilities and associated mines, as well as significant termination charges under take-or-pay transportation contracts.

***Our costs for future capital expenditures may be adversely affected by unanticipated higher levels of inflation, increasing labor costs and shortages, implementation of tariffs, and other supply chain disruptions.***

Our ability to meet our Class A Members' electric power requirements and complete our capital projects is dependent on maintaining an efficient supply chain and controlling our costs, including labor, material and financing costs. We are experiencing longer lead-times on the procurement and delivery of some materials and equipment, which have been impacted by domestic and global supply chain disruptions. Additionally, inflation has contributed to lingering high prices for materials and equipment and increases in labor costs to retain sufficient labor resources. Imposed and proposed tariffs could significantly increase the prices and delivery lead times on materials and equipment critical to completing our capital projects.

***We are exposed to the credit and liquidity risk of and with counterparties beyond our Class A Members.***

In addition to our Class A Members, we are exposed to the risk that contractual counterparties will default in the performance of their obligations to us. We regularly analyze and monitor the default risks of counterparties and other credit issues related to our material contracts. Based on our review, we may

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require counterparties to post credit support. Still, defaults may occur. Defaults may take the form of failure to physically deliver purchased goods or supplies, such as power or natural gas. If a default occurs, we may be forced to enter into alternate contractual arrangements at prices that may be less favorable than those in the original contracts. If a defaulting counterparty is in poor financial condition, we may not be able to recover damages for breach of contract.

Dakota Gas also has exposure to the credit risk of its counterparties. Several byproducts produced at the Synfuels Plant have a small number of potential purchasers. Evaluation of these purchasers' respective credit quality is impaired by the limited availability of independent financial information and analysis for these entities. A contractual counterparty may fail to perform its obligations to Dakota Gas, which could adversely affect our consolidated results of operations, financial condition or cash flows.

Additionally, certain of our financial agreements and commercial contracts include collateral and termination triggers that may be active if credit metrics fall below specified levels and may require posting of collateral (in the form of letters of credit, surety bonds or cash) or termination of the agreements, which could adversely affect our results of operations, financial condition, or cash flows, as well as our ability to enter into future financial agreements and commercial contracts.

***The use of hedging arrangements may not work as planned or fully protect us and could result in financial losses and requirements to post collateral.***

We typically enter into hedging arrangements, including contracts to purchase or sell commodities at future dates and at fixed prices, in order to manage our commodity price risks. These activities, although intended to mitigate price volatility, expose us to risks related to commodity price movements and other risks. When we purchase or sell commodities forward, we may be required to post significant amounts of cash collateral or other credit support to our counterparties if forward prices move unfavorably to our position. Further, if forward price curves move unfavorably to our position the values of financial contracts may deteriorate and could result in adverse effects to our results of operations, financial condition, or cash flows. We also employ risk management techniques to hedge against interest rate volatility. However, significant and sustained volatility in market interest rates could still materially increase our financing costs and adversely affect our results of operations, cash flows and liquidity.

We maintain internal policies and procedures intended to govern hedging activities, including limits on positions and a prohibition on speculative trading. While these policies and procedures are designed to prevent hedging arrangements in excess of desired limits or unauthorized hedging transactions, they may not detect all violations, particularly in instances involving intentional misconduct or deception. Any failure of our risk-management controls or processes could result in unintended positions, financial losses, or other adverse effects on our results of operations, financial condition, or cash flows.

***The scope or amount of our insurance coverage may be insufficient.***

We maintain a comprehensive insurance and self-insurance program to provide coverage for various types of risks, including severe weather or other natural disasters, wildfires, property damage, war, terrorism, cyber incidents, liability claims against us, or a combination of other significant unforeseen events that could affect our operations. However, insurance coverage may not continue to be available or may not be available at rates or on terms similar to those presently available to us. Our ability to obtain insurance and the terms of any available insurance coverage could be adversely affected by the financial condition of insurers, industry losses, the impacts of actual or perceived climate-related events, as well as international, national, state, local or business-specific events. There may be some instances in which we are not fully insured against all significant losses. A loss for which we are not fully insured could have an adverse effect on our business, results of operations, financial condition and prospects. If the amount of insurance is insufficient or otherwise unavailable, the costs of uninsured losses, our results of operations, financial condition or cash flows could be adversely affected.

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**Operating Risks**

***Factors outside our control could disrupt our power supply plans.***

We are focused on reliably and economically meeting our members' requirements for electric power. We continually evaluate and refine our power supply strategy to achieve this objective in a manner that balances the forecasted cost of power to our members, our ability to provide reliable service and our impact on the environment. Based on our strategy, we develop and construct new generation and transmission facilities and enter into long-term and short-term power purchase agreements. In developing and implementing our strategy, we are guided by our forecasts of future market conditions and our assessment of the likelihood of the occurrence of various contingencies. Some of these contingencies include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future market prices for natural gas and electricity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current and future transmission constraints and changes in the location of load impacting the ability to deliver electricity to desired locations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trends in the rate of installation of renewable energy resources, such as wind-powered generation facilities and energy storage, in the service territories of our members and neighboring regions.

As with any forecast, our ability to accurately predict or anticipate future events becomes less reliable the farther into the future the forecast extends. We must make assumptions to develop our plans for the future. These assumptions include economic forecasts, cost estimates, construction schedules, power demand forecasts, reliability and reserve margin requirements, the appropriate generation mix to meet demand and potential changes to the regulatory environment. Should our assumptions be inaccurate, or be superseded by subsequent events, or unexpected contingencies occur, our plans may not be effective in achieving the intended results, which could adversely affect our results of operations, financial condition or cash flows, our ability to meet electricity demand, or the way we conduct our business.

Our ability to successfully develop and execute our power supply strategy for our members is complicated by the need to serve load in both the Eastern Interconnection and the Western Interconnection of the United States and the need to balance our members' requirements in several transmission systems. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990407)[—Transmission](#i1da15c2f072544dab31d87ca49a182c3_990407)</u>." For example, a surplus of generating capacity located in MISO may not easily be used to meet additional load in SPP. A surplus of transmission capacity may also exist in one system, while transmission constraints requiring significant investment may exist in another system. Consequently, even if our power supply portfolio includes the right mix of resources, those resources may not be optimally located for efficient use as the grid continually evolves.

***Failure of our facilities to operate as we plan could have an adverse effect on our results of operations or financial condition.***

The operation of our generation or transmission facilities involves risks, including the breakdown or failure of power generation equipment, transmission lines, pipes or other equipment or processes and performance below expected levels of output or efficiency. The occurrence of any such events could result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss of market sale opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant expenditures to repair or replace the affected facilities or related infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to maintain the integrity or reliability of our transmission system; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increases in purchased power.

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In the Eastern energy markets of SPP and MISO, failure of our facilities to operate as planned could also result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss of capacity accreditation, requiring the purchase of additional market capacity and potentially resulting in deficiency payments under applicable market rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increase in market pricing, if the unit in outage is the marginal unit or affects the pricing of the marginal unit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increase in market pricing if a transmission outage or changes in load or generation resources drives an increase in congestion costs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial implications of not providing MWhs to the market, if a unit has committed MWhs in the day-ahead market and cannot provide that energy in real time.

In Western markets of the Western Electricity Coordinating Council ("WECC"), failure of our facilities to operate as planned could result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The need to operate alternative facilities for an extended period of time, likely at a greater cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A default on a contractual obligation to deliver power; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The purchase of potentially more costly replacement energy and capacity power in the market.

In addition, the failure of our generation, transmission or other facilities to perform as planned may cause health, safety or environmental problems. Our ability to safely and reliably operate, maintain and construct our facilities is subject to numerous risks, many of which are beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The failure to take timely or adequate action to mitigate identified unsafe conditions, resulting in a catastrophic event; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operator or other human error.

If one or more of these events materialized, our results of operations, financial condition, or cash flows could be adversely affected.

***We are subject to construction risks for additional projects we are undertaking to meet projected load growth.***

In 2026 through 2030, we expect to spend approximately $7.5 billion on additional capital expenditures on a consolidated basis. Our capital plan includes construction of new generation resources and a number of new transmission lines and facilities. See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#id62e06afdfbf4813aa0a5fcb49a53068_199920)[—](#id62e06afdfbf4813aa0a5fcb49a53068_199920)[Liquidity and Capital Resources](#id62e06afdfbf4813aa0a5fcb49a53068_199920)[—](#id62e06afdfbf4813aa0a5fcb49a53068_199920)</u>*<u>[Projected Capital Expenditures](#id62e06afdfbf4813aa0a5fcb49a53068_199920)</u>*" for a description of our capital plan for additional electric generation and transmission facilities and capital for enhancement of existing facilities.

Our development and construction of new generation and transmission resources is subject to construction risk. We will also be subject to construction risks for capital projects to comply with current or future environmental standards. Many factors could lead to cost increases, cost overruns, and schedule delays for any of these projects, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges related to the failure of contractors, subcontractors, or vendors to perform their obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timing and issuance of necessary permits, licenses, or approvals (including required certificates from regulatory agencies) and any related litigation or stakeholder opposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen engineering problems or scope changes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance under construction and equipment agreements and contract disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental litigation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental, cultural, geological, and weather conditions.

Construction-related inflation, labor availability, supply chain disruptions, and tariff impacts may also contribute to project cost or schedule risk as discussed elsewhere in this "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" section. Failure to complete any construction project on schedule and on budget for any reason could have an adverse effect on our results of operations.

***Our members' requirements are impacted by matters outside our control, including the power requirements in the Bakken shale formation and the operation of data centers.***

In addition to the structure and nature of our power supply resources, our members' requirements for power can significantly impact our results of operations, financial condition and cash flows. We currently forecast that our members' peak demand requirements supplied by us will increase at an average annual compound rate of 2.5% for the period from 2026 through 2031, exclusive of large loads. Our forecasts of our members' requirements and their actual future requirements may vary significantly. If we overestimate the growth in our members' requirements, there is no assurance that the price of surplus capacity or energy from surplus power supply resources will be economical or could be sold without a loss. In addition, costs related to any new facilities constructed to meet the anticipated load growth could increase some of these members' cost of electric service more than anticipated and could affect their ability to perform their contractual obligations to us. If we underestimate the growth in our members' requirements, we may be required to purchase capacity or energy at a cost substantially above the cost we would have incurred to obtain the power or generate the energy from facilities we own.

Several factors could influence the actual rate of growth of our members' requirements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The power requirements of our members serving commercial and industrial loads, including the Bakken shale formation and the operation of data centers to meet the increased demand for artificial intelligence ("AI") resources as described below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agricultural commodity price fluctuations and possible diseases that cause disruption in the food supply chain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatile pricing in the crypto currency markets that results in loads being curtailed or ramped up unexpectedly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The impact of extended periods of unusual or extreme weather on power requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in trends "behind the meter," such as growth in the use of distributed solar generation equipment and energy storage that reduce energy purchases from our members and thus us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Implementation of energy conservation and demand response programs that reduce peak demand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Macroeconomic conditions in the members' service territories, including population or economic changes.

Currently, one of the largest factors affecting the rate of growth of our members' power requirements is economic activity related to oil and natural gas production in the Bakken shale formation in western North Dakota and eastern Montana. While the rate of growth of power requirements associated with oil production in the Bakken has moderated in recent years, growth still continues. Many factors impact oil and natural gas production in this region. One factor is the volatility of crude oil and natural gas prices. A significant decline in the price of crude oil and natural gas could impact the development of this region.

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Therefore, the estimates as to the production volumes in the region could be too high and, as a result, our members' requirements for power could be impacted.

Due to the depth of the oil and natural gas, production from this formation requires fracking to separate the oil from the rock formation. To the extent that production of oil and natural gas by hydraulic fracking becomes more regulated by state or federal governments, production could be restricted or become more expensive, thereby impacting our Class A Members' load growth. Over the past decade, there has been an increase in the number of regulations and restrictions on the production of oil and natural gas through hydraulic fracking, including several states banning the practice entirely. Currently, the majority of the oil and natural gas recovered in our Class A Members' service territories are recovered utilizing hydraulic fracking. While we do not currently anticipate any regulations, restrictions or bans on fracking in the areas in which we operate, any regulation, restriction or ban by federal, state or local governments on fracking in those areas could adversely affect our results of operations, financial condition or cash flows and the way we operate our business.

***Substantially large loads considered for development in the service territories of our Class A Members could significantly impact our Class A Members' requirements for power and our results of operations.***

We are projected to experience significant load growth over the next several years resulting from traditional load growth and the development of several large commercial projects, including AI resources, data centers and cryptocurrency mining. Our members have received requests to commit to provide thousands of megawatts of baseload energy to new large loads. Both the number and size of these large load requests that are being considered for development and construction in the service territories of our members are increasing and expected to further increase substantially with the growth of AI and other factors, thereby potentially materially increasing the aggregate power requirements of our members. The volume of these large load requests and uncertainty related to these requests create risks.

To the extent that any of our members serve large data centers, serving this additional load growth may put pressure on our existing generation and transmission infrastructure and will require significant investments to meet the anticipated load growth and they will be subject to increased counterparty risk to customers that may consume a disproportionate percentage of their sales. Changes in technology could impact the development and continued resource needs of data centers and any significant decrease in those needs could affect the counterparty's willingness or ability to pay for large amounts of electricity. Cryptocurrency data mining centers' energy demands are particularly unpredictable as they may be affected by federal or state regulatory actions and are highly incentivized to operate in regions with relatively low energy prices and are able to shut down and relocate relatively easily. The potential volatility in energy demands from our Class A Members from these operations can exacerbate the challenges in determining our long-term power supply requirements and potentially adversely impact our financial results.

To meet the obligation to serve these large loads, insulate our existing membership from rate pressure associated with new generation and transmission requirements, increased fuel costs, and higher Locational Marginal Pricing ("LMP"), and to protect our balance sheet from stranded asset risk, we adopted a Large Load Commercial Program in 2025. Under this program, new loads meeting the requirements to be considered a "large load" will be billed under a rate structure that includes a market pass-through component and will be required to contribute a substantial portion of the capital required to build or acquire the assets necessary to serve their load. There is no guarantee that this program will fully insulate us from the risks associated with these large loads.

We cannot predict whether the large loads under consideration and for which we are planning will ever commence operations, the size and duration of the power requirements of those that do become operational, and whether they will seek to be served by a power supplier other than our members. For these and other reasons, there can be no assurance that these developments will not have an adverse effect on our business, results of operations, financial condition or cash flows.

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***If we are unable to obtain an adequate supply of fuel, our ability to operate our facilities could be limited.***

We obtain our natural gas and coal from multiple suppliers. Any disruptions in our fuel supplies, could result in us having insufficient levels of fuel supplies. Natural gas and coal markets have experienced supply chain and availability constraints in recent years. Natural gas supplies may be limited during periods of seasonal demands and are also subject to disruption due to natural disasters and similar events or infrastructure failures. Any failure to maintain access to or an adequate inventory of fuel supplies could require us to operate other generating plants at a higher cost or require us to purchase higher-cost energy from other sources and, as a result, have an adverse effect on our results of operations, financial performance, or cash flows.

***Our service reliability could be affected by problems at other utilities or by the increase in intermittent sources of power.***

We are a transmission-owning member of SPP, a regional transmission organization. Some of our Class A Members also are transmission-owning members of SPP. In addition, some of our Class A Members service areas are within MISO and the WECC. SPP coordinates, controls and monitors the bulk electric system and wholesale power market in the central United States on behalf of a diverse group of utilities and transmission companies in fourteen states. Our transmission facilities are directly interconnected with the transmission facilities of neighboring utilities and are thus part of the larger bulk electric transmission system. Generation and transmission assets are the cornerstone of bulk electric system reliability. Accordingly, problems or outages at other utilities may increase costs, interrupt service to our members, or reduce service reliability. In addition, the increasing contribution of intermittent sources of power, such as wind and solar, may place significant strain on the entire bulk electric system, particularly if investment, operations, and maintenance of firm dispatchable generation units (*e.g.*, coal or natural gas-fired generation facilities) sources are uneconomic. Greater curtailment or cycling of firm dispatchable generation may increase the wear-and-tear on these facilities and consequently increases the potential for breakdown of the facilities. If we suffer a service interruption, or the bulk electric system generally has reduced service reliability, our results of operations, financial condition, cash flows, or reputation may be adversely affected.

***Wildfires and other catastrophic events could adversely affect our financial condition and results of operations.***

We are exposed to the risk of wildfires and other catastrophic events that could result in substantial losses, operational disruptions, and significant financial impacts. We own over 2,500 miles of transmission lines as of December 31, 2025, including transmission lines that cross through certain wildfire-prone areas, such as forest areas and grasslands. Climate-related factors may worsen hot and dry summer conditions, which could increase the likelihood and magnitude of damages caused by fires burning or allegedly originating from our equipment. If a wildfire alleged to have involved our transmission facilities, or alleged to have resulted from our or our contractors' operating or maintenance practices, were to occur, we could be exposed to claims for property damage, costs of fire-fighting, evacuation, and clean-up activities, personal injury or loss of life, environmental pollution and other costs, for which liability could be substantial and in excess of our insurance coverage. We may also be subject to credit ratings downgrades, unfavorable media coverage, fines and penalties, or other negative consequences which may impact our financial condition and future plans. Any such liability could adversely affect us and our results of operations, financial condition, or cash flows.

In addition to wildfires, our operations may be affected by other catastrophic events, including tornadoes, floods, droughts, mechanical failures, and intentional acts such as terrorism. The frequency and severity of these events are unpredictable and may increase as a result of climate-related factors. Such events may damage critical infrastructure, disrupt our ability to generate or transmit electricity, impair fuel delivery and supply chains, or reduce our members' electricity requirements for an extended period. Restoration of damaged facilities may require substantial capital expenditures for repairs,

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replacements, or modifications. Any resulting operational disruptions or financial impacts could be significant and could adversely affect our results of operations, financial condition, or cash flows.

***We are subject to operational and market risks associated with participation in RTOs, including SPP and MISO.***

Our operations within RTOs, including SPP and MISO, expose us to a variety of operational, regulatory, and market risks that could adversely affect our financial condition and results of operations. Both SPP and MISO have recently revised their planning reserve margin ("PRM") requirements in response to increasing reliability concerns. In 2025, MISO reduced its PRM target from 9.0% to 7.9% for the 2025/2026 planning year, yet still experienced a 43% drop in surplus capacity compared to the prior year. This tightening of capacity positions, combined with the retirement of dispatchable generation and delays in new resource development, has led to significantly higher prices for capacity that we must purchase or have available. Similarly, SPP has approved and implemented an increase in its PRM from 15% to 16% for the summer season beginning in 2026, and has implemented a 36% PRM for the winter season starting in 2026/2027. These changes reflect the growing risk of winter reliability events, as recent studies show that the majority of annual loss-of-load risk is now concentrated in the winter months. As of April 1, 2026, we have transitioned portions of our western load and generation into a regional transmission organization and new balancing authorities, including SPP RTO West and the Black Hills and Public Service Company of Colorado ("PSCo") balancing authorities. We also plan to further transition portions of our operations into additional organized wholesale markets during 2026, which could expose us to additional operational, regulatory, or market risks. These evolving market and reliability requirements may increase our cost of compliance, could limit our ability to take planned outages, and may require additional investment in capacity resources. Moreover, the variability of renewable generation, fuel supply constraints, and extreme weather events further complicate our ability to meet these requirements reliably. Failure to effectively manage these risks could adversely affect our results of operations, financial condition, or cash flows.

***Failure to maintain a skilled workforce could adversely affect our operations.***

Together with our subsidiaries, we require skilled executive officers as well as professional and technical employees to operate and maintain our generation, transmission and other facilities, such as the Synfuels Plant. Competition for qualified employees and broader labor shortages have made it more difficult to attract necessary personnel. Our failure to attract and retain the appropriate workforce talent required for the most efficient operation of our facilities and business could limit our ability to maximize our enterprise value.

A significant portion of our employees is covered by collective bargaining agreements with expiration dates ranging from 2026 through 2028. One collective bargaining agreement, representing employees at two generating stations, expired in 2024. This agreement is currently in arbitration, and we have not yet reached agreement on renewal. Failure to reach satisfactory agreements with these labor unions, or any resulting strikes, work stoppages, or other labor disruptions, could adversely impact our operations, financial condition, or results of operations. The terms of future collective bargaining agreements may also increase labor costs or limit our operational flexibility.

**Legal and Regulatory Risks**

***We are involved in disputes and legal proceedings that, if determined unfavorably to us, could have an adverse effect on our results of operations, financial condition, or cash flows.***

We are involved in several disputes and legal proceedings that, if determined unfavorably to us, could have a material adverse effect upon our business. See "<u>[L](#i0b5983c249b84b3db1dc97769c25fdb6_25)[EGAL](#i0b5983c249b84b3db1dc97769c25fdb6_25)[PROCEEDINGS](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u>." Any such disputes or legal proceedings, whether with or without merit, could be expensive and time consuming, could divert the attention of our management and, if resolved adversely to us, could harm our reputation and increase our costs or reduce our revenues, all of which could have a material adverse effect on our financial results.

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Further, any adverse result to us with respect to our current disputes or legal proceedings could result in more litigation, further exacerbating the adverse consequences noted above.

***Our business is the focus of extensive existing and proposed statutory and regulatory restrictions intended to limit the impact of our operations on the environment. These restrictions will impact our operations in ways we cannot fully predict and could have an adverse effect on our financial results.***

We are required to comply with numerous federal, state and local laws relating to the protection of the environment. These laws include restrictions on air emissions, water discharges and the use, management and disposal of hazardous and solid wastes. We expect to spend substantial amounts on capital expenditures to comply with environmental laws, including for the installation, maintenance and operation of pollution control equipment, monitoring systems and other related equipment and facilities to comply with these laws.

Our ability to plan for and meet applicable environmental requirements is challenged due to new legislation, rulemaking, executive orders, and judicial interpretations with respect to environmental laws. The outcomes and effects of the United States Environmental Protection Agency's ("EPA") and other agencies' rulemakings, and of litigation, executive orders, and other governmental actions, cannot be predicted. Environmental regulations and orders sometimes are appealed or otherwise litigated in the courts for several years. Sometimes regulations or orders are vacated or stayed. Implementation of these contested laws, regulations, or proposals can be delayed. In addition, there may be attempts to repeal or amend final regulations that have survived legal challenges and become effective. These modifications then may restart the cycle of legal challenges to the new laws.

Our compliance with existing and proposed environmental laws is further complicated by the scope of our operations. We operate generation facilities in four different states. EPA and state environmental agencies often implement environmental laws and regulations in a manner designed to meet compliance targets within a particular state. As a result, existing and future environmental laws may cause us to undertake relatively higher cost measures to comply with laws in one state jurisdiction than those that would be applicable or acceptable in another state. The differential in cost between these compliance measures could be substantial, including as a result of substantial additional capital expenditures to install new pollution control facilities or the permanent closure of one or more units of one or more existing coal-fired or gas-fired generation facilities.

The lack of certainty regarding potential future environmental requirements exists even though we must make decisions in the near term to plan for compliance with our assessment of likely future requirements. For example, capital expenditures in pollution control equipment for a given facility to achieve compliance must incorporate our assessment of the impact of all other known or anticipated environmental laws with respect to the operation of the same facility. The resulting costs to comply with all applicable environmental requirements, as they may change from time to time, may have an adverse effect on our results of operations, financial condition and cash flows. For additional information regarding certain environmental regulations to which our business is subject, see "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990409)[—Environmental Regulation](#i1da15c2f072544dab31d87ca49a182c3_990409)</u>."

**Other Risks**

***Cybersecurity incidents or failures of our information systems could disrupt our operations, compromise sensitive information, and adversely affect our financial condition and reputation.***

We operate in a highly regulated industry requiring the continued operation of advanced information systems, operational technology ("OT"), and network infrastructure. We rely on private and third-party communication infrastructure and computing information systems, and other technology, including hosted servers and internet, to support a variety of business processes and activities. We use information systems to process financial information and operational data for internal reporting purposes and to comply with regulatory financial reporting, legal, tax, and operational requirements. Deliberate or

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unintentional cyber incidents could directly or indirectly impact our owned and co-owned generation and transmission assets and OT systems. An incident involving our information technology or OT systems could also impact our ability to complete critical business or operational functions and inhibit our ability to effectively maintain certain financial reporting internal controls. In addition to our OT systems, our business and facilities may be impacted by physical or cyber attacks on the business or facilities of others. Any of these types of events could adversely affect our results of operations, financial performance, or cash flows.

In addition, such incidents could result in unauthorized disclosure of material confidential information, including personally identifiable information or sensitive business information. These events could also impair our ability to raise capital by contributing to financial instability and reduced economic activity. To reduce the likelihood and severity of a cyber incident, we employ procedural and technical controls to help protect and preserve the confidentiality, integrity and availability of data and systems. Despite these protections, a major cyber incident could result in significant business disruptions, compromised or improper disclosure of data, safety risks and significant expense to repair security breaches or replace damaged systems, and could lead to litigation, regulatory action, including penalties or fines, and adverse effects to our results of operations, financial condition and reputation. As cybercriminals become more sophisticated, the cost of proactive defensive measures may increase. We are also subject to mandatory and enforceable North American Electric Reliability Corporation ("NERC") reliability standards to protect against security risks to the reliable operation of the bulk power system. The consequences of failure to comply with these standards can result in fines and other penalties.

***We may be subject to physical attacks*, threats, or other interference*.***

As operators of energy infrastructure, we face a heightened risk of physical attacks, or threats of such attacks, on our electric systems. Our generation and transmission assets and systems are geographically dispersed and are often in rural or sparsely populated areas which make it difficult to adequately detect, defend from, and respond to such attacks and effectively deter and prevent such attacks. Recent physical attacks on us and other electric utilities in the U.S. and the coverage of such attacks by the media may have increased this risk and the risk of copycat attacks. If a significant physical attack occurred, it could disrupt our operations, damage our property, pose health and safety risks, have an adverse impact on our revenues, cause us to incur response costs, and result in other financial losses. It could also cause us to be subject to increased regulation or litigation, and cause damage to our reputation, any of which could have an adverse effect on our business and results of operations.

***New technologies and improvements in existing technologies related to the generation, storage and use of electricity may materially change the operation of our business in ways we cannot predict.***

Technological developments are affecting many aspects of the business of providing electric services. These developments include the improvement in the efficiency of electricity generation from non-conventional sources, the reduction of energy usage and the development of improved modes of energy storage. In recent years, the technologies for wind and solar-powered generation facilities have become more efficient and less expensive. Continued advances in these technologies may reduce the cost of power generated to a level that is competitive with conventional technologies, such as coal-fired or natural gas-fired generation facilities. In addition, new technologies related to fuel cells and other energy storage could significantly impact the overall demand for electricity, especially when coupled with distributed generation. While we cannot predict the exact nature of how these technological changes will affect our financial results, this trend could adversely affect our members' demand for electricity, the dispatch of our facilities and, ultimately, our results of operations, financial condition, or cash flows. This adverse effect could be further exacerbated if state or federal governments require (or enhance existing requirements) that a specified percentage of the electricity we sell comes from renewable resources if such renewable technologies are not commercially viable compared to conventional technologies.

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***Accidents involving Dakota Gas products could cause severe damage to people or property.***

As a producer and seller of synthetic natural gas and other byproducts and coproducts of the coal gasification process, including phenol, anhydrous ammonia, ammonium sulfate, carbon dioxide, crude cresylic acid, krypton and xenon gases, liquid nitrogen, naphtha, tar oil, urea and diesel exhaust fluid ("DEF"), Dakota Gas's operations and the producing and handling of these chemical substances involves significant risks and hazards. Accidents involving chemical substances could result in fires, explosions, pollution or other serious circumstances, which could cause severe damage or injury to persons (employees or otherwise), property or the environment, as well as disrupt our business. Any damage to persons, equipment or property or other disruption to Dakota Gas's ability to produce or distribute its products could adversely impact our cash flows, results of operations and financial condition and result in significant additional costs to replace or repair our assets.

***We could be subject to litigation and recapture of tax credits if carbon oxides we have sequestered are released into the atmosphere.***

In February 2024, Dakota Gas concurrently placed into service a geologic sequestration project at the Synfuels Plant and entered into a variety of contractual agreements with an investor to monetize tax credits related to the geologic sequestration of carbon oxides under Section 45Q ("Section 45Q") of the Internal Revenue Code of 1986, as amended (the "Code"). The tax credits are available for up to twelve years from the time the project reached commercial operation. A variety of factors could result in Dakota Gas not receiving the anticipated benefits of the transaction. A change in the Code or the Internal Revenue Service's interpretation of tax laws could adversely affect or eliminate the benefit of Section 45Q. As part of the transaction with the investor, Dakota Gas has an obligation to manage the carbon sequestration process and is responsible for the ongoing monitoring of sequestered carbon oxides. We provide a guaranty for Dakota Gas's payment obligations to the investor. If Dakota Gas or any of its contractors failed to perform their respective obligations, Dakota Gas could be liable to the investor for substantial amounts, including for costs incurred to third parties as a result of the failure. For example, the Internal Revenue Service could disallow claimed tax credits for failure to properly sequester the carbon oxides. Any such failure and any resulting payment obligations on our part could adversely affect our results of operations, financial condition, or cash flows.

**Risks Relating to the Exchange Offer and the Bonds** 

***If you do not exchange your Original Bonds in the Exchange Offer, they will continue to be subject to restrictions on transfer and may be difficult to resell.***

It may be difficult for you to sell Original Bonds that are not exchanged in the Exchange Offer, because any Original Bonds not exchanged will remain subject to the restrictions on transfer applicable to the Original Bonds. These restrictions on transfer arise because we issued the Original Bonds pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. Generally, Original Bonds that are not exchanged for Exchange Bonds pursuant to the Exchange Offer will remain restricted securities and may not be offered or sold, unless registered under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the Securities Act and applicable state securities laws. Other than in connection with this Exchange Offer, we do not intend to register the Original Bonds under the Securities Act.

To the extent any Original Bonds are tendered and accepted in the Exchange Offer, the trading market, if any, for the Original Bonds that remain outstanding after the completion of the Exchange Offer may be significantly more limited. We cannot assure you of the liquidity, or even the continuation, of the trading market for the Original Bonds following the Exchange Offer.

Original Bonds not exchanged in the Exchange Offer will remain outstanding and will mature on their maturity date. The terms and conditions governing the Original Bonds will remain unchanged. For further information regarding the consequences of not tendering your Original Bonds in the Exchange Offer, see the discussions below under the captions "<u>[THE EXCHANGE OFFER—Consequences of Exchanging or](#i6e52320b39b649e1bdfaa36c4140e62f_111515)</u>

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<u>[Failing to Exchange the Original Bonds](#i6e52320b39b649e1bdfaa36c4140e62f_111515)</u>" and "<u>[CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_160)</u>."

***You must comply with the procedures of the Exchange Offer in order to receive Exchange Bonds.***

Delivery of Exchange Bonds in exchange for Original Bonds tendered and accepted for exchange pursuant to the Exchange Offer will be made only after timely receipt by the Exchange Agent of book-entry transfer of Original Bonds into the Exchange Agent's account at DTC, as depositary, including an agent's message (as defined herein), if the tendering holder does not deliver a letter of transmittal and any other required documents. Holders should allow sufficient time to ensure timely delivery of any necessary documents. If the exchange procedures are not strictly complied with, the letter of transmittal or the agent's message, as the case may be, may be rejected. We are not required to notify you of defects or irregularities in tenders of Original Bonds for exchange. Original Bonds that are not tendered or that are tendered but we do not accept for exchange will, following consummation of the Exchange Offer, continue to be subject to the existing transfer restrictions under the Securities Act and, upon consummation of the Exchange Offer, will no longer have the registration and other rights under the Registration Rights Agreement. See "<u>[THE EXCHANGE OFFER—Procedures for Tendering](#i6e52320b39b649e1bdfaa36c4140e62f_111510)</u>" and "<u>[THE EXCHANGE OFFER—Consequences of Exchanging or Failing to Exchange the Original Bonds](#i6e52320b39b649e1bdfaa36c4140e62f_111515)</u>."

Some holders who exchange their Original Bonds may be deemed to be underwriters, and these holders will be required to comply with the registration and prospectus delivery requirements in connection with any resale transaction. If you exchange your Original Bonds in the Exchange Offer for the purpose of participating in a distribution of the Exchange Bonds, you may be deemed to have received restricted securities and, if so, will be required to comply with the registration and prospectus delivery requirements of the Securities Act in connection with any resale transaction.

***An active trading market for the Exchange Bonds may not be sustained.***

We have not listed and do not intend to list the Exchange Bonds on any national securities exchange or to arrange for the Exchange Bonds to be quoted on any automated quotation system. Although certain dealers currently make a market in the Original Bonds, and we expect that such market-making activities will extend to the Exchange Bonds, they are not obligated to do so, and may discontinue market-making activities in the Bonds at any time without notice. Accordingly, we cannot assure you that a liquid market for the Exchange Bonds will develop or be maintained. If an active market does not develop or is not maintained, the market price and liquidity of the Exchange Bonds may be adversely affected.

In addition, credit rating agencies periodically review their ratings and ratings methodologies for the companies that they follow, including us, the issuer of the Bonds. A negative change in ratings could have an adverse effect on the liquidity and market price of the Exchange Bonds. A credit rating is not a recommendation to buy, sell or hold securities and may be revised, suspended or withdrawn by the credit rating agency at any time.

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**USE OF PROCEEDS**

The Exchange Offer is intended to satisfy our obligations under the Registration Rights Agreement. See "<u>[THE EXCHANGE OFFER—Registration Rights](#i6e52320b39b649e1bdfaa36c4140e62f_111516)</u>." We will not receive any cash proceeds from the issuance of the Exchange Bonds in the Exchange Offer. The Original Bonds surrendered and exchanged for the Exchange Bonds will be retired and canceled. Accordingly, the issuance of the Exchange Bonds will not result in any increase in our outstanding indebtedness.

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**CAPITALIZATION**

The following table sets forth our consolidated capitalization, including our subsidiaries, as of December 31, 2025, on an actual basis without any adjustments to reflect subsequent or anticipated events. You should read the information in this table together with "<u>[USE OF PROCEEDS](#i0b5983c249b84b3db1dc97769c25fdb6_16)</u>," "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i0b5983c249b84b3db1dc97769c25fdb6_40)</u>" and our consolidated financial statements and the related notes thereto included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
| | **Due Date** | **Weighted <br>Average Interest <br>Rate at <br>December 31, 2025** | **December 31, 2025** |
| | | | **(in thousands)** |
| **First Mortgage Bonds:** | | | |
| 2006 Series | June 2041 | 6.13% | $200000 |
| 2017 Series | April 2047 | 4.75% | 500000 |
| 2025 Series | Oct. 2055 | 5.85% | 700000 |
| **First Mortgage Obligations:** |  |  |  |
| 2005 Series | Dec. 2028-May 2030 | 5.85% | 90000 |
| 2007 Series | Sep. 2042 | 5.74% | 216854 |
| 2008 Series | Dec. 2028-Dec. 2038 | 5.98% | 413389 |
| 2009 Series | Oct. 2027-April 2040 | 5.47% | 132222 |
| 2011 Series | Oct. 2031-Oct. 2049 | 4.53% | 208080 |
| 2012 Series | Nov. 2044 | 4.07% | 73949 |
| 2015 Series | June 2027-June 2044 | 4.50% | 1353420 |
| 2016 CoBank Note | April 2046 | 4.48% | 68333 |
| 2016 CFC Note | April 2046 | 3.74% | 51050 |
| 2022 Series | Feb. 2042-Feb. 2062 | 3.00% | 276810 |
| 2024 CoBank Note | Nov. 2034-May 2035 | 6.14% | 200000 |
| 2024 Series | Feb. 2029-Feb. 2054 | 6.22% | 350525 |
| 2007 and 2008 Notes | June 2027-Dec. 2028 | 5.09% | 4750 |
| 2023 Note | Oct. 2043 | 5.56% | 72000 |
| 2025 RUS Loan | June 2033 | 4.33% | 538 |
| **Other Bonds and Notes:** |  |  |  |
| Equipment Notes | Dec. 2035-Mar. 2026 | 5.09% | 21617 |
| 2019 Tax-Exempt Bonds | July 2039 | 3.63% | 150000 |
| **Dakota Coal:** |  |  |  |
| Equipment notes | Jan. 2026-July 2036 | 4.91% | 66462 |
| Other |  | Various | 11806 |
| Total long-term debt |  |  | 5161805 |

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| | | | |
|:---|:---|:---|:---|
| | **Due Date** | **Weighted <br>Average Interest <br>Rate at <br>December 31, 2025** | **December 31, 2025** |
| | | | **(in thousands)** |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion |  |  | (176019) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized debt issue costs |  |  | (35447) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount payable |  |  | (1075) |
| Total long-term debt, excluding current portion |  |  | 4949264 |
| Obligations under finance leases |  |  | 3532 |
| Total equity |  |  | 1976427 |
| Total capitalization |  |  | $6929223 |

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**BUSINESS**

***Overview***

We are a not-for-profit G&T cooperative corporation organized under the laws of the State of North Dakota, and are principally engaged in the business of providing wholesale electric services to our members through long-term wholesale power contracts. We were formed in 1961 for the purpose of building and operating large-scale, economical generating plants and high-voltage transmission to meet the power supply requirements of a group of cooperatives above their allocation of hydroelectric preference power from other sources, primarily WAPA. We are the largest G&T cooperative in the United States in terms of land area served by our members. Our G&T members provide wholesale electric service for 138 rural electric and small municipal electric systems to approximately 3.0 million people in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota and Wyoming.

***Power Supply***

We supply our members' electric power requirements through a portfolio of resources, including generating facilities, long-term purchase contracts and forward, short-term and spot market energy purchases. We own, lease, have undivided percentage interests in, or have power purchase agreements with respect to, various generating facilities. As of December 31, 2025, this portfolio provided us with maximum available power of 9,035 MW, inclusive of both owned generation and purchased power which are identified in the table below.

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| | |
|:---|:---|
| **Type of Fuel** | **Net Capability (MW)**<sup>(1)</sup> |
| Coal | 2859 |
| Wind | 2358 |
| Gas | 1854 |
| Market purchases | 1304 |
| Hydroelectric | 326 |
| Oil/diesel/jet | 175 |
| Solar | 114 |
| Recovered energy | 45 |
|  | 9035 |

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(1)MW based on winter season net generating capacity.

Depending on our system requirements and contractual obligations, we are likely both to purchase and to sell electric power during the same fiscal period. In addition, we use market transactions to optimize our position by routinely purchasing power when the market price is lower than our incremental production cost and routinely selling power to the short-term market when we have excess power available above our firm commitments to both members and non-members. We also use spot market purchases during periods of generation outages at our facilities.

***Power Supply Planning***

On an annual basis, we and our member systems prepare a Load Forecast ("LF") using econometric forecasting models. The LF process is a coordinated, cooperative process involving us and our members. The econometric models used in the LF are developed for each distribution system and incorporate economic and demographic factors affecting each member's electricity sales. The external data used in the econometric models is obtained from both government and private sector sources such as DOE, Woods and Poole Economics, Food and Agricultural Policy Research Institute, United States Census Bureau, National Oceanic and Atmospheric Administration and Bureau of Economic Analysis. Internal

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data used in these models consists of historical energy usage by consumer classification and each member's historic and projected electricity prices. The LF process also incorporates the judgment and knowledge that the distribution systems have of their service territory. In 2026, we finalized the results of a new power requirements study. Our historical peak demand and energy sale volumes reflect that we serve our members' requirements in excess of the capacity and energy provided by WAPA and certain of the members' own generation. As such, our power supply obligation generally increases and decreases at a faster rate than that of the total system. As the proportion of our members' power requirements being served by us continues to increase, our growth rates become closer to those of the total system. Peak demand supplied to members by us grew at an average annual compound rate of 4.9% from 2020 through 2025 and energy requirements supplied by us to members grew at an average annual compound rate of 5.5% from 2020 through 2025. See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i7cce4c492328466982a0f3afea8b973f_129547)[—Key Factors Affecting Results—](#i7cce4c492328466982a0f3afea8b973f_129547)</u>*<u>[Changes in Member Load Growth](#i7cce4c492328466982a0f3afea8b973f_129547)</u>*" and "<u>[—](#i7cce4c492328466982a0f3afea8b973f_129589)</u>*<u>[Large Load Commercial Program](#i7cce4c492328466982a0f3afea8b973f_129589)</u>*" for forecasts of future growth and potential for growth attributed to large loads.

***Power Supply Resources***

Twenty years ago, our portfolio of resources was almost exclusively coal generation. However, since then we have significantly diversified our mix of generation resources. Through direct investments and annual payments under renewable power purchase agreements, we have made substantial capital investments and commitments in renewable resources. Wind and solar resources from power purchase agreements—including the most recent agreements signed in 2025 for two wind projects that have not yet come online —will increase the renewable portion of our generating portfolio, which includes waste heat, to more than 2,700 MW when combined with existing wind and solar generation commitments. As of December 31, 2025, coal fired resources represented 31.7% of our overall winter season generation capacity, and natural gas resources represented 20.5%, renewable and green generation represented 27.9% (with a combined total of 2,517 MW of wind, solar, and waste heat generating resources), hydropower purchased from WAPA represented 3.6%, and oil, diesel, jet fuel and other unspecified generation represented the remaining 16.3% of our overall generating capacity. By 2031, coal resources are projected to represent just 27.6% of our overall resource capability, with natural gas resources representing 34.8% and renewable and green resources (wind and solar), together with hydropower, recovered energy, and storage, representing approximately 33.1%, and oil, diesel, and jet fuel along with other purchases from unspecified/undetermined fuel types representing the remaining 4.5%.

***Power Purchase Agreements***

Our purchased power capacity is becoming increasingly diverse. We have a number of long-term power purchase arrangements of varying capacities for energy generated by various sources with terms scheduled to end ranging from 2026 to 2075. The total amount of capacity we purchased under these contracts as of December 31, 2025, was 4,198 MW, which includes 343 MW of carbon-based generation (coal, natural gas, oil, etc.), 2,551 MW of non-carbon-based resources (hydro, waste heat, and wind) and 1,304 MW of additional power through bilateral purchases of capacity only. As of December 31, 2025, approximately 2,143 MW of our long-term power purchase arrangements are scheduled to expire between 2026 and 2039, with an additional 3,068 MW under longer-term agreements extending beyond 2039.

***WAPA Peaking Power***

We purchase hydroelectric peaking power from WAPA pursuant to a contract entered into in 1968. This contract provides for us to purchase 268 MW of capacity delivered to our load during peak periods of the winter season (November through the following April) and for us to return to WAPA during off-peak periods an amount of energy equal to the amount of energy that we received. To the extent we have not returned all peaking energy purchased during the winter season to WAPA by the end of the summer season, we must purchase the remaining balance from WAPA. We are obligated to submit to WAPA in writing our estimated winter season peak firm obligation, together with supporting calculations, prior to

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each winter season. In 2019 this contract was renewed through 2050 and is separate from any power purchase obligations between WAPA and our members.

***Cooperative Structure***

A cooperative is a business entity owned by its members, which are also its retail or wholesale customers. Cooperatives are designed to give their members the opportunity to satisfy their collective needs in a particular area of business more effectively than if the members acted independently. As organizations operating on a not-for-profit basis, cooperatives provide services to their members on a cost-effective basis, in part by eliminating the need to produce profits or a return on equity in excess of required margins. Electric cooperatives generally establish rates to recover their cost-of-service and to collect a portion of revenue in excess of expenses, which excess constitutes margins. Margins not distributed to members in cash constitute patronage capital, a cooperative's principal source of equity. Patronage capital is held for the account of the members without interest and returned when the board of the cooperative deems it appropriate to do so. The timing and amount of any actual return of patronage capital to the members depends on the financial goals of the cooperative and restrictions in the cooperative's loan and security agreements.

Our 138 members are classified into four classes (Class A, B, C and D, respectively) depending upon how they are supplied with our electric services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class A Members consist of ten wholesale G&T cooperatives, eight distribution cooperatives and one wholesale municipal provider that have entered into long-term wholesale power contracts with us. We supply power directly to and receive revenue directly from our Class A Members. Our operating revenue comes primarily from our Class A Members, and for the years ended December 31, 2025 and 2024, our Class A Members contributed approximately 90.5% and 88.1% of our electric sales revenue, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class B Members consist of any municipality or association of municipalities operating within an area served by a Class A Member and which is a member of, and contracts for its electric capacity or energy from, that Class A Member. We currently have one Class B Member. We do not supply power directly to, or receive revenue directly from, our Class B Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class C Members consist of distribution cooperatives and public power districts that are members of our G&T Class A Members. Our Class C Members do not purchase power directly from us, but rather from their respective G&T Class A Members. We currently have 117 Class C Members. We do not supply power directly to, or receive revenue directly from, our Class C Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Class D Members consist of electric cooperatives that purchase power directly from us on a basis other than the long-term wholesale power contracts that we have with our Class A Members. We currently have one Class D Member.

Electric cooperatives generally include distribution cooperatives, such as the majority of our Class C Members, and G&T cooperatives, like us and most of our Class A Members. The primary purpose of electric distribution cooperatives is to supply the requirements of their retail consumers through bulk purchases of power and energy and to maintain a distribution system to deliver the electricity necessary to satisfy their consumers' requirements. The primary purpose of a G&T cooperative is to provide wholesale electric power to its member distribution cooperatives.

***Wholesale Power Contracts***

We have long-term wholesale power contracts for the sale of capacity and energy to our Class A Members. Pursuant to these contracts, we generally sell and deliver to each Class A Member, except Tri-State, all of such member's capacity and associated energy requirements in excess of enumerated amounts of capacity and associated energy available to such member from other specified sources,

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primarily WAPA. Our wholesale power contracts with our Class A Members provide that capacity and associated energy are to be furnished in accordance with the member's normal annual load patterns and that our obligations are limited to the extent to which we have capacity, energy and facilities available. All of our wholesale power contracts with our Class A Members extend through 2075, with the exception of our wholesale power contracts with Tri-State, Minnesota Valley, Wright-Hennepin and WMPA, which extend through 2050. In 2025, revenues from electric sales to members with wholesale power contracts expiring in 2050 were approximately 10.1% of our total members sales. After maturity in 2050 or 2075, as applicable, these contracts remain in effect until terminated by either party giving the contractually required notice of its intention to terminate. WAPA's contracts with our members served in the Upper Great Plains ("UGP") region expire in 2050 and contracts with our members served in the Rocky Mountain region ("RMR") expire in 2054. Some of our Class A Members are themselves wholesale cooperatives like us, and, with limited exceptions, the wholesale power contracts they have with their members align with or extend beyond the corresponding expiration dates as our contracts with their respective Class A Member.

Our average wholesale rate in 2025 to Class A Members was $62.9 per MWh, and total revenue from electric sales to our Class A Members in 2025 was approximately $2.2 billion, or approximately 90.5% of our total electric sales revenue. In 2025, revenues from electric sales to members with wholesale power contracts expiring in 2050 was approximately 10.1% of our total member sales. The budgeted Class A Member rate for 2026 is $69.7 per MWh.

Due to the long-term nature of our wholesale power contracts, our Class A membership does not often change but when it does it is most commonly as a result of the admission of new members. Our most recent Class A membership change was the admission of WMPA in 2021.

Neither our wholesale power contracts with our Class A Members nor their wholesale power contracts with our Class C Members provide for a unilateral right of termination of those contracts prior to their end date. Likewise, our bylaws provide that a Class A Member not withdraw from membership until it has met all of its contractual obligations to our cooperative, which would include all obligations under the Class A Member's wholesale power contract with us. Any withdrawal by a Class A Member may only occur upon compliance with such equitable terms and conditions as our Board may prescribe.

Nevertheless, Tri-State has in the past permitted distribution cooperative members to exit from Tri-State under a FERC-approved contract termination payment ("CTP") rate schedule. We are aware of six Tri-State members which have provided notice of future exit from Tri-State, with proposed exit dates ranging from December 2026 to April 2028. Of these six exiting Tri-State members, two are entirely served in the Western Interconnection, where Tri-State buys a fixed amount of power from us. Thus, these member exits located in the Western Interconnection would not directly affect the volume of power and energy we sell to Tri-State. Of the remaining four exiting Tri-State members, two have electric load entirely in the Eastern Interconnection, where Tri-State takes requirements service from us, and two are located in both the Eastern Interconnection and the Western Interconnection. If Tri-State were to permit the exit of a distribution cooperative member located in the Eastern Interconnection taking requirements service from us without first obtaining our consent, we expect that we would seek to enjoin such exit or seek other remedies against Tri-State. See "<u>[LEGAL](#i0b5983c249b84b3db1dc97769c25fdb6_25)[PROCEEDINGS](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u>."

***Member Service Area***

We provide capacity and energy either directly or indirectly to retail distribution utilities that serve the electric requirements of the farms, ranches, rural homes, businesses and commercial and industrial facilities in our members' service areas, which span 500,000 square miles from the Canadian to the Mexican borders. The service provided by the distribution cooperatives ranges from remote stock-watering facilities on the cattle ranges of Wyoming and Montana to new industrial installations on the outskirts of metropolitan centers in the region.

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The majority of the Class A Members have service areas in the agricultural regions in the Dakotas, northwestern Iowa, and southwestern Minnesota. Members 1<sup>st</sup> Power Cooperative serves a large portion of northeastern Wyoming and southern Montana. East River serves the agricultural regions of eastern South Dakota. Tri-State, located in Colorado, serves distribution cooperatives in Colorado, Wyoming, New Mexico and western Nebraska. The geographic features of the Tri-State service area range from portions of the upper Rockies to the rolling range and farm country of Colorado, New Mexico and western Nebraska. Upper Missouri in Montana and Central Power Electric Cooperative in North Dakota, serve distribution cooperatives located in the oil fields of the upper Missouri River regions of North Dakota and Montana.

***Electric Utility Seasonal Variation***

Basin Electric's business is subject to seasonal fluctuations in electricity demand. Demand for electricity is generally higher during the summer and winter months due to increased cooling and heating requirements of its members. Seasonal weather patterns may affect system load levels, generation dispatch, and fuel usage.

***Territorial Integrity***

Distribution cooperatives generally exercise a monopoly in their service areas. South Dakota, Minnesota, Nebraska, Iowa, Wyoming and Colorado assign specific service areas to each distribution cooperative and each public utility within the state. In each of these states, petition must be made to the appropriate state regulatory authorities in order to change these assigned areas. The laws of North Dakota provide that no franchised public utility can expand beyond the city or town in which it has a franchise without a Certificate of Convenience and Necessity from its public utilities commission. In Nebraska, four of the six Class C Members are public power districts, whose boundaries are fixed by organizational law, which can be changed only by a vote of the public. In addition, any change in service territory must be approved by the Nebraska Power Review Board. In South Dakota, loads in excess of 2 MW are biddable to any utility. The various distribution cooperatives do not have territorial conflicts among themselves since assigned boundaries are set forth in their area coverage agreements with each public utility within the state. Our distribution cooperatives have suffered no significant territory losses through local governmental service area annexation.

***Deregulation Status***

Except for Montana, none of the states that our Class A Members serve have adopted electric restructuring legislation. Montana adopted restructuring legislation in 1997, but electric cooperatives were permitted to opt out of consumer choice provisions of the legislation.

***Rate Regulation of Members***

Two states in our service territory—Colorado and Wyoming—have statutes regulating electric distribution cooperative associations operating at the state level. In Wyoming, the distribution members of our G&T Class A members are subject to rate regulation by the respective state regulatory authorities. In Colorado, a 1983 law allowed distribution cooperatives the option to opt out of rate regulation by the Colorado Public Utilities Commission through a majority vote of their members before July 1, 1984. All but one of our Class C Members in Colorado chose to opt out. In addition to the state-level regulation, two of our Class A Members — Upper Missouri and Tri-State — are also subject to rate regulation by FERC.

***Financial Information***

We are a membership corporation, and our members are not subsidiaries. Except for the obligations of the Class A Members under their respective wholesale power contracts with us, we have no legal interest in, or obligation in respect of, any of the assets, liabilities, equity, revenue or margins of such members. In addition, the revenue of the Class A Members is not pledged to us but is received by the respective Class A Member and is the source from which moneys are derived by such Class A Member to

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pay for capacity and energy supplied by us under the respective wholesale power contracts as well as from others.

In 2025, two of our Class A Members, Upper Missouri and East River, accounted for 42.7% and 12.8%, respectively, of our total Class A Member revenue. In 2025, sales by Upper Missouri to two of its members, who are also our Class C Members, McKenzie Electric Cooperative, Inc. and Mountrail-Williams Electric Cooperative, represented 19.7% and 15.2%, respectively, of our total Class A Member revenue. Each of our other members accounted for less than 10% of our total Class A Member revenue in 2025.

***Rates and Regulation***

We provide electric power to our Class A and D Members at rates established by our Board with changes subject to approval by RUS. Our wholesale power contracts with our Class A Members provide that the Board will establish rates to produce revenue sufficient, with our revenues from all other sources, to meet the costs of operation and maintenance (including, without limitation, replacement, insurance, taxes and administrative and general overhead expenses) of the generating plants, transmission system and related facilities, the cost of any power and energy purchased for resale by us, the cost of transmission service, the cost of lease payments, interest expense, and depreciation expense or principal repayments of ours, and to provide for the establishment and maintenance of reasonable financial reserves. Our Board sets our rates to our Class A and D Members at a level intended to achieve and maintain "A" category credit ratings and otherwise to comply with our Indenture covenants and other contractual commitments. Under RUS oversight, rate adjustments approved by our Board are submitted to RUS, which conducts its review consistent with its standard rate-approval practices. We provide all Class A Members between 30 and 45 days' written notice of any rate schedule change. In addition, we have a number of different incentive rates that we charge to Class A Members, including a non-controlled electric/dual space heat rate and an interruptible rate. We also provide electric power to non-members at contractual rates under long-term arrangements and at market prices in spot sale transactions.

The Federal Power Act contains provisions regulating a "public utility," as defined in the act, including with respect to the disposition of facilities, the issuance of securities, the assumption of liabilities, and the establishment of rates and charges for the transmission or sale of electricity. The Federal Power Act provides that a public utility does not include an electric cooperative that (1) receives financing pursuant to the RE Act, (2) sells less than 4,000,000 MWh of electricity per year; or (3) is wholly owned by entities that are themselves not public utilities. Beginning in 2019 until July 16, 2025, we were a public utility under the Federal Power Act. On July 16, 2025, we received financing under the RE Act. At the time, proceedings relating to the rates we charged our members for prior periods were pending before FERC. In July 2025, we filed a motion to dismiss these proceedings based on our ceasing to be a public utility for purposes of the Federal Power Act. This motion has been challenged and is still pending before FERC. See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSI](#i0b5983c249b84b3db1dc97769c25fdb6_46)[S OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Key Factors Affecting Results](#i0b5983c249b84b3db1dc97769c25fdb6_46)</u>" and "<u>[LEGAL PROCEEDINGS](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u>" for a description of our rate proceedings before FERC involving our members. Our wholesale electric power contracts require our Board to review our rates at least annually and to revise such rates as necessary to produce revenue as described above. Our Indenture requires us to establish and collect rates for the use or the sale of the output, capacity or service of our system that, together with all other revenue, are sufficient to enable us to comply with all of our covenants under the Indenture. See "<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Key Factors Affecting Results](#i7cce4c492328466982a0f3afea8b973f_129590)[—](#i7cce4c492328466982a0f3afea8b973f_129590)</u>*<u>[Rate Covenant](#i7cce4c492328466982a0f3afea8b973f_129590)</u>*." Subject to any necessary regulatory approvals, the Indenture also requires us to establish and collect rates that, together with all other revenue, are reasonably expected to yield an MFI Ratio equal to at least 1.10 for each fiscal year. See "<u>[SUMMARY OF THE INDENTURE—Certain Covenants](#i6808b04634ac4a8389016f190701e059_295425)</u>."

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**Transmission**

***Transmission System Overview***

Our transmission system includes facilities on both the Eastern and Western Interconnections which includes over 2,500 miles of high-voltage transmission lines, 115 substations (owned or jointly owned), and 220 telecommunications sites as of December 31, 2025. Our transmission network has expanded through significant capital investments, including facilities that have been developed independently as well as jointly with other transmission owners across the interconnected grid.

We operate and maintain our system to high availability standards. However, like other critical infrastructure operators, we remain exposed to potential physical and cyber threats. Impacts from such events could include operational disruptions, financial losses, lost load or revenue, ransom payments, loss of proprietary information, reputational damage, and increased compliance, legal, and recovery costs.

***Key Transmission Projects and System Growth***

Over the past six decades, our transmission system has grown in step with major generation development and evolving member needs. The addition of large generating stations, including Leland Olds, Antelope Valley, Laramie River, and Dry Fork, has driven the majority of transmission investments over the years. See "<u>[PROPERTI](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[ES](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[—](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[Exis](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[ting](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[Transmission](#i7bb2d2d5f7dc48de884811708a35ea61_85455)[—](#i7bb2d2d5f7dc48de884811708a35ea61_85455)</u>*<u>[Transmission System Overview](#i7bb2d2d5f7dc48de884811708a35ea61_85455)</u>*."

In recent years, system expansion has been driven by load growth primarily in the Bakken region in North Dakota. New 345-kilovolt and 230-kilovolt facilities have introduced the first extra-high-voltage capability in northwestern North Dakota and strengthened service to growing load centers such as New Town, Williston, Watford City, and the broader Williston Basin. These additions have increased load-serving capacity, improved reliability, and supported continued industrial and population growth.

Significant completed projects in the Bakken include the Antelope Valley Station–Charlie Creek–Neset 345-kilovolt line, placed in service in 2017, and the Roundup–Kummer Ridge 345-kilovolt line, energized in 2024. The Leland Olds–Crane Creek–Tande 345-kilovolt line is currently under construction and on schedule for completion in 2026.

A major new interregional project is being planned as a result of SPP's Integrated Transmission Plan ("ITP") process. This project consists of a 345-kilovolt transmission line extending from Laramie River Station in Wyoming through Rapid City, South Dakota, and ultimately terminating at a 345 kV substation near Belfield, North Dakota. This multi-phase project is currently planned for staged tentative in-service dates ranging between 2031 and 2034 that may shift based on equipment lead times and other schedules.

Additional projects identified through SPP's ITP process include four new lines: Patent Gate–Pioneer 345-kilovolt, Leland Olds–Logan–Crane Creek 345-kilovolt, Dawson County–Judson 230-kilovolt, and the Roundup – Belfield 345-kilovolt. These facilities are expected to further enhance load-serving capability and transfer capacity throughout northwestern North Dakota. Basin Electric is collaborating with WAPA's Upper Great Plains ("UGP") division on the development of these projects which are tentatively slated to be placed into service between 2029 and 2035.

In parallel with these regional expansions, we continue to advance a long-standing aging-infrastructure program focused on the systematic replacement of substation components that have reached or exceeded their useful life. This program has been active for eight years and is anticipated to continue for at least the next five to ten years.

***Southwest Power Pool Membership and Planning***

We have operated within the SPP since October 1, 2015. Membership in SPP has expanded market access and improved opportunities to buy and sell power as system conditions change. With this

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integration, our Eastern Interconnection facilities became part of SPP's Open-Access Transmission Tariff ("OATT"), and we actively participate in SPP's regional transmission planning and cost-allocation processes.

SPP's highway/byway cost-allocation methodology continues to shape how new transmission projects are funded. Transmission facilities rated at or above 300 kilovolts are allocated regionally across all SPP members based on load-ratio share, while facilities between 100 and 300 kilovolts are funded one-third regionally and two-thirds within the local transmission zone. Our transmission facilities are located in Zone 19 of SPP's tariff, known as the Upper Missouri Zone. This zone reflects the former Integrated System footprint, which included transmission facilities owned by us, WAPA, and Heartland Consumers Power District.

As a transmission-owning member within SPP, we participate in SPP's planning processes as outlined in the OATT. With the RTO West expansion, we will continue to coordinate closely with both SPP and other Western Interconnection participants to support a smooth transition into the expanded footprint and to help ensure that our transmission system continues to be incorporated into regional planning, operations, and cost-allocation structures in both interconnections.

**Transmission Agreements and Coordination**

***WAPA***

Since 1965, when we first interconnected Leland Olds to the WAPA system, we have relied on WAPA to operate our transmission facilities. This arrangement preserves operational efficiency by maintaining a single transmission operator across our shared systems. Today, WAPA continues to provide transmission operator services under several agreements. After joining SPP in 2015, our shared transmission facilities with WAPA became part of SPP's tariff, with SPP assuming functional control and contractual terms were updated accordingly.

***Common Use System***

The Common Use System ("CUS") is a jointly operated transmission network shared by us, Black Hills Power, and Powder River Energy Corporation ("PRECorp"). The three utilities maintain a joint open-access transmission tariff with FERC that governs transmission service across the combined 230-kilovolt and limited 69-kilovolt facilities located in southwestern South Dakota and northeastern Wyoming. The tariff also includes transmission service associated with the Rapid City DC Tie. Black Hills Power administers the CUS tariff and serves as the transmission operator for our facilities within the CUS footprint.

***Regulatory Framework and Open Access Tariffs***

Most of our transmission facilities operate under open-access transmission tariffs established through a series of FERC orders that require non-discriminatory access to the nation's transmission grid. FERC's foundational Orders 888 and 890 created the open-access framework, requiring transmission-owning public utilities to provide equal transmission service to all users and promoting competition in wholesale energy markets.

Beginning in the 1990s, FERC increased its role in transmission development and regional planning. While utilities historically planned transmission locally to serve their own customers, FERC's subsequent orders encouraged more coordinated, regional approaches to ensure reliable operation and support expanding wholesale power markets. Through Orders 888, 890, 1000, and 1920, FERC established requirements for integrated transmission planning, interregional coordination, transparency, and cost allocation.

We meet these requirements through active participation through SPP in the Eastern Interconnection and the Colorado Coordinated Planning Group in the Western Interconnection. Order 1000, issued in

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2011, requires public utilities to engage in both regional and interregional transmission planning and to allocate costs for new projects based on how those projects benefit the system. Order 1920, issued in 2024, expanded on these requirements by mandating long-term, forward-looking regional planning. Under this order, transmission providers must prepare 20-year regional plans every five years and offer states and interconnection customers opportunities to fund projects that may not otherwise meet traditional planning criteria. We comply with these provisions through our continued involvement in SPP and Colorado Coordinated Planning Group planning processes.

The Missouri Basin Power Project ("MBPP") is a jointly owned public power project consisting of generation and transmission facilities shared by us, Tri-State, City of Lincoln, Nebraska and Western Minnesota Municipal Power Agency. The four utilities maintain a separate open-access transmission tariff for each of their entitled shares with FERC that governs transmission service across the combined 345-kilovolt and limited 230-kilovolt facilities located in southeast Wyoming, western Nebraska, and northern Colorado. Our ownership of the MBPP transmission facilities on the Western Interconnection is under the Basin Electric's West Side Transmission System ("BEPW") tariff. PSCo administers the BEPW tariff and WAPA-RMR serves as the transmission operator for the facilities within the BEPW footprint.

Consistent with FERC's Standards of Conduct, we have implemented strict separation procedures between protected transmission information and employees engaged in merchant or marketing functions. These procedures are designed to ensure confidentiality, prevent undue preference, and uphold all contractual nondisclosure obligations associated with our transmission operations.

***Compliance and Reliability***

We maintain a comprehensive compliance program designed to meet all mandatory North American Reliability Corporation ("NERC") reliability standards that apply to owners, operators, and users of the bulk power system. Because we operate facilities in both the Midwest Reliability Organization ("MRO") and Western Electricity Coordinating Council ("WECC") regions, we are registered as a multi-region entity, with MRO serving as our lead regional reliability organization. Both MRO and WECC monitor and enforce our compliance with national and regional reliability standards, and we work closely with each organization to ensure our facilities and operations meet all applicable requirements.

Our internal NERC compliance program covers every aspect of our generation and transmission responsibilities, including system operations, planning, maintenance practices, cybersecurity protections, and physical security of critical assets. Subject matter experts, compliance personnel, and internal audit staff coordinate to review evidence, confirm ongoing compliance, and identify areas requiring updates or mitigation. We also collaborate with our members in areas where transmission and distribution reliability obligations overlap to help ensure the broader system is operated safely and reliably.

We undergo regular monitoring by MRO and WECC, including scheduled compliance audits, unscheduled spot checks, and required self-certifications. In 2022, we completed an MRO-administered audit, and we submitted annual self-certifications in 2023, 2024 and 2025. Through our internal monitoring processes, several potential issues within the Critical Infrastructure Protection ("CIP") standards were identified and self-reported to MRO. These items are either fully mitigated or in the process of being resolved.

Reliability remains a core operational priority for us, and our continuous monitoring, proactive mitigation efforts, and close coordination with regional reliability organizations help ensure that our facilities support a dependable and resilient bulk power system.

**Gasification Operations**

Our Gasification operating segment includes Dakota Gas, a wholly owned, for-profit subsidiary that owns and operates the Synfuels Plant, through which it produces and sells synthetic natural gas and other products of the coal gasification process. The Synfuels Plant is a Lurgi process coal gasification plant, which produces synthetic natural gas through the controlled reaction of coal and oxygen in the

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presence of steam at elevated temperatures and pressures and is capable of producing 170 MMcf/day if it is solely producing synthetic natural gas. However, with the diversity of products added to the Synfuels Plant, in 2025, SNG production delivered to the pipeline averaged approximately 40 MMcf/day.

We have entered into the Second Restatement of Power Supply Agreement with Dakota Gas pursuant to which it is obligated to purchase and we are obligated to sell electric power and energy for the Synfuels Plant through 2056 at market-based rates. This agreement provides for the purchase by Dakota Gas of all of the power and reserves required for the operation of the Synfuels Plant. In 2025, Dakota Gas purchased 1.1 million MWhs of energy from us.

***Gas Transportation Agreements****.* To transport the synthetic natural gas Dakota Gas sells on the open market, Dakota Gas acquired firm transportation rights on the Northern Border Pipeline Company ("Northern Border") pipeline system. Dakota Gas currently holds firm transportation rights on the Northern Border pipeline system for 33,481 MMbtu/day and 45,778 MMbtu/day to market hubs located at Ventura and Harper, Iowa, respectively.

***Product Diversification****.* Since its acquisition in 1988, Dakota Gas has improved operating efficiencies and undertaken the manufacture of additional products, including carbon dioxide, anhydrous ammonia, urea, DEF, ammonium sulfate, krypton and xenon crude gas, naphtha, phenol, tar oil, liquid nitrogen and crude cresylic acid. Dakota Gas also constructed compressor facilities and a 168-mile pipeline from the Synfuels Plant to the United States/Canadian border to sell carbon dioxide for use in enhanced oil recovery, and a 6-mile pipeline and six wells to geologically sequester carbon dioxide. These coproduct and byproducts provide Dakota Gas some flexibility to switch the production of products or boiler fuel based on market prices and demand.

***Seasonal Variations.*** Dakota Gas's fertilizer-related operations are subject to seasonal demand patterns that are influenced by agricultural planting cycles. Demand for nitrogen-based fertilizer products is typically higher in advance of the spring and, to a lesser extent, fall planting seasons, with lower demand during other periods of the year.

**Coal and Limestone Operations**

Our Coal and Limestone Operations segment includes Dakota Coal, a wholly owned, for-profit subsidiary, incorporated in 1988 in conjunction with the acquisition of the Synfuels Plant to consolidate in Dakota Coal substantially all of the functions relating to the supply of lignite coal to the Synfuels Plant and Antelope Valley Station. Dakota Coal sells coal to us and Dakota Gas at a cost-plus basis that is designed to recover its costs with a reasonable profit. Currently, Dakota Coal's major business activity relates to supplying lignite coal from the Freedom Mine to the Synfuels Plant, Antelope Valley Station and Leland Olds Station. Lignite production at the Freedom Mine in 2025 was approximately 11.3 million tons, all of which were sold to Dakota Coal.

The Freedom Mine is owned and operated by Coteau. Dakota Coal purchases lignite coal from Coteau on a cost-plus basis pursuant to a lignite sales agreement with Coteau (the "Coteau Lignite Sales Agreement"). Dakota Coal resells that coal to Dakota Gas for use at the Synfuels Plant and to us for use at Antelope Valley Station and Leland Olds Station. The Coteau Lignite Sales Agreement also gives Dakota Coal certain rights related to the development and operations of the Freedom Mine and obligates Dakota Coal to provide financing for the operation of the mine and certain other capital expenditures relating to the Freedom Mine. In addition, Dakota Coal has the right, under other agreements and subject to specific circumstances, to acquire all of the stock of Coteau or specified coal reserves underlying the Freedom Mine. The Coteau Lignite Sales Agreement expires in April 2027, with three remaining successive five-year renewal options.

Pursuant to the Coteau Lignite Sales Agreement, Dakota Coal is required to purchase all of the coal requirements of Antelope Valley Station and the Synfuels Plant from Coteau as well as the coal requirements of Leland Olds Station; provided, that if in our opinion (or that of Dakota Coal) federal, state or local law prohibits or renders uneconomical the use of North Dakota lignite coal at Leland Olds Station,

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Dakota Coal may purchase alternative fuels. Dakota Coal purchases coal from Coteau at a price that includes all costs incurred by Coteau for the development and operation of certain dedicated coal reserves used to supply Dakota Coal. Under the Coteau Lignite Sales Agreement, notwithstanding the suspension of lignite coal deliveries due to a force majeure event affecting either or both of Dakota Coal and Coteau, Dakota Coal is nonetheless required to reimburse Coteau for its out-of-pocket expenses and depreciation for such period. Dakota Coal also agrees to provide to Coteau loans or leases necessary to develop, equip and operate the Freedom Mine. All of the equipment financed by Dakota Coal is leased to Coteau and used in the Freedom Mine. In addition, we have provided financial guarantees related to certain reclamation costs for the Freedom Mine. See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a discussion of consequences of the acceleration of mine closing costs.

Wyoming Lime owns a limestone processing plant near Frannie, Wyoming. The plant converts limestone to high quality (*i.e.*, high calcium) lime via a high-heat calcining process. This product is sold to us for use in Antelope Valley Station and Laramie River Station for use in stack emission scrubbers and water treatment facilities. It also has other industrial uses and is sold to other customers. The facility is operated by an independent contractor through a marketing and operating agreement.

Dakota Coal acquired Montana Limestone as a wholly owned subsidiary in 2002. Montana Limestone is a limestone quarry contractor that supplies chemical grade limestone to Dakota Coal's limestone processing plant and to other customers. In addition, limestone is sold to others as a reagent for removing sulfur from combustion gases. Leland Olds Station purchases limestone from Montana Limestone for its scrubbers. Montana Limestone also owns and operates a limestone crushing and processing facility whose customers are primarily agriculture-based.

In 2008, Montana Limestone purchased 50.0% of the shares of The Bighorn Limestone Company ("Bighorn Limestone"). Bighorn Limestone owns surface and limestone reserves in the quarry that Montana Limestone operates. As a result of this acquisition, Montana Limestone has the right, in conjunction with the Western Sugar Cooperative, to long-term control of the limestone reserves.

**Environmental Regulation**

Our operations are subject to environmental laws and regulations that comprehensively regulate the environmental impacts of our business. Air pollution control regulations require most major sources to obtain permits for construction and operation that impose emissions limitations on electricity generating plants that use fossil fuels. Water protection regulations control the use of water for steam generation and for cooling and require wastewater monitoring and treatment. Our operations generate solid wastes, such as coal combustion residuals, that require management and appropriate treatment or disposal. We may be subject to decommissioning or reclamation requirements upon the cessation of certain activities, like mining, or the closure and removal of facilities. Environmental regulations and specific permit requirements apply to nearly every aspect of our operations. Regulations and permits may require material expenditures to achieve or maintain compliance and can limit our operations. Should we fail to comply with these environmental restrictions, even for reasons beyond our control, we may be subject to significant fines, penalties and operational limitations imposed by regulatory agencies that normally cannot be predicted or estimated. We could also be subject to similar costs and liabilities as a result of non-governmental actions, such as lawsuits brought by environmental groups or private citizens.

In addition, environmental laws impose obligations with respect to releases of hazardous substances, petroleum products and other materials that are part of our facilities or used in our operations. Contamination of sites we own or lease may require us to conduct investigations, removal or other remedial actions, even if we are not at fault for such conditions. While we are not aware of current material obligations for such investigations or cleanups, soil or groundwater contamination may be difficult to detect, and as a result we may be unaware of material liabilities relating to environmental investigation, cleanup, and related claims from federal or state government or private entities.

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Environmental laws and regulations are complex and technical, and change frequently, often becoming more stringent over time. Permits required for our operation periodically expire, and such permits may not be subject to renewal on the same or similar terms and conditions. These changes may be induced by legislative, regulatory, and judicial actions regarding environmental standards and requirements that impact our operations and facilities. We may be subject to changes in legal, regulatory, and permitting standards that are excessively expensive to implement and may impair our operations or even require the termination of operations of certain facilities. We cannot predict at this time whether any changes to legislation, regulations or permits will be imposed that will affect us or our subsidiaries' operations, and if such laws, regulations, or permit changes are enacted or imposed, the costs we or our subsidiaries might be required to bear in the future.

From time to time, we or our subsidiaries are alleged to be in violation or in default under orders, statutes, rules, regulations, permits or compliance plans relating to the environment. We may need to respond to notices of violation, enforcement proceedings or challenges to permits, any of which may result in fines or penalties, as well as potentially material compliance costs. In addition, we may be involved in legal proceedings arising under environmental laws in the ordinary course of business.

***Air Quality***

***The Clean Air Act***. The Clean Air Act requires the EPA to establish air quality standards that are used to determine emissions limitations imposed upon individual sources of air pollution, such as combustion facilities that generate electricity. The emissions limitations on individual facilities are achieved by pollution control systems, which are implemented through permits issued by the EPA or delegated state agencies for construction or operation of such units. The air quality standards and emissions standards change from time to time, with the result that emissions limitations are typically made more stringent and pollution control requirements become more expensive to implement. Among the provisions of the Clean Air Act that affect our operations are (1) ambient air quality standards that limit the amount of emissions at a certain location or in a certain compliance area, (2) the acid rain program, which requires nationwide reductions of sulfur dioxide ("SO2") and nitrogen oxides ("NOx") from new and existing fossil fuel-based generating facilities, (3) regulations controlling toxic or hazardous pollutants that may require certain pollution control technologies, (4) requirements to control emissions to reduce regional haze and improve visibility, and (5) New Source Performance Standards ("NSPS") which set emission standards for new, existing and modified sources. Many of the existing and proposed regulations under the Clean Air Act will impact coal-based generating facilities to a greater extent than other electric generating facilities.

***National Ambient Air Quality Standards ("NAAQS")***. The national ambient air quality standards ("NAAQS") are standards set by the EPA Administrator to protect human health and welfare for six pollutants: carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter, and SO2. EPA periodically revises the NAAQS, setting more stringent air quality standards that areas must attain. States must submit state implementation plans ("SIPs") detailing how the states will comply with the NAAQS. If a state fails to submit a SIP or EPA disapproves all or part of a SIP, then EPA will issue a federal implementation plan ("FIP") within two years of finalizing a disapproval or a finding that a state failed to submit a SIP. Our generation resources in Iowa, Montana, Nebraska, North Dakota, South Dakota, and Wyoming are currently all located in areas that are in attainment of all the various NAAQS. However, as discussed below, Iowa has been found to significantly contribute to nonattainment in downwind states and must address interstate transport of emissions in their SIPs and, in the case of Iowa, participate in the Cross State Air Pollution Rule ("CSAPR") program to reduce interstate transport of emissions. On February 7, 2024, EPA finalized a rule lowering the primary annual PM2.5 standard from 12 micrograms per cubic meter ("μg/m<sup>3</sup>") to 9 μg/m<sup>3</sup>. The final rule retained the primary 24-hour and secondary standards for PM2.5 as well as the current primary 24-hour and secondary standards for PM10. However, on March 12, 2025, EPA announced that it would reconsider the NAAQS for PM2.5. In addition, on December 27, 2024, EPA issued a final rule to revise the secondary standards for SO2 to an annual average, averaged over three consecutive years, with a level of 10 parts per billion ("ppb").

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***Cross-State Air Pollution Rule ("CSAPR")***. In 2011, the EPA promulgated the CSAPR, which required states to adopt programs to reduce power plant emissions that contribute to ozone and fine particle pollution in other states. CSAPR requires a total of 28 states to reduce SO2 and NOx emissions to assist in attaining clean air standards. The EPA issued a supplemental rulemaking later in 2011 to require certain states, including Iowa, to reduce summertime NOx emissions under CSAPR. We own and purchase electricity from facilities in Iowa, a state that is subject to the CSAPR program. Following legal challenges to CSAPR, EPA revised the program in a rule that went into effect in 2017, requiring additional reductions in NOx emissions from utilities in 22 states in the eastern United States, during the ozone season. In 2019, the D.C. Circuit remanded the rule to the EPA for further consideration. The EPA published a final Revised CSAPR Update Rule in 2021 that placed additional ozone season emission reductions on electric utilities in 12 states. In 2022, the EPA proposed a FIP of the "Ozone Transport Rule" to resolve the agency's Clean Air Act "good neighbor" obligations for the 2015 ozone NAAQS in "downwind states." In 2023, the EPA issued its final Good Neighbor Plan with the goal of reducing ozone-forming emissions of nitrogen oxides NOx from power plants and certain industrial facilities. However, on June 27, 2024, the United States Supreme Court issued a stay and blocked the enforcement of the Good Neighbor Plan based on a preliminary finding that EPA likely failed to adequately respond to comments concerning the plan. On November 6, 2024, EPA published an interim final rule staying the implementation of the Good Neighbor Plan. On January 30, 2026, EPA published a proposed rule which would withdraw EPA's previous proposed disapproval of the Iowa SIP. If finalized, this rule would resolve outstanding interstate transport obligations for the 2015 ozone NAAQS for Iowa.

***Regional Haze***. In 2005, the EPA issued the Clean Air Visibility Rule This new regional haze rule required states to develop plans for imposing emissions reductions upon certain electric generating units by initially requiring them to install best available retrofit technology ("BART"). As a result, the Leland Olds Station installed selective non-catalytic reduction ("SNCR") on both Units 1 and 2. Low-NOx burners and separated over-fire air controls to reduce NOx emissions were installed on Antelope Valley Station Unit 1 and 2. The reductions in both units have resulted in emissions that are below the levels required under the EPA-imposed FIP.

Wyoming developed a SIP that required low-NOx burners and over-fire air as BART for Laramie River Station. The EPA disapproved of this determination and instead imposed a FIP that also required selective catalytic reduction ("SCR") technology to control NOx emissions. We and the EPA negotiated a settlement that was finalized in 2018. The technology package included a SCR on Unit 1 which has been operational since July 1, 2019, and SNCR on Unit 2 and Unit 3 that have been in operation since 2018, with an approximate total cost of $236 million of which we were responsible for $97 million.

In 2017, EPA finalized amendments to the regional haze rule that require states to submit SIPs in 2021 to meet the future visibility requirements for the second round of the regional haze rule. The SIPs were to address visibility progress from 2021 to 2028. In December 2024, EPA partially approved and partially disapproved North Dakota and Wyoming SIPs for the Regional Haze second planning period. North Dakota, Wyoming, and industry groups (including us) have filed petitions asking courts to review the disapproval of their SIPs. Both cases are currently held in abeyance at EPA's request while they review the cases.

***Mercury and other Hazardous Air Pollutants***. The Clean Air Act also provides for a comprehensive program for the control of hazardous air pollutants ("HAPs"), including mercury. Under this authority, the EPA in 2012 finalized regulations limiting emissions of mercury and other heavy metals from new and existing coal- and oil-fired electric utility steam generating units effective as of April 2015 known as the Mercury and Air Toxics Rule ("MATS rule"). We have installed and are operating controls and monitoring programs to fully comply with the existing requirements of the MATS rule. In 2024 EPA announced final revisions to the MATS rule with more stringent requirements and a compliance date of July 2027. In March 2025 we applied for and were granted a Presidential Exemption for the Antelope Valley Station, the Leland Olds Station, the Laramie River Station and the Dry Fork Station. This exemption pushed out the compliance date for two years to July 2027. In June 2025, EPA announced that it was proposing to repeal certain amendments to the MATS rule. EPA finalized the repeal of this rule on February 24, 2026.

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A coalition of environmental groups along with several states have filed a petition for review in the D.C. Circuit Court of Appeals challenging the repeal. We are currently in compliance with the rule as finalized.

***Greenhouse Gas Emissions***. There has been a push by some federal administrations to regulate GHGs. In April 2024 the Biden Administration finalized GHG regulations for both new and existing electric generating units. States and industry entities filed petitions challenging the rule. In June 2025, the EPA announced a proposed rule that would repeal the April 2024 GHG regulations and all other GHG emission standards for fossil fuel-fired power plants. In addition, the EPA is also proposing to make a finding that GHG emissions from fossil fuel-fired power plants do not contribute significantly to dangerous air pollution. The June 2025 proposed rule also included an alternate proposal that would remove certain restrictions on existing units, but retain the efficiency standards on new natural gas-fired units that were finalized under the Biden Administration. We understand that EPA anticipates finalizing this rule in 2026.

Additional regulatory restrictions on the use of coal or emissions of GHGs are foreseeable, either as a result of current or future legislative or regulatory authority, judicial determinations or international agreements. Our operations, along with those of many other coal-based utilities, could be materially affected by such regulations. The impact to our operations will depend on the development and implementation of applicable regulations and available technologies and cannot be determined at this time.

***New Source Review ("NSR") and Prevention of Significant Deterioration ("PSD") Program***. Under EPA's NSR program, permits must be obtained to build new sources of air emissions or to make major modifications to existing sources of air emissions to ensure that the area attains and remain in compliance with the NAAQS. Power plants are subject to information collection requests pursuant to EPA's authority under Clean Air Act Section 114 to assess whether a plant failed to obtain a new PSD or NSR permit prior to making major modifications to the plant, or if the plant was performing routine maintenance and replacement. These Section 114 information requests can be the basis of federal and state enforcement actions, or citizen suits if environmental groups or private entities obtain information through Freedom of Information Act requests. A government enforcement action or adverse legal finding that one of our generators failed to obtain an NSR or PSD permit could result in significant costs in additional pollution controls, operational limitations, penalties, and even early retirement of the plant.

***Acid Rain Program***. The acid rain program established in 1990 imposed nationwide reductions of SO2 and NOx emissions. NOx emission reductions were achieved by imposing NOx emissions limitations and pollution control requirements in permits issued for construction or operation of certain fossil-fuel combustion units, including our generation facilities. SO2 emissions are controlled by the establishment of a nationwide aggregate limitation that is allocated among certain existing generation facilities by the use of tradable emission allowances. SO2 allowances are allocated for free to some units that were operating in 1990, including several of our combustion units, based on historical or calculated levels of operation and emissions, and give the holder authority to emit one ton of SO2 during a calendar year for each allowance held. Emission allowances are transferable and can be bought, sold or banked for use in future years following their issuance. We receive annual allowance allocations or otherwise hold sufficient SO2 allowances for our foreseeable compliance requirements under the acid rain program. Should this situation change, we would need to purchase SO2 allowances in the allowance markets, like other generators that are allocated insufficient allowances. In recent years, the allowance prices have been low enough that they are not expected to result in material costs. Should market or regulations governing the program change, such costs could be material.

***Water Quality***

***The Clean Water Act***. The Federal Water Pollution Control Act as amended (the "Clean Water Act") regulates the discharge of wastewater and storm water under the National Pollutant Discharge Elimination System permit program. The water quality regulations require us to comply with each state's water quality standards, including sampling and monitoring of the waters around affected plants. As with

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other regulatory programs, changes to the laws and regulations, or changes to our permits, could affect our operations and require additional investment or operating costs.

***Cooling Water Intake***. Section 316(b) of the Clean Water Act requires the EPA to ensure that the location, design, construction and capacity of cooling water intake structures reflect the best technology available to protect aquatic organisms from being killed or injured by impingement or entrainment. In 2014, the EPA published final regulations establishing standards for cooling water intake structures at existing large generating facilities. The rule provided several compliance alternatives for existing plants such as using existing technologies, adding fish protection systems or using restoration measures. The permit associated with this rule requires the Leland Olds Station monitor and inspect the water intake structure. Both the Laramie River Station and the Antelope Valley Station are subject to the 316(b) rule and have developed the required reporting requirements. Both facilities have closed cooling systems installed and their existing technologies and operational features are considered "Best Technology Available" by the State of Wyoming and the State of North Dakota, respectively.

Leland Olds Station has a submerged flight conveyer ash handling system. BATW is recirculated/recycled and not discharged per the ELG rule. Low volume wastewater and coal pile runoff are still discharged in accordance with the state-issued permit. All of our plants are in compliance with the ELG rule but we cannot predict how any future regulations may impact our operations or our ability to comply with such new regulations.

***Coal Combustion Residuals ("CCR")***. The CCR Rule enacted in 2015 mandated closure of unlined surface impoundments upon a specified triggering event. If after multiple levels of monitoring and an alternate source demonstration, a statistically significant level of contamination could not be attributed to another source, a company was statutorily required to take actions such as retrofit or close a surface impoundment.

In 2019, EPA published proposed amendments to the CCR Rule that included new deadlines to cease waste receipt and initiate closure or retrofit for unlined surface impoundments. The proposed amendments indicated all five Laramie River Station ponds would be required to cease accepting waste in 2020. In 2020, EPA released a final rule (Part A Rule), which established April 11, 2021 as the cease waste receipt deadline for unlined surface impoundments. Basin Electric has retrofitted the surface impoundments and is operating them in accordance with the CCR Rule.

In 2024, EPA finalized changes to the CCR rules to regulate inactive surface impoundments at inactive electric utilities, referred to as "legacy CCR surface impoundments." Largely unexpected by the regulated community was that the changes to the regulation also covers areas referred to as "CCR management units," that consist of CCR surface impoundments and landfills that were closed prior to the effective date of the 2015 CCR Rule, and inactive CCR landfills, which include inactive CCR piles and potential beneficial uses at a facility. In this final rule, EPA established identification, groundwater monitoring, corrective action, closure, and post closure care requirements for these areas. CCR management units ("CCRMUs") are subject to the regulations when they are located at active facilities and inactive facilities with a legacy CCR surface impoundment. We are actively evaluating our compliance and reporting obligations for the William J Neal site where we have posted extension notices to a public website. We have begun evaluating Leland Olds Station, Antelope Valley Station, Dry Fork

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Station and Laramie River Station sites for CCRMUs and compliance obligations with this rule. EPA, on March 12, 2025, announced it is reviewing this rule and evaluating whether to grant short- and long-term relief such as extending compliance deadlines. EPA finalized short-term relief in an extension to the rule deadlines by one additional year, which will then allow EPA to make changes to the 2024 rule in 2026. In February 2026, EPA again extended the deadlines by an additional year.

***Other Environmental Matters***

***Renewable Portfolio Standards***. We operate in several states that have adopted renewable power standards ("RPS"). RPS generally require certain suppliers of electricity to supply a certain proportion of their electricity from renewable sources. Currently, we comply with or are not subject to RPS in all states in which we operate. Following is a state-by-state summary of RPS that could affect our operations.

*Iowa*. Iowa does not have an RPS applicable to Basin Electric.

*Montana*. Montana's renewable portfolio standard was repealed in 2021 and replaced with an energy development and demonstration grant program. Renewable resources commencing operation after January 1, 2005 and producing energy from the following energy sources are eligible for grants under this program: geothermal electric, solar thermal electric, solar photovoltaics, wind, biomass, hydroelectric, landfill gas, anaerobic digestion, batteries and hydrogen using renewables in fuel cells and batteries.

*North Dakota*. North Dakota does not have a renewable portfolio standard.

*South Dakota*. South Dakota does not have a renewable portfolio standard.

*Wyoming*. Wyoming does not have a renewable portfolio standard.

***Hazardous Substances and Waste Handling***

*The Comprehensive Environmental Response, Compensation and Liability Act*. The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (also known as Superfund) ("CERCLA"), requires cleanup of sites at or from which there has been a release or threatened release of hazardous substances. This liability is imposed upon owners or operators of contaminated sites, and upon any person sending waste materials that include hazardous substances to off-site disposal locations. These persons are strictly liable, without fault, and can be held fully accountable for any contaminated site for which they have partial liability. As a result, we could be held responsible for any on-site contamination at our facilities and off-site contamination arising from our operations. CERCLA authorizes the EPA to take any necessary response action to investigate and clean up such sites, and to order responsible parties to take or pay for such actions. To our knowledge, we are not subject to material liability for any contamination under CERCLA. However, our operations involve hazardous substances, pollutants and contaminants, including generating wastes that include hazardous substances, and we send certain amounts of our wastes to third party waste disposal sites. As a result, there can be no assurance that we will not incur liability under CERCLA and similar laws and regulations in the future.

*Per- and polyfluoroalkyl substances ("PFAS")*. In recent years, federal and state authorities have increased their focus on the impacts of a class of synthetic compounds known collectively as PFAS in both waste and water contexts. We are aware of historic releases of aqueous film-forming foam ("AFFF") containing PFAS at the Synfuels Plant. AFFF was formerly used by Dakota Gas in firefighting and training activities. We are not aware of any claims relating to AFFF or other PFAS at our facilities or those of our subsidiaries. We have been working with the North Dakota Department of Environmental Quality ("NDDEQ") on a voluntary investigation of these releases. To date, NDDEQ has not made any claims relating to PFAS at the site of the Synfuels Plant.

***Species Protection***. Various federal and state laws apply to our operations that protect species, including from unauthorized harm, or "taking." Examples of such laws include the Migratory Bird Treaty

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Act, which prohibits taking of migratory bird species. The Endangered Species Act protects species that are identified and listed by the United States Fish and Wildlife Service as "endangered" or "threatened" as well as critical habitat for such species. The Bald and Golden Eagle Act prohibits taking of eagles. Analogous state statutes exist in several states.

These statutes apply to development and construction activities, limiting the times during the year when construction can occur, and limiting the locations and type of construction that may be authorized. They also apply to operating assets, such as wind energy facilities, which can cause death or injury to birds and bats, some of which are protected species under these statutes. Occasionally, our wind energy facilities' operations are curtailed due to the presence of protected species. We have developed and implemented avian and bat protection plans for both transmission and wind energy facilities.

New species may be added to the protected species lists from time to time. In addition, conditions may change that result in protected species appearing in or around our operations at unexpected times or places. There can be no assurance that our present or planned operations will not be found to cause or potentially cause taking of a protected species or that circumstances will not change, in which case we may have to modify our operations or, if an unintended taking occurs, incur fines or penalties as a result of violations of species protection statutes.

***Mine Reclamation and Closing***. Under certain federal and state regulations, owners and operators of coal mines are required to reclaim land disturbed as a result of mining. Owners and operators are required to post financial assurance to ensure a source of funding for such reclamation, to be used by agencies for mine closure and reclamation if the owner or operator fails to complete it.

Payments for mine closing costs for the Freedom Mine will be made to Coteau when Coteau actually incurs costs to complete reclamation after mining is completed in a specific mine area. The estimated mine closing and reclamation costs for the Freedom Mine are approximately $440.8 million, which are being proportionately charged in coal we purchase from Dakota Coal. Dakota Coal has established a fund for mine closing costs. As of December 31, 2025, the balance in the fund was $123.7 million.

In addition, we have provided guarantees of certain reclamation obligations of Coteau aggregating approximately $215 million as of December 31, 2025. As of December 31, 2025, we and Dakota Coal advanced funds to Coteau for the posting of $21.5 million of surety bonds to support reclamation obligations.

As of December 31, 2025, we have also provided approximately $31.9 million in guarantees of certain reclamation obligations for Dry Fork Mine.

***Duane Arnold Energy Center Closing and Removal***. As the owner of an undivided interest in the Duane Arnold Energy Center, an idled nuclear power plant in Iowa with a single unit boiling water nuclear reactor, Corn Belt is responsible for 10% of the costs and expenses related to the decommissioning of the facility. Prior to becoming a Class A Member, Corn Belt established a decommissioning fund, which was fully funded upon becoming a Class A Member, to cover its share of the decommissioning costs associated with the closing and removal of the plant. Our current expectation is the decommissioning fund will be adequate to cover these costs. However, if the amounts funded by Corn Belt are insufficient to cover the costs related to decommissioning the plant, we would be liable for any excess costs. We are aware that NextEra Energy Duane Arnold, LLC ("NEDA") is exploring a repower of the Duane Arnold Energy Center and Corn Belt is actively working on an asset sale of its ownership interest in the Duane Arnold Energy Center to NEDA. This sale would relieve Basin Electric and Corn Belt of any ongoing responsibilities related to the plant. The Nuclear Regulatory Commission has recently approved the Duane Arnold Energy Center license transfer request filed by NEDA and concluded that NEDA has sufficient funding for the decommissioning of the facility without requiring Corn Belt's decommissioning funds.

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***Cyber and Physical Security***

Cyber and physical security risks continue to grow for electric utilities that own and operate critical infrastructure. Basin Electric, like others in the industry, is targeted by a range of threat actors, including nation-states and state-sponsored groups, international and domestic violent extremists, and other malicious actors. A successful cyber or physical attack on our facilities could disrupt operations; cause operational or financial losses; reduce revenue; compromise information; damage reputation; require significant resources to respond, mitigate, and recover; and result in liability, litigation, compliance obligations, or system improvement costs.

Basin Electric experienced a limited grid-impacting physical attack in 2023 that resulted in approximately 6.5 hours of impact. We mitigated the effects of this event through our implementation of North American Transmission Forum grid-resilience principles. We incorporate design-based threat assessments and a holistic security posture designed to help prevent, deter, detect, and respond to potential attacks.

As an owner and operator of bulk electric system ("BES") assets, Basin Electric is subject to mandatory cyber and physical security requirements under the authority of the FERC through Section 215 of the Federal Power Act. The NERC, designated by FERC as the nation's Electric Reliability Organization, establishes CIP cybersecurity reliability standards. Basin Electric complies with all applicable security-related requirements, monitors its compliance, and reports identified issues to its regional entity. Internal and external audits have in the past identified minor issues that posed little risk to the bulk electric system, and; all were addressed without penalties.

In addition to NERC CIP requirements, Basin Electric incorporates the SANS Five ICS Cybersecurity Critical Controls and employs a defense-in-depth strategy. We also maintain situational awareness and coordinate with industry partners; vendors; and federal, state, and local government entities. Basin Electric regularly participates in industry exercises, including GridEx, the biennial North American electricity-sector security exercise.

***Price Transparency and Market Manipulation***

Energy Policy Act of 2005 ("EPAct 2005") amended the Federal Power Act to promote price transparency in wholesale energy markets. The amended Federal Power Act authorizes FERC to require all market participants, other than those with a de minimis market presence, to disseminate information concerning the availability and price of generation and transmission resources. To date, FERC has focused on requiring greater transparency in the calculation of how much transmission capacity is available, including how much transmission capacity is used to meet local requirements, as well as the submission of quarterly reports on wholesale power sales and transmission transactions.

EPAct 2005 also amended the Federal Power Act to prohibit manipulation of the energy markets. Section 222 of the Federal Power Act, as implemented through FERC's regulations, generally prohibits false statements, omissions of material facts and fraudulent or deceitful actions in connection with transactions that are subject to FERC's jurisdiction, that is, wholesale sales and transmission of electric energy in interstate commerce by regulated utilities and other jurisdictional entities. Section 222 applies to us to the extent that we engage in activities or transactions that are subject to FERC's jurisdiction. The knowing and willful submission of false information to FERC may be penalized as fraud.

***Enforcement***

EPAct 2005 expanded the scope of FERC enforcement and civil penalty authorities for violations of the Federal Power Act. FERC may take specific steps to enforce the Federal Power Act, including FERC's regulations, rules and orders promulgated thereunder, and may impose civil penalties of up to $1 million per day, as adjusted for inflation, per violation. FERC may seek enforcement in the federal courts, refer matters to the United States Department of Justice for criminal prosecution, order

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disgorgement of profits, revoke authorization to sell energy at market-based rates, and impose civil penalties. As a market participant, we are subject to FERC's enforcement authority.

**Competition**

The electric utility industry has experienced increasing wholesale competition, enabled by deregulation and revisions to existing regulatory policies, competing energy suppliers, new technology, and other factors. The Energy Policy Act of 1992 amended the Federal Power Act to allow for increased competition among wholesale electricity suppliers and increased access to transmission services by such suppliers. Federal legislation could mandate retail choice in every state, but the prospect of such legislation has diminished due to a variety of factors, including the risks associated with retail competition, the state of the economy, and commodity prices.

A number of other significant factors have affected electric utility operations, including the availability and cost of fuel for electric energy generation, the use of alternative fuel sources for space and water heating and household appliances, fluctuating rates of load growth, compliance with environmental and other governmental regulations, licensing and other factors affecting the construction, operation and cost of new and existing facilities, and the effects of conservation, energy management, and other governmental regulations on electric energy use. All of these factors present an increasing challenge to companies in the electric utility industry, including our members and us, to reduce costs, increase efficiency and innovation, and improve resource management.

We may face competition as a result of the factors described above, including competition from other utilities, fuel sources or as a result of technological innovations. Technological innovations may include methods or products that allow consumers to bypass the electric supplier, to switch fuels or to reduce consumption. These innovations may include, but are not limited to, demand response, distributed generation, solar, energy storage and microgrids. Competition from other utilities may consist of competition from other electric companies or annexations by municipalities. We seek to minimize the risk of competition through price stability, long-term service arrangements, fixed-cost generation and transmission, cost-based coal supplies, and economic diversity among customers. In addition, we serve our members in rural territories that are less attractive to competitors.

**Human Capital Resources**

Basin Electric relies on a skilled and experienced workforce to support the safe, reliable operation of its generation, transmission, and related facilities. As of December 31, 2025, we and our subsidiaries employed approximately 1,930 employees located in North Dakota, South Dakota, Montana, Nebraska, Wyoming, Arizona and Louisiana. Management focuses on employee safety and health, and maintaining a strong safety culture supported by training programs, safety committees, and emergency preparedness initiatives. We also emphasize workforce development through training and professional growth opportunities designed to support operational excellence, regulatory compliance, and long-term reliability. Employee retention and the promotion of a supportive work environment are important considerations in managing our human capital resources.

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**PROPERTIES**

**Generating Facilities**

We own, lease, or have undivided percentage interests in various generating facilities which are identified in the table below. For these facilities, the ownership or leasehold share shown represents our portion of total net capability as of December 31, 2025. All of our interests in these facilities or agreements, as applicable, are subject to the lien of our Indenture.

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| **Name** | **State** | **Type of Fuel** | **Net Capability**<sup>(1)</sup> **(MW)** | **Ownership or Leasehold Share**<sup>(1)</sup> **(MW)** | **Commercial Operation Date** |
| **Coal** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Antelope Valley Station Unit 1 | ND | coal | 450 | 450 | 1984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Antelope Valley Station Unit 2 | ND | coal | 450 | 450 | 1985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station Unit 1<sup>(2)</sup> | WY | coal | 560 | 92 | 1980 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station Unit 2<sup>(2)</sup> | WY | coal | 570 | 314 | 1981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station Unit 3<sup>(2)</sup> | WY | coal | 570 | 314 | 1982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leland Olds Station Unit 1 | ND | coal | 220 | 220 | 1966 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leland Olds Station Unit 2 | ND | coal | 440 | 440 | 1975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dry Fork Station | WY | coal | 405 | 405 | 2011 |
| **Natural Gas** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deer Creek Station | SD | gas | 297 | 297 | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Groton Unit 1 | SD | gas | 95 | 95 | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Groton Unit 2 | SD | gas | 93 | 93 | 2008 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earl F. Wisdom Unit 2<sup>(3)</sup> | IA | gas/oil | 80 | 40 | 2004 |
| &nbsp;&nbsp;&nbsp;&nbsp;Culbertson Unit 1 | MT | gas | 95 | 95 | 2010 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 1 | ND | gas | 45 | 45 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 2 | ND | gas | 45 | 45 | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 3 | ND | gas | 45 | 45 | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 4 | ND | gas | 45 | 45 | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 5 | ND | gas | 45 | 45 | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lonesome Creek Station Unit 6 | ND | gas | 45 | 45 | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Unit 1 | ND | gas | 45 | 45 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Unit 2 | ND | gas | 45 | 45 | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Unit 3 | ND | gas | 45 | 45 | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Unit 4 | ND | gas | 225 | 225 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Unit 5 | ND | gas | 225 | 225 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Units 11-22 | ND | gas | 107 | 107 | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pioneer Generation Station Units 31-36 | ND | gas | 112 | 112 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;8 Wyoming Combustion Turbine Units | WY | gas | 48 | 48 | 2002 |
| **Oil** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Spirit Mound Station Unit 1 | SD | oil | 60 | 60 | 1978 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spirit Mound Station Unit 2 | SD | oil | 60 | 60 | 1978 |

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| **Name** | **State** | **Type of Fuel** | **Net Capability**<sup>(1)</sup> **(MW)** | **Ownership or Leasehold Share**<sup>(1)</sup> **(MW)** | **Commercial Operation Date** |
| **Wind Turbines** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;188 Wind Turbines | SD/ND | wind | 292 | 292 | 2009, 2011 |
| **Total**  |  |  | **5859** | **4839** |  |

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Amounts may not sum due to rounding.

(1)MW reported based on most recent capability test. For wind turbines, MW reported represents the aggregate nameplate rating of the wind turbine units, which provide intermittent capacity.

(2)Laramie River Station is operated by Basin Electric.

(3)Earl F. Wisdom Unit 2 is operated by Corn Belt.

**Existing Generation Resources**

***Antelope Valley Station***

Antelope Valley Station is a 900 MW two-unit lignite coal-based steam-electric generating station located in Mercer County, North Dakota. Antelope Valley Station Unit 1 went into commercial operation in 1984 and Antelope Valley Station Unit 2 went into commercial operation in 1985. We own a 100% interest in Unit 1 and a 24.2% interest in Unit 2. The remaining 75.8% of Unit 2 at Antelope Valley Station is leased through 2030.

Antelope Valley Station and the Synfuels Plant are surrounded by an area with more than sufficient tons of recoverable lignite coal reserves to supply both facilities, as well as Leland Olds Station, with all of their coal requirements for their respective useful lives. The Freedom Mine, a surface mine owned and operated by Coteau, is located near Antelope Valley Station and the Synfuels Plant. Currently, all lignite coal extracted from the Freedom Mine is sold to Dakota Coal pursuant to the Coteau Lignite Sales Agreement. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990412)[—](#i1da15c2f072544dab31d87ca49a182c3_990412)</u>*<u>[Coal and Limestone Operations](#i1da15c2f072544dab31d87ca49a182c3_990412)</u>*" for more information on the Coteau Lignite Sales Agreement.

***Laramie River Station***

Laramie River Station is a 1,700 MW, three-unit coal-based steam-electric generating station located in Platte County, Wyoming. Units 1, 2 and 3 of Laramie River Station were placed in commercial operation in 1980, 1981 and 1982, respectively. We own an approximate 42.3% undivided interest in Laramie River Station.

Laramie River Station is a component of MBPP, which includes Laramie River Station, the Grayrocks Dam and Reservoir (discussed below), certain transmission and transformation facilities and rights under a 60-year transmission service contract with the Nebraska Public Power District. Other participants in MBPP include the City of Lincoln, Nebraska, operating the Lincoln Electric System, Western Minnesota Municipal Power Agency, and Tri-State. The MBPP participation agreement (i) names us as project manager and operating agent, (ii) provides remedies for the failure of any participant to pay its share of costs, (iii) provides for participant input in certain aspects of facility management, (iv) contains restrictions on the transfer of a participant's interest and (v) governs other aspects of participation in Laramie River Station.

Fuel for Laramie River Station is supplied pursuant to a coal purchase contract between us, as project manager, and Western Fuels Association ("Western Fuels"), through the remaining useful life of Laramie River Station (the "Coal Purchase Contract"). Western Fuels is a non-profit Wyoming corporation founded by us and Tri-State for the purpose of acquiring and developing economical fuel resources for Western Fuels' members, consisting of electric cooperative associations and municipal electric systems, as well as for other not-for-profit utilities. Under the Coal Purchase Contract, we are obligated to purchase all of the coal requirements of Laramie River Station from Western Fuels and Western Fuels is obligated to supply us coal through purchases from other companies, which are approved by us, and from the Dry

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Fork Mine, a mine in the Wyoming Powder River Basin owned and operated by an affiliate of Western Fuels. The Coal Purchase Contract obligates us to purchase coal at a price that is periodically set by Western Fuels based on all of its costs in connection with producing or acquiring and delivering coal from other companies.

In addition, pursuant to the Coal Purchase Contract we agree to guarantee, as project manager, certain payment obligations incurred by Western Fuels in the performance of its obligations under the Coal Purchase Contract. Further, we, as project manager, are obligated to pay for all of Western Fuels' fixed costs associated with supplying coal to Laramie River Station on a monthly basis regardless of whether such coal is actually delivered to it. Under the terms of the Coal Purchase Contract, Western Fuels is obligated to supply and deliver the total coal requirements of Laramie River Station through the year 2034 unless extended by mutual agreement. We have no reason to believe that Western Fuels will not be able to obtain the coal necessary to satisfy its obligations under the Coal Purchase Contract.

***Leland Olds Station***

Leland Olds Station is a 660 MW two-unit, lignite coal-fired steam-electric generating station located near Stanton, North Dakota. Unit 1 was placed in commercial operation in 1966 and has a 220 MW capability. Unit 2 was placed in commercial operation in 1975 and has a 440 MW capability. We own 100% of Leland Olds Station.

We have a long-term contract with Dakota Coal for lignite coal used by the facility.

***Dry Fork Station***

Dry Fork Station is a 405 MW coal-based steam-electric generating station located near Gillette, Wyoming that began commercial operation in 2011. We are the 100% owner of the station.

We have a long-term coal purchase contract with Western Fuels for sub-bituminous coal from the nearby Dry Fork Mine through the life of Dry Fork Station. We are obligated to purchase all of the coal requirements of the Dry Fork Station from Western Fuels and Western Fuels is obligated to supply us coal through purchases from the Dry Fork Mine. The contract obligates us to purchase coal at a price that is periodically set by Western Fuels based on all its costs in connection with producing and delivering coal to the Dry Fork Station.

***Deer Creek Station***

***Peaking Resources***

We own, lease, or have undivided percentage interests in 1,565 MW of peaking capability as of December 31, 2025, which is included in the table above. These peaking resources are comprised of combustion turbine generating units and natural gas-based reciprocating engines and include both natural gas and oil generation, with commercial operation dates ranging from 1978 to 2025.

***Renewable Generation***

We own 292 MW of wind resources in North Dakota and South Dakota which is included in the table above, and we have separately added an additional 2,066 MW of wind resources to our portfolio through power purchase agreements, bringing the current total wind generating capacity in our portfolio to over 2,350 MW as of December 31, 2025, with another 235 MW expected to be added in 2026 and 2027. Our

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first solar power purchase agreement of 114 MWs came online in 2024. We continue to have discussions with developers for the purchase of additional wind and solar generation.

***Corn Belt***

We entered into various power purchase agreements with our Class A Member, Corn Belt, that are coterminous with its wholesale power contract with us, pursuant to which we purchase substantially all of Corn Belt's generation output at its cost while Corn Belt continues to maintain ownership of its generation assets during such period. Corn Belt's current generation portfolio, which totals approximately 309 MW as of December 31, 2025, is comprised of coal, natural gas, diesel, and wind generating assets, including 87 MW of purchased power resources which we purchase at its cost. Corn Belt is a participant with others in many of the generation assets they own.

**Existing Transmission**

***Transmission System Overview***

We provide service to our members located in both the Eastern Interconnection and the Western Interconnection. As of December 31, 2025, we own approximately 2,571 miles of high-voltage transmission lines, have components within or wholly own 115 substations, and own 220 telecommunication sites. Total Basin Electric transmission miles are identified in the table below.

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| **Interconnection** | **Transmission Tariff** | **Basin Electric Owned<br>(miles)** | **Basin Electric Maintained<br>(miles)** |
| Eastern | Southwest Power Pool <sup>(1)</sup>  | 2076 | 2146 |
|  | Non-tariff facilities | 32 | 57 |
| Western | Common Use System | 279 | 348 |
|  | BEPW <sup>(2)</sup>  | 179 | 63 |
|  | Non-tariff facilities | 5 | 16 |
| **Total Basin Electric Miles** |  | **2571** | **2630** |

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(1)Basin Electric includes its entitlement share over the MBPP transmission facilities located in the Eastern Interconnection in the SPP transmission tariff.

(2)BEPW represents Basin Electric's entitlement share over the MBPP transmission facilities located in the Western Interconnection.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of our operations should be read together with our consolidated financial statements, including the related notes thereto, included elsewhere in this prospectus. The following discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" and "<u>[FORWARD-LOOKING STATEMENTS](#i0b5983c249b84b3db1dc97769c25fdb6_1384)</u>" included elsewhere in this prospectus.*

**Executive Overview**

We are a not-for-profit G&T cooperative corporation based in Bismarck, North Dakota, principally engaged in the business of providing wholesale electric services to our members through long-term wholesale power contracts. These electric services generally represent the capacity and energy requirements of our members beyond that available to them from other sources, primarily WAPA, which provides hydroelectric power and transmission services to our members.

We have three operating segments: Electric Utility, Gasification, and Coal and Limestone Operations. The Electric Utility segment provides wholesale electric service and other ancillary services to our members throughout their respective service territories with our own electrical generation and transmission assets and various contractual arrangements. The Gasification segment includes Dakota Gas, which operates a gasification facility that converts lignite coal into synthetic natural gas and other products, including fertilizers, DEF, carbon dioxide, and other oil and chemical products. The Coal and Limestone Operations segment includes Dakota Coal, which purchases coal and coordinates deliveries of coal to the Electric Utility generation facilities and Gasification operations and produces lime and limestone that is used for emissions control at the generation facilities.

In 2025, we sold 39.5 million MWhs of electricity, of which 87% was sold to our Class A Members. Our consolidated net margin and earnings in 2025 was $116.3 million compared to $120.8 million in 2024. Our results were primarily impacted by the following factors:

Total operating revenue increased $272.4 million, or 9.7%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating revenue at our Electric Utility operating segment increased primarily due to a rate increase on electricity sales to our members effective January 1, 2025, partially offset by a decrease in the recognition of previously deferred non-member revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating revenue at our Gasification operating segment increased mainly due to higher fertilizer, DEF, and synthetic natural gas revenue. Fertilizer and synthetic natural gas sales prices were higher and DEF volumes sold increased largely due to DEF volumes sold on behalf of third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating revenue at our Coal and Limestone Operations operating segment increased largely due to higher lignite coal sales resulting from higher average sales prices.

Total operating expenses increased $227.6 million, or 8.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric fuel and purchased power and operations and maintenance increased largely due to increased fuel, transmission wheeling, and maintenance expenses. Fuel expenses were higher as a result of higher natural gas prices and higher coal expense. Transmission wheeling rates increased and maintenance expenses were impacted by unplanned work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cost of products sold increased primarily due to third party DEF purchase contracts entered into in 2025, higher prices on natural gas purchases, and higher employee-related costs in lignite coal mining operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Selling, general, and administrative expenses increased largely due to higher freight expenses, absence of insurance recovery proceeds received in 2024, and higher lease expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• These increases were partially offset by decreased Impairment expense due to the absence of impairment expense of $25.5 million after-tax that was recorded in 2024 related to an investment in NTEC, a generating facility that is not expected to generate cash flows.

Other income decreased $17.0 million primarily due to lower investment income due to lower interest rates.

Interest and other charges increased $13.0 million mainly due to an increase in net interest expense primarily due to higher debt balances resulting from additional capital expenditures in electric utility property.

**Key Factors Affecting Results**

In addition to commodity prices, changes in rates and weather conditions, other factors have been important to our results of operations and financial condition and may significantly impact our outlook in future periods. Some of these factors include the following:

***Changes in Member Load Growth***

The load we serve through our members continues to grow. Our members' energy requirements that we supplied grew at an average annual compound rate of 5.5% from 2020 through 2025. Over the same period, our members' peak demand increased by an average annual compound rate of approximately 4.9%, reflecting significant growth in system load. This high rate of growth was due in major part to load growth in the Bakken shale formation in western North Dakota and eastern Montana. We currently forecast that our members' energy requirements supplied by us will increase at an average annual compound rate of 3.7% from 2026 through 2031. Over the same period, our members' peak demand is expected to increase by an average annual compound rate of approximately 2.5%, reflecting continued growth in system load. The forecasted growth is exclusive of potential service to large loads as described below. Several factors could impact this forecasted rate of growth, such as market prices for oil and natural gas, developments in the Bakken shale formation, population growth in our service territory, general economic conditions, pipeline permitting and construction, data center construction, technology advancements such as carbon oxide sequestration, and tax advantaged projects.

***Major Capital Expenditures***

We will continue to have ongoing substantial investments in utility infrastructure. We must invest in adequate generation resources to meet member demand, markets reserve margin requirements, and to back-up the intermittency of renewable energy resources. We also must maintain or expand the transmission facilities we need to reliably serve our members. We currently project $7.1 billion of capital expenditures for Electric Utility operations for 2026 through 2030. See also "—*Large Load Commercial Program*" below.

Our subsidiaries also expect to incur capital expenditures in coming years. Our Gasification segment is currently projected to spend $146 million on capital expenditures to fund general projects from 2026 through 2030. See "—Liquidity and Capital Resources—Projected Capital Expenditures—Gasification" below for information regarding these projects. As described in "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>," a change in the strategic direction of Dakota Gas could cause its future capital expenditures to vary significantly from those projected amounts. Our Coal and Limestone Operations segment currently is projected to spend $262 million on capital expenditures from 2026 through 2030.

We expect that the financing for our projected capital expenditures and the capital expenditures of our subsidiaries principally will come from internally generated funds, advances under our commercial paper program or revolving credit or term loan agreements, RUS loans, loans by us to our subsidiaries, or

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issuances of long-term debt securities by us or our subsidiaries. See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for considerations that could impact the amount and timing of our capital expenditures or cause the financing costs of those expenditures to increase beyond amounts forecasted.

***Commodities and Asset Management***

We seek to manage the risk that we or our subsidiaries may incur from changes in market prices associated with the inputs, such as fuel, and the outputs, such as electricity, of our assets and those of our subsidiaries. We seek to reduce our exposure to commodity price risk while also obtaining the benefits resulting from more efficient utilization of our assets. Neither we nor our subsidiaries engage in speculative trading. We actively seek to manage exposure to many different commodities, such as natural gas, power, electric transmission capacity, and natural gas pipeline capacity. In addition to these commodities that are commonly managed by energy companies, we also seek to mitigate commodity price risk associated with products of Dakota Gas, such as anhydrous ammonia, tar oil, naphtha, phenol, cresylic acid, urea, and DEF. Our hedging activities include the following markets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Power markets, including SPP, MISO, and the bilateral and emerging organized Western Interconnection markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Natural gas markets, including the Upper Midwest, such as Bakken/Williston Basin and Ventura markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fuel and agricultural markets.

See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a description of limitations on our ability to eliminate or mitigate these risks.

***SPP***

We have participated in the SPP energy market since 2015. SPP oversees the bulk electric transmission system and wholesale energy market in the central United States on behalf of market participants in fourteen states. Through our participation in SPP, we benefit from, among other things, access to economic purchased power and greater opportunities for economic dispatch of our generation facilities. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990410)[—Transmission—Southwest Power Pool Membership and Planning](#i1da15c2f072544dab31d87ca49a182c3_990410)</u>."

SPP recently adopted changes to the planning reserve margin requirements that load serving entities must maintain, including seasonal planning reserve requirements. The new winter planning reserve margin requirements effectively increase from 15% to 36% beginning in the 2026-2027 winter season. The summer planning reserve requirement will increase from 15% to 16% beginning in the summer of 2026. Because we are a load serving entity in SPP, we will be required to meet these additional requirements with capacity purchases and/or construction of new facilities. These actions are intended to enable SPP to better prepare for extreme weather conditions and other circumstances that can lead to higher than forecasted demand for electricity. For example, winter storms that stress electrical grids, such as Uri in 2021 and Elliot in 2022, have demonstrated a need for additional winter resources to be available. We cannot predict other potential changes in SPP market rules, planning reserve margins, or other market operations that may occur in the future.

***Membership Changes***

From time to time, our membership changes. One type of change occurs when a cooperative not previously served by us becomes a new Class A Member. Another type of membership change occurs when we add a Class C Member, which most commonly occurs when one of our Class A Members adds a member. Another change occurs if one of our current members changes its class of membership, or if one of our current Class C Members exits from its Class A Member. Nearly all changes in our membership have resulted in the growth of our requirements. Most Class A Members have wholesale power contracts that extend through 2075, except for four of those contracts that extend only until 2050. We cannot predict whether we will continue to add new members in the future. If we do, our electricity

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revenues from sales to members likely would increase and sales to non-members likely would similarly decrease. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990812)[—](#i1da15c2f072544dab31d87ca49a182c3_990812)[Cooper](#i1da15c2f072544dab31d87ca49a182c3_990812)[ative Structure](#i1da15c2f072544dab31d87ca49a182c3_990812)</u>."

***Rate Structure***

Our wholesale power contracts with our Class A Members provide that our Board will establish rates to produce revenue sufficient, together with all of our other revenue, to pay the cost of operation and maintenance of all our generation, transmission system and related facilities, the cost of any power and energy purchased for resale by us, the cost of transmission service, the cost of lease payments, interest expense and depreciation expense or principal repayments of ours, and to provide for the establishment and maintenance of reasonable financial reserves. Our Board sets our rates to our Class A and D Members at a level intended to achieve and maintain "A" category credit ratings and otherwise to comply with our Indenture covenants and other contractual commitments. In addition, we have a number of different incentive rates that we charge to our Class A Members, including a non-controlled electric/dual space heat rate, and an interruptible rate. Our wholesale power contracts with our Class A Members obligate us to review the rates at least annually and to revise such rates as necessary to produce revenue as described above. We also maintain a rate stability fund that is intended to act as a cushion for our membership to help avoid or slow unexpected rate increases. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990413)[—Rates and Regulation](#i1da15c2f072544dab31d87ca49a182c3_990413)</u>" and "—*RUS Financing*" below for a description of how our rates are regulated; see also "<u>[LEGAL](#i0b5983c249b84b3db1dc97769c25fdb6_25)[PROCEEDINGS](#i0b5983c249b84b3db1dc97769c25fdb6_25)</u>" for a description of existing proceedings before FERC relating to our rates and our Class A Members.

The average wholesale rates paid by our Class A Members were $62.9 per megawatt-hour ("MWh") in 2025, $59.1 per MWh in 2024 and $60.0 per MWh in 2023. Effective January 1, 2026, we implemented a Class A Member rate increase of approximately $6 per MWh, or approximately 10%. Because we forecast significant future capital expenditures to accommodate load growth (see "—Liquidity and Capital Resources—*Projected Capital Expenditures*" below), we expect that additional rate increases will be required to maintain our "A" category credit ratings.

***Rate Covenant***

The Indenture requires us to establish and collect rates for the use or the sale of the output, capacity or service of our system that, together with all other revenue, are sufficient to enable us to comply with all of our covenants under the Indenture. Subject to any necessary regulatory approvals, the Indenture also requires us to establish and collect rates that, together with all other revenue, are reasonably expected to yield an MFI Ratio for each fiscal year of at least 1.10, which is calculated by dividing the "Margins for Interest" for a period by the "Interest Charges" for such period. The definition of "Margins for Interest" takes into account any item of net margin, loss, gain or expenditure of any affiliate or subsidiary of ours only if we have received such net margins or gains as a dividend or other distribution from such affiliate or subsidiary or if we have made a payment with respect to such losses or expenditures. We were in compliance with the MFI Ratio requirement for each of 2025, 2024 and 2023, respectively. For the definitions of "Margins for Interest" and "Interest Charges," see "<u>[SUMMARY OF THE INDENTURE—Definitions](#i6808b04634ac4a8389016f190701e059_295449)</u>."

***Net Margin and Patronage Capital***

We operate our Electric Utility business on a not-for-profit basis and, accordingly, seek to generate revenue sufficient to recover our cost of service and produce margins sufficient to establish reasonable financial reserves, meet financial coverage requirements and accumulate additional equity as determined by our Board. Revenue in excess of expenses in any year is designated as net margins in our consolidated statements of operations. We designate retained net margins in our consolidated balance sheets as patronage capital, which we assign to each of our patrons, including our Class A and Class D Members, on the basis of its business with us. Any distributions of patronage capital are subject to the discretion of our Board and restrictions contained in the Indenture. See "<u>[SUMMARY OF THE INDENTURE](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u>."

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***Future of Dakota Gas***

The financial performance of our subsidiary, Dakota Gas, has had and is expected to continue to have a significant impact on our financial results. Although Dakota Gas has been profitable in the past, our Gasification segment incurred net losses of $34.8 million and $31.3 million for the years ended December 31, 2025 and 2024, respectively. Dakota Gas's financial performance is exposed to significant commodity price volatility and thus can experience operating losses. Negative cash flows could continue at Dakota Gas if commodity prices remain low for an extended time. For these reasons, we continue to evaluate various strategic options, including the sale to potential buyers of the equity or assets of Dakota Gas, in whole or in part, and the potential retirement or repurposing of the Synfuels Plant. Although we previously wrote off the value of the coal gasification assets of the Synfuels Plant, we could incur an additional impairment related to the value of our non-coal gasification assets investments in Dakota Gas, in whole or in part, as a result of any transaction to sell the equity or some or all of the assets of Dakota Gas or decommissioning or repurposing of the Synfuels Plant. See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a discussion of additional risks relating to a change in the strategic direction of Dakota Gas.

***Tax Status***

We are subject to federal and state income taxation, but, as a cooperative, we are allowed to exclude from income patronage margins allocated as patronage capital and we allocate all of our patronage margins to our members to receive such an exclusion. The United States Internal Revenue Service (the "IRS") could challenge whether all of our margins are patronage-related and, if the challenge were successful, we could have additional tax liabilities as a result. Our subsidiaries, except for Basin Cooperative Services, are not organized as cooperatives and are taxed as for-profit corporations. As a result, these subsidiaries cannot reduce their taxable income by making a patronage allocation.

We and our subsidiaries (the "Consolidated Group") file a consolidated income tax return and have entered into tax sharing agreements. Income taxes are allocated among members of the Consolidated Group based on a method under which such taxes approximate the amount that would have been computed on a separate company basis. The tax-sharing agreements obligate members of the Consolidated Group to contribute to the payment of a consolidated U.S. federal income tax liability on the basis stated above. However, under the provisions of the Code currently in effect, the members of the Consolidated Group remain jointly and severally liable for the payment of the entire consolidated income tax liability.

For further information regarding our taxable status, see Note 13 to consolidated financial statements.

***Environmental***

Our operations are subject to significant environmental regulation. Our coal-fired and natural gas-fired generation facilities constitute stationary sources of emissions that are regulated by the Clean Air Act, the Clean Water Act and other laws and regulations. For more than a decade, the regulation and proposed regulation of air emissions from these sources has vacillated significantly based on the policies of the then-current federal administration and the outcome of litigation and regulatory proceedings accompanying changes or proposed changes in law under the Clean Air Act. Our operations also are subject to the Clean Water Act and other federal and state laws relating to the use and management of hazardous and solid wastes and other environmental matters. Costs to comply with current and future environmental regulations will affect our results of operations, financial condition and cash flows. See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a description of ways in which current or future environmental regulation may impact our financial results and "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990409)[—Environmental Regulation](#i1da15c2f072544dab31d87ca49a182c3_990409)</u>" for additional information regarding the scope and nature of environmental regulation to which we are subject.

***Large Load Commercial Program***

Our service territory benefits from a cooler climate, available land suitable for industrial-scale development, and abundant wind and natural gas reserves, which are favorable conditions for the

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location of large data centers by hyperscalers. These potential loads provide unique challenges to our cooperative business model through additional generation and transmission requirements, concentration of revenue, and the ongoing reliability of the bulk electric system. To meet the obligation to serve these large loads, insulate our existing membership from rate pressure associated with new generation and transmission requirements, and to protect our financial condition from the risk of stranded assets, our Board adopted a "Large Load Commercial Program" in 2025. Under this program, we seek to meet these new loads' requirements under a market price passthrough rate structure and require these loads to contribute in some form a substantial portion of the capital required to construct or acquire the assets necessary to serve their loads. See "<u>[RISK FACTORS](#i0b5983c249b84b3db1dc97769c25fdb6_13)</u>" for a description of factors impacting our capital expenditures associated with potential service to large loads.

NextEra Energy Resources submitted an application under our Large Load Commercial Program in 2025. NextEra Energy Resources has also signed a memorandum of understanding with Basin Electric and our member cooperatives to explore the possible joint development of a new 1,450-MW combined-cycle natural gas facility to be located in Mercer County, North Dakota. This project is still in early stages of development.

***RUS Financing***

We have entered into a loan contract (the "RUS Loan Contract") with the United States of America, acting by and through the Administrator of the RUS, whereunder RUS advanced funds to us on July 16, 2025, pursuant to the Rural Electrification Act of 1936 (the "RE Act"). Under the RUS Loan Contract, we must give RUS 30 days' notice of any proposed change to our general rate structure. We also are prohibited from amending our wholesale power contracts, including the rate schedule attached to such contracts, without giving RUS 60 days' notice of the proposed change. If RUS objects to the proposed change, we cannot make it. See "<u>[BUSINESS](#i1da15c2f072544dab31d87ca49a182c3_990413)[—Rates and Regulation](#i1da15c2f072544dab31d87ca49a182c3_990413)</u>" for a description of how our rates are regulated.

In January 2025, we signed a commitment letter with RUS to receive grant and loan funding under the New ERA program for a number of existing and proposed renewable projects. The final amount and availability of funding under the program will be subject to meeting program requirements and entering into binding agreements with RUS. Currently, it is unclear whether RUS will proceed to enter into such binding agreements. In addition, we anticipate submitting a construction work plan for new transmission, upgrades to our existing generation and transmission facilities, and certain other eligible capital projects to RUS in the first half of 2026.

**Results of Operations**

Provided below is a summary and discussion of our operating results on a consolidated basis for the years ended December 31, 2025, 2024 and 2023, followed by a discussion of the operating results of

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each of our operating segments for the year ended December 31, 2025 compared to 2024, and for the year ended December 31, 2024, compared to 2023.

***Consolidated Summary***

The following table summarizes our consolidated net margin and earnings for the years ended December 31, 2025, 2024, and 2023:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** | **Change (2025 to 2024)** | **Change (2024 to 2023)** |
| Electric Utility | $104712 | $125583 | $149968 | (16.6)% | (16.3)% |
| Gasification | (34751) | (31300) | (47722) | 11.0% | (34.4)% |
| Coal and Limestone Operations | 12698 | (3658) | (1414) | (447.1)% | 158.7% |
| Other <sup>(a)</sup> | 33613 | 30154 | 46684 | 11.5% | (35.4)% |
| Net margin and earnings attributable to Basin Electric | $116272 | $120779 | $147516 | (3.7)% | (18.1)% |

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(a) Includes intersegment eliminations.

**<u>2025 Compared to 2024</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric Utility net margin decreased primarily due to higher operating expenses related to increased fuel, transmission wheeling, and maintenance expenses, and a decrease in the recognition of previously deferred non-member revenue partially offset by increased member sales primarily due to higher average rates effective January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gasification net loss increased primarily due to higher operating expenses related to increased cost of products sold and selling, general and administrative expenses, partially offset by higher synthetic natural gas revenue and higher fertilizer revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Coal and Limestone Operations net earnings increased primarily due to higher average sales prices of lignite coal partially offset by higher operating expenses related to mining operations.

**<u>2024 Compared to 2023</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electric Utility net margin decreased primarily due to lower electricity sales to non-members and higher operating expenses related to increased purchased power and maintenance expenses, partially offset by increased sales to members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gasification net loss decreased primarily due to the monetization of tax credits related to the capture and sequestration of CO2 partially offset by lower natural gas revenue primarily due to lower prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Coal and Limestone Operations net loss increased primarily due to higher operating expenses related to mining operations and interest expense, partially offset by higher revenue primarily due to higher coal volumes sold.

**Electric Utility Results**

Our operating revenue from Electric Utility operations is derived from electricity sales to our members and to non-members (including Dakota Gas). Our revenues from our sales to our members are a function of the volume of those sales and our rates, particularly our rate to our Class A Members. See "—*Key Factors Affecting Results—Rate Structure*" above.

Major factors affecting demand for power from our members include fluctuations of normal seasonal weather patterns, growth or decline in our members' membership customer base and requirements for power. Wet and dry weather conditions impact our members' irrigation loads. Expansion of our

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distribution members' load is affected by new operations in their service territories and changes in the size, amount and usage of electric operated machinery and equipment. Energy sold to our members increased between 2023 and 2025 as load, particularly in the Bakken region, increased significantly year over year.

Major factors affecting sales to non-members include: (i) the availability of our generating facilities to produce energy in excess of our member requirements and (ii) market prices for electric energy and the cost of the fuel for our generation, particularly natural gas.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** | **Change (2025 to 2024)** | **Change (2024 to 2023)** |
| Operating revenue: |  |  |  |  |  |
| Sales of electricity to members | $2162056 | $1995959 | $1926214 | 8.3% | 3.6% |
| Sales of electricity to non-members | 208962 | 208373 | 280761 | 0.3% | (25.8)% |
| Regulatory deferred revenue recognized | 18000 | 60000 | 65000 | (70.0)% | (7.7)% |
| Other | 7346 | 6500 | 7563 | 13.0% | (14.1)% |
| Total operating revenue | 2396364 | 2270832 | 2279538 | 5.5% | (0.4)% |
| Fuel and purchased power | 1116603 | 1074416 | 1077496 | 3.9% | (0.3)% |
| Operations and maintenance | 758006 | 679558 | 662056 | 11.5% | 2.6% |
| Depreciation and amortization | 216612 | 204903 | 203527 | 5.7% | 0.7% |
| Total operating expenses | 2091221 | 1958877 | 1943079 | 6.8% | 0.8% |
| Operating margin | 305143 | 311955 | 336459 | (2.2)% | (7.3)% |
| Other income | 64981 | 77804 | 83548 | (16.5)% | (6.9)% |
| Interest and other charges, net | 264200 | 273315 | 268735 | (3.3)% | 1.7% |
| Income tax expense (benefit) | 1212 | (9139) | 1304 | (113.3)% | (800.8)% |
| Net margin | $104712 | $125583 | $149968 | (16.6)% | (16.3)% |
| Electricity energy sales (in thousand MWh): |  |  |  |  |  |
| Member sales | 34361 | 33772 | 32082 | 1.7% | 5.3% |
| Non-member sales | 5125 | 5061 | 6082 | 1.3% | (16.8)% |
| Total electricity energy sales | 39486 | 38833 | 38164 | 1.7% | 1.8% |
| Peak billing demand (in MW) | 5150 | 5134 | 4702 | 0.3% | 9.2% |
| Average rate per MWh: |  |  |  |  |  |
| Member sales | $62.92 | $59.10 | $60.04 | 6.5% | (1.6)% |
| Non-member sales | $40.77 | $41.17 | $46.16 | (1.0)% | (10.8)% |

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**<u>2025 Compared to 2024</u>**

Electric Utility net margin decreased $20.9 million as a result of:

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**Operating revenue** increased $125.5 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of electricity to members increased $166.1 million primarily due to higher average member rates effective January 1, 2025 and increased energy sold. Energy sold increased 589,000 MWhs principally due to Class A Member load growth.

This increase was partially offset by the recognition of previously deferred non-member revenue of $18.0 million in 2025 compared to $60.0 million of previously deferred revenue recognized in 2024.

**Fuel and purchased power** increased by $42.2 million mainly due to increased fuel expense of $55.2 million due to higher natural gas prices and higher coal expense resulting from higher generation from coal facilities and increased coal prices. Partially offsetting the increase was a decrease in purchased power of $13.1 million due to lower volumes purchased.

**Operations and maintenance** increased $78.4 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transmission wheeling expense increased $40.8 million largely as result of higher wheeling rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintenance expense increased $28.9 million mainly due to unplanned maintenance work performed at Leland Olds Station.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased production expenses of $6.8 million primarily due to higher employee-related expenses and increased emissions control products expense as a result of higher electricity generation.

**Depreciation and amortization** increased $11.7 million mainly due to new gas generating facilities and investments in transmission placed in service in 2025.

**Other income** decreased $12.8 million mainly due to lower interest income primarily due to lower interest rates.

**Interest and other charges, net** decreased $9.1 million mainly due to absence of impairment expense of $25.5 million after-tax that was recorded in 2024 related to an investment in NTEC, a generating facility that is not expected to generate cash flows. Partially offsetting the decrease was an increase in net interest expense primarily due to higher debt balances.

**<u>2024 Compared to 2023</u>**

Electric Utility net margin decreased $24.4 million as a result of:

**Operating revenue** decreased $8.7 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of electricity to non-members (before recognition of previously deferred revenue) decreased by $72.4 million. The decrease in revenue from non-member sales is primarily attributed to lower volumes sold and lower prices. Energy sold to non-members decreased 1.0 million MWhs and the average sales price decreased $4.99 per MWh.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Previously deferred non-member revenue in the amount of $60.0 million was recognized in 2024 compared to $65.0 million of previously deferred revenue recognized in 2023.

These decreases were partially offset by an increase in sales of electricity to members of $69.7 million primarily due to increased energy sold. Energy sold increased 1.7 million MWhs principally due to Class A Member load growth.

**Fuel and purchased power** decreased by $3.1 million mainly due to decreased fuel expense of $34.8 million due to lower natural gas prices and lower coal expense resulting from lower generation from coal facilities. Partially offsetting the decrease was an increase in purchased power of $31.8 million due to higher volumes purchased partially offset by lower power prices.

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**Operations and maintenance** increased $17.5 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintenance expense increased $5.6 million mainly due to additional planned maintenance work performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased production expenses of $5.5 million primarily due to higher employee-related expenses, contracted services, and property insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher general and administrative expenses of $5.4 million primarily due to higher employee-related expenses and administrative fees.

**Depreciation and amortization** was comparable to 2023.

**Other income** decreased $5.7 million mainly due to absence of liquidated damages settlement proceeds that were received in 2023 and lower interest income.

**Interest and other charges, net** increased $4.6 million mainly due to after-tax impairment expense of $25.5 million that was recorded related to an investment in NTEC, a generating facility that is not expected to generate cash flows. Partially offsetting the increase were a $16.4 million reduction in losses on our investment in Dakota Gas and lower net interest expense primarily due to higher capitalized interest.

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**Gasification Results**

Gasification operating revenue is mainly derived from the sale of synthetic natural gas, carbon dioxide, anhydrous ammonia, urea, DEF and various other products produced by Dakota Gas.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** | **Change (2025 to 2024)** | **Change (2024 to 2023)** |
| Operating revenue: |  |  |  |  |  |
| Synthetic natural gas | $106811 | $79433 | $129028 | 34.5% | (38.4)% |
| Fertilizers and diesel exhaust fluid | 318982 | 227749 | 235852 | 40.1% | (3.4)% |
| Other byproducts and miscellaneous | 68272 | 75221 | 79349 | (9.2)% | (5.2)% |
| Total operating revenue | 494065 | 382403 | 444229 | 29.2% | (13.9)% |
| Cost of products sold | 468697 | 421997 | 415227 | 11.1% | 1.6% |
| Selling, general and administrative | 104800 | 39373 | 33525 | 166.2% | 17.4% |
| Depreciation and amortization | 41537 | 38532 | 32883 | 7.8% | 17.2% |
| Impairment of assets | 4164 | 4013 | 5035 | 3.8% | (20.3)% |
| Total operating expenses | 619198 | 503915 | 486670 | 22.9% | 3.5% |
| Operating deficit | (125133) | (121512) | (42441) | 3.0% | 186.3% |
| Other income | 122072 | 125968 | 9252 | (3.1)% | 1261.5% |
| Interest and other charges, net | 34671 | 36967 | 26533 | (6.2)% | 39.3% |
| Income tax benefit | (2981) | (1211) | (12000) | 146.2% | (89.9)% |
| Net loss | $(34751) | $(31300) | $(47722) | 11.0% | (34.4)% |
| Sales volumes: |  |  |  |  |  |
| Synthetic natural gas (dekatherms in millions) | 33.9 | 41.0 | 40.3 | (17.3)% | 1.7% |
| Fertilizer products (tons in thousands) | 396.9 | 425.5 | 417.8 | (6.7)% | 1.8% |
| Diesel exhaust fluid (gallons in millions) | 82.5 | 59.5 | 39.0 | 38.7% | 52.6% |

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**<u>2025 Compared to 2024</u>**

Gasification net loss increased $3.5 million as a result of:

**Operating revenue** increased $111.7 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Synthetic natural gas revenue increased by $27.4 million primarily as a result of higher natural gas prices, partially offset by lower volumes sold. Realized prices of $3.15 per dekatherm were 62 percent higher.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fertilizer and DEF revenue increased $91.2 million. Fertilizer sales revenue increased $38.2 million due to higher fertilizer prices, partially offset by a decrease in volumes sold. DEF revenue increased $53.0 million largely due to DEF volumes sold on behalf of third parties.

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**Cost of products sold** increased by $46.7 million primarily due to third party DEF purchase contracts entered into during 2025 and higher natural gas purchases due to higher prices.

**Selling, general and administrative** increased by $65.4 million largely due to higher freight expenses, absence of insurance recovery proceeds received in 2024, and higher lease expenses. Freight expenses increased by $31.4 million mainly due to a change in reporting revenue gross versus net due to changes in DEF and fertilizer contracts.

**Depreciation and amortization** increased by $3.0 million mainly due to investments in infrastructure enhancement projects to improve the availability of the Synfuels Plant.

**Impairment of assets** were comparable to 2024.

**Other income** was $3.9 million lower largely due to reduced benefits from the monetization of tax credits related to the capture and sequestration of CO2 through Dakota Gas's investment in Dakota Carbon Services LLC and a loss on the extinguishment of debt of $0.9 million.

**Interest and other charges, net** decreased $2.3 million largely due to lower interest expense related to recognition of tax credit monetization and lower debt balances.

**Income tax benefit** was higher primarily due to higher losses before income taxes.

**<u>2024 Compared to 2023</u>**

Gasification net loss decreased $16.4 million as a result of:

**Operating revenue** decreased $61.8 million mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Synthetic natural gas revenue decreased by $49.6 million as a result of lower natural gas prices. Realized prices of $1.94 per dekatherm were 41 percent lower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fertilizer and DEF revenue decreased $8.1 million. Fertilizer sales revenue decreased $21.8 million due to lower fertilizer prices partially offset by a slight increase in volumes sold. This decrease was partially offset by increased DEF revenue of $13.7 million due to higher volumes sold partially offset by lower prices.

**Cost of products sold** increased by $6.8 million mainly due to higher coal expense and increases in various other operating expenses at Dakota Gas due to increased capacity that resulted from the absence of planned maintenance that occurred in 2023. This increase was partially offset by decreased purchases of natural gas of $27.2 million mainly due to lower prices.

**Selling, general and administrative** increased by $5.9 million largely due to higher insurance expenses and lower insurance recovery proceeds.

**Depreciation and amortization** increased by $5.6 million mainly due to investments in CO2 capture and sequestration assets to monetize tax credits.

**Impairment of assets** were comparable to 2023.

**Other income** was $116.7 million higher largely due to the monetization of tax credits related to the capture and sequestration of CO2 through Dakota Gas's investment in Dakota Carbon Services LLC.

**Interest and other charges, net** increased $10.4 million largely due to interest expense related to recognition of tax credit monetization.

**Income tax benefit** was lower primarily due to lower losses before income taxes and an increase in the income tax valuation allowance on deferred tax assets.

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**Coal and Limestone Operations Results**

Coal and Limestone Operations revenue is mainly derived from the sale by Dakota Coal of lignite coal for use at our generating facilities and for coal gasification at Dakota Gas. In addition, Dakota Coal operates a limestone quarry and sells lime and limestone to Basin Electric and other third parties.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In thousands)** | **2025** | **2024** | **2023** | **Change (2025 to 2024)** | **Change (2024 to 2023)** |
| Operating revenue | $304259 | $258904 | $243130 | 17.5% | 6.5% |
| Cost of products sold | 235452 | 217038 | 208991 | 8.5% | 3.9% |
| Selling, general and administrative | 9810 | 8752 | 5722 | 12.1% | 53.0% |
| Depreciation, depletion and amortization | 18612 | 16042 | 13090 | 16.0% | 22.6% |
| Total operating expenses | 263874 | 241832 | 227803 | 9.1% | 6.2% |
| Operating margin | 40385 | 17072 | 15327 | 136.6% | 11.4% |
| Other income | 16217 | 16467 | 15608 | (1.5)% | 5.5% |
| Interest and other charges, net | 13669 | 11379 | 8157 | 20.1% | 39.5% |
| Income tax expense (benefit) | 7235 | 2603 | 3109 | 177.9% | (16.3)% |
| Earnings including noncontrolling interest | 35698 | 19557 | 19669 | 82.5% | (0.6)% |
| Earnings attributable to noncontrolling interest | (23000) | (23215) | (21083) | (0.9)% | 10.1% |
| Net earnings (loss) | $12698 | $(3658) | $(1414) | (447.1)% | 158.7% |
| Sales volumes: |  |  |  |  |  |
| Lignite coal (tons in millions) | 11.3 | 11.9 | 11.4 | (5.0)% | 4.4% |

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**<u>2025 Compared to 2024</u>**

Coal and Limestone Operations net earnings increased $16.4 million as a result of:

**Operating revenue** increased $45.4 million mainly due to higher lignite coal sales of $41.8 million resulting from higher average sales prices and higher lime sales of $3.4 million.

**Cost of products sold** increased $18.4 million primarily due to higher employee-related costs in lignite coal mining operations.

**Selling, general and administrative** increased $1.1 million primarily due to higher freight expenses related to lime sales.

**Depreciation and amortization** increased $2.6 million mainly due to investments in mining equipment.

**Other income** was comparable to 2024.

**Interest and other charges, net** increased $2.3 million primarily due to higher debt balances resulting from investments in mining equipment.

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**Income tax expense** was $4.6 million higher largely due to higher income before taxes.

**Earnings attributable to noncontrolling interest** was comparable to 2024.

**<u>2024 Compared to 2023</u>**

Coal and Limestone Operations net loss increased $2.2 million as a result of:

**Operating revenue** increased $15.8 million mainly due to higher lignite coal sales of $15.7 million due to increased volumes sold at higher average prices.

**Cost of products sold** increased $8.0 million primarily due to higher employee-related costs in lignite coal mining operations.

**Selling, general and administrative** increased $3.0 million primarily due to the absence of insurance proceeds received in 2023 of $2.5 million.

**Depreciation and amortization** increased $3.0 million mainly due to investments in mining equipment.

**Other income** was $0.9 million higher largely due to unrealized gains on an investment fund and higher realized income on investments.

**Interest and other charges, net** increased $3.2 million primarily due to higher debt balances resulting from investments in mining equipment.

**Income tax benefit** was comparable to 2023.

**Earnings attributable to noncontrolling interest** increased $2.1 million mainly due to higher sales of lignite coal volumes to Dakota Coal.

**Other Results**

Other consists of the operations of Basin Cooperative Services, certain tax adjustments, intersegment eliminations, and other activity not associated with the Electric Utility, Gasification, and Coal and Limestone Operations segments. Basin Cooperative Services provides certain nonutility property management services to Basin Electric.

**<u>2025 Compared to 2024</u>**

The change in other is primarily related to the intersegment elimination of the increased loss at the Gasification segment. See "—*Gasification Results*" above for further detail on the increased loss.

**<u>2024 Compared to 2023</u>**

The change in other is primarily related to the intersegment elimination of the decreased loss at the Gasification segment. See "—*Gasification Results*" above for further detail on the decreased loss.

**Liquidity and Capital Resources**

***General***

Our liquidity is provided through a combination of cash generated from operations (including the operations of our subsidiaries), the MIP, the net proceeds of our financings and available commitments under existing credit facilities. While we fund operational costs with cash generated from our operations and our subsidiaries' operations, we also issue commercial paper and periodically access our existing credit facilities to manage our liquidity. We also utilize the credit facilities to fund capital expenditures on an interim basis, which we intend to repay with the proceeds of the issuance of long-term debt secured under our Indenture.

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***Capital Resources***

We had cash, restricted and designated cash and short-term investments of $988.1 million as of December 31, 2025. This is inclusive of cash and investments of $272.0 million designated for regulatory revenue deferrals as of December 31, 2025. Additionally, as of December 31, 2025, we had $203.7 million of long-term investments. We believe these long-term investments could be liquidated promptly, therefore, we consider these investments as part of our liquidity position.

Our liquidity is supported by two revolving credit facilities. We have a $1.25 billion unsecured syndicated revolving credit agreement. This facility is available for working capital purposes, including interim financing to fund capital expenditures, and supports a $500 million taxable commercial paper program. Under the terms of the agreement, we have the right, subject to certain conditions, to increase the total amount of the facility by an additional $250 million. This is a five-year facility with a maturity date of May 1, 2030. As of December 31, 2025, we had issued a letter of credit in the amount of $250,000 with no amounts outstanding under this facility and no outstanding taxable commercial paper.

We also have a tax-exempt commercial paper program to support our liquidity. This program is supported by a $100 million credit facility with National Rural Utilities Cooperative Finance Corporation ("CFC"), which may be used for liquidity to support commercial paper issuances and general corporate purposes. The facility expires on March 13, 2031. As of December 31, 2025, $100.0 million of the CFC facility was used to support commercial paper issuances.

Both facilities contain customary terms and conditions affecting their availability. In addition, the facilities include covenants to maintain (i) an MFI Ratio for each fiscal year of at least 1.10, as calculated in accordance with the Indenture and (ii) a minimum equity balance as of the end of each fiscal quarter, in an amount no less than the greater of (a) 85% of our equity balance at the end of the next preceding fiscal year and (b) $1 billion. For these purposes, our equity balance is calculated as our total members' patronage capital or our other equity and that of our significant subsidiaries, less goodwill, as determined without duplication on a consolidated basis in accordance with GAAP, without giving effect to other comprehensive income or non-cash adjustments required to be made pursuant to accounting requirements.

We have a MIP available to all Class A and Class C Members. Under the MIP, we issue unsecured notes at short-term market rates with maturities ranging from overnight to two years. The MIP provides us with an additional source of capital and gives these member systems a flexible investment source. Funds borrowed from our members at any one time typically range from $150 million to $350 million. As of December 31, 2025, our obligations under the MIP totaled $159.5 million.

We expect that financing for the projected capital expenditures of our subsidiaries principally will come from bank loans, private placements, leasing, and loans from us or from internally generated funds. In addition, we support our subsidiaries' operations through the provision of credit facilities, including lines of credit to our subsidiaries, and guarantees.

The following table summarizes amounts outstanding under our lines of credit to our subsidiaries:

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| | | |
|:---|:---|:---|
| | **Total Availability** | **Outstanding Amounts as of December 31, 2025** |
| **(In thousands)** | | |
| Dakota Gas | $500000 | $90000 |
| Dakota Coal | 250000 | 181425 |
| Basin Cooperative Services | 3000 | - |
| Nemadji River Generation (a) | 300000 | 28625 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | $1053000 | $300050 |

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_____________

(a)Nemadji River Generation, our wholly owned subsidiary, was formerly the owner of a 30% undivided interest in NTEC. In January 2026, Nemadji River Generation exited NTEC effective December 31, 2025.

*Dakota Coal*. In addition to our revolving credit facility, Dakota Coal issued a promissory note to us that it used for the expenditures associated with a truck dump and unit train load-out facility. As of December 31, 2025, $14.1 million was outstanding under this note. Also, Dakota Coal issued two notes to us that it used for the expenditures associated with development of coal reserves. As of December 31, 2025, $7.8 million was outstanding under these notes.

***Cash Flows***

Cash is provided by operating activities and issuance of debt. Capital expenditures comprise a significant use of cash.

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| | | | |
|:---|:---|:---|:---|
| **(In thousands)** | **2025** | **2024** | **2023** |
| Net cash provided by (used in) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating activities | $408445 | $262546 | $258657 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investing activities | (678549) | (266782) | (217016) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing activities | 563687 | 236953 | (82917) |
| Net increase (decrease) in cash and cash equivalents and designated cash and equivalents | $293583 | $232717 | $(41276) |
| Cash and cash equivalents and restricted and designated cash and equivalents, beginning of period | $693910 | $461193 | $502469 |
| Cash and cash equivalents and restricted and designated cash and equivalents, end of period | $987493 | $693910 | $461193 |

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**<u>2025 Compared to 2024</u>**

*Operating activities*. Net cash provided by operating activities increased $145.9 million, primarily driven by the rate increase effective January 1, 2025 and lower recognition of previously deferred non-member revenue in 2025 of $42.0 million. In addition, the timing of cash collected from receivables and payment of accounts payable and accrued expenses added to the increase in net cash provided by operating activities.

*Investing activities*. Net cash used in investing activities increased $411.7 million largely due to $162.1 million in incremental capital expenditures in 2025, largely related to additional investments in electric plant property. In addition, the net sales proceeds from investment funds decreased by $257.4 million. The net proceeds were used in meeting the cash requirements of capital projects.

*Financing activities*. Net cash provided by financing activities increased $326.7 million primarily due to the incremental issuance of $336.7 million additional long-term debt compared to 2024 to support capital expenditures and proceeds of $375 million from a short-term loan. The increase was partially offset by higher principal payments on long-term debt in 2025 compared to 2024 and the retirement of $100 million in revolver borrowings. Additionally, we received $167.5 million for the sale of certain membership interests in DCS in 2024.

**<u>2024 Compared to 2023</u>**

*Operating activities*. Net cash provided by operating activities increased $3.8 million, primarily impacted by the timing of cash collected from receivables and payment of accounts payable and accrued expenses.

*Investing activities*. Net cash used in investing activities increased $49.8 million largely due to $120.5 million in incremental capital expenditures, largely related to additional investments in electric plant

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property. The increase in cash used was partially offset by increases in the net sales proceeds from investment funds of $71.7 million. The proceeds were used in meeting the cash requirements of capital projects.

*Financing activities*. Net cash provided by financing activities increased $319.9 million primarily due to the incremental issuance of $399.6 million additional long-term debt compared to 2023 to support capital expenditures. The increase was partially offset by higher principal payments on long-term debt in 2024 compared to 2023. Additionally, we received $167.5 million for the sale of certain membership interest in DCS in 2024.

***Projected Capital Expenditures***

**<u>Electric Utility</u>**

We annually forecast expenditures required for additional electric generation and transmission facilities and capital for enhancement of existing facilities. We review these projections frequently to update our calculations to reflect changes in our future plans, construction costs, market factors and other items affecting our forecasts. Our actual capital expenditures could vary significantly from these projections because of, among other things, unforeseen construction, changes in resource requirements, changes in actual or forecasted load growth, labor market uncertainty, weather or other issues. Our long-range capital plan details actual and projected construction requirements and system upgrades of approximately $7.1 billion for the years 2026 through 2030, as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2026** | **2027** | **2028** | **2029** | **2030** | **Total** |
| **(In millions)** |  |  |  |  |  |  |
| New Generation | $866 | $1097 | $846 | $615 | $635 | $4059 |
| New Transmission | 278 | 153 | 359 | 525 | 815 | 2130 |
| Existing Generation | 233 | 186 | 30 | 47 | 72 | 568 |
| Existing Transmission | 54 | 75 | 49 | 31 | 30 | 239 |
| Other Electric Projects | 24 | 11 | 6 | 3 | 16 | 60 |
| Total  | $1455 | $1522 | $1290 | $1221 | $1568 | $7056 |

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The above table includes capital expenditures necessary to serve existing load as well as to serve our traditional load growth. It does not include expenditures to serve loads that qualify as large loads under our Large Load Commercial Program.

Some of the material projects included in the above detailed capital expenditures include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bison Generating Station, a two-unit 1,470 MW combined-cycle gas generation plant with one unit expected to be commercial in 2029 and the other unit expected to be commercial in 2030;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Several high voltage (230 kV and 345 kV) transmission line projects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initial expenditures for additional dispatchable natural gas generation in SPP and MISO market areas.

In order to meet the growing needs of our membership for power and energy we must continually add to and upgrade our generation and transmission resources. In addition to the specific projects enumerated in our table of projected capital expenditures, we are currently evaluating a number of other potential projects. Some of these additional projects may be pursued to completion and some may be abandoned. The numbers reflected for other projects in the table reflect our current estimate of what we may expend during the periods indicated on these types of projects. The amounts actually expended may

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vary significantly from the estimates as some potential projects are abandoned and others are undertaken. Projects of this type which we are currently evaluating or pursuing include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upgrades to existing generation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additions and upgrades to existing high-voltage transmission and substation facilities in high growth areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upgrades of existing facilities to ensure compliance with federal and state environmental regulations.

We anticipate that our projected capital expenditures will be funded by cash generated from operations, financed on an interim basis through commercial paper issuances and borrowings under our credit facilities, and with additional issuances of long-term debt with our relationship banks or in the private placement market and the capital markets. We expect that additional issuances of long-term debt will be secured under the Indenture. The timing and amount of these additional issuances will depend on the timing and amount of our capital expenditures, our cash generated from operations and balances on our revolving credit facilities.

**<u>Gasification</u>**

Construction and equipment requirements of Dakota Gas are projected to result in capital expenditures of approximately $146 million over the period of 2026 through 2030.

We expect that Dakota Gas expenditures will be funded through advances on the existing $500 million revolving credit facility with us. See "—*Capital Resources*."

**<u>Coal and Limestone Operations</u>**

Mine development and equipment requirements of Dakota Coal are projected to result in capital expenditures of approximately $262 million for the years 2026 through 2030.

We expect the mine development expenditures will be funded through Dakota Coal's existing $250 million revolving credit facility with us. See "—*Capital Resources*." Major mobile equipment is expected to be financed through lease or debt financing.

***Material Cash Requirements***

Our cash requirements relate primarily to operating expenses, capital expenditures and debt service. As discussed above, we fund our cash requirements through a combination of cash generated from operations (including the operations of our subsidiaries), the MIP, the net proceeds of our financings and available commitments under existing credit facilities. For more information on our contractual obligations on long-term debt and purchase commitments, see Notes 11 and 18 to consolidated financial statements. At December 31, 2025, our material cash requirements include the following contractual and other obligations.

*Debt*. As of December 31, 2025, we had $5.8 billion in outstanding obligations, with $710.5 million payable in 2026. We have total future interest payments of $3.8 billion, with $273.2 million payable in 2026.

*Coal Purchase Obligations*. We, on behalf of the MBPP, have executed agreements with Western Fuels for all coal purchase requirements through the life of Laramie River Station and Dry Fork Generation Station, with an option to extend the contracts with approval by both parties. As of December 31, 2025, we had $364.9 million in contractual obligations to purchase coal for our generating facilities under these agreements, with $54.9 million payable in 2026.

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*Purchased Power Obligations.* As of December 31, 2025, we had $7.9 billion in contractual obligations to purchase power with terms ranging from one to 50 years, including $423.9 million payable in 2026.

*Contract Commitments*. As of December 31, 2025, we had outstanding contractual commitments totaling $2.9 billion for various construction projects, equipment purchases, supplies, and for miscellaneous services to be provided.

***Credit Rating Triggers***

Basin Electric Power Cooperative's senior secured debt and commercial paper have been assigned credit ratings by independent credit rating agencies. The current ratings are as follows:.

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| | | | |
|:---|:---|:---|:---|
| | **Senior Secured** | **Commercial Paper** | **Outlook** |
| S&P | A | A1 | Negative |
| Moody's | A3 | P-2 | Stable |
| Fitch | A | F1+ | Stable |

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These credit ratings are based on rating criteria developed by each rating agency and reflect their respective assessments of Basin Electric's creditworthiness. Each rating agency applies its own methodologies, and the significance of a particular rating may differ among rating agencies. Credit ratings are not recommendations to purchase, sell, or hold securities, and do not address market price, liquidity, or the suitability of any security for a particular investor. Credit ratings may be revised or withdrawn at any time by the respective rating agencies.

We have financial agreements and commercial contracts containing provisions which, upon a credit rating downgrade below specified levels, may require the posting of collateral (in the form of either letters of credit, surety bonds or cash) or termination of the agreement.

In 2002 and 2003, we entered into three separate interest rate swaps with respect to certain variable rate First Mortgage Bonds due May 1, 2032 in the aggregate notional amount of $150.0 million. In 2004, we entered into an interest rate swap with respect to one series of variable rate First Mortgage Bonds due June 10, 2030 (together with the First Mortgage Bonds due May 1, 2032, the "2008 Series A Notes") in the notional amount of $50.0 million. These four interest rate swaps effectively change the interest rate on (i) $100.0 million of our variable rate First Mortgage Bonds due in 2032 to a fixed rate of 6.18%, (ii) the remaining $50.0 million of our variable rate First Mortgage Bonds due in 2032 to a fixed rate of 4.95% and (iii) $50.0 million of our variable rate First Mortgage Bonds due in 2030 to a fixed rate of 5.33%.

Pursuant to the swaps entered into in 2002, 2003 and 2004, if our ratings from S&P or Moody's fall below the collateral ratings triggers of "A" or "A2," respectively, we are obligated to post collateral. If our ratings from S&P or Moody's fall below the termination ratings triggers of "BBB" or "Baa2," respectively, the swap counterparty has the right to terminate the swaps. In the event of a termination, either party could owe the other party a termination payment depending on the market value of the position of the swaps. We estimate that as of December 31, 2025, a termination of the four interest rate swaps entered into in 2002, 2003 and 2004 with respect to the 2008 Series A Notes would require us to make a termination payment of approximately $22.0 million.

Other loan agreements may contain provisions based on credit ratings that could result in increased interest rates or restrictions on issuing debt but would not result in acceleration of any obligations or termination of any agreements.

Our management does not anticipate the occurrence of a ratings downgrade that would put our ratings below the termination triggers in any of our financial arrangements. Our ratings, however, reflect the views of the ratings agencies and not our views, and therefore we cannot give any assurance that our ratings will be maintained at current levels for any period of time.

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***Other Financing Arrangements***

In 1985, we entered into six separate, but substantially identical, leveraged lease transactions of undivided interests in Antelope Valley Station Unit 2 and related common facilities. In these transactions, we sold an undivided interest in the facility to separate owner trusts for the benefit of six investors in exchange for an aggregate sales price of approximately $622.9 million, funded through a combination of debt and equity. Immediately after the sale to each owner trust, we leased the undivided interests in Unit 2 and the related common facilities back and agreed to make periodic rental payments to such owner trust. The original term of each lease was scheduled to end on December 30, 2015, and were subsequently extended. We have certain renewal options and purchase options under each of these leases, including the option to purchase the undivided interest for an amount equal to the fair market sales value of the undivided interest. Effective August 11, 2015, we exercised the purchase option under three lease transactions and purchased a 24.2% interest in Antelope Valley Station Unit 2. The remaining leases have been extended through 2030. Upon the expiration of the leases, we will be obligated to operate Antelope Valley Station Unit 2 pursuant to an operating agreement if we do not agree to again extend the lease or exercise our option to purchase these interests.

**Critical Accounting Estimates**

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used for items such as present value of lease assets and lease liabilities, plant depreciable lives, actuarially determined benefit costs, valuation of derivatives, asset retirement obligations, present value of expected tax credits, and income tax expense or benefits. Ultimate results could differ from those estimates.

We consider the following accounting policies to be critical accounting policies due to the estimation involved or due to the particular significance they have on our consolidated financial statements. Our critical accounting estimates are subject to judgments and uncertainties that affect the application of our significant accounting policies discussed in Note 2 to consolidated financial statements. As additional information becomes available, or actual amounts are determinable, the recorded estimates are revised. Consequently, our financial position or results of operations may be materially different when reported under different conditions or when using different assumptions in the application of the following critical accounting estimates.

*Accounting for Section 45Q Transactions.* As a part of the contractual agreements to monetize Section 45Q tax credits relating to carbon capture, utilization and sequestration of carbon dioxide from industrial facilities, Dakota Gas received an initial payment of $167.5 million in 2024 from an investor and the right to receive installment payments in exchange for a membership interest in Dakota Carbon Services LLC ("DCS"). The initial payment was recognized in other current liabilities and other noncurrent liabilities on the consolidated balance sheets and the initial payment is accounted for as a sale of future revenue using the effective interest method. The carrying amount of the initial payment liability is the present value of the expected future tax credits to be earned. At December 31, 2025, 2024 and 2023, the initial payment liability was $135.3 million, $146.8 million, and $0, respectively. When there is reasonable assurance that the tax credits will be earned, the initial payment liability is reduced and other income with an interest expense component is recorded. The present value of the expected future tax credits requires management to make estimates and assumptions related to the volumes of CO2 that will be sequestered. These estimates and assumptions affect the reported amounts at the date of the consolidated financial statements. Ultimate results could differ from those estimates.

*Regulatory Assets and Liabilities*. We are subject to the provisions of ASC 980, Regulated Operations. Regulatory assets represent probable future revenue to us associated with certain costs

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which will be recovered from customers through the ratemaking process. Regulatory liabilities represent probable future reductions in revenue associated with amounts that are to be credited to customers through the ratemaking process. At December 31, 2025, 2024, and 2023, regulatory assets were $311.4 million, $295.2 million, and $305.0 million, respectively, and regulatory liabilities were $336.3 million, $337.2 million, and $437.4 million, respectively. While we do not currently foresee any events or factors that would make it not probable that we will recover these costs from our members as future revenues through rates under our wholesale power contracts, if such an event were to occur, we could no longer apply the provisions of accounting for regulated operations, which would require us to eliminate all regulatory assets and regulatory liabilities that had been recognized as a charge or credit to our consolidated statements of operations and begin recognizing assets and liabilities in a manner similar to other businesses in general.

*Derivative Financial Instruments.* All derivatives are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets, except for derivative contracts that qualify for and are elected under the normal purchase and normal sales exception under the requirements of ASC 815, Derivatives and Hedging. We, Dakota Gas and Dakota Coal evaluate all purchase and sale contracts when executed to determine if they are derivatives and, if so, if they meet the normal purchase normal sale exception requirements under ASC 815. The derivative instruments that do not meet the normal purchase and normal sales exception are evaluated for designation as cash flow hedges of forecasted sales and purchases of commodities. We also utilize interest rate swap agreements to reduce exposure to interest rate fluctuations associated with floating rate debt obligations and anticipated debt financing.

Under ASC 980, our Board defers changes in the fair value of certain utility derivative activity as a regulatory item to be recovered through rates in the future. Only current settlements of these derivative transactions are included in earnings. See "*Regulatory Assets and Liabilities*" above. These amounts are subsequently reclassified as operating expense or interest expense on our consolidated statements of operations as the power or fuel is delivered and/or the contract settles.

Derivatives are reported at fair value on our consolidated balance sheets. The measurement of fair value is based on actively quoted market prices, if available. Otherwise, we seek indicative price information from external sources, including industry publications. The fair value of the derivatives requires management to make estimates and assumptions that affect the reported amounts at the date of the consolidated financial statements. Ultimate results could differ from those estimates.

For additional information, see "<u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i0b5983c249b84b3db1dc97769c25fdb6_67)</u>" and Note 8, "Derivative Financial Instruments" and Note 14, "Assets and Liabilities Measured at Fair Value" to the consolidated financial statements.

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**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Our Risk Management Steering Committee ("RMSC") consists of members of our and our subsidiaries' management teams who review and govern all commodity transactions' associated risks for us and our subsidiaries. Our risk management policy contains a framework that defines risk parameters, delineates management responsibility and establishes organizational relationships to ensure appropriate checks and balances. Among other things, RMSC is responsible for reviewing our and our subsidiaries' risk profiles and performance, setting our risk strategies and risk management policies with respect to market, credit, liquidity and model risks, and reporting these risk management activities to our Board and the Dakota Gas and Dakota Coal boards of directors. In addition to direct oversight by RMSC, certain risk management functions and responsibilities have been delegated by RMSC to various risk management groups and other personnel within the organization.

**Risk Policies**

We and our subsidiaries are exposed to several market risks that could have a material impact on our revenue, expense, and investment balances. Commodity prices for natural gas, electricity, urea, crude oil, tar oil, diesel, DEF and anhydrous ammonia are the most significant of the commodity price risks due to either the high degree of volatility, the high volumes of the commodity we transact, the downstream impacts the pricing has on our other commodities (correlation), or any combination thereof. We are exposed to increasing interest rates. Because we and our subsidiaries are asset intensive, increasing interest rates can have a material impact on the interest expense paid for capital funding. We are exposed to equity price risks related to the changing prices of equities we hold as investments relating to various mine closing, asset retirement and decommissioning funds.

We believe that we have adequate safeguards, reporting mechanisms, and procedures in place to protect us and our subsidiaries from many but not all market risks. We and our subsidiaries have certain risk management strategies relating to the sales and purchase prices of commodities to provide insulation from volatile market prices. To manage our market risks, we may enter into various derivative instruments, including swaps, forward contracts, futures contracts, and options. Our Board has also established guidelines that are intended to ensure that derivatives and other financial instruments are used only for hedging purposes and not for speculation.

**Interest Rate Risk**

We are exposed to risk resulting from changes in interest rates as a result of the use of variable rate debt as a source of financing as well as the fixed income investments in our various portfolios. We manage our interest rate exposure by limiting the total amount of our variable rate exposure to within a particular percentage range of our total debt and by actively monitoring the effects of market changes in interest rates. As of December 31, 2025, all of our outstanding long-term indebtedness secured under the Indenture accrued interest at fixed rates to their final maturity, either inherently or through swaps, except for $100 million. The fair market value of Basin Electric's interest rate swaps was a loss of $22.0 million as of December 31, 2025.

As of December 31, 2025, our long-term and short-term debt subject to variable interest rates totaled $756 million. As a stress test, we considered the increased interest expense of an increase of 100 basis points to the weighted average interest rate. The result of this analysis would have been approximately $7.6 million of increased interest expense annually, not considering any increase in investment interest income we would gain to offset the increased expense or changes to principal amounts outstanding.

In addition to interest rate risk on existing debt, we are exposed to the risk of rising interest rates due to the new long-term debt we expect to incur in connection with anticipated capital expenditures as well as short-term debt we plan to use for interim financing on various projects. The interest rates on these future issuances are largely unhedged and we are exposed to risks in fluctuations of the underlying index rates as well as spreads over those rates. We periodically enter into financial derivative instruments,

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which may include instruments such as, but not limited to, interest rate swaps, swaptions and U.S. Treasury lock agreements to mitigate a portion of this interest rate risk.

**Commodity Price Risk**

***Electric Utility Operations***

We serve member load requirements in various distinct planning areas primarily within: SPP, MISO, and Western Power Pool ("WPP"). Both SPP and MISO function as regional transmission organizations while WPP is within the WECC bilateral market. The majority of our member load requirement is held between SPP and WECC. Power prices in the power markets are largely driven by weather related demand which drives load levels, natural gas pricing and increasing levels of renewable generation build outs. We continually meet our resource adequacy requirements to provide generating capacity to meet our full member load requirements. The regional transmission organization market offers a benefit of dispatching the most economic resources and transmission available. We have enough generation to serve our member load requirements in WPP and any excess generation is sold to produce non-member revenue which helps to lower the overall member rate.

The price of power is particularly sensitive to the build out of renewable generation and volatile natural gas prices. Several factors influence natural gas price levels and volatility. These factors include, but are not limited to, seasonal changes in demand, weather conditions, transportation availability and reliability within and between regions, fuel availability, market liquidity, global market impacts, and the nature and extent of current and potential federal and state regulations.

With respect to our power sales, our Board has established guidelines for the use of derivative instruments. Those guidelines include but are not limited to (i) hedging activity shall be used only to mitigate risk or optimize returns on owned or operated assets and be non-speculative in nature, (ii) derivatives may not be longer than five years in tenor or duration unless approved by our Board, and (iii) risk management status and performance must be reported to our Board on a periodic basis. As of December 31, 2025, we have entered into a series of floating-to-fixed swap agreements for natural gas and power to manage the variable price risk associated with a portion of forecasted commodity exposure through December 2033. As of December 31, 2025, the fair market value of Basin Electric's swaps was a loss of $29.5 million.

***Gasification Operations***

With respect to commodity price risks at Dakota Gas associated with the varying market prices of commodities, management established a program that is in accordance with certain policies approved by the Dakota Gas board of directors, including that: (i) hedging activity shall be used only to mitigate risk or optimize returns on owned or operated assets and be non-speculative in nature, (ii) derivatives may not be longer than five years in tenor or duration unless approved by the Dakota Gas board of directors and (iii) risk management status and performance must be reported to the Dakota Gas board of directors on a periodic basis.

We have a natural hedge with Dakota Gas against fluctuations in natural gas prices for a portion of the volumes burned by us that is offset by volumes produced by Dakota Gas. We and Dakota Gas consider this natural hedge when determining the amount of financial or physical hedges to put in place. Dakota Gas does not currently have derivative financial instruments outstanding for the purpose of mitigating the risk of market price fluctuations for urea, DEF, or power; however, Dakota Gas does have floating-to-fixed swap agreements in place to mitigate price fluctuations for the sale of natural gas and tar oil through November 2027. The fair market value of the swaps at December 31, 2025 was a gain of $7.0 million.

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***Coal and Limestone Operations***

Dakota Coal has entered into derivative financial instruments for the purpose of mitigating the risk of market fluctuations in the price of diesel for the coal costs paid to Coteau through December 2028. The fair market value of the derivative instruments was a loss of $2.0 million at December 31, 2025.

***Credit Risk***

We are exposed to credit risk, primarily through potential losses that may result from a counterparty's nonperformance. We and our subsidiaries use credit policies to control our credit risk associated with credit sales of energy and gas commodities and derivatives, including utilizing a credit approval process, monitoring counterparty limits and ensuring that our counterparty has an adequate credit rating. However, due to the possibility of extreme volatility in the prices of energy and gas commodities and derivatives, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If such a counterparty were then to fail to perform its obligations under its contract (for example, fail to pay for power or gas that we or Dakota Gas had delivered), we could sustain a loss that could have a material impact on our financial results.

***Equity and Debt Security Price Risk***

We are exposed to price and interest rate fluctuations in equity and debt markets through investment in equity and debt securities relating to various mine closing, asset retirement, and decommissioning funds. As of December 31, 2025, our aggregate investment in equity funds for these various funds was $203.6 million. To minimize adverse changes in the aggregate value of the funds, we actively monitor our portfolios by measuring the performance of the investments against market indices and by maintaining and reviewing established target allocation percentages of assets in the funds to various investment options. We do not believe our exposure to fluctuations in prices of equity and debt securities we hold will have a material impact on our financial results.

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**LEGAL PROCEEDINGS**

For a discussion of legal proceedings involving Basin Electric, see Note 18, "Commitments and Contingencies—Legal" to the consolidated financial statements.

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**DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE**

**Corporate Governance**

Our corporate powers are vested in an eleven-member Board, which meets monthly. Each of our ten G&T Class A Members elects and is represented by one member on the Board. The eleventh member of the Board is elected by and represents the nine distribution Class A Members and the one Class D Member. Class B and C Members are represented by the directors of the Class A Members from whom they receive their power. The directors serve for three-year terms on a staggered basis, and must serve on their respective Class A, and except for District 9, Class C Member boards, while holding a board seat on our Board. This service requirement helps ensure that members of the Board have business experience related to the electric cooperative industry in addition to an interest in the successful operation of our business. We have no direct role in the nomination of candidates or the election of members to the Board by our members. We believe that this board structure further strengthens our cooperative model and ensures our Board members are also our owner-customers.

Because we are a cooperative, our members own us and, in accordance with our bylaws, all of our directors are representatives of our Class A Members and each of our directors serves as a director of the Class A Member that such director represents on the Board. Our bylaws prohibit our directors from being employed by or financially interested in a competing enterprise or business selling electric energy or supplies to us. In addition, our bylaws provide that no person is eligible to serve on the Board if any member of his or her immediate family is then employed by us. In addition to meeting the requirements set forth in our bylaws, all of our current directors and members of the audit committee of the Board satisfy the applicable independence standards established by the Nasdaq Stock Market. Although we do not have any securities listed on the Nasdaq Stock Market, the Board used its independence criteria to make this determination in accordance with applicable SEC rules.

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**Director and Executive Officer Biographies** 

Our directors and executive officers, and their ages as of April 15, 2026, are as follows:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| **Directors:** | | |
| Wayne Peltier | 76 | President and Director–District 9 |
| Paul Baker | 60 | Vice President and Director–District 10, Members 1st Power Cooperative |
| Tom Wagner | 61 | Secretary/Treasurer and Director–District 4, Northwest Iowa Power Cooperative |
| Leo Brekel | 74 | Assistant Secretary and Director–District 5, Tri-State G&T Association |
| Jerry Beck | 83 | Director–District 11, Corn Belt Power Cooperative |
| Daniel Gliko, Jr. | 59 | Director–District 6, Central Montana Electric Power Cooperative |
| Anthony Larson | 52 | Director–District 8, Upper Missouri Power Cooperative |
| David Meschke | 69 | Director–District 2, L&O Power Cooperative |
| Kermit Pearson | 79 | Director–District 1, East River Electric Power Cooperative |
| Troy Presser | 61 | Director–District 3, Central Power Electric Cooperative |
| **Executive Officers:** |  |  |
| Todd Brickhouse | 54 | Chief Executive Officer and General Manager |
| Christopher Johnson | 55 | Senior Vice President and Chief Financial Officer |
| Chris Baumgartner | 53 | Senior Vice President of Member and External Relations |
| Gavin McCollam | 61 | Senior Vice President and Chief Operating Officer |
| Miles McGrew | 54 | Senior Vice President and Chief Human Resources Officer |
| Jim Horan | 46 | Senior Vice President and General Counsel |
| Val Weigel | 47 | Senior Vice President of Energy Markets and Dakota Coal Operations |
| Trinity Turnbow | 45 | Vice President and Plant Manager at Dakota Gasification Company |

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**Directors**

*Wayne A. Peltier, President* was appointed to the Board in April 2008. He holds a directorship in Minnesota Valley Cooperative Light and Power Association and represents District 9. He has 21 years of experience in the electric cooperative industry. He is an owner and operator of a farm in Southwest Minnesota. Also, he owns and operates a metal fabrication business in Cottonwood, MN.

*Paul L. Baker, Vice President* was seated on the Board in 2013. Mr. Baker has been an electric cooperative board member since 1994. He holds a directorship on the PRECorp and Members 1<sup>st</sup> Power Cooperative boards. Mr. Baker earned a Bachelor of Science in finance from the University of Wyoming. He owns and operates a cattle ranch named Raven Creek Ranch.

*Tom J. Wagner, Secretary/Treasurer* was seated on the Board in 2017 representing District 4, Northwest Iowa Power Cooperative. Tom also holds a directorship in North West Rural Electric Cooperative. He is the O'Brien County Soil & Water District Commissioner. He is an owner and operator of a farm in northwest Iowa.

*Leo N. Brekel, Assistant Secretary and Director* was seated on the Board in 2014. Mr. Brekel holds a directorship on the Highline Electric Association and Tri-State boards. He has been an electric cooperative board member since 1995. Mr. Brekel has served on Tri-State's board since 2003 and serves as a member of Tri-State's Finance and Audit Committee. He is a wheat farmer near Fleming, Colorado.

*Jerry R. Beck, Director* became a member of the Board in December 2021. Mr. Beck, who represents Corn Belt, also holds a directorship in Iowa Lakes Electric. Mr. Beck has 20 years of experience in the electric cooperative industry. He is an owner and operator of a farm in northwest Iowa.

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*Daniel A. Gliko, Jr., Director* was seated on the Board in 2017 representing District 6, Central Montana. He has been an electric cooperative board member since 2001. He is currently a Territory Sales Manager for BTI Montana.

*Anthony D. Larson, Director* became a Board member in 2024. Mr. Larson, who represents Upper Missouri Power Cooperative, is also the Treasurer at Upper Missouri Power Cooperative. He has served on the board of electric cooperatives since 2010. Also, Mr. Larson has served on CFC's board since 2020 and serves as a member of CFC's Audit and Financial Advisory Committees. He owns and operates a cattle ranch named 1910 Larson Ranch.

*David E. Meschke*, *Director* was seated on the Board in 2017 representing District 2, L&O Power. He is a certified credentialed director through the National Rural Electric Cooperatives Association. He is currently a Claims Manager for Rural Community Insurance Services (RCIS).

*Kermit M. Pearson, Director* has served as a member of the Board for 24 years. Mr. Pearson also holds a directorship with Lake Region Electric Association, Inc. and East River. He has 40 years of experience in the electric cooperative industry. Mr. Pearson earned a Bachelor of Science from South Dakota State University. He is a self-employed farmer and rancher in northeastern South Dakota.

*Troy E. Presser, Director* was seated on the Board in 2015. Mr. Presser holds a directorship on the McLean Electric Cooperative and Central Power Electric Cooperative boards. He has been an electric cooperative board member since 2007. Mr. Presser studied agriculture economics at North Dakota State University. He is a self-employed farmer and rancher of Presser Red Angus.

**Executive Officers**

We are organized into major line departments which report to the Chief Executive Officer and General Manager.

*Todd T. Brickhouse is our Chief Executive Officer and General Manager* and has served in such role since July 2023, initially in an interim capacity. He joined Basin Electric in June 2022 as Senior Vice President and Chief Financial Officer. Mr. Brickhouse has more than 25 years of experience in finance, risk management, and strategic planning in the utility industry, including 21 years at Old Dominion Electric Cooperative. Mr. Brickhouse holds a B.A. in Economics and Business from the Virginia Military Institute in Lexington, Virginia.

*Christopher A. Johnson is our Senior Vice President and Chief Financial Officer* and joined Basin Electric in 2024. He is responsible for accounting, finance and treasury, insurance, procurement and power supply planning and rates. Prior to accepting this position, he spent 10 years at Tri-State Generation and Transmission Association in Westminster, Colorado, where he served as Vice President of Finance. He has 30 years of finance and accounting experience in the utility industry and holds an M.B.A from the University of Georgia, as well as a B.B.A in Accounting from Georgia State University.

*Christopher "Chris" L. Baumgartner is our Senior Vice President, Member and External Relations* and is responsible for member services, strategic planning, and communications for the cooperative. He has been employed with Basin Electric and electric cooperatives since 1992. From 2012 until 2017, he served as co-general manager/CEO of Innovative Energy Alliance. He has a Master of Business Administration, Master of Management, and a Bachelor of Science from the University of Mary, Bismarck, North Dakota.

*Gavin A. McCollam is our Senior Vice President and Chief Operating Officer* and joined Basin Electric in 1989. He is responsible for our generation, transmission, engineering, construction, and environmental operations. He holds a Masters in Systems Management from the University of Southern California, Los Angeles, as well as a Bachelor of Science in Mechanical Engineering from North Dakota State University.

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*Miles M. McGrew is our Senior Vice President and Chief Human Resource Officer* and has been employed with Basin Electric since 2022. He is responsible for our human resources, information technology, safety, and security operations. Prior to accepting this position, McGrew worked most recently as the vice president of human resources for Seaboard Triumph Foods, a Sioux City, Iowa company. He has more than 25 years of experience in human resources, international labor relations, mergers and acquisitions, and organizational development. He holds a Masters in Public Health from the University of Illinois, Springfield, as well as a Bachelor of Science in Labor Relations from Sangamon State University, Springfield.

*James "Jim" Horan is our Senior Vice President and General Counsel* and joined Basin Electric in 2025 and is responsible for all legal matters and has experience with distribution, statewide, regional, and national cooperative utility entities. Prior to accepting this position, he served as Executive Director of Mid-West Electric Consumers Association, where he represented the interests of its consumer-owned utilities for five years. Mr. Horan holds a Juris Doctor from William Mitchell College of Law, and a B.A. from Saint Mary's University.

*Valerie "Val" A. Weigel is our Senior Vice President of Energy Markets and Dakota Coal Operations* and has been employed with Basin Electric since 1998. She oversees market strategy and optimization, commodity management including purchases, sales and risk mitigation, and coal and limestone operations. She holds a Master of Business Administration from the University of North Dakota in Grand Forks and a Bachelor of Science in Business Administration from the University of Mary in Bismarck. Valerie is a voting member of the Southwest Power Pool Western Market Executive Committee and is on the Lignite Energy Council board.

*Trinity J. Turnbow is our Vice President and Plant Manager at Dakota Gasification Company* and has been employed at Dakota Gasification Company since 2008. He holds a Bachelor of Science in Chemical Engineering from the University of Minnesota, Twin Cities.

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**EXECUTIVE COMPENSATION**

**Compensation Discussion and Analysis**

For fiscal year 2025, our named executive officers ("NEOs") consist of the individuals listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Todd Brickhouse, Chief Executive Officer and General Manager

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Christopher Johnson, Senior Vice President and Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Chris Baumgartner, Senior Vice President of Member and External Relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gavin McCollam, Senior Vice President and Chief Operating Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Miles McGrew, Senior Vice President and Chief Human Resource Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mark Foss, Former Senior Vice President and General Counsel

***General Philosophy***

Basin Electric's executive compensation philosophy is reviewed periodically by the Board of Directors and is designed to align executive pay with the cooperative's mission, operational complexity, and long-term financial stewardship. This philosophy is intended to provide a consistent framework for evaluating executive compensation decisions while allowing flexibility to address role scope, experience, performance, and retention considerations.

The executive compensation philosophy is based on the following principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mission alignment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market competitiveness

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pay-for-performance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Internal equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial stewardship

*Market Benchmarking Approach*. Basin Electric benchmarks executive compensation against not-for-profit utilities, cooperative organizations, and investor-owned utilities of similar size and operational complexity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use of a blended utility market reflecting the executive talent pool

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Biennial executive market benchmarking, supported by interim monitoring and Board oversight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market targeting around the median with flexibility for role scope and retention

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use of external advisors as appropriate

*Governance of Executive Compensation.* The compensation of executive officers is determined by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Approves CEO compensation and the executive compensation philosophy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Oversees compensation for the executive leadership team

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Conducts performance evaluations and recommends adjustments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HR, Finance, Legal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Ensure program compliance, documentation quality, and internal equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Support the administration and governance of compensation programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• External Advisors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Provide benchmarking, governance, and compensation design guidance

*Performance Management.* The Board evaluates the CEO; the CEO evaluates all other executives. Performance Management includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual goal setting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ongoing Executive performance discussions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Year-end evaluations

Performance evaluations are considered as one of several factors in executive compensation decisions, consistent with the approved compensation philosophy.

***Components of Executive Total Compensation.***

The executive compensation framework of Basin Electric includes base salary, retirement benefits (including split-life insurance arrangements), deferred compensation, and health and welfare benefits. Health and welfare benefits are provided pursuant to Basin Electric's broad-based employee benefit programs.

*Base Salary.* Base salary represents the primary form of fixed compensation for our named executive officers. Base salaries are established based on the scope and responsibilities of the position, the executive's experience and qualifications, internal equity considerations, and relevant market data. Base salary levels are reviewed periodically and may be adjusted to reflect changes in responsibilities, individual performance, and market competitiveness.

*Short-Term Incentive Compensation.* Basin Electric does not maintain a formal short-term incentive for its NEOs.

*Equity-Based Compensation.* As an electric cooperative without capital stock, Basin Electric does not provide equity-based compensation, such as stock options, restricted stock, or other stock-based awards.

*Split-Life Insurance.* Basin Electric maintains a legacy split-dollar life insurance arrangement for a limited group of employees, including certain named executive officers. Participation is limited to individuals who were participants as of July 1, 2001. Under this arrangement, Basin Electric pays premiums on life insurance policies, and the executive receives an economic benefit associated with the coverage.

*Perquisites and Other Benefits.* We generally do not provide significant perquisites or personal benefits to our NEOs.

Named executive officers participate in benefit programs generally available to employees, including health and welfare, and retirement programs. Any additional compensation provided outside of base salary is limited and is disclosed, as applicable, in the Summary Compensation Table under "All Other Compensation".

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*Retirement Benefits.* Executives participate in the following programs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Defined Benefit Pension Plan*. Provides lifetime retirement benefits based on eligible compensation and credited service, subject to IRS compensation and benefit limitations. The NRECA Retirement Security Plan (the "RS Plan") is closed to new entrants and was frozen for affected participants in 2018, which will result in declining future benefit accruals under both the RS Plan and the Executive Benefit Restoration Plan (the "EBR Plan").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *401(k) Plans with Employer Contributions*. Executives may defer compensation subject to IRS limits, and Basin Electric provides employer contributions consistent with plan provisions.

*Nonqualified Deferred Compensation Programs:* To supplement retirement benefits and restore limited amounts under IRS rules, Basin Electric offers the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Homestead Deferred Compensation Plan ("Homestead Plan")– Provides nonqualified deferred retirement benefits to a closed group of designated management or highly compensated employees based on amounts specified for each participant. Participation is limited to employees designated by the Board prior to January 1, 2015. This plan is funded by Basin Electric and plan participants are paid either installments or a lump sum based on their distribution election or plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive Deferred Compensation Plan ("EDCP") – A nonqualified deferred compensation plan that allows executives designated under the plan's top-hat eligibility criteria to defer compensation and receive employer contributions that mirror the applicable 401(k) match formula on compensation above IRS limits, with additional discretionary contributions permitted under the plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive Benefit Restoration Plan ("EBR Plan") – Provides supplemental retirement benefits for executives who participate in the RS Plan by restoring pension amounts that cannot be provided under the qualified plan due to IRS compensation and benefit limitations. Eligibility for the EBR Plan is restricted to RS Plan participants, and benefit formulas vary based on RS Plan provisions applicable to each participant.

**Executive Compensation**

The following tables provide detailed information regarding compensation earned by or paid to our NEOs for fiscal year 2025.

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***Summary Compensation Table***

The following table sets forth information concerning compensation awarded to, earned by or paid to our NEOs for fiscal years 2025, 2024 and 2023, as applicable. The table also identifies the principal capacity in which each of these executives serves or served.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Salary<br>($)** | **Change in pension value and nonqualified deferred compensation earnings**<br>**($)**<sup>(1)</sup> | **All other compensation**<br>**($)**<sup>(2)</sup> | | **Total<br>($)** |
| **Todd Brickhouse** | 2025 | 1500000 | 426188 | 52500 | <sup>(3)</sup> | 1978688 |
| Chief Executive Officer and General Manager | 2024 | 1480769 | 381211 | 51750 |  | 1913730 |
| Chief Executive Officer and General Manager | 2023 | 707692 | 182186 | 92211 |  | 982089 |
| **Christopher Johnson** | 2025 | 569813 | 91704 | 49350 | <sup>(4)</sup> | 710867 |
| Senior Vice President and Chief Financial Officer | 2024 | 450481 | 21368 | 128065 |  | 599914 |
| Senior Vice President and Chief Financial Officer |  |  |  |  |  |  |
| **Chris Baumgartner** | 2025 | 452472 | 343102 | 21000 | <sup>(5)</sup> | 816574 |
| Senior Vice President of Member and External Relations | 2024 | 440325 | 161487 | 20700 |  | 622512 |
| Senior Vice President of Member and External Relations | 2023 | 425000 |  | 19800 |  | 444800 |
| **Gavin McCollam** | 2025 | 452653 | 165215 | 17500 | <sup>(6)</sup> | 635368 |
| Senior Vice President and Chief Operating Officer | 2024 | 440487 | 116113 | 17250 |  | 573849 |
| Senior Vice President and Chief Operating Officer | 2023 | 397629 | 4009 | 16500 |  | 418138 |
| **Miles McGrew** | 2025 | 461777 | 87133 | 52500 | <sup>(7)</sup> | 601410 |
| Senior Vice President and Chief Human Resource Officer | 2024 | 449041 | 78132 | 51750 |  | 578923 |
| Senior Vice President and Chief Human Resource Officer | 2023 | 392308 | 38908 | 49414 |  | 480629 |
| **Mark Foss**<sup>(9)</sup> | 2025 | 456429 | 209689 | 16406 | <sup>(8)</sup> | 682524 |
| Former Senior Vice President and General Counsel | 2024 | 476100 | 121809 | 15260 |  | 613168 |
| Former Senior Vice President and General Counsel | 2023 | 460000 |  | 16500 |  | 476500 |

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_______________

(1)Amounts reported represent the annual increase, if any, in the aggregate value of benefits accrued under Basin Electric's retirement and nonqualified deferred compensation plans, calculated in accordance with the terms of the applicable plans and agreements. Negative changes in value are not reflected. The plans are maintained pursuant to their respective governing documents, which set forth eligibility, benefits, and other terms and conditions.

(2)Amounts reported include the taxable value of Basin-provided meals, rewards paid, taxable flights, the taxable economic benefit and any related gross-up associated with split-dollar life insurance coverage, if applicable, relocation benefits, if applicable, employer matching contributions to Basin's 401(k) plan, and other miscellaneous benefits, including volunteer- and housing-related items.

(3)For Mr. Brickhouse, this amount represents $52,500 for employer 401(k) plan contributions.

(4)For Mr. Johnson, this amount represents $49,350 for employer 401(k) plan contributions.

(5)For Mr. Baumgartner, this amount represents $21,000 for employer 401(k) plan contributions.

(6)For Mr. McCollam, this amount represents $17,500 for employer 401(k) plan contributions.

(7)For Mr. McGrew, this amount represents $52,500 for employer 401(k) plan contributions.

(8)For Mr. Foss, this amount represents $16,406 for employer 401(k) plan contributions.

(9)Mr. Foss's employment with Basin Electric as Senior Vice President and General Counsel ended on November 18, 2025. Mr. Foss continues to serve Basin Electric in a quasi-retirement arrangement as a Senior Legal Counsel.

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***Defined Benefit Plan***

The following table lists the estimated actuarial present values of accumulated benefits under the RS Plan and the EBR Plan as of December 31, 2025. The RS Plan provides a defined benefit based on credited service and final average compensation, subject to IRS limitations. The RS Plan is closed to new entrants hired after January 1, 2018. The EBR Plan restores the portion of pension benefit that cannot be provided under the RS Plan due to IRS compensation and benefit limitations. Eligibility for EBR is limited to employees who participate in the RS Plan, and EBR benefit formulas correspond to the RS Plan provisions applicable to each participant and may vary based on date of hire.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of years Credited Service as of** | **RS Plan Present Value<br>of Accumulated <br>Benefit as of** | **EBR Plan<br>Present Value of<br>Accumulated Benefit as of** | **Payments During** |
|<br>**Name** | **December 31, 2025** | **December 31, 2025<br>($)** | **December 31, 2025<br>($)** | **2025** |
| Chris Baumgartner | 29 Years 11 Months | 1761614 | 509933 |  |
| Gavin McCollam | 25 Years 10 Months | 2464474 | 264923 |  |
| Mark Foss<sup>(1)</sup> | 11 Years 7 Months | 975469 | 325619 |  |

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_______________

(1)Mr. Foss participates in a quasi-retirement arrangement under which he continues to accrue benefits under the RS Plan and the EBR Plan while remaining employed. The amounts shown for Mr. Foss represent the estimated actuarial present value of benefits accrued under the RS and EBR Plans as of December 31, 2025. No pension payments were made to Mr. Foss during 2025.

The pension benefits indicated above are the estimated amounts payable under the RS Plan and the EBR Plan, and they are not subject to any deduction for Social Security or other offset amounts. A participant's annual pension at normal retirement age is equal to the product of the participant's years of credited service multiplied by the average of the participant's highest annual salary in five of the last ten years multiplied by one or two percent based on hire date. The value listed in the table is the actuarial lump-sum amount that would have been payable to the participant if employment had terminated on December 31, 2025.

***Nonqualified Executive Deferred Compensation Plan***

As described above, eligible executives may participate in Basin Electric's nonqualified deferred compensation arrangements, including the Homestead Plan, the EDCP, and the EBR Plan. The Homestead Plan is closed to new entrants, and all but one remaining participant are in paid status. The EDCP is available to executives designated under the plan's top-hat eligibility criteria. The following table lists the contributions made to the EDCP during the last fiscal year and the account balances as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Executive** <br>**contributions in last** <br>**fiscal year**<br>**($)**<sup>(1)</sup> | **Our contributions** <br>**in last fiscal year ($)**<sup>(2)</sup> | **Aggregate earnings** <br>**in last fiscal year ($)**<sup>(2)</sup> | **Aggregate <br>withdraws/<br>distributions<br> ($)** | **Aggregate** <br>**balance as of fiscal year end ($)**<sup>(3)</sup> |
| Todd Brickhouse | 200000 | 222501 | 203687 |  | 1854186 |
| Christopher Johnson | 10577 | 81732 | 9972 |  | 130456 |
| Chris Baumgartner | 25000 | 81114 | 171002 |  | 1193103 |
| Gavin McCollam | 10207 | 5104 | 5080 |  | 43326 |
| Miles McGrew | 5559 | 66678 | 20454 |  | 219488 |
| Mark Foss | 95500 | 5634 | 155803 |  | 1303443 |

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_______________

(1)Amounts deferred under the EDCP for each of the NEOs have been reported as 2025 compensation to such NEOs in the "Salary" column in the Summary Compensation Table.

(2)Amounts reported are reflected, as applicable, in the Summary Compensation Table within the column titled "Change in pension value and nonqualified deferred compensation earnings." The amounts presented in this table represent account activity and balances under the applicable nonqualified deferred compensation plans and should not be aggregated with the amounts reported in the Summary Compensation Table.

(3)Includes the following amounts deferred by each NEO in 2025 and prior years, including contributions by Basin Electric to the applicable nonqualified deferred compensation plans:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Homestead Plan<br>($)** | **EDCP<br>($)** | **EBR Plan<br>($)** |
| Todd Brickhouse |  | 1854186 |  |
| Christopher Johnson |  | 130456 |  |
| Chris Baumgartner |  | 1193103 | 509933 |
| Gavin McCollam |  | 43326 | 264923 |
| Miles McGrew |  | 219488 |  |
| Mark Foss | 65967 | 1303443 | 325619 |

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***Employment Agreement***

We have an employment agreement with Mr. Brickhouse, which is dated December 22, 2025 and has a three-year term. The agreement sets forth his annual base salary, participation in Basin Electric's benefit plans, and severance protections applicable upon certain terminations of employment. It also provides eligibility for Basin Electric's retirement and deferred compensation programs in accordance with their terms. The agreement outlines the duties associated with his role as Chief Executive Officer and includes customary provisions regarding confidentiality and termination. Mr. Brickhouse's employment may be terminated by Basin Electric with or without "cause," and he may resign with or without "good reason" (as such terms are defined in the agreement) by 30 days written notice. We have not entered into employment agreements with other NEOs.

***Potential Payments Upon Termination or Change-in-Control***

Basin Electric maintains severance arrangements with certain active NEOs that provide for payments upon a qualifying termination of employment. No severance payments were made during fiscal year 2025.

Pursuant to Mr. Brickhouse's employment agreement, in the event of a termination of his employment by Basin Electric without "cause" or by Mr. Brickhouse with "good reason", he is entitled to the following: (i) continued payment of his base salary for a one-year period, and (ii) reimbursement for premiums paid by the executive for medical insurance pursuant to the Consolidated Omnibus Budget Reconciliation Act ("COBRA") during the one-year period.

Under these severance arrangements with each of Messrs. Johnson, Baumgartner, McCollam, and McGrew, if a NEO were terminated without "cause" as of December 31, 2025, such executive would be entitled to a cash severance payment equal to twelve months of base salary, payable in accordance with the applicable agreement.

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The estimated cash severance amounts that would have been payable to the active NEOs as of December 31, 2025, based solely on base salary then in effect, are as follows:

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| | |
|:---|:---|
| **Name** | **Estimated Severance (12 Months Base Salary) ($)** |
| Todd Brickhouse | 1500000 |
| Christopher Johnson | 575016 |
| Chris Baumgartner | 455396 |
| Gavin McCollam | 456123 |
| Miles McGrew | 465316 |

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There is no employer-provided subsidy for the COBRA premium.

**Compensation Committee Interlocks and Insider Participation**

As described above, the entire Board approves the compensation for our Chief Executive Officer and the Board has delegated to our Chief Executive Officer the authority to establish and adjust compensation for all other executive officers. None of our executive officers served on any board of directors or compensation committee of any other entity that has or has had one or more executive officers who served as a member of the Board during the year ended December 31, 2025.

**Chief Executive Officer Pay Ratio**

We strive to provide fair and equitable compensation to each of our employees through a combination of competitive base pay, retirement programs, and other benefits. The following information compares the annual total compensation of Mr. Brickhouse, our Chief Executive Officer and General Manager, to the annual total compensation of our median employee for the 2025 fiscal year. The 2025 compensation disclosure ratio of the annual total compensation of our Chief Executive Officer to the annual total compensation of our median employee is as follows:

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| | |
|:---|:---|
| **Category and Ratio** | **2025 Total Compensation** |
| Median annual total compensation of all employees (excluding Chief Executive Officer)(1) | $118152 |
| Annual Total Compensation of Todd Brickhouse, Chief Executive Officer | $1978688 |
| Ratio of the median annual total compensation of all employees to the annual total compensation of Todd Brickhouse, Chief Executive Officer | 1.0:16.7 |

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_______________

(1)To identify our median employee, we used our employee population as of December 13, 2025, and calculated total compensation for that population in accordance with SEC rules, in the same manner as the amount set forth in the "Total" column in the Summary Compensation Table, using payroll information through December 13, 2025, reflecting 26 pay periods. While the methodology involves several assumptions and adjustments, we believe the pay ratio information set forth above constitutes a reasonable estimate, calculated in a manner consistent with the SEC Rules. Due to estimates and assumptions permitted under SEC rules, our pay ratio disclosure may not be comparable to the pay ratio disclosure presented by other companies. As of December 13, 2025, we considered our entire employee population for purposes of calculating the 2025 pay ratio, including all full-time and part-time employees, but excluding our Chief Executive Officer. We identified our median employee by reviewing compensation information from our payroll records and providers for 2025 using a consistently applied compensation measure, which included total taxable income, or equivalent. We then annualized compensation for employees hired during 2025.

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**Director Compensation**

Members of our Board are compensated in accordance with Board policy as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The annual fixed sum paid to the President of the Board of Directors is $102,000, paid monthly in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each Director, other than the President of the Board of Directors, receives an annual fixed sum of $96,000, paid monthly in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fixed sum is intended to compensate directors for preparation for, travel to and from, and attendance at Official Meetings, as defined in the Board policy, where Basin Electric business is covered or representation is necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directors are reimbursed for actual expenses incurred in traveling to, from, and while attending Official Meetings based on reimbursement guidelines defined in Board Policy.

***Directors' Deferred Compensation Plan***

Basin Electric's Board of Directors, including the Board President, are eligible to participate in the Board Deferred Compensation Plan, an unfunded and unsecured deferred compensation arrangement governed by Section 409A of the Internal Revenue Code.

For 2025, directors continued their existing deferral elections under the prior compensation structure, even though Board compensation transitioned to a fixed annual payment beginning on January 15, 2025. The Plan itself was not amended for 2025, so all elections remained in effect for the year.

Deferred amounts are credited to a notional account and adjusted for investment performance. Plan assets are held in a rabbi trust and remain subject to the claims of Basin Electric's general creditors.

***Director Compensation Table***

The following table sets forth the total compensation paid or earned by each of our directors for the fiscal year ended December 31, 2025. Directors are also reimbursed for expenses as described above.

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| | |
|:---|:---|
| **Name** | **Total Fees**<br>**Earned or Paid**<br>**in Cash ($)**<sup>(1)</sup> |
| Wayne Peltier | 102000 |
| Paul Baker | 96000 |
| Tom Wagner | 96000 |
| Leo Brekel | 96000 |
| Jerry Beck | 96000 |
| Daniel Gliko, Jr. | 96000 |
| Anthony Larson | 96000 |
| David Meschke | 96000 |
| Kermit Pearson | 96000 |
| Troy Presser | 96000 |
| Mike McQuistion <sup>(2)</sup> | 96000 |

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(1)Various directors have deferred a total of $66,000 of the actual Board fee payments made in 2025.

(2)Mr. McQuistion passed away on February 17, 2026.

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**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

**Certain Relationships and Related Transactions**

Basin Electric maintains a Code of Conduct and related policies requiring the disclosure and review of actual or potential conflicts of interest, including related-person relationships and transactions, applicable to all employees, officers, and directors, with review by management and, when appropriate, the Board.

Because Basin Electric is a cooperative, its members are also its owners, and each director, as required by our bylaws, serves as a director of the Class A Member that the director represents on the Board. Each Class A Member has a wholesale power contract with us, and we received revenue from each such Class A Member in excess of $120,000 during fiscal year 2025.

Other than the transactions described above, we did not have any transactions during 2025, nor do we have any currently proposed transactions, in which a related person had or will have a direct or indirect material interest that exceeded $120,000.

**Director Independence**

Because we are a cooperative, our members own us. Our bylaws set forth the specific requirements regarding the composition of our Board. See "<u>[DIRECTORS, EXECUTIVE OFFICERS](#i0b5983c249b84b3db1dc97769c25fdb6_166)[,](#i0b5983c249b84b3db1dc97769c25fdb6_166)[AND CORPORATE GOVERNANCE](#i0b5983c249b84b3db1dc97769c25fdb6_166)[—Corporate Governance](#i0b5983c249b84b3db1dc97769c25fdb6_166)</u>" for a description of these requirements. In addition to meeting the requirements set forth in our bylaws, all of our current directors satisfy the definition of director independence as prescribed by the Nasdaq Stock Market and otherwise meet all the requirements set forth in our bylaws. Although we do not have any securities listed on the Nasdaq Stock Market, we have used its independence criteria to make this determination in accordance with applicable SEC rules.

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**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Not applicable.

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**THE EXCHANGE OFFER**

**Purpose of the Exchange Offer**

We completed the private offering of the Original Bonds on October 14, 2025. As part of that issuance, we entered into the Registration Rights Agreement with the initial purchasers in the private offering. Under the Registration Rights Agreement, we agreed to file a registration statement with the SEC relating to the Exchange Offer within 210 days of the settlement date of the Original Bonds. We also agreed to use our commercially reasonable efforts to (i) cause the registration statement to become effective with the SEC within 360 days of the settlement date of the Original Bonds and (ii) complete the Exchange Offer within 60 business days from the date the registration statement becomes effective. The Registration Rights Agreement provides that we will be required to pay additional interest to the holders of the Original Bonds if we fail to comply with such filing, effectiveness and exchange offer consummation requirements. We also agreed to perform other obligations under the Registration Rights Agreement. See "—Registration Rights Agreement."

The Exchange Offer is not being made to holders of Original Bonds in any jurisdiction where the exchange would not comply with the securities or blue sky laws of such jurisdiction. A copy of the Registration Rights Agreement has been filed as an exhibit to the registration statement of which this prospectus forms a part, and it is available from us upon request. See "Where You Can Find More Information."

Each broker-dealer that receives Exchange Bonds for its own account in exchange for Original Bonds, where such Original Bonds were acquired by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Bonds. See "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>."

**Terms of the Exchange Offer**

Upon the terms and subject to the conditions described in this prospectus and in the accompanying letter of transmittal, we will accept for exchange Original Bonds that are validly tendered before 5:00 p.m., New York City time, on the expiration date and not validly withdrawn as permitted below. We will issue a like principal amount of Exchange Bonds in exchange for the principal amount of the Original Bonds tendered under the Exchange Offer. As used in this prospectus, the term "expiration date" means&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026. However, if we have extended the period of time for which the Exchange Offer is open, the term "expiration date" means the latest date to which we extend the Exchange Offer.

As of the date of this prospectus, $700,000,000 aggregate principal amount of Original Bonds is outstanding. The Original Bonds were issued under the Indenture, as supplemented by the Forty-Second Supplemental Indenture. Our obligation to accept Original Bonds for exchange in the Exchange Offer is subject to the conditions described below under "—Conditions to the Exchange Offer." We reserve the right to extend the period of time during which the Exchange Offer is open. We may, subject to applicable law, elect to extend the Exchange Offer period if less than 100% of the Original Bonds are tendered or if any condition to consummation of the Exchange Offer has not been satisfied as of the expiration date and it is likely that such condition will be satisfied after such date. In addition, in the event of any material change to the Exchange Offer, we will extend the period of time during which the Exchange Offer is open as necessary. In the event of such extension, and only in such event, we may delay acceptance for exchange of any Original Bonds by giving written notice of the extension to the holders of Original Bonds as described below. During any extension period, all Original Bonds previously tendered will remain subject to the Exchange Offer and may be accepted for exchange by us. Any Original Bonds not accepted for exchange will be returned to the tendering holder promptly after the expiration or termination of the Exchange Offer.

Original Bonds tendered in the Exchange Offer must be in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.

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Subject to applicable law, we reserve the right to amend or terminate the Exchange Offer, and not to accept for exchange any Original Bonds not previously accepted for exchange, upon the occurrence of any of the conditions of the Exchange Offer specified below under "—Conditions to the Exchange Offer." We will give written notice of any extension, amendment, non-acceptance or termination to the holders of the Original Bonds as promptly as practicable. Such notice, in the case of any extension, will be issued by means of a press release or other public announcement no later than 9:00 a.m., New York City time, on the next business day after the previously scheduled expiration date.

Our acceptance of the tender of Original Bonds by a tendering holder will form a binding agreement upon the terms and subject to the conditions provided in this prospectus and the accompanying letter of transmittal.

**Absence of Dissenters' Rights of Appraisal**

Holders of Original Bonds do not have any dissenters' rights of appraisal in connection with the Exchange Offer.

**Procedures for Tendering**

Except as described below, a holder tendering Original Bonds must, prior to 5:00 p.m., New York City time, on the expiration date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transmit a properly completed and duly executed letter of transmittal, including all other documents required by the letter of transmittal, to the Exchange Agent, at the address listed below under the heading "—Exchange Agent"; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if Original Bonds are tendered in accordance with the book-entry procedures described below, the tendering holder must transmit an agent's message (described below) to the Exchange Agent.

Transmittal will be deemed made only when actually received or confirmed by the Exchange Agent.

In addition, the Exchange Agent must receive, before 5:00 p.m., New York City time, on the expiration date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certificates for the Original Bonds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• confirmation of book-entry transfer of the Original Bonds into the Exchange Agent's account at DTC, the book-entry transfer facility.

The term "agent's message" means a computer-generated message, transmitted by DTC to, and received by, the Exchange Agent and forming a part of a book-entry confirmation, which states that DTC has received an express acknowledgment from the tendering participant that such participant has received and agrees to be bound by, and makes the representations and warranties contained in, the letter of transmittal and that we may enforce the letter of transmittal against such participant.

**The method of delivery of Original Bonds, letters of transmittal and all other required documents is at your election and risk. If delivery is by mail, we recommend that you use registered mail, properly insured, with return receipt requested. In all cases, you should allow sufficient time to assure timely delivery. You should not send letters of transmittal or Original Bonds to anyone other than the Exchange Agent.** 

If you are a beneficial owner whose Original Bonds are registered in the name of a broker, dealer, commercial bank, trust company or other nominee, and wish to tender, you should promptly instruct the registered holder to tender on your behalf. Any registered holder that is a participant in DTC's book-entry transfer facility system may make book-entry delivery of the Original Bonds by causing DTC to transfer the Original Bonds into the Exchange Agent's account.

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Signatures on a letter of transmittal or a notice of withdrawal must be guaranteed unless the Original Bonds surrendered for exchange are tendered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• by a registered holder of the Original Bonds that has not completed the box entitled "Special Issuance Instructions" or "Special Delivery Instructions" on the letter of transmittal; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the account of an "eligible institution."

If signatures on a letter of transmittal or a notice of withdrawal are required to be guaranteed, the guarantees must be by an "eligible institution." An "eligible institution" is a financial institution, including most banks, savings and loan associations and brokerage houses, that is a participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges Medallion Program.

We will reasonably determine all questions as to the validity, form and eligibility of Original Bonds tendered for exchange and all questions concerning the timing of receipts and acceptance of tenders. These determinations will be final and binding.

We reserve the right to reject any particular Original Bond not validly tendered, or any acceptance that might, in our judgment, be unlawful. We also reserve the right to waive any defects or irregularities with respect to the form of, or procedures applicable to, the tender of any particular Original Bond before the expiration date. Unless waived, any defects or irregularities in connection with tenders of Original Bonds must be cured before the expiration date of the Exchange Offer. Neither we, the Exchange Agent nor the Trustee, nor any other person, will be under any duty to give notification of any defect or irregularity in any tender of Original Bonds. Neither we, the Exchange Agent nor the Trustee, nor any other person, will incur any liability for failing to give notification of any defect or irregularity.

If the letter of transmittal is signed by a person other than the registered holder of Original Bonds, the letter of transmittal must be accompanied by a physical certificate representing the Original Bonds endorsed by the registered holder or written instrument of transfer or exchange in satisfactory form, duly executed by the registered holder, in either case with the signature guaranteed by an eligible institution. In addition, in either case, the original endorsement or the instrument of transfer must be signed exactly as the name of any registered holder appears on the Original Bonds.

If the letter of transmittal or any Original Bonds or powers of attorney are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, these persons should so indicate when signing. Unless waived by us, proper evidence satisfactory to us of their authority to so act must be submitted.

By signing or agreeing to be bound by the letter of transmittal, each tendering holder of Original Bonds will represent, among other things, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is not an affiliate of ours or, if it is an affiliate of ours, it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Exchange Bonds to be received by it will be acquired in the ordinary course of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is not engaged in and does not intend to engage in, and has no arrangement or understanding with any person to participate in, a distribution, within the meaning of the Securities Act, of the Exchange Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is not a broker-dealer that purchased any of the Original Bonds from us or any of our affiliates for resale pursuant to Rule 144A or any other available exemption under the Securities Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if such holder is a broker-dealer that will receive Exchange Bonds for its own account in exchange for Original Bonds that were acquired as a result of market-making activities or other

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trading activities, that it will deliver a prospectus (or to the extent permitted by law, make available a prospectus to purchasers) in connection with any resale of such Exchange Bonds. See "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>."

**Acceptance of Original Bonds for Exchange; Delivery of Exchange Bonds**

Upon satisfaction of all of the conditions to the Exchange Offer, we will accept, promptly after the expiration date, all Original Bonds validly tendered. We will issue the Exchange Bonds promptly after the expiration of the Exchange Offer and acceptance of the Original Bonds. See "—Conditions to the Exchange Offer" below. For purposes of the Exchange Offer, we will be deemed to have accepted validly tendered Original Bonds for exchange when, as and if we have given written notice of such acceptance to the Exchange Agent.

For each Original Bond accepted for exchange, the holder of the Original Bond will receive an Exchange Bond having a principal amount equal to that of the surrendered Original Bond. The Exchange Bonds will bear interest from the last date on which interest was paid on the Original Bonds. Original Bonds accepted for exchange will cease to accrue interest from and after the date of completion of the Exchange Offer. Holders of Original Bonds whose Original Bonds are accepted for exchange will not receive any payment for accrued interest on the Original Bonds otherwise payable on any interest payment date, the record date for which occurs on or after completion of the Exchange Offer and will be deemed to have waived their rights to receive such accrued interest on the Original Bonds.

In all cases, issuance of Exchange Bonds for Original Bonds will be made only after timely receipt by the Exchange Agent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certificates for the Original Bonds or a book-entry confirmation of the deposit of the Original Bonds into the Exchange Agent's account at the book-entry transfer facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a properly completed and duly executed letter of transmittal or a transmitted agent's message; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other required documents.

Unaccepted or non-exchanged Original Bonds will be returned without expense to the tendering holder of the Original Bonds promptly after the expiration of the Exchange Offer. In the case of Original Bonds tendered by book-entry transfer in accordance with the book-entry procedures described below, the non-exchanged Original Bonds will be returned or recredited promptly after the expiration of the Exchange Offer.

**Book-Entry Transfer**

The Exchange Agent will make a request to establish an account for the Original Bonds at DTC for purposes of the Exchange Offer within two business days after the date of this prospectus. Any financial institution that is a participant in DTC's systems and is tendering Original Bonds must make book-entry delivery of the Original Bonds by causing DTC to transfer those Original Bonds into the Exchange Agent's account at DTC in accordance with DTC's procedures for transfer, including its Automated Tender Offer Program, or ATOP, procedures. The participant should transmit its acceptance to DTC prior to 5:00 p.m., New York City time, on the expiration date. DTC will verify this acceptance, execute a book-entry transfer of the tendered Original Bonds into the Exchange Agent's account at DTC and then send to the Exchange Agent confirmation of this book-entry transfer, which confirmation must be received prior to 5:00 p.m., New York City time, on the expiration date. The confirmation of this book-entry transfer will include an agent's message confirming that DTC has received an express acknowledgment from the participant that the participant has received and agrees to be bound by the letter of transmittal and that we may enforce the letter of transmittal against the participant. Delivery of Exchange Bonds issued in the Exchange Offer may be effected through book-entry transfer at DTC. However, the letter of transmittal (or an agent's message in lieu thereof), with any required signature guarantees and any other required

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documents, must be transmitted to, and received by, the Exchange Agent at the address listed below under "—Exchange Agent" (or its account at DTC with respect to an agent's message) prior to 5:00 p.m., New York City time, on the expiration date.

**Withdrawal Rights**

For a withdrawal to be effective, the Exchange Agent must receive a written notice of withdrawal at the address indicated below under "—Exchange Agent" before 5:00 p.m., New York City time, on the expiration date. Any notice of withdrawal must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• specify the name of the person, referred to as the depositor, having tendered the Original Bonds to be withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify the Original Bonds to be withdrawn, certificate number or numbers, if applicable, and principal amount of the Original Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of Original Bonds tendered by book-entry transfer, specify the number of the account at the book-entry transfer facility from which the Original Bonds were tendered and specify the name and number of the account at the book-entry transfer facility to be credited with the withdrawn Original Bonds and otherwise comply with the procedures of such facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contain a statement that the holder is withdrawing their election to have the Original Bonds exchanged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• be signed by the holder in the same manner as the original signature on the letter of transmittal by which the Original Bonds were tendered, including any required signature guarantees, or be accompanied by documents of transfer to have the Trustee with respect to the Original Bonds register the transfer of the Original Bonds in the name of the person withdrawing the tender, together with satisfactory evidence of payment of applicable transfer taxes or exemption therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• specify the name in which the Original Bonds are registered, if different from that of the depositor.

If certificates for Original Bonds have been delivered or otherwise identified to the Exchange Agent, then, prior to the release of these certificates, the withdrawing holder must also submit the serial numbers of the particular certificates to be withdrawn and a signed notice of withdrawal with signatures guaranteed by an eligible institution unless this holder is an eligible institution. We will determine all questions as to the validity, form and eligibility, including time of receipt, of notices of withdrawal. Validly withdrawn Original Bonds may be re-tendered by following the procedures described under "—Procedures for Tendering" above at any time before 5:00 p.m., New York City time, on the expiration date.

**Conditions to the Exchange Offer**

Notwithstanding any other provision of this prospectus, with respect to the Exchange Offer, we will not be obligated to (i) accept for exchange any validly tendered Original Bonds or (ii) issue any Exchange Bonds in exchange for validly tendered Original Bonds or complete the Exchange Offer, if at or prior to the expiration date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)there is threatened, instituted or pending any action or proceeding before, or any injunction, order or decree issued by, any court or governmental agency or other governmental regulatory or administrative agency or commission that might materially impair our ability to proceed with the Exchange Offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the Exchange Offer or the making of any exchange by a holder of Original Bonds would violate applicable law or any applicable interpretation of the SEC staff.

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In addition, we will not accept for exchange any Original Bonds tendered, and no Exchange Bonds will be issued in exchange for any Original Bonds, if any stop order is threatened by the SEC or in effect relating to the registration statement of which this prospectus constitutes a part or the qualification of the Indenture under the Trust Indenture Act of 1939, as amended. We are required to use our commercially reasonable efforts to obtain the withdrawal of any stop order suspending the effectiveness of a registration statement at the earliest possible time.

The Exchange Offer is not conditioned upon any minimum amount of Original Bonds being tendered.

**Exchange Agent**

We have appointed U.S. Bank Trust Company, National Association as the Exchange Agent for the Exchange Offer. You should direct all executed letters of transmittal to the Exchange Agent at the address indicated below. You should direct questions and requests for assistance, and requests for additional copies of this prospectus or of the letter of transmittal to the Exchange Agent addressed as follows:

***Deliver To:***

---

| | | |
|:---|:---|:---|
| *By Mail:* | *By Hand or Overnight Courier:* | *For Information or Confirmation*<br>*by Email or Telephone:* |
| U.S. Bank Trust Company,<br>National Association<br>Corporate Trust Services<br>P.O. Box 64111<br>St. Paul, MN 55164-0111 | U.S. Bank Trust Company, National Association<br>Corporate Trust Services<br>60 Livingston Avenue<br>1st Fl – Bond Drop Window<br>St. Paul, MN 55107 | 1-800-934-6802<br>cts.specfinance@usbank.com |

---

All other questions should be addressed to Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, Attention: Vice President & Treasurer, or by calling us at (701) 223-0441. If you deliver the letter of transmittal to an address other than any address for the Exchange Agent indicated above, then your delivery or transmission will not constitute a valid delivery of the letter of transmittal.

**Fees and Expenses**

We will not make any payment to brokers, dealers or others soliciting acceptances of the Exchange Offer. We have agreed to pay all expenses incident to the Exchange Offer other than commissions or concessions of any broker-dealers and will indemnify the holders of the Original Bonds and the Exchange Bonds (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act. The cash expenses to be incurred in connection with the Exchange Offer, including out-of-pocket expenses for the Exchange Agent, will be paid by us.

**Transfer Taxes**

We will pay any transfer taxes in connection with the tender of Original Bonds in the Exchange Offer unless you instruct us to register Exchange Bonds in the name of, or request that Original Bonds not tendered or not accepted in the Exchange Offer be returned to, a person other than the tendering registered holder. In those cases, you will be responsible for the payment of any applicable transfer taxes.

**Accounting Treatment**

The Exchange Bonds will be recorded at the same carrying value as the Original Bonds as reflected in our accounting records on the date of the exchange. Accordingly, we will not recognize any gain or loss for accounting purposes upon the completion of the Exchange Offer. The expenses of the Exchange Offer will be amortized over the term of the Exchange Bonds.

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**Consequences of Exchanging or Failing to Exchange the Original Bonds**

Holders of Original Bonds that do not exchange their Original Bonds for Exchange Bonds in the Exchange Offer will remain subject to the restrictions on transfer of such Original Bonds as set forth in the legend printed on the global certificates representing the Original Bonds as a consequence of the issuance of the Original Bonds pursuant to exemptions from, or in transactions not subject to, the registration requirements of the Securities Act and applicable state securities laws. In general, you may not offer or sell the Original Bonds unless they are registered under the Securities Act, transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws or transferred in a transaction not subject to the Securities Act and applicable state securities laws. Except as required by the Registration Rights Agreement, we do not intend to register resales of the Original Bonds under the Securities Act.

Under existing interpretations of the Securities Act by the SEC staff contained in several no-action letters to third parties, and subject to the immediately following sentence, we believe the Exchange Bonds would generally be freely transferable by holders other than our affiliates after the Exchange Offer without further registration under the Securities Act, subject to certain representations required to be made by each holder of Exchange Bonds, as set forth below. However, any holder of Original Bonds that is one of our "affiliates" (as defined in Rule 405 under the Securities Act) that does not comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds or that intends to participate in the Exchange Offer for the purpose of distributing the Exchange Bonds, or any broker-dealer that purchased any of the Original Bonds from us or any of our affiliates for resale pursuant to Rule 144A or any other available exemption under the Securities Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will not be able to rely on the interpretations of the SEC staff;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• will not be able to tender its Original Bonds in the Exchange Offer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of Original Bonds unless such sale or transfer is made pursuant to an exemption from such requirements. See "<u>[PLAN OF DISTRIBUTION](#i0b5983c249b84b3db1dc97769c25fdb6_154)</u>."

We do not intend to seek our own interpretation from the SEC staff regarding the Exchange Offer, and there can be no assurance that the SEC staff would make a similar determination with respect to the Exchange Bonds as it has in other interpretations to other parties, although we have no reason to believe otherwise.

**Registration Rights**

In connection with the closing of the private offering of the Original Bonds on October 14, 2025, we entered into the Registration Rights Agreement with the representatives of the initial purchasers of the Original Bonds. The following description of the Registration Rights Agreement is a summary of certain provisions of the Registration Rights Agreement and is qualified in its entirety by reference to all the provisions of such document. A copy of the form of the Registration Rights Agreement is incorporated by reference as an exhibit to the registration statement of which this prospectus is a part. See "Where You Can Find More Information."

Pursuant to the Registration Rights Agreement, we agreed, for the benefit of the holders of the Original Bonds, at our cost, to use commercially reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file, not later than 210 days after the settlement date for the Original Bonds, a registration statement (the "Exchange Offer Registration Statement") with respect to a registered offer to exchange the Original Bonds for the Exchange Bonds, a new series of bonds having terms substantially identical to the Original Bonds and entitled to the benefits of the Indenture, except that the Exchange Bonds will be registered under the Securities Act and will not have (i) any

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transfer restrictions under the Securities Act or (ii) registration rights or additional interest provisions under the Registration Rights Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cause the Exchange Offer Registration Statement to become effective within 360 days after the settlement date for the Original Bonds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complete the Exchange Offer within 60 business days from the date the Exchange Offer Registration Statement becomes effective.

This prospectus is a part of a registration statement we have filed with the SEC. Promptly after this registration statement has been declared effective, we will commence the Exchange Offer.

If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we determine that we are not permitted to effect the Exchange Offer because it would violate any applicable law or applicable interpretations of the staff of the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for any other reason, the Exchange Offer Registration Statement is not effective within 360 days of the settlement date for the Original Bonds or the Exchange Offer is not completed within 60 business days after the date the Exchange Offer Registration Statement becomes effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we receive a written request, not later than 20 days after the completion of the Exchange Offer, from any holder of Original Bonds that are or were ineligible to be exchanged in the Exchange Offer (the date of any of the events in this and the prior two bullet points, a "Alternative Registration Event Date"),

then we will, at our cost, use commercially reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file with the SEC, no later than 30 business days after such Alternative Registration Event Date (but no earlier than 210 days after the settlement date for the Original Bonds), an alternative registration statement (the "Alternative Registration Statement") providing for the resale of all the Original Bonds by the holders thereof and to have such Alternative Registration Statement become effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• keep the Alternative Registration Statement effective until the earlier of the first anniversary of the effectiveness of the Alternative Registration Statement or such time as there are no longer any such Original Bonds outstanding.

Upon notice to the relevant holders, we may suspend the use or the effectiveness of the Alternative Registration Statement, or extend the time period in which it is required to file the Alternative Registration Statement, for up to 30 consecutive days and up to 60 days in the aggregate, in each case in any 12-month period (a "Suspension Period") if we determine that there is a valid business purpose for suspension of the Alternative Registration Statement. We are required to promptly notify the relevant holders when the Alternative Registration Statement may once again be used or is effective.

A holder that sells Original Bonds pursuant to the Alternative Registration Statement generally will be required to be named as a selling security holder in the related prospectus and to deliver a prospectus to purchasers, will be subject to certain of the civil liability provisions under the Securities Act in connection with such sales and will be bound by the provisions of the Registration Rights Agreement that are applicable to such holder, including certain indemnification obligations. In addition, a holder of Original Bonds will be required to deliver information to be used in connection with the Alternative Registration Statement in order to have that holder's Original Bonds included in the Alternative Registration Statement and to benefit from the provisions set forth in the following paragraph.

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If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Exchange Offer Registration Statement is not filed with the SEC on or prior to the 210<sup>th</sup> day after the settlement date for the Original Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Exchange Offer Registration Statement is not declared effective by the SEC or does not otherwise become effective on or prior to the 360<sup>th</sup> day after the settlement date for the Original Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Exchange Offer is not completed within 60 business days after the initial effective date of the Exchange Offer Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Alternative Registration Statement, if applicable, is not filed with the SEC on or prior to the later of the 30<sup>th</sup> business day after the Alternative Registration Event Date or the 210<sup>th</sup> day after the settlement date for the Original Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Alternative Registration Statement, if applicable, is not declared effective by the SEC or does not otherwise become effective on or prior to the later of the 150<sup>th</sup> day after the Alternative Registration Event Date or the 360<sup>th</sup> day after the settlement date for the Original Bonds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Exchange Offer Registration Statement or Alternative Registration Statement is filed and declared effective but thereafter is either withdrawn by us or becomes subject to an effective stop order issued pursuant to the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted, including with respect to any Alternative Registration Statement, during any applicable Suspension Period) without being succeeded within 30 days from the date such registration statement was suspended by an additional registration statement filed and declared effective (each such event referred to in this bullet point and any of the previous five bullet points, a "Registration Default"),

then, we will pay additional interest to the holders of the Registrable Securities (as defined in the Registration Rights Agreement) affected thereby, and that additional interest will accrue on the principal amount of the Registrable Securities affected thereby, in addition to the stated interest on the Registrable Securities, from the date on which any Registration Default has occurred to the date on which all such Registration Defaults have been cured. Additional interest will accrue at a rate of 0.25% per annum for the first 90 days following a Registration Default and at a rate per annum of 0.50% thereafter ("Special Interest"). Special Interest will accrue and be payable only with respect to a single Registration Default at any given time, notwithstanding the fact that multiple Registration Defaults may exist at such time. Immediately upon the cure of all Registration Defaults, the accrual of Special Interest will cease and the interest rate on the Bonds will revert to the original rate.

The Registration Rights Agreement provides that a holder of Original Bonds is deemed to have agreed to be bound by the provisions of the Registration Rights Agreement whether or not the holder has signed the Registration Rights Agreement.

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**DESCRIPTION OF THE EXCHANGE BONDS**

**General**

The terms of the Exchange Bonds to be issued in the Exchange Offer are substantially identical to the Original Bonds, except that the Exchange Bonds will be registered under the Securities Act and the transfer restrictions, registration rights and additional interest provisions applicable to the Original Bonds do not apply to the Exchange Bonds. The Exchange Bonds will be issued pursuant to and secured under the Indenture, as supplemented by the Forty-Second Supplemental Indenture. The security for the Exchange Bonds is described below under "<u>[SUMMARY OF THE INDENTURE](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u>." The following summary of certain terms and provisions of the Exchange Bonds does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the terms and provisions of the Exchange Bonds, the Indenture and the Forty-Second Supplemental Indenture, including the definitions therein, copies of which are incorporated by reference as exhibits to the registration statement of which this prospectus forms a part. See "<u>[W](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[HERE YOU CAN FIND MORE INFORMATION](#i0b5983c249b84b3db1dc97769c25fdb6_1379)</u>." We urge you to read the Indenture and the Forty-Second Supplemental Indenture, including the form of Bond included therein, because they, and not this description, define your rights as a holder of the Exchange Bonds. References to "we," "us," "our" and the "Company" in this section refer to Basin Electric Power Cooperative only and not to any of our subsidiaries.

The Exchange Bonds will mature on October 15, 2055. We will pay interest on the Exchange Bonds at the annual rate of 5.850% (on the basis of a 360-day year of twelve 30-day months). Interest on the Exchange Bonds will accrue from the last date on which interest was paid on the Original Bonds, and is payable semi-annually in arrears on April 15 and October 15 of each year. On each interest payment date, we will pay interest to the person in whose name the Exchange Bonds are registered at 5:00 p.m., New York City time, on the regular record date for that interest payment, which is the 1st day (whether or not a business day) of the calendar month of such interest payment date. If interest on the Exchange Bonds is not punctually paid or duly provided for, instead of paying such interest to the registered holders as of the regular record date, we will propose a new payment date and such interest will be paid to the registered holders of the Exchange Bonds as of a special record date, which will be no more than 15 days and no less than 10 days prior to the proposed payment date. If any interest payment date, redemption date or the maturity date of the Exchange Bonds falls on a day that is not a business day, the payment due on that interest payment date, redemption date or the maturity date will be made on the next business day, and without any interest or other payment in respect of such delay. Principal of, and premium (if any) and interest on, the Exchange Bonds will be payable, and the transfer of interests in the Exchange Bonds will be effected, through the facilities of DTC, as described below under the caption "<u>[BOOK-ENTRY S](#i0b5983c249b84b3db1dc97769c25fdb6_151)[ETTLEMENT AND CLEARANCE](#i0b5983c249b84b3db1dc97769c25fdb6_151)</u>." The Exchange Bonds will be issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

The Exchange Bonds will be registered in the name of Cede & Co., as nominee of DTC, pursuant to DTC's book-entry system. Purchases of beneficial interests in the Exchange Bonds will be made in book-entry form, without certificates. If at any time the book-entry system is discontinued for the Exchange Bonds, the Exchange Bonds will be exchangeable for other fully registered certificated Exchange Bonds of like tenor and of an equal aggregate principal amount, in authorized denominations. See "<u>[BOOK-ENTRY SETTLEMENT AND CLEARANCE](#i0b5983c249b84b3db1dc97769c25fdb6_151)</u>." The Trustee may impose a charge sufficient to reimburse us or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of an Exchange Bond. The cost to us or the Trustee, if any, of preparing each new Exchange Bond issued upon such exchange or transfer, and any other expenses incurred by us or the Trustee in connection therewith, will be paid by the person requesting such exchange or transfer.

**Optional Redemption**

At any time or from time to time before April 15, 2055 (the date that is six months prior to the maturity date of the Exchange Bonds) (the "Par Call Date"), we may redeem the Exchange Bonds at our option, in

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whole or in part, at a "make whole" redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• (a) the sum of the present values of the remaining scheduled payments of principal and interest on the Exchange Bonds to be redeemed discounted to the redemption date (assuming the Exchange Bonds to be redeemed matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 20 basis points less (b) interest accrued on the Bonds to be redeemed to the date of redemption; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of the principal amount of the Bonds to be redeemed;

plus, in either case, accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

At any time or from time to time on or after the Par Call Date, we may redeem the Exchange Bonds at our option, in whole or in part, at a redemption price equal to 100% of the principal amount of the Exchange Bonds being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

"*Treasury Rate*" means, with respect to any redemption date, the yield determined by us in accordance with the following two paragraphs.

The Treasury Rate shall be determined by us after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day preceding the redemption date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as "Selected Interest Rates (Daily) - H.15" (or any successor designation or publication) ("H.15") under the caption "U.S. government securities–Treasury constant maturities–Nominal" (or any successor caption or heading) ("H.15 TCM"). In determining the Treasury Rate, we shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the "Remaining Life"); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the redemption date.

If on the third business day preceding the redemption date H.15 TCM is no longer published, we shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, we shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, we shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance

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with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

Our actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.

Notice of any redemption will be transmitted at least 30 days but not more than 60 days before the redemption date to each holder of the Exchange Bonds to be redeemed. Unless we default in payment of the redemption price, on or after the redemption date, interest will cease to accrue on the Exchange Bonds called for redemption.

If less than all of the Exchange Bonds are to be redeemed, the Trustee will select pro rata or by lot or in such other manner as the Trustee shall deem fair and appropriate the Exchange Bonds to be redeemed, provided that as long as the Exchange Bonds are registered in the name of Cede & Co., as nominee of DTC, the Exchange Bonds to be redeemed may be selected by DTC in accordance with applicable DTC procedures. The Trustee may select for redemption Exchange Bonds and portions of Exchange Bonds in amounts of $2,000 and integral multiples of $1,000 in excess thereof (provided that the unredeemed portion of such Exchange Bonds redeemed in part will not be less than $2,000) and shall thereafter promptly notify us in writing of the numbers of Exchange Bonds to be redeemed, in whole or in part.

The Exchange Bonds will not be subject to repayment at the option of the holder at any time prior to maturity.

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**BOOK-ENTRY SETTLEMENT AND CLEARANCE**

*The information in this section concerning the operations and procedures of DTC, Clearstream and Euroclear is provided solely as a matter of convenience. These operations and procedures are solely within the control of these settlement systems and are subject to change by them from time to time. Neither we, the Trustee, the Exchange Agent nor any paying agent takes any responsibility for these operations or procedures, and investors are urged to contact the relevant system or its participants directly to discuss these matters.*

**General**

The Exchange Bonds will be issued in the form of several registered bonds in global form without interest coupons (the "Global Bonds") registered in the name of Cede & Co., as nominee of DTC (or such other name as may be requested by an authorized representative of DTC), and deposited with the Trustee as custodian for DTC for the accounts of its participants, including Clearstream Banking S.A. ("Clearstream"), and Euroclear Bank, S.A./N.V. ("Euroclear").

Ownership of beneficial interests in the Global Bonds ("Book-Entry Interests") will be limited to persons that have accounts with DTC, or persons that may hold interests through such participants. DTC holds interest in the Global Bonds on behalf of its participants through customers' securities accounts in their respective names on the books of their respective depositaries. Except under the limited circumstances described below, owners of beneficial interests in the Global Bonds are not entitled to receive physical delivery of certificated bonds.

Book-Entry Interests will be shown on, and transfers thereof will be effected only through, records maintained in book-entry form by DTC and its participants. The Book-Entry Interests will not be held in definitive form. Instead, DTC will credit on its respective book-entry registration and transfer systems a participant's account with the interest beneficially owned by such participant. The laws of some jurisdictions, including certain states of the U.S., may require that certain purchasers of securities take physical delivery of such securities in definitive form. The foregoing limitations may impair your ability to own, transfer or pledge Book-Entry Interests. In addition, while the Exchange Bonds are in global form, holders of Book-Entry Interests are not considered the owners or "holders" of Exchange Bonds for any purpose. Only the registered holder of an Exchange Bond will be treated as the owner of such Exchange Bond.

So long as the Exchange Bonds are held in global form, DTC (or its nominees) will be considered the sole holders of Global Bonds for all purposes under the Indenture governing the Exchange Bonds. Accordingly, participants in DTC must rely on the procedures of DTC and indirect participants must rely on the procedures of DTC and the participants through which they own Book-Entry Interests, to transfer their interests or to exercise any rights of holders under the Indenture.

Neither we nor the Trustee has any responsibility or liability for any aspect of the records relating to the Book-Entry Interests.

**Redemption of the Global Bonds**

In the event any Global Bond (or any portion thereof) is redeemed, DTC (or its nominees) will redeem an equal amount of the Book-Entry Interests in such Global Bond from the amount received by it in respect of the redemption of such Global Bond. The redemption price payable in connection with the redemption of such Book-Entry Interests will be equal to the amount received by DTC in connection with the redemption of such Global Bond (or any portion thereof). We understand that, under existing practices of DTC, if fewer than all of the Exchange Bonds are to be redeemed at any time, DTC will credit its participants' accounts on a proportionate basis (with adjustments to prevent fractions) or by lot or on such other basis as they deem fair and appropriate; provided, however, that no Book-Entry Interest of $2,000 principal amount or less may be redeemed in part.

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**Payments on Global Bonds**

We will make payments of any amounts owing in respect of the Global Bonds (including principal, premium, if any, and interest) to DTC or its nominee, which will distribute such payments to participants in accordance with its procedures. We will make payments of all such amounts without deduction or withholding for or on account of any present or future taxes, duties, assessments or governmental charges of whatever nature except as may be required by law. We expect that standing customer instructions and customary practices will govern payments by participants to owners of Book-Entry Interests held through such participants.

Under the terms of the Indenture, we and the Trustee will treat the registered holders of the Global Bonds (i.e., DTC (or its nominees)) as the owners thereof for the purpose of receiving payments and for all other purposes. Consequently, neither we nor the Trustee, nor any of our or their respective agents, has or will have any responsibility or liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any aspect of the records of DTC or any participant or indirect participant relating to payments made on account of a Book-Entry Interest or for maintaining, supervising or reviewing the records of DTC, or any participant or indirect participant relating to or payments made on account of a Book-Entry Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DTC or any participant or indirect participant.

Payments by participants to owners of Book-Entry Interests held through participants are the responsibility of such participants.

**Currency of Payment for the Global Bonds**

Except as may otherwise be agreed between DTC and any holder, the principal of, premium, if any, and interest on, and all other amounts payable in respect of, the Global Bonds will be paid to holders of interests in such Global Bonds through DTC in U.S. dollars.

Payments will be subject in all cases to any fiscal or other laws and regulations (including any regulations of the applicable clearing system) applicable thereto. None of us, the Trustee, or any of our or their respective agents will be liable to any holder of a Global Bond or any other person for any commissions, costs, losses or expenses in relation to or resulting from any currency conversion or rounding effected in connection with any such payment.

**Action by Owners of Book-Entry Interests**

DTC has advised us that it will take any action permitted to be taken by a holder of Exchange Bonds (including the presentation of Exchange Bonds for exchange as described below) only at the direction of one or more participants to whose account the Book-Entry Interests in the Global Bonds are credited and only in respect of such portion of the aggregate principal amount of Exchange Bonds as to which such participant or participants has or have given such direction. DTC will not exercise any discretion in the granting of consents, waivers or the taking of any other action in respect of the Global Bonds. However, if there is an event of default under the Exchange Bonds, DTC reserves the right to exchange the Global Bonds for definitive registered bonds in certificated form (the "Definitive Registered Bonds"), and to distribute Definitive Registered Bonds to its participants.

**Transfers**

Transfers of beneficial interests in the Global Bonds will be subject to the applicable rules and procedures of DTC and its direct or indirect participants, which rules and procedures may change from time to time.

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**Definitive Registered Bonds**

Under the terms of the Indenture, owners of Book-Entry Interests will receive Definitive Registered Bonds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if DTC notifies us that it is unwilling or unable to continue as depositary for the Global Bonds, or DTC ceases to be a clearing agency registered under the Exchange Act and, in either case, a qualified successor depositary is not appointed by us within 120 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if an event of default under the Indenture occurred or is continuing and the owner of a Book-Entry Interest requests such exchange in writing delivered through DTC.

In the case of the issuance of Definitive Registered Bonds, the holder of a Definitive Registered Bond may transfer such Definitive Registered Bond by surrendering it to the registrar. In the event of a partial transfer or a partial redemption of a holding of Definitive Registered Bonds represented by one Definitive Registered Bond, a Definitive Registered Bond shall be issued to the transferee in respect of the part transferred, and a new Definitive Registered Bond in respect of the balance of the holding not transferred or redeemed shall be issued to the transferor or the holder, as applicable; provided that no Definitive Registered Bond in a denomination less than $2,000 shall be issued. We will bear the cost of preparing, printing, packaging and delivering the Definitive Registered Bonds.

We will not be required to register the transfer or exchange of Definitive Registered Bonds for a period of 15 calendar days preceding (a) the record date for any payment of interest on the Exchange Bonds, (b) any date fixed for redemption of the Exchange Bonds or (c) the date fixed for selection of the Exchange Bonds to be redeemed in part. Also, we are not required to register the transfer or exchange of any Exchange Bonds selected for redemption. In the event of the transfer of any Definitive Registered Bond, the Trustee may require a holder, among other things, to furnish appropriate endorsements and transfer documents as described in the Indenture. We may require a holder to pay any taxes and fees required by law and permitted by the Indenture and the Exchange Bonds.

If Definitive Registered Bonds are issued and a holder thereof claims that such Definitive Registered Bonds have been lost, destroyed or wrongfully taken or if such Definitive Registered Bonds are mutilated and are surrendered to the registrar or at the office of the Trustee, we will issue and the Trustee will authenticate a replacement Definitive Registered Bond if the Trustee's and our requirements are met. The Trustee or we may require a holder requesting replacement of a Definitive Registered Bond to furnish an indemnity bond sufficient in the judgment of both the Trustee and us to protect us, the Trustee or the paying agent appointed pursuant to the Indenture from any loss which any of them may suffer if a Definitive Registered Bond is replaced. We may charge for our expenses in replacing a Definitive Registered Bond.

In case any such mutilated, destroyed, lost or stolen Definitive Registered Bond has become or is about to become due and payable, or is about to be redeemed or purchased by us pursuant to the provisions of the Indenture, we in our discretion may, instead of issuing a new Definitive Registered Bond, pay, redeem or purchase such Definitive Registered Bond, as the case may be.

Definitive Registered Bonds may be transferred and exchanged for Book-Entry Interests in a Global Bond only in accordance with the Indenture.

**Information Concerning DTC**

DTC has advised us that it is limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds and provides asset servicing for issues of U.S. and non-U.S. equity, corporate and municipal debt issues that participants deposit with DTC. DTC also facilitates the post-trade settlement among

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participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between participants' accounts. This eliminates the need for physical movement of securities certificates. Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. Access to the DTC system is also available to indirect participants such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a participant, either directly or indirectly.

**Global Clearance and Settlement Under the Book-Entry System**

Except for trades involving only Euroclear and Clearstream participants, Book-Entry Interests in the Global Bonds are expected to trade in DTC's Same-Day Funds Settlement System and any permitted secondary market trading activity in such Book-Entry Interests will, therefore, be required by DTC to be settled in immediately available funds. Transfers between DTC participants will be effected in accordance with DTC rules, and will be settled in same-day funds, and transfers between participants in Euroclear or Clearstream will be effected in the ordinary way in accordance with their respective rules and operating procedures.

Cross-market transfers between the DTC participants, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be effected through DTC in accordance with DTC rules on behalf of Euroclear or Clearstream, as the case may be, by its respective depositary; however, such cross-market transactions will require delivery of instructions to Euroclear or Clearstream, as the case may be, by the counterparty in such system in accordance with the rules and procedures and within the established deadlines of such system. Euroclear or Clearstream, as the case may be, will, if the transaction meets its settlement requirements, deliver instructions to its respective depositary to take action to effect final settlement on its behalf by delivering or receiving interests in the relevant Global Bond in DTC, and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Euroclear and Clearstream participants may not deliver instructions directly to the depositaries for Euroclear or Clearstream.

Although DTC, Clearstream and Euroclear are expected to follow the foregoing procedures in order to facilitate transfers of interests in the Global Bonds among participants in DTC, Clearstream and Euroclear, they are under no obligation to perform or continue to perform such procedures, and such procedures may be discontinued at any time. Neither we, the Trustee, the Exchange Agent nor any paying agent will have any responsibility for the performance by DTC, Euroclear, or Clearstream or their respective participants or indirect participants, of their respective obligations under the rules and procedures governing their operations.

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**SUMMARY OF THE INDENTURE**

The Exchange Bonds will be secured under the Indenture on a parity basis with other obligations issued or to be issued under the Indenture. The following is a summary of certain provisions of the Indenture. All references to the Indenture are qualified by reference to such document, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part. See "<u>[W](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[HERE](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[Y](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[OU](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[C](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[AN](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[F](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[IND](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[M](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[ORE](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[I](#i0b5983c249b84b3db1dc97769c25fdb6_1379)[NFORMATION](#i0b5983c249b84b3db1dc97769c25fdb6_1379)</u>." Capitalized terms used in this section but not otherwise defined shall have the meanings set forth in the Indenture. References to "we," "us," "our" and the "Company" in this section refer to Basin Electric Power Cooperative only and not to any of our subsidiaries.

**Security for Payment**

The Exchange Bonds will be secured equally and ratably with all other Obligations issued under the Indenture by a mortgage lien on substantially all our owned tangible and certain of our intangible properties including those we acquire in the future. These assets include electric generating plants and facilities and certain of our contracts, including (i) those that relate to the ownership, operation or maintenance of electric generation, transmission or distribution facilities owned or leased by us, (ii) those entered into prior to May 5, 2015 for the purchase or sale of electric power and energy of more than one year in duration and (iii) those entered into on or after May 5, 2015, for the purchase or sale of electric power and energy between us and our Class A Members, but excluding all Excepted Property and Excludable Property (each as defined herein).

**Excepted and Excludable Property**

The Indenture defines Excepted Property to include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash on hand or in banks or in other financial institutions (excluding certain amounts deposited or required to be deposited with the Trustee pursuant to the Indenture and amounts representing proceeds of the Trust Estate in which, and for so long as, perfection of the lien of the Indenture continues pursuant to the Uniform Commercial Code);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contracts not specifically subject to the lien of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• instruments and certain securities (other than those deposited with the Trustee under the terms of the Indenture);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allowances for emissions or similar rights and credits arising under local, state, regional, federal or international legislation or regulation or voluntary program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• patents, patent licenses, and other patent rights, patent applications, service marks, trade names and trademarks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims, choses in action and judgments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transportation equipment (including vehicles, vessels, airplanes and barges and all parts and supplies used in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• goods or inventory acquired for the purpose of resale in the ordinary course of business including electricity, personal property consumable in the operation of our business and fuel not charged to fixed plant accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• office furniture, equipment and supplies and data processing, accounting and other computer equipment, software and supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• leases for office purposes and other leases for a term of less than five years;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timber (separated from the land and included in the Trust Estate), coal, ore, gas, oil and other minerals and all electric energy, gas, steam, water or other products generated, produced or purchased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-assignable permits, licenses, franchises, leases, contracts and contractual and other rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain property located outside of the states of North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa and Nebraska;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any personal property located outside the states of North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa and Nebraska in which a security interest cannot be perfected by filing a financing statement under the Uniform Commercial Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our interest in other property in which a security interest cannot legally be perfected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property released from the lien of the Indenture without being sold, exchanged or otherwise disposed of by us.

The Indenture defines Excludable Property as property that would otherwise constitute Property Additions but as to which we have delivered to the Trustee prior to acquiring such property a certificate stating that such property is to be excluded from the lien of the Indenture and that we would meet our rate covenant even if we do not have use of such property.

Our title to the Trust Estate and the lien of the Indenture are subject to certain Permitted Exceptions which may include, among other things, identified restrictions, exceptions, reservations, terms, conditions, agreements, leases, subleases, covenants and limitations existing on the date such property becomes subject to the lien of the Indenture as long as such matters do not materially impair the use of such property; reservations contained in United States patents; liens for non-delinquent taxes; liens for delinquent taxes which are being contested in good faith; certain liens in respect of judgments which are being contested in good faith and for which there is a stay of execution pending appeal; mechanics', materialmens' or contractors' liens arising in the ordinary course of business which are not delinquent or which are being contested in good faith; local improvement district assessments; leases (entered into after January 1, 1998 affecting properties owned by us) for a term of not more than ten years or, if for a term of more than ten years, leases which would not materially impair our use of the leased property in the conduct of our business; certain easements, rights of way, and reservations (and the land thereunder); liens for non-delinquent wages or non-delinquent or contested rent; the undivided interests of other owners, liens on such undivided interests, and rights of such owners in property owned jointly with us; the pledge of current assets (other than accounts receivable) to secure current liabilities; and liens which have been bonded for or for the payment of which a deposit had been made in the full amount of such lien. The lien of the Indenture will also be subject to the lien in favor of the Trustee to recover amounts owed to the Trustee under the Indenture.

The Indenture contains provisions subjecting all of our after-acquired property, other than Excepted Property and Excludable Property, to the lien thereof (subject to certain purchase money and pre-existing liens).

**Release and Substitution of Property**

So long as no event of default exists under the Indenture, we will be able to use and deal with the real and personal property (including licenses, permits, contracts and cash proceeds of the Trust Estate, other than cash deposited or required to be deposited with the Trustee) subject to the lien of the Indenture (including amending, terminating or abandoning such property or disposing of such property, free from the lien of the Indenture) to facilitate our day-to-day operations. Certain of these transactions will require that

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we find that such transactions will not adversely affect in any material respect the security under the Indenture and are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)desirable in the conduct of our business and the property to be released is no longer reasonably necessary in the conduct of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)made in lieu and reasonable anticipation of the taking by eminent domain or purchase of such property by a governmental entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)such release is in connection with the sale and leaseback of any property.

Certain of these release transactions also would require the substitution of Bondable Additions, the deposit of cash with the Trustee (which thereinafter would constitute "Trust Moneys"), the retirement or defeasance of Obligations or the deposit of Designated Qualifying Securities with the Trustee, in each case of equivalent value of the fair value of the property to be released. Trust Moneys can be withdrawn against Bondable Additions, or retirement or defeasance of Obligations or the deposit of Designated Qualifying Securities in each case of equivalent value to the fair value of the property to be released. Trust Moneys can be withdrawn against Bondable Additions, Certified Progress Payments, retired or defeased Obligations or deposited Designated Qualifying Securities, in each case of equivalent value, and can, at our option, be used for the redemption of Obligations prior to their maturity, for the payment of principal on Obligations at their maturity or for the purchase of Obligations. To the extent that any Trust Moneys consist of the proceeds of insurance upon any part of the property subject to the lien of the Indenture, such Trust Moneys can be withdrawn to reimburse us for costs to repair, rebuild or replace the destroyed or damaged property.

**Certain Covenants**

***Rate Covenant***

The Indenture requires us to establish and collect rates, rents, charges, fees and other compensation (collectively, "Rates") for the use or the sale of the output, capacity or service of our properties that produce money sufficient, together with other moneys available to us, to enable us to comply with all of our covenants under the Indenture. Subject to the approval or determination of any regulatory or judicial authority with jurisdiction over Rates, the Indenture requires us to establish and collect Rates for the use or the sale of the output, capacity or service of our properties which are reasonably expected, together with our other revenue, to yield an MFI Ratio equal to at least 1.10 for each fiscal year. The "MFI Ratio," for any period, is the ratio of Margins for Interest for such period to Interest Charges for such period. Promptly upon any material change in the circumstances which were contemplated at the time such Rates were most recently reviewed, but not less frequently than once every twelve months, we will be required to review the Rates so established and, subject to any necessary regulatory approval, promptly establish or revise such Rates as necessary to comply with the foregoing requirements, provided that in any event such Rates shall produce moneys sufficient to enable us to comply with all of our other covenants under the Indenture. A failure by us to actually achieve a 1.10 MFI Ratio will not itself constitute an event of default under the Indenture. A failure to establish Rates reasonably expected to achieve a 1.10 MFI Ratio, however, will be an event of default if such failure continues for 45 days after we receive written notice thereof from either the Trustee or the holders of 10% in principal amount of the outstanding Obligations, unless such failure results from our inability to obtain regulatory approval.

***Limitation on Distributions***

The Indenture prohibits us from making any distribution, payment or retirement of patronage capital to our members if, at the time thereof or after giving effect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)an event of default then existed, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)our aggregate margins and equities as of the end of the immediately preceding fiscal quarter would be less than 20% of our total long-term debt and equities at such time.

For purposes of this covenant, such determination of aggregate margins and equities and total long-term debt and equities does not include any amount on account of earnings retained by any subsidiary or affiliate of ours and any such determination of total long-term debt and equities excludes the debt of any subsidiary or affiliate.

***Limitation on Liens***

The Indenture obligates us to keep all of our property subject to the lien of the Indenture free and clear of other liens prior to or on a parity with the lien of the Indenture, subject to (i) Permitted Exceptions and (ii) purchase money liens or pre-existing liens on our after-acquired property not in excess of 80% (or with respect to property that is not necessary to the operations of the remaining portion of our system, 100%) of the lesser of the cost or the fair value of such property and the aggregate amount of indebtedness secured by such liens not in excess of 15% of the aggregate principal amount of all outstanding Obligations.

**Reports to Holders**

The Indenture provides that, when the Indenture is qualified under the Trust Indenture Act of 1939, as amended, we will file with the Trustee and the SEC and furnish holders of Obligations with all quarterly and annual financial information and other reports that we may be required to file with the SEC pursuant to Sections 13 or 15(d) of the Exchange Act or, if we are not required to file such information or reports, then such information and reports that would be required pursuant to Section 13 of the Exchange Act if we were required to file such information and reports, in each case within the time periods specified in the SEC's rules and regulations.

In addition, we have agreed that, for so long as any of the Bonds remain outstanding and are "restricted securities" within the meaning of Rule 144(a)(3) under the Securities Act, we will, during any period in which we are not subject to and in compliance with Section 13(a) or 15(d) of the Exchange Act, or do not make voluntary filings pursuant to such Sections, furnish at our expense, upon the request of any holder of a Bond, to such holder and to a prospective purchaser of such Bond designated by such holder the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

**Credit Enhancement**

The Indenture provides that Obligations of any series may have the benefit of an insurance policy, letter of credit, surety bond, or other similar unconditional obligation to pay when due the principal and interest of the Obligations of such series (each, a "Credit Enhancement") issued by a credit enhancer (a "Credit Enhancer").

**Designated Qualifying Securities**

Qualifying Securities are securities, including first mortgage bonds or other debt instruments, issued by one of our subsidiaries under an indenture, mortgage or other security instrument substantially identical in substance to our Indenture, subject to certain limited exceptions (a "Qualifying Securities Indenture"). When Qualifying Securities are pledged to and held by the Trustee and have been designated by us as the basis for (i) the issuance of additional Obligations, (ii) the withdrawal of Trust Moneys or Deposited Cash or (iii) the release of part of the Trust Estate, such securities become "Designated Qualifying Securities." Our Indenture provides that a Qualifying Securities Indenture can also be an indenture or mortgage substantially identical in substance to the Indenture entered into by any person that succeeds to our interest in property constituting part of the Trust Estate prior to a transaction where either property transferred from us is more than 50% of the property owned by the person immediately after completion of the transfer or as part of a restructuring transaction in order for us to become more competitive, deal with regulatory requirements or respond to changes in the utility industry

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generally. The Indenture also provides that, upon meeting certain specified conditions, in connection with the merger of a subsidiary into us, we can assume Qualifying Securities of the subsidiary issued under a Qualifying Securities Indenture that are payable to a person other than us or the Trustee.

**Additional Obligations**

The principal amount of Obligations that can be issued under the Indenture is not limited except as may be limited by law and, provided that, as described below, there must be a basis under the Indenture on which additional Obligations may be issued. Additional Obligations, ranking equally and ratably with all other Obligations, may be issued from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)against:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)90.91% of Bondable Additions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the aggregate principal amount of retired or defeased Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the aggregate principal amount of Designated Qualifying Securities deposited with the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the amount of cash deposited with the Trustee (amounts so deposited as the basis for the issuance of additional Obligations ("Deposited Cash")); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)90.91% of Certified Progress Payments (as described below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)to evidence reimbursement Obligations to Credit Enhancers in connection with Credit Enhancement or guarantees of other Obligations.

As of December 31, 2025, the balance of Bondable Additions under the Indenture was approximately $567 million. As of December 31, 2025, the aggregate principal amount of retired or defeased Obligations not previously used as the basis for issuing additional Obligations was approximately $271 million. The amount of any future Bondable Additions after December 31, 2025, will equal (i) the bondable value of all Property Additions not previously certified as Bondable Additions (as to which the lien of the Indenture shall be subject only to Permitted Exceptions), less (ii) property subject to the lien of the Indenture that is retired after December 31, 2025 ("Retirements"). Property Additions are limited under the Indenture to certain of our property that is chargeable to our fixed plant accounts, subject to the lien of the Indenture, acquired or constructed by us since January 1, 1998, and not subject to pre-existing liens securing indebtedness prior to or on a parity with the lien of the Indenture. For the purpose of calculating the amount of Property Additions and Retirements, the bondable value of property acquired after January 1, 1998, is the lesser of its cost or fair value to us (determined as of the time of acquisition). For the purpose of calculating Retirements, the amount of the Retirement for property acquired on or before January 1, 1998, is the net book value of such property as of January 1, 1998, and for property acquired after January 1, 1998, such Retirement is the value that such property was certified as a Property Addition, or if not so certified, then the cost of such property. See clause (2) of the definition of "Retired" herein for certain circumstances in which Bondable Property which might otherwise be treated as "Retired," such as when an asset is retired from service for certain reasons prior to being fully depreciated, is deemed not to be "Retired" so long as we continue to recover the Depreciated Value (as defined below) of such Bondable Property in our rates.

Before we may (i) issue additional Obligations or (ii) assume any Qualifying Securities payable to a person other than us or the Trustee in connection with a merger of a subsidiary into us (see "—Merger of a Subsidiary into Us"), we must certify that our MFI Ratio was at least 1.10 during the immediately preceding fiscal year (or, if the certification is being made within 90 days after a fiscal year, we may use the second preceding fiscal year) or during any consecutive twelve-month period within the eighteen-month period immediately preceding our request for the issuance of additional Obligations or the assumption of Qualifying Securities.

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Deposited Cash can be withdrawn against 90.91% of Bondable Additions, 90.91% of Certified Progress Payments, Retired or defeased Obligations of equivalent value or deposited Designated Qualifying Securities of equivalent value.

**Events of Default and Remedies**

The following are events of default that are applicable to all series of Obligations under the Indenture:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)failure to pay principal of or premium, if any, on any Obligation when due or by the expiration of any grace period provided with respect to such Obligation (no payment by a guarantor or insurer of an Obligation shall be considered a payment for determining the existence of a failure to pay unless otherwise provided in such Obligation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)failure to pay any interest on any Obligation when due, continued for five (5) days or the grace period otherwise provided with respect to such Obligation (no payment by a guarantor or insurer of an Obligation shall be considered a payment for determining the existence of a failure to pay unless otherwise provided in such Obligation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any other breach by us of any of our warranties or covenants contained in the Indenture, continued for 45 days after we have been provided written notice of default by the Trustee or the holders of at least 10% in aggregate principal amount of the outstanding Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)failure to pay when due (giving effect to any applicable grace period) the principal of any of our indebtedness for money borrowed, which failure has resulted in the acceleration of indebtedness in excess of $25 million, if such indebtedness is not discharged or such acceleration is not rescinded or annulled within 10 days after such failure or acceleration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)a judgment against us in excess of $25 million which remains unsatisfied or unstayed for 45 days after either entry of judgment or termination of stay, and such judgment remains unstayed or unsatisfied for a period of 10 days after we have been provided written notice of default by the Trustee or by the holders of at least 10% in aggregate principal amount of the outstanding Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)certain other proceedings in bankruptcy, receivership, insolvency, liquidation or reorganization.

If an event of default described above should occur and be continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Obligations may accelerate the maturity of all Obligations. However, after such acceleration, but before a sale of any of the Trust Estate or a judgment or decree based on acceleration, the holders of a majority in aggregate principal amount of outstanding Obligations may, under certain circumstances, rescind such acceleration if all events of default, other than the non-payment of accelerated principal, have been cured or waived as provided in the Indenture.

In addition to the events of default described above that are applicable to all series of Obligations, we may agree in a Supplemental Indenture to additional covenants or events of default under the Indenture for the benefit of a particular series of Obligations. Upon the occurrence of a series specific event of default, remedies (including acceleration) may be exercised by the holders of such series of Obligations in the same percentage as would be required for holders of all outstanding Obligations to exercise remedies in the case of events of default applicable to all series of Obligations. Such acceleration will not itself result in an event of default under the Indenture affecting all outstanding Obligations equally. However, if we fail to pay all amounts due upon such acceleration, an Indenture event of default relating to non-payment (see (a) and (b) above under "—Events of Default and Remedies") would occur. To date, we have not provided in any Supplemental Indenture any covenants or events of default for the benefit of only a particular series of Obligations.

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Subject to the provisions of the Indenture relating to the duties of the Trustee, in case an event of default should occur and be continuing, the Trustee is under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee. Subject to provisions for the indemnification of the Trustee, the holders of a majority in aggregate principal amount of the outstanding Obligations have the right, during the continuance of an event of default, to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.

No holder of any Obligation has any right to institute any proceeding with respect to the Indenture or for any remedy thereunder, unless

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)such holder had previously given to the Trustee written notice of a continuing event of default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)the holders of at least 25% in aggregate principal amount of the outstanding Obligations had made written request to the Trustee to institute such proceeding as Trustee and offered to the Trustee indemnity reasonably satisfactory to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)the Trustee for 60 days after its receipt of such notice, request and offer of indemnity had failed to institute any such proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)the Trustee had not received from the holders of a majority in aggregate principal amount of the outstanding Obligations a direction inconsistent with such request.

Such limitations on the holders' rights to institute proceedings would not apply to a suit instituted by a holder of an Obligation for the enforcement of payment of the principal of, and premium, if any, and interest on such Obligation on or after the respective due dates expressed in such Obligation.

The Indenture provides that the Trustee, within 90 days after the occurrence of the event of default (but at least 60 days after the occurrence of certain specified events of default), shall give to the holders of Obligations notice of all uncured defaults known to it, provided that, except in the case of an event of default in the payment of principal of, and premium, if any, or interest on Obligations, the Trustee would be protected in withholding such notice if it in good faith determines that the withholding of such notice is in the interests of the holders of Obligations.

If an event of default should occur and be continuing, the Trustee, to the extent permitted by applicable law, may sell the property subject to the lien of the Indenture, in either judicial or nonjudicial proceeding, and the proceeds for disposition of such property shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)first, the payment of all amounts due to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)second,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)if all Obligations shall have become due and payable, to the payment of outstanding Obligations without preference or priority between interest or principal or redemption price (includes principal and redemption premium including any prepayment penalty) or among Obligations, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)if the principal of all Obligations shall not have become due and payable, then (A) *first* to payment of interest installments then due in the order of their maturity, and if the amount available is not sufficient to pay in full the installments on such date, then ratably among such installments, according to amounts due; and (B) *second* to payment of principal or redemption price (includes principal and redemption premium, including any prepayment penalty), and if the amount available is not sufficient to pay in full all Obligations then due, then ratably, according to amounts of principal or redemption price (includes principal and redemption premium, including any prepayment penalty) due;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)third, to payment of all other amounts due in connection with the Outstanding Secured Obligations including, but not limited to, penalties, premiums, costs and expenses payable to the holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)fourth, to payment of amounts to maintain the value of reserve funds relating to certain tax-exempt bonds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)fifth, to us or whosoever may be lawfully entitled to receive any remaining amount.

The Indenture requires us to deliver to the Trustee, within 120 days after the end of each calendar year, a written statement as to our compliance (determined without regard to any grace period or notice requirement) with all obligations under the Indenture. In addition, we are required to deliver to the Trustee, promptly after any of our officers may be reasonably deemed to have knowledge of a default under the Indenture, a written notice specifying the nature and duration of the default and the action we are taking and propose to take with respect thereto.

**Amendments and Supplemental Indentures**

***Waiver of Covenants***

Our compliance with the covenants contained in the Indenture relating to (i) limitation on liens, (ii) payment of taxes, (iii) maintenance of properties, (iv) insurance, (v) delivery of annual compliance certificates and notices of default under the Indenture, (vi) establishing and reviewing certain Rates, and (vii) distributions to the members, may be waived by a vote of the holders of a majority of the aggregate principal amount of Obligations outstanding.

***Supplemental Indentures Without Consent of Holders***

Without the consent of the holders of any Obligations, we and the Trustee will be able, from time to time, to enter into one or more Supplemental Indentures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to correct or amplify the description of any property at any time subject to the lien of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to confirm property subject or required to be subjected to the lien of the Indenture or to subject additional property to the lien of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to add to the conditions, limitations and restrictions on the authorized amount, terms or purposes of the issue, authentication and delivery of Obligations or of any series of Obligations under the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to create any new series of Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to modify or eliminate any of the terms of the Indenture, provided that, in the event any such modification or elimination would adversely affect or diminish the rights of the holders of any Obligations outstanding, such Supplemental Indenture shall state that any such modification or elimination shall become effective only when there are no Obligations outstanding under any series created prior to such Supplemental Indenture, and provided the Trustee may decline to execute such Supplemental Indenture which, in its opinion, does not afford adequate protection to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to evidence the succession of another corporation to us and the assumption by any such successor of our covenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to add to the covenants or the events of default for the benefit of all or any series of Obligations or to surrender any of our rights or powers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to evidence the succession of another trustee or the appointment of a co-trustee or separate trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to cure any ambiguity, to correct or supplement any provision in the Indenture which may be inconsistent with any other provision or to make any other provisions, with respect to matters or questions arising under the Indenture, which shall not be inconsistent with the provisions of the Indenture, provided such action shall not adversely affect the interests of the holders of the Obligations in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to modify, eliminate or add to the provisions of the Indenture to the extent necessary to effect the qualification of the Indenture under any federal statute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to add or change any provisions of the Indenture to the extent necessary to permit or facilitate the issuance of Obligations in bearer or book-entry form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to provide for the assumption by us of Qualifying Securities issued and outstanding under any Qualifying Securities Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to make any change in the Indenture that, in the reasonable judgment of the Trustee, would not materially and adversely affect the rights of holders of Obligations. A Supplemental Indenture will be presumed not to materially and adversely affect the rights of holders if (i) the Indenture, as so supplemented and amended, secures equally and ratably the payment of principal of (and premium, if any) and interest on the Obligations which are to remain outstanding and (ii) we furnish to the Trustee written evidence from at least two nationally recognized statistical rating organizations then rating the Obligations (or other obligations primarily secured by Obligations) that their respective ratings of the Obligations (or other obligations primarily secured by Obligations) will not be withdrawn or reduced as a result of the changes in the Indenture effected by such Supplemental Indenture, provided that any changes in the Indenture that require the consent of all of the holders of Obligations affected thereby may not be made on the basis that they do not materially and adversely affect the rights of holders. See "—Supplemental Indentures With Consent of Holders."

***Supplemental Indentures With Consent of Holders***

With the consent of the holders of not less than a majority in principal amount of the Obligations of all series then outstanding affected by such Supplemental Indenture, we and the Trustee may, from time to time, enter into one or more Supplemental Indentures to add, change or eliminate any of the provisions of the Indenture or modify the rights of the holders of such Obligations, but no such Supplemental Indenture may, without the consent of the holder of each outstanding Obligation affected thereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• change the date on which the principal of an Obligation or an installment of principal or interest on any Obligation is due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce the principal of, or any installment of interest on, any Obligation, or any premium payable upon the redemption thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• change any place of payment (the city or political subdivision thereof in which we are required by the Indenture to maintain an office or agency for payment of the principal of or interest on the Obligations) where any Obligation, or the interest thereon, is payable, or change the currency in which any payment on any Obligation is payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impair the right to institute suits for the enforcement of any such payment on or after the stated maturity thereof (or, in the case of redemption, on or after the redemption date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce the percentage of holders of outstanding Obligations needed for certain Supplemental Indentures or to waive non-compliance with provisions of, or certain defaults under, the Indenture;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• revise the definitions of "Outstanding" and "Outstanding Secured Obligations" as such definitions relate to Obligations owned by us or one of our affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modify the unconditional right of holders to institute suit for enforcement of any principal, interest or premium due on Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• revise the percentage of holders of outstanding Obligations needed for waivers of default, except to increase such percentage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• revise the Indenture provision specifying the Supplemental Indentures requiring the consent of each holder affected thereby, except by adding to the Indenture provisions that may not be modified except with such consent of all affected holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• permit the creation of any lien ranking prior to or on a parity with the lien of the Indenture with respect to any of the Trust Estate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modify the provisions of any mandatory sinking fund so as to affect the rights of a holder to the benefits thereof.

**Consolidation, Merger, Conveyance or Transfer**

The Indenture provides that we will not consolidate with or merge into any other person or convey or transfer the Trust Estate substantially as an entirety to any person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the consolidation, merger, conveyance or transfer is on terms that fully preserve the lien and security of the Indenture as provided for in the Indenture and the rights and powers of the Trustee and the holders of Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the successor is an entity organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the successor executes and delivers to the Trustee a Supplemental Indenture in accordance with the requirements of the Indenture in which (i) the successor assumes the due and punctual payment of the principal of, and premium, if any, and interest on all the outstanding Obligations and the performance and observance of every covenant and condition of the Indenture that we would otherwise have to perform or observe and (ii) there is a grant, conveyance, transfer and mortgage complying with the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• immediately after giving effect to the transaction, no event of default under the Indenture will exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we deliver to the Trustee an officers' certificate and an opinion of counsel, each of which state that such consolidation, merger, conveyance or transfer and the related Supplemental Indenture comply with the requirements of the Indenture and that all conditions precedent provided for in the Indenture relating to the transaction have been complied with.

In the case of any such consolidation, merger, conveyance or transfer, the Indenture is not required to be a lien upon any of the properties then owned or thereafter acquired by the successor entity other than upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• betterments, extensions, improvements, additions, repairs, renewals, replacements, substitutions and alterations to or upon the property subject to the lien of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property made the basis of withdrawal of cash from the Trustee or the release of property from the lien of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property acquired or constructed with insurance proceeds, with proceeds from the release of any part of the property subject to the lien of the Indenture or with condemnation awards;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property acquired to maintain and repair the property subject to the lien of the Indenture in accordance with the requirements of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• property acquired or constructed with Trust Moneys that consist of the proceeds of insurance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all property, leases, rights-of-way, franchises, licenses, permits or easements acquired in alteration, substitution, surrender or modification of the same.

In the event the Indenture is not made a lien on any such properties then owned or thereafter acquired by the successor entity, no additional Obligations may be issued under the Indenture (other than Obligations issued in exchange or substitution for outstanding Obligations).

**Merger of a Subsidiary into Us**

The Indenture provides that a subsidiary who has issued Qualifying Securities pursuant to a Qualifying Securities Indenture may merge with us in accordance with the following terms (other than with respect to a merger of Dakota Coal with us which shall be effectuated in accordance with the provisions set forth in "– Consolidation, Merger, Conveyance or Transfer" above):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all property, rights, privileges or franchises that are subject to the lien of the Qualifying Securities Indenture shall be transferred to us free and clear of the lien of the Qualifying Securities Indenture and shall be subjected to the lien of the Indenture by a Supplemental Indenture executed and delivered by us to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Trustee will receive written evidence from at least two nationally recognized statistical rating organizations then rating the Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that their respective ratings of the Outstanding Secured Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that are not subject to Credit Enhancement will not be withdrawn or reduced as a result of any such merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• immediately after giving effect to such merger, no event of default under the Indenture will exist;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Trustee will receive title evidence as to the property of the subsidiary and opinions and certificates relating to the merger and the property being transferred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we deliver to the Trustee an officers' certificate and an opinion of counsel, each of which state that such merger complies with the requirements of the Indenture and that all conditions precedent provided for in the Indenture relating to the transaction have been complied with.

Upon completion of the merger, any balance of Bondable Additions of the subsidiary will be added to our balance of Bondable Additions and any Property Additions of the subsidiary that have been certified by the subsidiary as Bondable Additions will be deemed to be our Property Additions. In addition, Obligations that we issued on the basis of Designated Qualifying Securities of the subsidiary will be deemed to have been issued upon the basis upon which the subsidiary issued the Designated Qualifying Securities under its Qualifying Securities Indenture.

**Action by Credit Enhancer**

With respect to Obligations issued prior to May 5, 2015, except as otherwise provided in a Supplemental Indenture authorizing Obligations of a series or a maturity within a series, if not in default in respect of any of its Obligations with respect to Credit Enhancement for such Obligations, the Credit Enhancer for, and not the actual holders of, such Obligations, will at all times be deemed to be the holder of such Obligations for the purpose of (i) giving any approval or consent to the effectiveness of any Supplemental Indenture or any amendment, change or modification of the Indenture which requires the written approval or consent of holders of Obligations of such series, other than any changes which cannot be made under the Indenture without the consent of the holders of each Obligation thereby as described

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above under "– Amendments and Supplemental Indentures – Supplemental Indentures With Consent of Holders" and (ii) giving any other approval or consent, giving any notice, effecting any waiver or authorization, exercising any remedies or taking any other action in accordance with the provisions of the Indenture. With respect to Obligations issued on or after May 5, 2015, the foregoing provision will be applicable if it is provided for in a Supplemental Indenture authorizing a series of Obligations but only with respect to the authorized series.

**Defeasance**

Subject to certain other conditions, the Indenture provides that Obligations of any series, or any maturity within a series, will be deemed to have been paid and any of our Obligations to the holders of such Obligations will be discharged (subject, in the case of Obligations outstanding on May 5, 2015, to receipt of rulings or opinions relating to tax matters), if we deposit with the Trustee or paying agent cash or Defeasance Securities maturing as to principal and interest in such amounts and at such times as are sufficient, without consideration of reinvestment of such interest, to pay when due the principal or (if applicable) redemption price and interest due and to become due on such Obligations.

**Concerning the Trustee**

U.S. Bank Trust Company, National Association is the trustee under the Indenture and is also serving as Exchange Agent in connection with the Exchange Offer. We may maintain other banking relationships in the ordinary course of business with affiliates of U.S. Bank Trust Company, National Association for which they may receive customary fees.

**Governing Law**

The Indenture is, and the Exchange Bonds will be, governed by and construed in accordance with the laws of the State of North Dakota.

**Definitions**

Set forth below is a summary of defined terms from the Indenture that are used in this "<u>[SUMMARY OF THE INDENTURE](#i0b5983c249b84b3db1dc97769c25fdb6_157)</u>." Reference is made to the Indenture for the full definition of all such terms as well as any other capitalized terms used herein for which no definition is provided. Unless the context otherwise requires, an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP.

"**Bondable Additions**" means the excess of (i) the amount of Property Additions over (ii) the amount of Retirements (less credits thereto), computed in accordance with the Indenture and certified as Bondable Additions in the summary of certificate as to Bondable Additions then being filed in accordance with the Indenture.

"**Bondable Property**" means all Property Additions, and all property owned by the Company on the Cut-Off Date which would constitute Property Additions if acquired after that date (except for the requirement to deliver title evidence with respect to such property).

"**Certified Progress Payments**" means payments, made by the Company under or in connection with a Qualified EPC Contract, for generation and related facilities (including electric transmission and fuel supply facilities) that will constitute Property Additions upon the performance of such Qualified EPC Contract, that are certified by the Company to the Trustee as the basis for (i) the withdrawal of Deposited Cash under the Indenture, (ii) loans or advances under conditional Obligations under the Indenture, (iii) the authentication and delivery of additional Obligations under the Indenture or (iv) the withdrawal and payment of Trust Moneys under the Indenture.

"**Cut-Off Date**" means January 1, 1998.

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"**Defeasance Securities**" means and includes any of the following securities, if and to the extent the same are not subject to redemption or call prior to maturity by anyone other than the holder thereof and are at the time legal for investment of the Company's funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)any certificates or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in paragraph A above.

"**Deposited Cash**" means cash (which may be cash representing the purchase price of, or the proceeds of a loan or advance evidenced by the additional Obligations to be authenticated and delivered under the Indenture) equal to the aggregate principal amount of the additional Obligations whose authentication and delivery are then applied for under the Indenture.

"**Designated Qualifying Securities**" means, as of the date of determination, such Qualifying Securities held by the Trustee which have been designated by the Company (i) pursuant to the Indenture as the basis for the issuance and delivery of additional Obligations, (ii) pursuant to the Indenture as the basis for the withdrawal of Deposited Cash, (iii) pursuant to the Indenture as the basis for the advance or issuance of any unadvanced or unissued portion of any conditional Obligation or series of conditional Obligations, (iv) pursuant to the Indenture as the basis for the release of property, (v) pursuant to the Indenture as the basis for the withdrawal of Trust Moneys or (vi) pursuant to of the Indenture as the basis for surrender or redesignation of other Designated Qualifying Securities; subject in all such cases to redesignation or surrender thereof pursuant to the Indenture.

"**Excludable Property**" means property with respect to which an officers' certificate has been delivered to the Trustee pursuant to paragraph E of the third paragraph of the definition of "Property Additions" below, the output of such property, and all property rights, privileges and franchises of every kind and description, real, personal or mixed, tangible or intangible, whether now owned or hereafter acquired by the Company, wherever located, including, without limitation, goods (including equipment, fuel, materials and supplies), accounts and general intangibles relating solely to such certified property or the output of such property.

"**Interest Charges**" for any period means the total interest charges (whether capitalized or expensed) of the Company for such period on all Outstanding Secured Obligations and outstanding prior lien Obligations, in all cases including amortization of debt discount and premium on issuance but excluding all interest accruing in respect of Obligations authenticated and delivered on the basis of Qualifying Securities issued by a wholly-owned subsidiary of the Company if such subsidiary is required under such Qualifying Securities Indenture to earn Margins for Interest of not less than 1.10 times Interest Charges under a rate covenant substantially identical in substance to Section 13.14 of the Indenture and such Designated Qualifying Securities bear interest at the rate of interest to accrue on the Obligations authenticated and delivered on the basis of such Designated Qualifying Securities, determined in accordance with accounting requirements.

"**Margins for Interest**" means, for any period, the sum of (i) net margins of the Company for such period, which shall include revenues of the Company, if any, subject to possible refund at a later date; provided, however, no deductions shall be made as a result of refunds ordered in a subsequent period; plus (ii) Interest Charges; plus (iii) accruals of Federal income and other taxes imposed on income after deduction of Interest Charges for such period; plus (iv) the amount, if any, included in net margins for any losses incurred by any subsidiary or affiliate of the Company other than amounts included pursuant to clause (viii) below; plus (v) the amount, if any, the Company actually receives in such period as a dividend or other distribution of earnings of any subsidiary or affiliate (whether or not such earnings were for such period or any earlier period or periods) which amount has not otherwise been reflected as an increase in net margins; plus (vi) the amount of any expenses or provisions for any non-recurring charge to income or

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margins or retained earnings of whatever kind or nature (including, without limitation, the recognition of expense due to the non-recoverability of assets or expenses) that may have been deducted or otherwise taken into account in arriving at net margins whether or not recorded as a non-recurring charge in the Company's books of account; minus (vii) the amount, if any, included in net margins for any income, gain, earnings or profits of any subsidiary or affiliate of the Company other than amounts included pursuant to clause (v) above; and minus (viii) the amount, if any, the Company actually contributes to the capital of, or actually pays under a guarantee by the Company of an obligation of, any subsidiary or affiliate in such period to the extent of any accumulated losses incurred by such subsidiary or affiliate (whether or not such losses were for such period or any earlier periods), but only to the extent (x) such losses have not otherwise caused other contributions or payments to be included in net margins for purposes of computing Margins for Interest for a prior period and (y) such amount has not otherwise been included in net margins. Margins for Interest shall be determined in accordance with accounting requirements; provided, however, that such determination shall be made on a Company only and not on a consolidated basis.

"**Obligations**" means, collectively, the new notes, bonds and other obligations for the payment of money as provided in the Indenture issued on or after May 5, 2015, in one or more series, together with all Obligations outstanding.

"**Outstanding Secured Obligations**" means, as of the date of determination, (i) all Obligations then outstanding other than Obligations then owned by the Company or any wholly-owned subsidiary and held in its treasury and (ii) all Obligations, if any, alleged to have been destroyed, lost or stolen which have been replaced or paid as provided in the Indenture but whose ownership and enforceability by the holder thereof have been established by a court of competent jurisdiction or other competent tribunal or otherwise established to the satisfaction of the Company and the Trustee.

"**Permitted Exceptions**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.as to the property described in subdivisions A and B of granting clause First of the Indenture, the restrictions, exceptions, reservations, terms, conditions, agreements, leases, subleases, covenants, limitations, interests and other matters which are of record on the date such property becomes subject to the lien of this Indenture; provided, that such matters do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.as to property which the Company may acquire after May 5, 2015, any restriction, exception, reservation, term, condition, agreement, covenant, limitation, interest or other matter which is of record on the date of such acquisition or expressed or provided in the deeds or other instruments under which the Company shall acquire the same, provided, with respect to an acquisition of property of a subsidiary in connection with a merger of a subsidiary into the Company pursuant to the Indenture, any such restriction, exception, reservation, term, condition, agreement, covenant, limitation, interest or other matter of record on the date of such acquisition or expressed or provided in the deeds or other instruments under which the Company acquires such property shall constitute a Permitted Exception hereunder only if the foregoing constituted a permitted exception under the Qualifying Securities Indenture of such subsidiary, provided, further, that all such matters do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.liens for taxes, assessments and other governmental charges not delinquent, and ordinances establishing assessments for sewer, lighting or other local improvement districts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.liens for taxes, assessments and other governmental charges already delinquent which are currently being contested in good faith by appropriate proceedings and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.mechanics', workmen's, repairmen's, materialmen's, warehousemen's, contractors', subcontractors' and carriers', liens and other similar liens arising in the ordinary course of business or incident to current construction for charges which (i) are not delinquent or (ii) are being contested in good faith and have not proceeded to judgment and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.liens in respect of judgments or awards (i) with respect to which the Company shall in good faith currently be prosecuting an appeal or proceedings for review and shall have secured a stay of execution pending such appeal or proceedings for review, provided the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements or (ii) which are fully covered by insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.easements and rights granted by the Company under the Indenture and similar rights granted by any predecessor in title of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.easements, leases, restrictions, rights-of-way, exceptions, reservations or other rights of others in any property of the Company for streets, roads, expressways, bridges, pipes, pipe lines, railroads, towers, poles, wires, conduits, mains, metering stations, electric, electronic, optical, or other power or signal transmission and distribution lines, telecommunications and telephone lines, the removal of oil, gas, coal or other minerals, and other similar purposes, flood rights, river control and development rights, sewage and drainage rights, restrictions against pollution and zoning laws and minor defects and irregularities in the record evidence of title of any property, to the extent that such easements, leases, restrictions, rights-of-way, exceptions, reservations, other rights, laws, defects and irregularities do not in the aggregate materially impair the use of the Trust Estate taken as a whole for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.liens upon lands over which easements, licenses or rights-of-way are acquired by the Company for any of the purposes specified in paragraph H of this definition, securing indebtedness neither created, assumed nor guaranteed by the Company nor on account of which it customarily pays interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.leases or permits for occupancy existing at January 1, 1998, affecting property owned by the Company at said date (and future modifications, renewals and extensions thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.leases to, and permits for occupancy by, other persons entered into after January 1, 1998, affecting property owned by the Company, whether acquired before or after the date of this instrument (i) for a term of not more than ten (10) years (including any extensions or renewals) or (ii) if for a term of more than ten (10) years which do not materially impair the Company's use of the property in the conduct of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.any lien or privilege vested in any lessor, landlord, licensor, permittor or other person for rent to become due or for other obligations or acts to be performed, the payment of which rent or the performance of which other obligations or acts is required under leases, usufructs, subleases, licenses or permits, so long as the payment of such rent or the performance of such other obligations or acts is (i) not delinquent or (ii) being contested in good faith and has not proceeded to judgment and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.liens or privileges of any employees of the Company for salary or wages earned but not yet payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.the burdens of any law or governmental regulation, license or permit requiring the Company to maintain certain facilities or perform certain acts as a condition of the carrying on of the Company's business or the occupancy of or interference with any public lands or any river or stream or navigable waters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O.any restrictions, covenants, defects or irregularities in or other deficiencies of title to any easement or rights-of-way of or used by the Company for pipe lines, telephone lines, telecommunications lines, power lines, towers, poles, wires, conduits, mains, electric transmission lines and distribution lines, substations, metering stations, signal transmission and distribution lines or for similar purposes, to any real property of the Company owned in fee used or to be used by the Company primarily for such purposes, or to any appurtenances to any such easement, right-of-way or real property or other improvements on any such easement, right-of-way or real property, if (i) in the case of easements or rights-of way, the Company shall have obtained from the apparent owner of the lands or estates therein covered by any such easement or right-of-way a sufficient right, by the terms of the instrument granting such easement or right-of-way, to the use thereof for the construction, operation or maintenance of the lines, appurtenances or improvements for which the same are used or are to be used, (ii) the Company has power under eminent domain, or similar statutes, to remove such restrictions, covenants, defects, irregularities or other deficiencies, or (iii) such restrictions, covenants, defects, irregularities or other deficiencies may be otherwise remedied without undue effort or expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.rights reserved to, or vested in, any municipality or governmental or other public authority to control or regulate any property of the Company or the use thereof, or to use such property in any manner, which rights do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q.any obligations or duties, affecting the property of the Company, to or established by any municipality or governmental or other public authority in connection with any franchise, grant, license or permit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R.any right which any municipal or governmental authority may have by virtue of any franchise, license, contract or statute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S.any restrictions, including restrictions on transfer, liens or other matters arising from, permitted by, or required by, any law or governmental regulation relating to environmental matters so long as such restrictions, liens or other matters do not materially impair the use of such property for the purposes for which it is held and as to any liquidated liens with respect thereto, the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.reservations contained in U.S. patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.slope and drainage reservations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V.deposits to secure duties or public or statutory obligations, deposits to secure, or in lieu of, surety, stay or appeal bonds, and deposits as security for the payment of taxes or assessments or similar charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W.any lien or other matter required by law or governmental regulation as a condition to the transaction of any business or the exercise of any privilege or license, or to enable the Company to maintain self-insurance or to participate in any funds established to cover any insurance risks or in connection with worker's compensation, unemployment insurance, retirement pensions or other social security, or to share in the privileges or benefits required for companies participating in such arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X.any lien or other encumbrance created or assumed by the Company in connection with the issuance of debt securities the interest on which is excludable from gross income of the holder of such security pursuant to the Internal Revenue Code of 1986, as amended, for the purposes of financing or refinancing, in whole or in part, the acquisition or construction of property used or to be used by the Company to the extent such lien covers only such acquired or constructed property and the proceeds upon the sale, transfer or exchange thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y.the pledge of current assets, in the ordinary course of business, to secure current liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z.liens or other encumbrances securing indebtedness for the payment of which money or Defeasance Securities, maturing as to principal and interest in such amounts and at such times, as are sufficient to provide for the full and timely payment of such indebtedness shall have been irrevocably deposited in trust or escrow with the trustee or other holder of such lien, and liens on such deposited money or Defeasance Securities, provided that if such indebtedness is to be redeemed or otherwise prepaid prior to the stated maturity thereof, any notice requisite to such redemption or prepayment shall have been irrevocably given in accordance with the mortgage or other instrument creating such lien or other encumbrance or irrevocable instructions to give such notice shall have been given to such trustee or other holder;

AA.the undivided or other interest of other owners, and liens on such interest, in property owned in common or jointly with the Company or in which the Company has an executory or future interest, and all rights of such co-owners or joint owners in such property, including the rights of such owners to such property pursuant to ownership contracts;

BB.any liens or other encumbrances of any person arising on account of the ownership in common or jointly with the Company of an undivided or other interest in property which relate to amounts which are not due and payable, or which are being contested by the Company in good faith, and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by accounting requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CC.liens which have been bonded for the full amount of the obligations secured by such lien or for the payment of which the Company has deposited with the Trustee or with an escrow agent cash or other property with a value equal to the full amount of the obligations secured by such lien.

"**Property Additions**" means property as to which the Company shall provide title evidence (which, as to Retired property, may be dated as of a date immediately prior to the Retirement) and which shall be (or, if Retired, shall have been) subject to the lien of this Indenture, which shall be properly chargeable to the Company's fixed plant accounts under accounting requirements (including property acquired to replace property Retired and credited to such accounts) and which shall be acquired by the Company after the Cut-Off Date, including property in the process of construction, insofar as not reflected on the books of the Company with respect to periods on or prior to the Cut-Off Date. Property Additions need not consist of a specific or completed development, plan, betterment, addition, extension, improvement or enlargement, but may include construction work in progress and property in the process of purchase insofar as title has been vested in the Company.

"**Property Additions**" shall also include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.easements and rights-of-way that are useful for the conduct of the business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.property located or constructed (i) on, over or under public highways, rivers or other public property if the Company has the lawful right under permits, licenses or franchises granted by a governmental body having jurisdiction in the premises or by the law of the state in which such property is located or (ii) on, over or under other property subject to easements and rights of way described in paragraph A above, if the Company has the right under such permits, licenses, franchises, law, easements or rights of way to maintain and operate such property for an unlimited, indeterminate or indefinite period or for the period, if any, specified in such permit, license, franchise, law, easement or right of way and to remove such property at the expiration of the period covered by such permit, license, franchise, law, easement or right of way or if the terms of such permit, license, franchise, law, easement or right of way require any public authority or grantor thereof having the right to take over such property to pay fair consideration therefor; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.tangible property, which would be properly chargeable to the Company's fixed plant accounts under accounting requirements (including property acquired to replace property Retired and credited to such accounts) if title were vested in the Company, if (i) such property itself (in addition to the Company's leasehold interest in such property) is subject to the lien of the Indenture and (ii) such property is leased to the Company.

"**Property Additions**" shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.good will, going concern value, contracts, agreements, franchises, licenses or permits, whether acquired as such, separate and distinct from the property operated in connection therewith, or acquired as an incident thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Stock, indebtedness or other securities, including certificates or evidences of interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.any property that is to remain subject to a prior lien (except to the extent permitted by the Indenture) after the granting of the related application, or subject to the Permitted Exception described in paragraph X of the definition of "Permitted Exceptions";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.except as provided in paragraph C above, any plant or system or other property in which the Company shall acquire only a leasehold interest, or any betterments, extensions, improvements or additions (other than movable physical personal property which the Company has the right to remove), of, upon or to any plant or system or other property in which the Company shall own only a leasehold interest unless in the case of betterments, extensions, improvements or additions of, upon or to any plant or system or other property in which the Company shall own only a leasehold interest (i) the term of the leasehold interest in the property to which such betterment, extension, improvement or addition relates (including any periods for which the Company has the option to extend or renew such leasehold interest) shall extend for at least 75% of the estimated useful economic life of such betterment, extension, improvement or addition and (ii) the lessor shall have agreed to give the Trustee reasonable notice and opportunity to cure any default by the Company under such lease and not to disturb the Trustee's possession of such leasehold estate in the event the Trustee succeeds to the Company's interest in such lease upon the Trustee's exercise of any remedies under this Indenture so long as there is no default in the performance of the tenant's covenants contained therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.property otherwise constituting Property Additions, but with respect to which the Company has delivered to the Trustee, prior to the Company's acquisition of such property, an officers' certificate specifically identifying such property to be acquired and stating that (i) such property is not to be subject to the lien of this Indenture and (ii) if the Company does not have the use of such property, it would remain capable of complying with the requirements of the Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.property otherwise constituting Property Additions which has been (i) acquired from a subsidiary, (ii) previously subject to the lien and security interest of a Qualifying Securities Indenture, (iii) previously certified as Bondable Property under such Qualifying Securities Indenture and (iv) used as the basis on which Qualifying Securities which have been unconditionally assumed by the Company were issued.

"**Qualified EPC Contract**" means any contract providing for the engineering, procurement or construction of generation or related facilities (including electric transmission and fuel supply facilities) intended to be owned by the Company, payments made under or in connection with which are used as the basis for (i) loans or advances under conditional Obligations under the Indenture or (ii) the authentication and delivery of additional Obligations under the Indenture.

"**Qualifying Securities**" means bonds or other instruments evidencing indebtedness for borrowed money or purchase money indebtedness issued and outstanding under a Qualifying Securities Indenture.

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"**Qualifying Securities Indenture**" means any indenture, mortgage, deed to secure debt, deed of trust or similar instrument entered into by any subsidiary of the Company or, in the case of a transaction described in the last sentence hereof, by any person, (i) which contains provisions (and related definitions) substantially identical in substance to the provisions (and related definitions) contained in this Indenture (with such variations and omissions as are appropriate in view of the fact that the subsidiary and not the Company is a party thereto), except that it may omit or have different provisions (and related definitions) relating to (a) the need to deliver an available margins certificate upon the authentication and delivery of Qualifying Securities issued thereunder, (b) the requirement to establish and collect the rates, rents, charges, fees and other compensation of such subsidiary reasonably expected to yield any particular level of Margins for Interest, (c) limiting distributions or dividends, and (d) such other matters as the Trustee shall determine in its reasonable judgment do not materially and adversely affect the value of the Qualifying Securities issued thereunder as security for the Obligations; provided, however, that in making any such determination the Trustee may rely upon certificates of investment bankers or other financial professionals or consultants, and (ii) under which Qualifying Securities are issued. A Qualifying Securities Indenture may be entered into by any person that succeeds to the Company's interest in any property constituting part of the Trust Estate prior to such transaction where either (i) the property transferred from the Company is more than 50% of the property owned by the Person immediately after the completion of the transfer or (ii) after the transfer the person will be engaged in providing utility services to the Company or to entities that were direct or indirect customers of the Company immediately prior to the transfer and the Company delivers a certificate to the Trustee, simultaneously with the issuance of the Qualifying Securities, that certifies that the property constituting part of the Trust Estate was transferred to the person as part of a plan of the Company to restructure in order to be more competitive, deal with regulatory requirements or respond to changes in the utility industry generally (collectively, referred to hereinafter as a "restructuring transaction").

"**Retired**" means, when used with respect to property, Bondable Property that, since the Cut-Off Date, has been retired, abandoned, destroyed, worn out, removed, permanently discontinued, lost through the enforcement of any liens or released, sold or otherwise disposed of free of the lien of this Indenture or taken by eminent domain or under the exercise of a right of a government authority to purchase or take the same or recorded as retired on the books of the Company or permanently retired from service for any reason, whether or not replaced, or shall have permanently ceased to be used or useful in the business of the Company, including as a consequence of the termination of any lease, whether or not recorded as retired on the books of the Company, except that,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.when a minor item of property has been replaced by other property of equal value and efficiency and the cost of such replacement has been charged to other than fixed property accounts such as maintenance, repairs or other similar account, the property replaced shall not be considered as Retired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.if, with respect to Bondable Property that would otherwise be considered Retired in circumstances where such Bondable Property becomes unfit or uneconomical for use in the Company's business or the use of such Bondable Property for its intended purpose becomes prohibited by applicable law or governmental action, (i) such Bondable Property has permanently ceased to be used or useful in the Company's business, (ii) the Board of Directors of the Company has approved the recovery in Rates of the value of such Bondable Property as such value is recorded on the books of the Company (taking into account depreciation) on the date of such approval (the "Depreciated Value"), and (iii) any regulatory approvals or determinations needed at the time for such recovery have been obtained, then such Bondable Property shall not be considered as Retired until the earlier of (a) the date the Depreciated Value of such Bondable Property has been fully recovered in Rates or (b) on the date the Depreciated Value of such Bondable Property is no longer being recovered in Rates.

"**Supplemental Indenture**" means any indenture supplemental to the Indenture and duly authorized in the manner provided in the Indenture.

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"**Trust Estate**" means all such property, rights, privileges and franchises by the Indenture and thereafter (by Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated herein not to be deemed part of the Trust Estate)).

"**Uniform Commercial Code**" means, with respect to any particular part of the Trust Estate, the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to such part of the Trust Estate.

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**CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS**

This general discussion of certain U.S. federal income tax considerations applies to you if you acquired Original Bonds for cash in the offering of the Original Bonds for their issue price, exchange the Original Bonds for Exchange Bonds pursuant to the Exchange Offer and hold the Exchange Bonds as a "capital asset," as defined in Section 1221 of the Code. This discussion, however, does not address state, local or foreign tax laws or any U.S. federal tax laws other than income tax laws (such as estate or gift tax laws). In addition, it does not describe all of the rules which may affect the U.S. federal income tax treatment of the Exchange Offer or your investment in the Exchange Bonds. For example, special rules not discussed here may apply to you if you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a broker-dealer, a dealer in securities, a trader in securities or a bank or other financial institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an S corporation, partnership or other pass-through entity (or an investor in such an entity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an insurance company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a tax-exempt entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a person subject to the alternative minimum tax provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "controlled foreign corporation," "passive foreign investment company," or a corporation that accumulates earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a U.S. Holder (as defined below) who holds Original Bonds or Exchange Bonds through a non-U.S. broker or other non-U.S. intermediary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a person holding Original Bonds or Exchange Bonds as part of a hedge, straddle, conversion transaction or other risk reduction or constructive sale transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subject to the mark-to-market method of tax accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "controlled foreign corporation," "passive foreign investment company" or a corporation that accumulates earnings to avoid U.S. federal income tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• required to prepare certified financial statements or file financial statements with certain regulatory or governmental agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an expatriate of the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a U.S. person whose functional currency is not the U.S. dollar.

If a partnership (or an entity that is treated as a partnership) holds Original Bonds or Exchange Bonds, the tax treatment of such partnership (or entity that is treated as a partnership) and a partner in such partnership (or entity that this treated as a partnership) generally will depend upon the status of the partner and upon the activities of the partnership (or entity that is treated as a partnership). If you are a partnership (or any entity that is treated as a partnership) or a partner of a partnership (or entity that is treated as a partnership) considering an investment in the Exchange Bonds, we suggest that you consult your tax advisor.

This discussion is a summary of certain U.S. federal income tax considerations that may apply to you based on current U.S. federal income tax law as available and in effect. This discussion is based on current provisions of the Code, U.S. Treasury regulations, published rulings, and court decisions, all as available and in effect as of the date hereof and all of which are subject to change or differing interpretations, possibly with retroactive effect. There can be no assurances that the IRS or any court will agree with the statements and conclusions in this discussion.

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There are certain tax reform proposals currently being considered. While it is uncertain whether any such proposals would be enacted into law, and it is impossible to predict whether this will be the case, if any such proposals were to become law, they could materially change the U.S. federal income tax consequences described below.

This discussion may not cover your particular circumstances because it does not consider foreign, state or local tax rules or U.S. federal tax rules other than income tax rules, disregards certain special U.S. federal income tax rules, and does not describe future changes in U.S. federal income tax rules. Please consult your tax advisor rather than relying on this general discussion.

**Exchange of Original Bonds for Exchange Bonds Pursuant to the Exchange Offer**

The exchange of Original Bonds for Exchange Bonds pursuant to the Exchange Offer generally will not be treated as a taxable exchange for U.S. federal income tax purposes. The remainder of this discussion assumes that the exchange of Original Bonds for Exchange Bonds pursuant to the Exchange Offer will not be treated as a taxable exchange for U.S. federal income tax purposes. Your U.S. federal income tax basis in the Original Bonds will carry over to the Exchange Bonds received pursuant to the Exchange Offer and the holding period of the Exchange Bonds will include the holding period of Original Bonds surrendered.

**U.S. Holders of Exchange Bonds**

If you are a "U.S. Holder," as defined below, of Exchange Bonds, this section applies to you. If you are a "Non-U.S. Holder,", as defined below, of Exchange Bonds, the next section, "Non-U.S. Holders," may apply to you.

***Definition of U.S. Holder***

For purposes of this discussion, you are a "U.S. Holder" if you are a beneficial owner of Exchange Bonds that, for U.S. federal income tax purposes, is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States, including an alien individual who is a lawful permanent resident of the United States or who meets the "substantial presence" test under Section 7701(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust, if a U.S. court can exercise primary supervision over the administration of the trust and one or more U.S. persons can control all substantial decisions of the trust, or if the trust was in existence on August 20, 1996 and has elected to continue to be treated as a U.S. person.

***Stated Interest***

You must generally include stated interest on the Exchange Bonds in income as ordinary income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• when you receive it, if you use the cash method of accounting for U.S. federal income tax purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as it accrues, if you use the accrual method of accounting for U.S. federal income tax purposes.

***Sale or Other Taxable Disposition of Exchange Bonds***

You generally will recognize taxable gain or loss on a sale, exchange, redemption, retirement or other taxable disposition of an Exchange Bond equal to the difference, if any, between the amount you receive for the Exchange Bond (in cash or other property, valued at fair market value), other than amounts

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attributable to accrued and unpaid interest on the Exchange Bond, which will be taxed in the manner described above, and your U.S. federal income tax basis in the Exchange Bond. Your U.S. federal income tax basis in a Bond generally will equal your cost for the Original Bond exchanged for the Exchange Bond pursuant to the Exchange Offer.

Any gain or loss recognized on a sale, exchange, redemption, retirement or other taxable disposition of an Exchange Bond will generally be a long-term capital gain or loss if you have held the Exchange Bond for more than one year. Otherwise, it will be a short-term capital gain or loss. Non-corporate U.S. Holders currently may be eligible for a reduced rate of taxation on long-term capital gain. The deductibility of capital losses is subject to limitations.

***Defeasance of the Exchange Bonds***

If we defease any Exchange Bond, such Exchange Bond may be deemed to be retired for U.S. federal income tax purposes as a result of the defeasance. In that event, in general, you will recognize taxable gain or loss equal to the difference between (i) the amount deemed to be realized from the deemed sale, exchange or retirement (less any accrued qualified stated interest which will be taxable as such) and (ii) your adjusted U.S. federal income tax basis in the Exchange Bond.

***Additional Tax on Investment Income***

Certain individuals, estates and trusts are required to pay a 3.8% tax on "net investment income" including, among other things, interest and proceeds of sales or other dispositions in respect of securities (such as the Exchange Bonds), subject to certain exceptions. You should consult your own tax advisors regarding the effect, if any, of this tax on your acquisition, ownership and disposition of Exchange Bonds.

**Non-U.S. Holders of Exchange Bonds**

***Definition of Non-U.S. Holder***

For purposes of this discussion, a "Non-U.S. Holder" is a beneficial owner of Exchange Bonds that, for U.S. federal income tax purposes, is an individual, corporation, estate or trust that is not a U.S. Holder.

***Interest***

In general, subject to the discussions below under "Backup Withholding and Information Reporting" and "Foreign Account Tax Compliance Act ("FATCA")," interest income of a Non-U.S. Holder that is not effectively connected with a United States trade or business will not be subject to U.S. federal income tax under the "portfolio interest exemption" if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you represent that you are the beneficial owner of Exchange Bonds and not a U.S. person for U.S. federal income tax purposes and you provide your name and address to the applicable withholding agent on a properly executed IRS Form W-8 (or a suitable substitute form) signed under penalties of perjury; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a securities clearing organization, bank or other financial institution that holds customers' securities in the ordinary course of its trade or business holds the Exchange Bonds on your behalf, certifies to the applicable withholding agent under penalty of perjury that it has received a properly executed IRS Form W-8 (or a suitable substitute form) from you or from another qualifying financial institution intermediary, and provides a copy to the applicable withholding agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you do not own, actually or constructively, 10% or more of the total combined voting power of all classes of our capital stock which is entitled to vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are not a controlled foreign corporation with respect to which we are a "related person" within the meaning of Section 864(d)(4) of the Code; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you are not a bank receiving interest described in Section 881(c)(3)(A) of the Code.

Special certification rules apply to foreign partnerships, estates, and trusts, and in certain circumstances, certifications as to the foreign status of partners, trust owners, or beneficiaries may have to be provided to the applicable withholding agent. In addition, special certification rules apply to payments made through a qualified intermediary.

If you do not claim, or do not qualify for, the benefit of the portfolio interest exemption, you will be subject to a 30% withholding tax on payments of interest made on the Exchange Bonds that are not effectively connected with a United States trade or business unless you are able to claim the benefit of a reduced withholding tax rate under an applicable income tax treaty with the United States. The required information for claiming treaty benefits is generally submitted on an applicable IRS Form W-8BEN (or a suitable substitute form).

Except to the extent that an applicable income tax treaty otherwise provides, (i) a Non-U.S. Holder will be taxed on a net income basis in generally the same manner as a U.S. Holder with respect to interest that is effectively connected with a United States trade or business of the Non-U.S. Holder, and (ii) a corporate Non-U.S. Holder may also, in some circumstances, be subject to a "branch profits tax" at a 30% rate (or, if applicable, a lower treaty rate) on its effectively connected earnings and profits (subject to adjustments). Even though effectively connected interest is subject to income tax, and may be subject to the branch profits tax, it is not subject to withholding tax if the holder delivers a properly executed IRS Form W-8ECI or other applicable form (or a suitable substitute form) to the applicable withholding agent.

***Sale or Other Taxable Disposition of Exchange Bonds***

Subject to the discussions below under "Backup Withholding and Information Reporting" and "Foreign Account Tax Compliance Act ("FATCA")," you generally will not be subject to U.S. federal income tax or withholding tax on any gain recognized on a sale, exchange, redemption, retirement, or other taxable disposition of an Exchange Bond unless (i) the gain is effectively connected with a U.S. trade or business (and, in the case of certain income tax treaties, is attributable to a permanent establishment within the United States), in which case such gain generally will be taxed in the same manner as effectively connected interest (as described above) and a corporate Non-U.S. Holder may also be subject to a "branch profits tax" at a 30% rate (or, if applicable, a lower treaty rate) on its effectively connected earnings and profits (subject to adjustments) or (ii) you are an individual who was present in the United States for 183 days or more in the taxable year of the disposition and certain other conditions are met, in which case you generally will be subject to a U.S. federal income tax of 30% (or a reduced treaty rate) on such gain (net of certain U.S. source losses). In the event that a payment is attributable to accrued and unpaid interest, the rules applicable to payments of interest described above will apply.

***Foreign Account Tax Compliance Act ("FATCA")***

Under Sections 1471 through 1474 of the Code ("FATCA"), U.S. federal withholding tax may apply to certain types of payments made to "foreign financial institutions," as specially defined under such rules, and certain other non-U.S. entities. FATCA generally imposes a 30% withholding tax on certain types of payments to a foreign financial institution unless (a) the foreign financial institution enters into an agreement with the U.S. Treasury to provide certain information regarding such institution's account holders and owners of its equity or debt, (b) in the case of a foreign financial institution in a jurisdiction that has entered into an intergovernmental agreement with the United States, complies with the requirements of such agreement, or (c) the foreign financial institution otherwise is exempt from FATCA withholding. In addition, FATCA imposes a 30% withholding tax on the same types of payments to certain non-financial foreign entities unless the applicable entity certifies that it does not have any substantial U.S. owners or furnishes identifying information regarding each substantial U.S. owner. In general, FATCA withholding currently applies to payments of interest on the Exchange Bonds and, under current guidance would apply to certain "passthru" payments no earlier than the date that is two years after

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publication of final U.S. Treasury Regulations defining the term "foreign passthru payments". Prospective investors should consult their tax advisors regarding this legislation.

**Backup Withholding and Information Reporting**

Backup withholding may apply in respect of interest payments made to a holder of Exchange Bonds and proceeds from a sale or other disposition (including a retirement or redemption) of Exchange Bonds, unless such holder provides proof of an applicable exemption or provides a correct taxpayer identification number and otherwise complies with applicable requirements of the backup withholding rules. Any amounts withheld under the backup withholding rules are not an additional tax and may be refunded, or credited against the holder's U.S. federal income tax liability, provided that the required information is timely furnished to the IRS. In addition, information returns generally will be filed with the IRS in connection with interest payments on the Exchange Bonds and the proceeds from a sale or other disposition (including a redemption or retirement) of the Exchange Bonds unless the holder provides proof of an applicable exemption from the information reporting rules.

**The regulations governing information reporting and backup withholding are complex, and this summary does not completely describe them. Please consult your tax adviser to determine how the applicable regulations will affect your particular circumstances.**

**The preceding discussion of certain U.S. federal income tax considerations is for general information only. It is not tax advice. Each prospective investor should consult its tax adviser regarding the particular U.S. federal, state, local and foreign tax consequences of purchasing, holding, and disposing of Exchange Bonds, including the consequences of any proposed change in applicable laws.**

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**PLAN OF DISTRIBUTION**

Based on existing interpretations of the Securities Act by the SEC staff set forth in several no-action letters to third parties (including *Exxon Capital Holdings Corporation* (available May 13, 1988), *Morgan Stanley & Co. Incorporated* (available June 5, 1991), and *Shearman & Sterling* (available July 2, 1993)), and subject to the immediately following sentence, we believe that the Exchange Bonds issued pursuant to the Exchange Offer in exchange for Original Bonds may be offered for resale, resold and otherwise transferred by the holders thereof (other than holders that are broker-dealers) without further compliance with the registration and prospectus delivery provisions of the Securities Act. However, any holder of Original Bonds that intends to participate in the Exchange Offer for the purpose of distributing the Exchange Bonds or that is an affiliate of ours that does not comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds, or any broker-dealer that purchased any of the Original Bonds from us or any of our affiliates for resale pursuant to Rule 144A or any other available exemption under the Securities Act, (i) will not be able to rely on the interpretations of the SEC staff set forth in the above-mentioned no-action letters, (ii) will not be entitled to tender its Original Bonds in the Exchange Offer, and (iii) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of the Original Bonds unless such sale or transfer is made pursuant to an exemption from such requirements.

Each broker-dealer that receives Exchange Bonds for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Bonds. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Bonds received in exchange for Original Bonds where such Original Bonds were acquired as a result of market-making activities or other trading activities. We have agreed to keep effective the registration statement of which this prospectus is a part until the earlier of 180 days after the completion of the Exchange Offer or such time as broker-dealers no longer own any Exchange Bonds. In addition, until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 (90 days after the date of this prospectus), all dealers effecting transactions in the Exchange Bonds may be required to deliver a prospectus.

We will not receive any proceeds from any sale of Exchange Bonds by broker-dealers. Exchange Bonds received by broker-dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Bonds or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any such Exchange Bonds. Any broker-dealer that resells Exchange Bonds that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such Exchange Bonds may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit of any such resale of Exchange Bonds and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The letter of transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act.

For a period of 180 days after the expiration date of the Exchange Offer (or until the broker-dealer no longer holds registrable securities), we will promptly send additional copies of this prospectus and any amendment or supplement to this prospectus to any broker-dealer that requests such documents in the letter of transmittal. Subject to certain limitations set forth in the Registration Rights Agreement, we have agreed to pay all expenses incident to the Exchange Offer other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Original Bonds (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act.

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**LEGAL MATTERS**

The validity of the Exchange Bonds will be passed upon for us by Matthew R. Kolling, our Senior Staff Counsel.

**EXPERTS**

The financial statements of Basin Electric Power Cooperative as of December 31, 2025 and 2024, and for each of the three years in the period ended December 31, 2025, included in this Prospectus, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

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**Financial Statements and Supplementary Data**

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| | |
|:---|:---|
| | **Page** |
| <u>[Report of Independent Registered Public Accounting Firm](#i0b5983c249b84b3db1dc97769c25fdb6_2421)</u> (PCAOB ID No. 34) | <u>[F-2](#i0b5983c249b84b3db1dc97769c25fdb6_2421)</u> |
| <u>[Consolidated Balance Sheets](#i0b5983c249b84b3db1dc97769c25fdb6_73)</u> | <u>[F-4](#i0b5983c249b84b3db1dc97769c25fdb6_73)</u> |
| <u>[Consolidated Statements of Operations](#i0b5983c249b84b3db1dc97769c25fdb6_76)</u> | <u>[F-6](#i0b5983c249b84b3db1dc97769c25fdb6_76)</u> |
| <u>[Consolidated Statements of Comprehensive Income](#i0b5983c249b84b3db1dc97769c25fdb6_79)</u> | <u>[F-7](#i0b5983c249b84b3db1dc97769c25fdb6_79)</u> |
| <u>[Consolidated Statements of Changes in Equity](#i0b5983c249b84b3db1dc97769c25fdb6_82)</u> | <u>[F-8](#i0b5983c249b84b3db1dc97769c25fdb6_82)</u> |
| <u>[Consolidated Statements of Cash Flows](#i0b5983c249b84b3db1dc97769c25fdb6_85)</u> | <u>[F-9](#i0b5983c249b84b3db1dc97769c25fdb6_85)</u> |
| <u>[Notes to Consolidated Financial Statements](#i0b5983c249b84b3db1dc97769c25fdb6_88)</u> | <u>[F-11](#i0b5983c249b84b3db1dc97769c25fdb6_88)</u> |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the members and the Board of Directors of Basin Electric Power Cooperative

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Basin Electric Power Cooperative and subsidiaries (the "Cooperative") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, cash flows and changes in equity for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Cooperative as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Cooperative's management. Our responsibility is to express an opinion on the Cooperative's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Cooperative in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Cooperative is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Cooperative's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

***Regulatory Assets and Liabilities — Refer to Notes 2 and 9 to the financial statements***

*Critical Audit Matter Description*

The Cooperative is subject to rate regulation by its Board of Directors, which establishes electric rates to customers that are subject to acceptance by the United States Department of Agriculture Rural Utilities Service (RUS). Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the

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specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation affects multiple financial statement line items and disclosures, including property, plant and equipment, regulatory assets and liabilities, operating revenues and expenses, and income taxes.

Rates are subject to regulatory rate-setting processes and are determined in order to recover the cost of service and to comply with the Cooperative's Indenture covenants and other contractual commitments and to establish reasonable reserves. Decisions by the Board of Directors and RUS in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. In the rate setting process, the Cooperative's rates result in the recording of regulatory assets and liabilities based on the probability of future cash flows. Regulatory assets generally represent incurred or accrued costs that have been deferred because future recovery from customers is probable. Regulatory liabilities generally represent amounts that are expected to be refunded to customers in future rates or amounts collected in current rates for future costs.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future resolutions of the Board of Directors or regulatory orders on the financial statements. Management judgments include assessing the likelihood of recovery in future rates of incurred costs and requirements to refund amounts to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Board of Directors and RUS, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the uncertainty of future decisions by the Board of Directors and RUS included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We inspected minutes of the Board of Directors and regulatory orders issued by the RUS, and recommendations being evaluated by the RUS, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates. We compared the minutes of the Board of Directors, regulatory orders and other publicly available information to the Cooperative's recorded regulatory assets and liabilities for completeness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We inquired of management about property, plant, and equipment that may be abandoned or retired prior to the end of its useful life. We inspected minutes of the Board of Directors and other filings with the RUS to identify any evidence that may contradict management's assertion regarding probability of an abandonment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated the Cooperative's financial statement presentation and disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota

April 15, 2026

We have served as the Cooperative's auditor since 2002.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**as of December 31,**

<u>Assets</u>

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Property, plant and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant in service | $10252773 | $9397849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction work in progress | 778763 | 831772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated provision for depreciation and amortization | (4375917) | (4169001) |
| Net property, plant and equipment | 6655619 | 6060620 |
| Other assets and investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mine related assets | 166561 | 151425 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in associated companies | 37024 | 36240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted and designated investments | 61362 | 54313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 138624 | 261073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special funds | 69564 | 69489 |
| Total other assets and investments | 473135 | 572540 |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 685570 | 376659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted and designated cash and cash equivalents | 301923 | 317251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 630 | 13136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables – Members | 202408 | 191436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | 117228 | 117094 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 358812 | 320582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | 118837 | 102988 |
| Total current assets | 1785408 | 1439146 |
| Regulatory assets | 311373 | 295157 |
| Other deferred charges | 172122 | 127319 |
| Total deferred charges | 483495 | 422476 |
| Total Assets | $9397657 | $8494782 |

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The accompanying notes are an integral part of these consolidated financial statements.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS, Continued**

**as of December 31,**

<u>Capitalization and Liabilities</u>

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Capitalization: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Memberships | $22 | $22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patronage capital | 1523238 | 1476557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings of subsidiaries | 142776 | 125713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other equity | 294252 | 285113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 13463 | 4806 |
|  | 1973751 | 1892211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | 2676 | 2711 |
| Total Equity | 1976427 | 1894922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 4949264 | 4588373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease obligations | 3532 | 4305 |
| Total capitalization | 6929223 | 6487600 |
| Commitments and contingencies (Note 17) |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt and finance leases due within one year | 177134 | 194264 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 421715 | 315719 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable – Members | 159495 | 142390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable | 475000 | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 196460 | 145404 |
| Total current liabilities | 1429804 | 997777 |
| Deferred credits and other: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | 336305 | 337241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liability | 90922 | 82008 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 611403 | 590156 |
| Total deferred credits and other | 1038630 | 1009405 |
| Total Capitalization and Liabilities | $9397657 | $8494782 |

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The accompanying notes are an integral part of these consolidated financial statements.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**for the years ended December 31,**

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales - Members (related party) | $2162056 | $1995959 | $1926214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating revenues (includes related party of $272,191, $225,241, and $229,330, respectively) | 925715 | 819440 | 960904 |
| Total operating revenues | 3087771 | 2815399 | 2887118 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric fuel and purchased power (includes related party of $183,343, $149,029, and $152,929, respectively) | 1116603 | 1074416 | 1077496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric operations and maintenance (includes related party of $(5666), $(9916), and $(9988), respectively | 758006 | 679558 | 662056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold (includes related party of $64,717, $60,496, and $61,112, respectively) | 597232 | 542295 | 544439 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonelectric selling, general and administrative (includes related party of $29,797, $25,632, and $25,277, respectively) | 114612 | 47782 | 38905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | 276761 | 259477 | 249500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets | 4164 | 36296 | 5035 |
| Total operating expenses | 2867378 | 2639824 | 2577431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 220393 | 175575 | 309687 |
| Other income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income | 75022 | 88091 | 89247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other and tax credits | 128248 | 132148 | 19161 |
| Total other income | 203270 | 220239 | 108408 |
| Interest and other charges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 305800 | 297233 | 265762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest charged during construction | (27939) | (32376) | (10059) |
| Total interest and other charges | 277861 | 264857 | 255703 |
| Margin before income taxes | 145802 | 130957 | 162392 |
| Income tax expense (benefit) | 6530 | (13037) | (6207) |
| Net margin and earnings including noncontrolling interest | 139272 | 143994 | 168599 |
| Net margin and earnings attributable to noncontrolling interest | (23000) | (23215) | (21083) |
| Net margin and earnings attributable to Basin Electric | $116272 | $120779 | $147516 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**for the years ended December 31,**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Net margin and earnings including noncontrolling interest | $139272 | $143994 | $168599 |
| Other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment to post employment liability (net of tax of $750, $(44), and $13, respectively) | 4180 | 2826 | 4010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on securities (net of tax of $29, $305, and $725, respectively) | 104 | 1070 | 2706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net realized (gain) loss on securities (net of tax of $29, $(2), and $13, respectively) | (110) | 9 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on cash flow hedges (net of tax of $1,465, $(686), and $3,651, respectively) | 5511 | (2578) | 13736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net realized gain on cash flow hedges (net of tax of $(273), $(600), and $(6338), respectively) | (1028) | (2259) | (23839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | 8657 | (932) | (3337) |
| Comprehensive income including noncontrolling interest | 147929 | 143062 | 165262 |
| Comprehensive income attributable to noncontrolling interest | (24358) | (26207) | (25046) |
| Comprehensive income attributable to Basin Electric | $123571 | $116855 | $140216 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**for the years ended December 31, 2025, 2024, and 2023**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Memberships** | **Patronage Capital** | **Retained Earnings of Subsidiaries** | **Other Equity** | **Accumulated Other Comprehensive**<br>**Income** | **Noncontrolling Interest** | **Total** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, December 31, 2022 | $21 | $1228756 | $120410 | $346348 | $9075 | $5006 | $1709616 |
| Comprehensive income (loss) | - | 150254 | (2738) | - | (7300) | - | 140216 |
| Transfers to other equity | - | 59931 | - | (59931) | - | - | - |
| Purchase of memberships | 1 | - | - | - | - | - | 1 |
| Retirement of patronage capital | - | (42975) | 6302 | - | - | - | (36673) |
| Comprehensive income attributable to noncontrolling interest | - | - | - | - | 3963 | 21083 | 25046 |
| Dividends paid to noncontrolling interest | - | - | - | - | - | (24268) | (24268) |
| Balance, December 31, 2023 | 22 | 1395966 | 123974 | 286417 | 5738 | 1821 | 1813938 |
| Comprehensive income (loss) | - | 125872 | (5093) | - | (3924) | - | 116855 |
| Transfers to other equity | - | 1304 | - | (1304) | - | - | - |
| Retirement of patronage capital | - | (46585) | 6832 | - | - | - | (39753) |
| Comprehensive income attributable to noncontrolling interest | - | - | - | - | 2992 | 23215 | 26207 |
| Dividends paid to noncontrolling interest | - | - | - | - | - | (22325) | (22325) |
| Balance, December 31, 2024 | 22 | 1476557 | 125713 | 285113 | 4806 | 2711 | 1894922 |
| Comprehensive income | - | 104735 | 11537 | - | 7299 | - | 123571 |
| Transfers to other equity | - | (9139) | - | 9139 | - | - | - |
| Retirement of patronage capital | - | (48915) | 5526 | - | - | - | (43389) |
| Comprehensive income attributable to noncontrolling interest | - | - | - | - | 1358 | 23000 | 24358 |
| Dividends paid to noncontrolling interest | - | - | - | - | - | (23035) | (23035) |
| Balance, December 31, 2025 | $22 | $1523238 | $142776 | $294252 | $13463 | $2676 | $1976427 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**for the years ended December 31,**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net margin and earnings attributable to Basin Electric | $116272 | $120779 | $147516 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net margin and earnings to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization and accretion | 337226 | 349157 | 296852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1109) | (15564) | (12725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in regulatory assets and liabilities | 2230 | (63792) | (58826) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on investments | (7327) | (12034) | (11384) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patronage capital allocated | (6752) | (7224) | (8444) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income attributable to noncontrolling interest | 23000 | 23215 | 21083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition of initial payment for tax credits | (11483) | (20657) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other operating elements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | (10738) | (26421) | 51739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (39741) | (31333) | (52948) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | (10118) | (1708) | (10009) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 17368 | 7039 | 56800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 27742 | (18679) | (166396) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating activities, net | (28125) | (40232) | 5399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 408445 | 262546 | 258657 |
| Investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (807224) | (645126) | (524639) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of property | 14589 | 3910 | 1783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments | (67656) | (1138995) | (1300771) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of investments | 188374 | 1517156 | 1607266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other investments, net | (6632) | (3727) | (655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (678549) | (266782) | (217016) |
| Financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of membership interest | - | 167467 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt | 816270 | 479600 | 80000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments of long-term debt | (458557) | (212331) | (88692) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (13365) | (2875) | (383) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in notes payable – Members, net | 12704 | (94728) | (12776) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in short-term borrowings, net | 275000 | (36964) | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement of patronage capital | (43389) | (39753) | (36673) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to noncontrolling interest | (23035) | (22325) | (24268) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (1941) | (1138) | (810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 563687 | 236953 | (82917) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents and designated cash and equivalents | 293583 | 232717 | (41276) |
| Cash and cash equivalents and restricted and designated cash and equivalents, beginning of period | 693910 | 461193 | 502469 |
| Cash and cash equivalents and restricted and designated cash and equivalents, end of period | $987493 | $693910 | $461193 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS, Continued**

**for the years ended December 31,**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Supplemental cash flow information: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $258649 | $257934 | $241791 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid (refunded) for income taxes | $153 | $2411 | $(603) |
| Supplemental disclosure of noncash investing and financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued acquisition of property, plant and equipment | $120736 | $40042 | $66828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease additions | $33678 | $14745 | $14695 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.&nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION**

Basin Electric Power Cooperative (Basin Electric) is an electric generation and transmission cooperative corporation, organized and existing under the laws of the State of North Dakota. It serves member electric service needs in a nine-state region of North Dakota, South Dakota, Montana, Wyoming, New Mexico, Colorado, Nebraska, Minnesota and Iowa. Basin Electric's power supply resources are composed of its own generating facilities and contractual power purchase arrangements. Basin Electric owns and operates transmission assets, some of which are a part of the Southwest Power Pool and others which are jointly owned.

The rates charged to its members for electric service are established by Basin Electric's Board of Directors with changes in rates subject to acceptance by the United States Department of Agriculture Rural Utilities Service (RUS).

Basin Electric has three wholly owned for-profit subsidiaries, Dakota Gasification Company (Dakota Gas), Dakota Coal Company (Dakota Coal), and Nemadji River Generation (NRG). Basin Electric also has one wholly owned not-for-profit subsidiary, Basin Cooperative Services (BCS). Dakota Gas has a wholly owned for-profit subsidiary, Souris Valley Pipeline Limited (SVPL). Dakota Coal has a wholly owned for-profit subsidiary, Montana Limestone Company (MLC). Dakota Gas owns and operates the Great Plains Synfuels Plant (Synfuels Plant) which converts lignite coal into pipeline-quality synthetic gas and produces a number of other products including anhydrous ammonia, urea, diesel exhaust fluid (DEF), carbon dioxide (CO2), tar oil and chemical products. The Synfuels Plant is located adjacent to Basin Electric's Antelope Valley Station (AVS) electric generating plant. These plants share certain facilities, and coal and water supplies. Dakota Gas supplies various Basin Electric gas generating stations and AVS with synthetic gas. SVPL owns and operates a CO2 pipeline in Saskatchewan, Canada. Dakota Coal purchases lignite coal from the Freedom Mine, a coal mine in North Dakota that is owned and operated by The Coteau Properties Company (Coteau), a wholly owned subsidiary of The North American Coal Corporation (NACoal). NACoal is a wholly owned subsidiary of NACCO Industries, Inc. (NACCO). Coteau is a variable interest entity (VIE) of Dakota Coal. Pursuant to the coal purchase agreement, Dakota Coal is obligated to provide financing for and has certain rights with respect to the operation of the coal mine. The lignite coal is used in Basin Electric's Leland Olds Station (LOS), AVS, and Dakota Gas's Synfuels Plant. Dakota Coal coordinates procurement and rail delivery of Powder River Basin coal to the Laramie River Station (LRS) and the Dry Fork Station (DFS). Dakota Coal also owns a lime plant that sells lime to AVS, the Laramie River Station (LRS) and others. MLC operates a limestone quarry and owns and operates a fine grind plant, both in Montana, and sells limestone to Dakota Coal's lime plant, LOS and others. BCS provides certain nonutility property management services to Basin Electric. Basin Electric is a 42.27 percent owner of the Missouri Basin Power Project (MBPP) and acts as the operating agent for the 1,700 megawatt LRS generating plant in Wyoming, associated transmission facilities and the Grayrocks Dam and Reservoir. Basin Electric's ownership in MBPP is accounted for using proportionate consolidation consistent with accounting for jointly owned utility property. NRG was a 30 percent owner in the Nemadji Trail Energy Center (NTEC) project, which was a proposed 600 megawatt combined cycle generating plant in Wisconsin. In January 2026, NRG exited the NTEC project.

Dakota Carbon Services LLC (DCS), a Delaware limited liability company, was incorporated in October 2023. DCS was formed to own and operate carbon capture assets in North Dakota and to contract for transportation and sequestration of CO2. In February 2024, an LLC agreement was entered into by DGC with a tax equity partner to monetize tax credits available under Section 45Q of the United States Internal Revenue Code for the capture and sequestration of CO2 (45Q transaction).

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**2.&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT ACCOUNTING POLICIES**

**PRINCIPLES OF CONSOLIDATION**–The consolidated financial statements include the accounts of Basin Electric, its wholly owned subsidiaries and its VIE's, Coteau and DCS. DCS is considered a VIE for which Dakota Gas is the primary beneficiary. All intercompany investments, debt, and receivable and payable accounts have been eliminated in consolidation. Charges from BCS, Dakota Gas, Dakota Coal, MLC and Coteau to Basin Electric and charges from Basin Electric to BCS, Dakota Gas, Dakota Coal, MLC and Coteau are not eliminated as Basin Electric includes the results of these activities in the determination of rates charged to its members (Note 19).

N-7 LLC (N-7) is a Delaware limited liability company formed by OCI Iowa, Inc. (OCI) and Dakota Gas on May 18, 2018. N-7 was formed to market OCI's, Dakota Gas's and other companies' fertilizer and DEF production. N-7 is considered a VIE of Dakota Gas for which Dakota Gas is not the primary beneficiary and, therefore, Dakota Gas is not required to consolidate N-7. However, Dakota Gas has the ability to exercise significant influence over N-7. Therefore, Dakota Gas's share of N-7 net income is recorded in the consolidated financial statements using the equity method of accounting. The investment in N-7 is included in other investments on the consolidated balance sheets and Dakota Gas' share of N-7 net income is presented in other and tax credits income in the consolidated statements of operations.

In 2024, Dakota Gas and OCI agreed to dissolve N-7 with final dissolution to be completed in the first half of 2026. Basin Electric does not anticipate this to have a material impact on the consolidated financial statements and disclosures.

**USE OF ESTIMATES**–The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used for items such as present value of lease assets and lease liabilities, plant depreciable lives, actuarially determined benefit costs, valuation of derivatives, asset retirement obligations, present value of expected tax credits, cash flows used in asset impairment evaluations and income tax expense or benefits. Ultimate results could differ from those estimates.

**CASH AND CASH EQUIVALENTS**–Basin Electric considers all investments purchased with an original maturity of three months or less to be cash equivalents. The fair value of cash equivalents approximates their carrying values due to their short-term maturity.

**RESTRICTED AND DESIGNATED CASH AND INVESTMENTS**–Basin Electric has certain restricted cash and investments for MBPP operating funds. Other restricted investments are held in trust by a financial institution for SVPL asset retirement obligations. Basin Electric's Board of Directors designates additional cash and investments for deferred revenue purposes and for other asset retirement obligations. For more information, see Note 6.

**INVESTMENTS**–Investments include equity securities, corporate bonds, government obligations and bond market funds as well as the cash surrender value of life insurance policies. Investments in equity securities are measured at fair value with unrealized gains and losses recorded on the consolidated statements of operations for nonutility operations. For utility operations, the unrealized gain and losses are deferred as regulatory items using ASC 980, *Regulated Operations*. Basin Electric classifies its debt securities as either available-for-sale or held-to-maturity. Available-for-sale debt securities are measured at fair value and unrealized gains and losses are recorded in accumulated other comprehensive income. Held-to-maturity debt securities are measured at amortized cost. If any of Basin Electric's other investments experience a decline in value that is believed to be other than temporary, a loss is

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

recognized in other and tax credits income in the consolidated statements of operations. For more information, see Note 7.

**INVENTORIES**–Dakota Gas products available for sale and MLC limestone inventories are stated at the lower of average cost or net realizable value. Fuel stock, materials and supplies inventories are stated at average cost, which approximates market. Inventories were as follows at December 31:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Materials and supplies | $245857 | $221836 |
| Coal and fuel oil | 62238 | 67009 |
| Lime and limestone inventory | 8484 | 8779 |
| Ammonia | 9233 | 4434 |
| Urea | 18786 | 7134 |
| Natural gas held in storage | 2055 | 3418 |
| Ammonium sulfate | 5081 | 3015 |
| Other products | 6611 | 4398 |
| Process inventory | 467 | 559 |
|  | $358812 | $320582 |

---

**PATRONAGE CAPITAL**–At the discretion of Basin Electric's Board of Directors, utility margins are allocated to members on a patronage basis or may be offset in whole or in part against current or prior losses. Basin Electric may not retire patronage capital if, after the distribution, an event of default would exist or Basin Electric's equity would be less than 20 percent of total long-term debt and equity. Cumulative patronage capital retired was $567.2 million and $518.3 million at December 31, 2025 and 2024, respectively.

**REVENUE RECOGNITION**–Revenue is recognized when a performance obligation is satisfied which occurs when the control of the promised goods or services is transferred to customers. Revenue is measured based on the transaction price identified in the contract with a customer. The transaction price in a contract reflects the amount of consideration to which an entity expects to be entitled to in exchange for goods or services transferred. Payment terms vary by contract. Generally, payment is due within 30 days.

Revenue is derived from the electric utility, gasification, and coal and limestone operations.

Electric utility operations mainly consist of wholesale electricity sales to members pursuant to long-term wholesale electric service contracts and the sale of excess energy and ancillary services transacted through regional transmission organizations (RTOs) and short-term wholesale power agreements by Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of electricity to members - The delivery of energy under member wholesale power agreements is considered one single performance obligation as providing the electric power commodity and the transmission of the electricity is fulfilling a single promise to the customer. The terms of the wholesale power agreements specify the rate schedules applicable and other pricing provisions. The member rate schedules are approved by the Basin Electric Board of Directors. The satisfaction of the performance obligation is measured over time as the customer simultaneously receives and consumes the benefits provided. The output method is used where revenue is recognized based on the metered quantity and as energy is delivered.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of electricity to non-members - The sale of excess energy to non-members is considered a single performance obligation. The terms of either the bilateral power sales contract or the RTO market protocols determine the pricing terms. The satisfaction of the performance obligation is measured over time as the customer simultaneously receives and consumes the benefits provided. The output method is used where revenue is recognized as energy is delivered. Transactions are netted on an hourly basis and are recorded as either sales or purchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Miscellaneous revenue - Miscellaneous revenue primarily consists of miscellaneous services provided and miscellaneous sales of equipment. Generally, a single performance obligation exists in the generation of other revenue and the performance obligation is satisfied at a point in time. The contract specifies the price, and revenue is recognized as delivery occurs or services are rendered.

Gasification operations mainly consists of the sale of synthetic natural gas, fertilizer and DEF products and other byproducts such as CO2, tar oil and chemical products which are produced at Dakota Gas's Synfuels Plant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Synthetic natural gas and certain other byproducts - The sale and delivery of synthetic natural gas and certain other byproducts (exclusive of fertilizer and DEF products) is considered one single performance obligation as providing the commodity and the delivery of it is fulfilling a single promise to the customer as control transfers to the customer upon delivery. The performance obligation is satisfied at a point in time. The sales contracts specify the price, and revenue is recognized as delivery occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fertilizer products - For the sale of fertilizer and DEF products, control transfers at a point in time depending on whether the shipping of the product is included in the performance obligation. The marketing agreement with N-7 specified the price and revenue was recognized as products exited the plant. After the dissolution of N-7, the price and revenue is recognized as control of the product transfers to the customer, which may be as products exit the plant or upon delivery, depending on the sales contract with these customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Miscellaneous revenue - Miscellaneous revenue primarily consists of miscellaneous services provided and miscellaneous sales of equipment. Generally, a single performance obligation exists in the generation of other revenue and the performance obligation is satisfied at a point in time. The contract specifies the price, and revenue is recognized as delivery occurs or services are rendered.

Coal and limestone operations mainly consists of the sale of lignite coal that Dakota Coal purchases from Coteau from the Freedom Mine for use at AVS, LOS and Dakota Gas's Synfuels Plant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lignite coal - The sale and delivery of lignite coal is considered one single performance obligation as providing the commodity and the delivery of it is fulfilling a single promise to the customer as control transfers to the customer upon delivery. The performance obligation is satisfied at a point in time. The coal supply contracts specify the price, and revenue is recognized as delivery occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Miscellaneous revenue - Miscellaneous revenue largely consists of sales of lime from Dakota Coal's lime plant and sales of limestone from MLC's limestone quarry and fine grind plant. The sale and delivery of lime and limestone is considered one single performance obligation as providing the lime and limestone and the delivery of it is fulfilling a single promise to the customer as control transfers to the customer upon delivery. The performance obligation is satisfied at a point in time. The sales contracts specify the price, and revenue is recognized as delivery occurs.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES**–Accounts receivable primarily consists of wholesale electricity sales to members and non-members and sales of synthetic natural gas, fertilizer and DEF and other products. Accounts receivable are stated at billed and estimated unbilled amounts, net of allowance for credit losses.

An allowance for credit losses is recorded based on estimated uncollectible trade receivables. Estimated uncollectible trade receivables are reviewed with consideration given to historical experience, credit worthiness and the age of the receivable balances. An allowance for credit losses is recorded when we are aware of a customer's inability or reluctance to pay. Accounts are written off once they are determined to be uncollectible.

**ACCOUNTING FOR GOVERNMENT GRANTS**–As a part of the 45Q transaction to monetize Section 45Q tax credits, Dakota Gas received an initial payment of $167.5 million in 2024 from the tax equity investor and the right to receive installment payments in exchange for certain membership interest in DCS. The initial payment was recognized in other noncurrent liabilities and the initial payment is accounted for as a sale of future revenue using the effective interest method. The carrying amount of the initial payment liability is the present value of the expected future tax credits to be earned. When there is reasonable assurance that the tax credits will be earned, the initial payment liability is reduced and other income with an interest expense component is recorded. The installment payments are recorded as other income when received.

Dakota Gas accounts for the monetization of the tax credits that DCS is eligible to receive under Section 45Q of the U.S. IRC as government grants under the grant model by analogy to IFRS (International Financial Reporting Standards) IAS (International Accounting Standards) 20, Accounting for Government Grants and Disclosure of Government Assistance. The Section 45Q tax credits are considered a grant related to income and Basin Electric has elected to present the monetization of the benefit as other and tax credits income and interest expense on the consolidated statements of operations. The monetization of the Section 45Q tax credits are recognized when there is reasonable assurance that the tax credits will be received.

**LEASES**–Leases are classified as either operating leases or finance leases based on guidance provided in ASC 842, *Leases*. Lease liabilities and their corresponding lease assets are recorded based on the present value of lease payments over the expected lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. For finance leases, the amortization of lease assets is recognized on a straight-line basis. Basin Electric does not recognize a corresponding lease asset or lease liability for leases with an original lease term of 12 months or less. Basin Electric determines the lease term based on the non-cancelable period in each contract, as well as any cancelable periods for which it is reasonably certain the lease will be extended.

The discount rate used to calculate the present value of the lease liabilities is based upon the implied rate within each contract. If the rate is unknown or cannot be determined, Basin Electric uses an incremental borrowing rate, which is determined by the length of the contract and Basin Electric's estimated borrowing rates as of the commencement date of the contract.

Variable lease payments that do not depend on an index or rate are recognized as incurred.

**PROPERTY, PLANT AND EQUIPMENT**–Property, plant and equipment are stated at cost, including contract work, direct labor and materials, allocable overheads and allowance for funds used during construction. Repairs and maintenance are charged to operations as incurred. Generally, when electric plant is retired, sold, or otherwise disposed of, the original cost plus the cost of removal less salvage value is charged to accumulated depreciation and the corresponding gain or loss is amortized over the remaining life of the plant. However, when an entire electric plant unit or system or land is sold, the cost

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

and the related accumulated depreciation are eliminated and a gain or loss is reflected in the consolidated statements of operations. When nonutility property is retired or sold any gain or loss is reflected in the consolidated statements of operations. For more information, see Note 5.

**DEPRECIATION, DEPLETION AND AMORTIZATION**–Electric plant and nonutility property at Dakota Gas is depreciated using a straight-line method over a remaining estimated useful life. For nonutility property at Dakota Coal, depreciation and depletion are provided for using the straight-line method based on the estimated useful lives or the units-of-production method based on estimated recoverable tonnage. For more information, see Note 5.

**RECOVERABILITY OF LONG-LIVED ASSETS**–Basin Electric accounts for the impairment or disposal of long-lived assets in accordance with ASC 360, Property, Plant, and Equipment, which requires long-lived assets, such as property and equipment, to be evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. An impairment has occurred when estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment has occurred, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques.

The impairment loss of $4.2 million in 2025 relates to coal gasification additions that were impaired upon purchase. The impairment loss of $36.3 million in 2024 consists of $32.3 million related to NRG's investment in NTEC; as it is not expected to generate any future cash flows, and $4.0 million of coal gasification additions that were impaired upon purchase. In 2018, management determined that certain coal gasification assets were impaired, consequently any subsequent coal gasification asset additions were impaired upon purchase.

An impairment loss of $5.0 million in 2023 consists of coal gasification additions that were impaired upon purchase.

**REGULATORY ASSETS AND LIABILITIES**-Basin Electric is subject to the provisions of ASC 980. Regulatory assets represent probable future revenue to Basin Electric associated with certain costs which will be recovered from customers through the ratemaking process. Regulatory liabilities represent probable future reductions in revenue associated with amounts that are to be credited to customers through the ratemaking process. For more information, see Note 9.

**INCOME TAXES**–Basin Electric uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of all temporary differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred taxes are recorded using the tax rates scheduled by tax law to be in effect in the periods when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that a portion or all of the deferred tax assets will not be realized. The realizability of deferred tax assets is determined by taking into consideration forecasts of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies. Changes in valuation allowances are included in the provision for income taxes in the period of the changes.

Basin Electric recognizes the tax effects of all tax positions that are more-likely-than-not to be sustained on audit based solely on the technical merits of those positions as of the balance sheet date. Changes in the recognition or measurement of such positions are recognized in the provision for income taxes in the period of the changes. Basin Electric classifies interest and penalties on tax uncertainties as components of those accounts in the consolidated statements of operations. For more information, see Note 13.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**DERIVATIVE FINANCIAL INSTRUMENTS**-All derivatives are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets, except for derivative contracts that qualify for and are elected under the normal purchase and normal sales exception under the requirements of ASC 815, Derivatives and Hedging. Basin Electric, Dakota Gas and Dakota Coal evaluate all purchase and sale contracts when executed to determine if they are derivatives and, if so, if they meet the normal purchase normal sale exception requirements under ASC 815. The derivative instruments that do not meet the normal purchase and normal sales exception are evaluated for designation as cash flow hedges of forecasted sales and purchases of commodities. Basin Electric also utilizes interest rate swap agreements to reduce exposure to interest rate fluctuations associated with floating rate debt obligations and anticipated debt financing.

Under ASC 980, Basin Electric defers changes in the fair value of certain derivative activity as a regulatory item to be recovered through rates in the future. Only current settlements of these derivative transactions are included in earnings. For more information, see Note 8.

**COLLATERAL**-Certain derivative instruments and certain agreements of Basin Electric and Dakota Gas contain contract provisions that require collateral to be posted if the credit ratings of Basin Electric fall below certain levels or if the counterparty exposure to Basin Electric or Dakota Gas exceeds a certain level.

Collateral posted (received) is related to derivative assets and liabilities and agreements that contain credit-related contingent features and is included in the consolidated balance sheets as follows:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Other investments | $47575 | $50633 |
| Cash and cash equivalents | - | 1297 |
| Prepayments and other current assets | 3350 | 6530 |
| Other current liabilities | (1954) | (3311) |
|  | $48971 | $55149 |

---

**ASSETS AND LIABILITIES MEASURED AT FAIR VALUE-ASC 820**, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard applies to reported balances that are required or permitted to be measured at fair value.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). For more information, see Note 14.

**INSURANCE PROCEEDS-** In 2022, Dakota Gas had an electrical power outage loss that resulted in reduced equipment availability. As a result of that event, in 2023, Dakota Gas and Dakota Coal received $26.6 million of business interruption insurance proceeds. In 2024, due to the same event Dakota Gas received $8.5 million of property damage insurance proceeds. The insurance proceeds were recognized as a reduction of nonelectric selling, general and administrative expenses in the consolidated statements of operations.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

In 2022, Dakota Gas had a fire resulting in the loss of property. As a result of that event, in 2024, Dakota Gas settled with its insurance carrier on the claim resulting in recognition of $13.8 million of property damage insurance proceeds. The property damage insurance proceeds were recognized as a reduction of nonelectric selling, general and administrative expenses in the consolidated statements of operations.

**SUBSEQUENT EVENTS**–Basin Electric considered events for recognition or disclosure in the consolidated financial statements that occurred subsequent to December 31, 2025 through April 15, 2026, the date the consolidated financial statements were available for issuance.

Management is not aware of any material subsequent events that would require recognition or disclosure in the 2025 consolidated financial statements.

**3.&nbsp;&nbsp;&nbsp;&nbsp;NEW ACCOUNTING PRONOUNCEMENTS**

***RECENTLY ADOPTED ACCOUNTING STANDARD UPDATES (ASU)***

*ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures* – In December 2023, the FASB issued new guidance to improve the transparency of income tax disclosures related to the rate reconciliation and income taxes paid disclosures. Other amendments improve the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) and removing disclosures that no longer are considered cost beneficial or relevant. Basin Electric has retrospectively implemented this guidance for the year ended December 31, 2025 and has identified and updated disclosures to ensure compliance with the new guidance, which are included in Note 13.

***RECENTLY ISSUED ACCOUNTING STANDARD UPDATES NOT YET ADOPTED***

*ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses* – In November 2024, the FASB issued new guidance to improve disclosures about a public business entity's expenses that will require additional detail for certain categories of income statement expenses. The new guidance will be effective for Basin Electric for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and the new guidance is to be applied either on a prospective or retrospective basis. Management is currently evaluating the impact of adoption of this new guidance on the financial statements and disclosures.

*ASU No. 2025-05, Financial Instruments-Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets* – In July 2025, the FASB issued new guidance to address challenges encountered when applying existing guidance to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update introduce a practical expedient for all entities and an accounting policy election for entities other than public business entities. The new guidance will be effective for Basin Electric for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted and the new guidance is to be applied on a prospective basis. Management is currently evaluating the impact of adoption of this new guidance on the financial statements and disclosures.

*ASU No. 2025-06, Intangibles-Goodwill and Other-Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software* – In September 2025, the FASB issued new guidance to modernize existing older guidance regarding capitalization and recognition to reflect the software development approaches currently being utilized. The new guidance will be effective for Basin Electric for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted and the new guidance is to be applied using one of

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

the three prescribed approaches. Management is currently evaluating the impact of adoption of this new guidance on the financial statements and disclosures.

*ASU No. 2025-09, Derivatives and Hedging: Hedge Accounting Improvements* – In November 2025, the FASB issued new guidance in an effort to better reflect an entity's risk management activities in the financial statements. The update makes targeted improvements by addressing five specific matters that arose from the implementation of previous ASU 2017-12, Derivatives and Hedging: Targeted Improvements for Accounting for Hedging Activities and the effects of LIBOR cessation. The new guidance will be effective for Basin Electric for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted and the new guidance is to be applied on a prospective basis, although an entity may elect to adopt the guidance for hedging relationships that exist as of the date of adoption. Management is currently evaluating the impact of adoption of this new guidance on the financial statements and disclosures.

*ASU No. 2025-10, Government Grants: Accounting for Government Grants Received by Business Entities* – In December 2025, the FASB issued new guidance to improve GAAP by establishing authoritative guidance on the accounting for government grants received by business entities. Previously, GAAP did not provide specific guidance about the recognition, measurement, and presentation of a grant received by a business entity from a government, and due to this absence of specific guidance, Basin Electric like many other business entities, utilized the guidance contained in IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. The new guidance will be effective for Basin Electric for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted and the new guidance is to be applied using one of the three prescribed approaches. Management is currently evaluating the impact of adoption of this new guidance on the financial statements and disclosures.

**4.&nbsp;&nbsp;&nbsp;&nbsp;LEASES**

**LESSEE ACCOUNTING**–Most of the leases Basin Electric enters into are for certain substation, office and communication equipment, mining equipment, railcars, certain land leases and a generation facility, as part of its ongoing operations. Basin Electric determines if an arrangement contains a lease at inception of a contract.

Generally, the leases for certain substation, office and communication equipment, mining equipment and railcars have a term of ten years or less, certain land leases have a longer term of up to 100 years and the generation facility has a term of ten years. To date, Basin Electric does not have any residual value guarantee amounts probable of being owed to a lessor. Basin Electric does have financing leases and material agreements with related parties.

The lease costs are included in electric operations and maintenance, cost of products sold, nonelectric selling, general and administrative expenses, depreciation and amortization and interest expense on the consolidated statements of operations.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The components of lease expense for the years ended December 31 were as follows:

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Finance lease cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease assets | $1533 | $1674 | $1228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on lease liabilities | 428 | 503 | 435 |
| Operating lease cost | 33885 | 26330 | 25502 |
| Short-term lease cost | 2583 | 2114 | 4478 |
| Variable lease cost | 1267 | 1309 | 1062 |
| Sublease income | (1657) | (1562) | (1541) |
| Total lease cost | $38039 | $30368 | $31164 |

---

Supplemental cash flow information related to leases as of December 31 was as follows:

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | $180 | $243 | $286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $32669 | $25909 | $25848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | $1217 | $1138 | $810 |

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Supplemental balance sheet information related to leases as of December 31 was as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Balance Sheet Location** | **2025** | **2024** |
| | | **(In thousands)** | **(In thousands)** |
| Assets: |  |  |  |
| Net operating lease assets | Other deferred charges | $129903 | $124062 |
| Financing lease assets | Plant in service | $11911 | $12522 |
| Less: Accumulated amortization | Accumulated provision for depreciation and amortization | (4824) | (4274) |
| Net finance lease assets |  | $7087 | $8248 |
| Liabilities: |  |  |  |
| Current: |  |  |  |
| Operating leases | Other current liabilities | $30030 | $22434 |
| Finance leases | Long-term debt and finance leases due within one year | 1114 | 1066 |
| Total current lease liabilities |  | $31144 | $23500 |
| Noncurrent: |  |  |  |
| Operating leases | Other noncurrent liabilities | $99987 | $101773 |
| Finance leases | Finance lease obligations | 3532 | 4305 |
| Total noncurrent lease liabilities |  | $103519 | $106078 |

---

Weighted average remaining terms and discount rates related to leases as of December 31 was as follows:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Weighted-average remaining lease term-finance leases | 10.9 years | 10.9 years |
| Weighted-average remaining lease term-operating leases | 9.6 years | 10.9 years |
| Weighted-average discount rate-finance leases | 5.1% | 5.3% |
| Weighted-average discount rate-operating leases | 4.6% | 3.7% |

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The reconciliation of the future undiscounted cash flows to the lease liabilities presented on the consolidated balance sheet at December 31, 2025, was as follows:

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| | | | |
|:---|:---|:---|:---|
| **Year** | **Operating Leases** | **Finance Leases** | **Total** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| 2026 | $31661 | $1364 | $33025 |
| 2027 | 31539 | 865 | 32404 |
| 2028 | 20304 | 598 | 20902 |
| 2029 | 15123 | 359 | 15482 |
| 2030 | 13716 | 206 | 13922 |
| Thereafter | 47319 | 2919 | 50238 |
| Total lease payment | 159662 | 6311 | 165973 |
| Less: discount | 29645 | 1665 | 31310 |
| Total lease liabilities | $130017 | $4646 | $134663 |

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**5.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY, PLANT AND EQUIPMENT AND JOINTLY OWNED FACILITIES**

Significant components of property, plant and equipment were as follows at December 31:

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| | | | |
|:---|:---|:---|:---|
| | **Depreciable Lives** | **2025** | **2024** |
| | | **(In thousands)** | **(In thousands)** |
| Electric Utility: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Generation | 20-60 years | $6549352 | $5811843 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission | 20-60 years | 1606477 | 1569678 |
| &nbsp;&nbsp;&nbsp;&nbsp;General plant | 3-20 years | 352711 | 327392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property | 3-32 years | 1909 | 1909 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction work in progress |  | 769953 | 819808 |
| Total Electric Utility |  | 9280402 | 8530630 |
| Less: accumulated provision for depreciation and amortization |  | (3602271) | (3449655) |
|  |  | 5678131 | 5080975 |
| Gasification: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Synfuels Plant | 30 years | 917633 | 905983 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pipelines | 2-30 years | 64069 | 64069 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property | 3-30 years | 111170 | 113542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction work in progress |  | 8568 | 4872 |
| Total Gasification |  | 1101440 | 1088466 |
| Less: accumulated provision for depreciation and amortization |  | (404633) | (372288) |
|  |  | 696807 | 716178 |
| Coal and Limestone Operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mining | 10-20 years | 584895 | 537343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lime and limestone | 10-20 years | 50364 | 50477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property | 3-20 years | 12286 | 13706 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction work in progress |  | 242 | 7092 |
| Total Coal and Limestone Operations |  | 647787 | 608618 |
| Less: accumulated provision for depreciation, depletion and amortization |  | (369013) | (347058) |
|  |  | 278774 | 261560 |
| Other: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property | 3-32 years | 1907 | 1907 |
| Total Other |  | 1907 | 1907 |
| Total net property, plant and equipment |  | $6655619 | $6060620 |

---

Construction work in progress included $27.9 million and $33.8 million as of December 31, 2025 and 2024, respectively, of interest charged and capitalized to construction. Annual depreciation, depletion and amortization expense totaled $287.2 million, $269.9 million and $260.1 million for 2025, 2024 and 2023, respectively.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Basin Electric's investment in the jointly owned MBPP electric plant included in Electric Utility property above was as follows at December 31:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Electric plant | $970637 | $965675 |
| Less: accumulated provision for |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;depreciation and amortization | (648917) | (627848) |
|  | $321720 | $337827 |

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**6.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTED AND DESIGNATED CASH AND INVESTMENTS**

Cash, cash equivalents, and restricted and designated cash and cash equivalents reported within the consolidated balance sheets and included in the consolidated statement of cash flows are as follows at December 31:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Cash and cash equivalents | $685570 | $376659 |
| Restricted and designated cash and equivalents: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MBPP operating funds | 29923 | 27251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue funds | 272000 | 290000 |
|  | 301923 | 317251 |
| Total cash, cash equivalents and restricted and designated cash and equivalents included in the consolidated statements of cash flows | $987493 | $693910 |

---

Restricted and designated investments reported within the consolidated balance sheets are as follows at December 31:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Restricted and designated investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds held in trust for an asset retirement obligation by Bank of Montreal as trustee for SVPL | 5244 | 4550 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligations | 56118 | 49763 |
|  | $61362 | $54313 |

---

Restricted cash and investments include funds held by a financial institution, as trustee, at December 31. Designated cash and investments includes amounts designated by the Basin Electric Board of Directors.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**7.&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS**

Investments in equity securities and available-for-sale debt securities are included in mine related assets, restricted and designated investments and other investments on the consolidated balance sheets. The cost, unrealized holding gains and losses, and fair value of equity and debt securities that do not have an allowance for credit losses were as follows as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross<br>Unrealized Holding** | **Gross<br>Unrealized Holding** | **Fair<br>Value** |
| |<br>**Cost** | **Gains** | **Losses** | **Fair<br>Value** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Available-for-sale debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and government bonds | $1947 | $24 | $- | $1971 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equities and equity funds | 42147 | 86512 | - | 128659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bond market funds | 78577 | - | (5573) | 73004 |
|  | 120724 | 86512 | (5573) | 201663 |
| Other | 88 | - | - | 88 |
|  | $122759 | $86536 | $(5573) | $203722 |

---

During 2025, sales proceeds on debt securities classified as available-for-sale were $143.9 million. The cost of securities sold is based on the specific identification method.

The cost, unrealized holding gains and losses, and fair value of equity and debt securities that do not have an allowance for credit losses were as follows as of December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross<br>Unrealized Holding** | **Gross<br>Unrealized Holding** | **Fair<br>Value** |
| |<br>**Cost** | **Gains** | **Losses** | **Fair<br>Value** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Available-for-sale debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and government bonds | $117064 | $83 | $(54) | $117093 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equities and equity funds | 43766 | 76830 | - | 120596 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bond market funds | 65044 | - | (7462) | 57582 |
|  | 108810 | 76830 | (7462) | 178178 |
| Other | 28 | - | - | 28 |
|  | $225902 | $76913 | $(7516) | $295299 |

---

During 2024, sales proceeds on debt securities classified as available-for-sale were $91.2 million. The cost of securities sold is based on the specific identification method.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The fair value of available-for-sale debt securities by contracted maturity date as of December 31 was as follows:

---

| | |
|:---|:---|
| | **2025** |
| | **(In thousands)** |
| Due through one year | $458 |
| Due after one year through five years | 720 |
| Due after five years | 793 |
|  | $1971 |

---

Held-to-maturity debt securities have contracted maturity dates of one year or less and are included in Cash and cash equivalents, Restricted and designated cash and cash equivalents and short-term investments on the consolidated balance sheets. The amortized costs were as follows for the years ended December 31:

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| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Corporate commercial paper | $38030 | $38938 |
| Money market funds | 745170 | 448162 |
| Treasuries | 199300 | 212727 |
|  | $982500 | $699827 |

---

Included in other investments on the consolidated balance sheets is the cash surrender value of life insurance policies of $1.6 million and $1.8 million, as of December 31, 2025 and 2024, respectively.

The MBPP provides financing to Western Fuels Association (Western Fuels) and Western Fuels-Wyoming, Inc. (WFW), a wholly owned subsidiary of Western Fuels, for mine development costs associated with coal deliveries to LRS. Basin Electric provides financing to Western Fuels and WFW for mine development costs associated with coal deliveries to DFS.

Notes receivable from WFW of $20.8 million and $21.5 million as of December 31, 2025 and 2024, respectively, are included in other investments, investments in associated companies and receivables, net on the consolidated balance sheets. Maturities range from July 2026 through May 2043, and the weighted average interest rate is 5.54 percent. The estimated fair value of these notes receivable as of December 31, 2025 and 2024 was $21.0 million and $20.9 million, respectively, based on the future cash flows discounted using the yield on a treasury note with a similar maturity.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**8.&nbsp;&nbsp;&nbsp;&nbsp;DERIVATIVE FINANCIAL INSTRUMENTS**

Normal operations expose Basin Electric to risks associated with changes in the market price of certain commodities. Basin Electric entered into derivative financial instruments for the purpose of mitigating the risks associated with market price volatility of natural gas, tar oil, electricity and diesel. Any changes in cash flows from the underlying purchases and sales that are indexed to certain prices are offset by corresponding changes in the cash flows from the derivatives. As directed by a Basin Electric Board of Director's policy (Board Policy) to monitor risk and establish an internal control framework, Basin Electric maintains a Risk Management Steering Committee (RMSC) that is governed by a Commodity Risk Management Manual (Manual). The Board Policy prohibits speculation and the Manual has been adopted by the RMSC. In offsetting market risk, Basin Electric is exposed to other forms of incremental risk such as credit or liquidity risk.

The following table presents the outstanding hedged forecasted transactions as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Hedged Transaction** | **Term** | **Contracted<br>Monthly Volumes<br>of Forecasted<br>Transactions** | **Price** |
| Natural gas sales | Through February 2026 | 6% | $6.32 per dekatherm |
| Natural gas purchases | Through December 2033 | 16% to 87% | $2.79 - $6.51 per dekatherm |
| Tar oil sales | Through November 2027 | 29% to 83% | $52.00 - $62.95 per barrel |
| Electricity purchases | Through December 2027 | 13% to 100% | $30.50 - $58.60 per MWh |
| Diesel purchases | Through December 2028 | 25% to 89% | $2.07 - $2.44 per gallon |

---

Basin Electric is also exposed to interest rate risk. To mitigate this risk, Basin Electric entered into various interest rate swap agreements to reduce the impact of changes in interest rates on certain variable rate long-term bonds. The following table presents the outstanding swap agreements on variable rate bonds as of December 31, 2025:

---

| | | |
|:---|:---|:---|
| **Notional Amount** | **Due** | **Effective Interest Rate** |
| **(In thousands)** | | |
| $100000 | 2032 | 6.18% |
| $50000 | 2032 | 4.95% |
| $50000 | 2030 | 5.33% |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The fair value and classification of the asset and liability portion of the derivative instruments in the consolidated balance sheets is as follows as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
|<br>**Balance Sheet Location** | **Fair Value<br>of Asset<br>Derivatives** | **Fair Value<br>of Liability<br>Derivatives** | **Fair Value<br>of Asset<br>Derivatives** | **Fair Value<br>of Liability<br>Derivatives** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Derivatives designated as cash flow hedges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | $5312 | $- | $683 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 1684 | - | 745 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | - | (1319) | - | (1092) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | - | (671) | - | (1006) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives designated as cash flow hedges | $6996 | $(1990) | $1428 | $(2098) |
| Derivatives not designated as cash flow hedges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | $34673 | $- | $32291 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 1211 | - | 841 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | - | (14763) | - | (10298) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | - | (14687) | - | (6507) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | - | (22031) | - | (18351) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as cash flow hedges | $35884 | $(51481) | $33132 | $(35156) |
|  | $42880 | $(53471) | $34560 | $(37254) |

---

Under ASC 980, Basin Electric defers changes in the fair value of certain derivative instruments as regulatory assets or liabilities. Current settlements of derivatives, including interest rate swaps and commodity derivatives, resulted in charges to the consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 of $6.6 million, $61.0 million, and $84.2 million, respectively, which are reclassified from regulatory assets and liabilities.

The change in fair value of derivatives deferred as a regulatory item for the years ended December 31, 2025, 2024 and 2023 resulted in net deferred losses of $21.7 million, $10.7 million and $63.8 million, respectively.

For derivative instruments that are designated and qualify as a cash flow hedge under ASC 815, the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into net earnings in the same period or periods during which the hedged transaction affects net margin and earnings and is presented in the same line item on the consolidated statements of operations as the net earnings effect of the hedged item.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following table summarizes Dakota Gas and Dakota Coal gains and losses and financial statement classification of the derivatives designated as cash flow hedges as of December 31, 2025. This does not reflect the expected gains or losses arising from the underlying physical transactions; therefore it is not indicative of the economic gross profit or loss realized when the underlying physical and financial transactions were settled.

---

| | | |
|:---|:---|:---|
| | **Location of Gain (Loss) Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** | **Location of Gain (Loss) Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** |
| | **2025** | **2025** |
| | **Other Operating Revenues** | **Cost of Products Sold** |
| | **(In thousands)** | **(In thousands)** |
| Total amounts of income and expense line items presented on the consolidated statements of operations in which the effects of cash flow hedges are recorded | $925715 | $597232 |
| Gain (loss) on cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from accumulated other comprehensive income into net margins and earnings | $1982 | $(681) |

---

The following table summarizes Dakota Gas and Dakota Coal gains and losses and financial statement classification of the derivatives designated as cash flow hedges as of December 31, 2024.

---

| | | |
|:---|:---|:---|
| | **Location of Gain (Loss) Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** | **Location of Gain (Loss) Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** |
| | **2024** | **2024** |
| | **Other Operating Revenues** | **Cost of Products Sold** |
|  | **(In thousands)** | **(In thousands)** |
| Total amounts of income and expense line items presented on the consolidated statements of operations in which the effects of cash flow hedges are recorded | $819440 | $542295 |
| Gain (loss) on cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from accumulated other comprehensive income into net margins and earnings | $3809 | $(950) |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following table summarizes Dakota Gas and Dakota Coal gains and losses and financial statement classification of the derivatives designated as cash flow hedges as of December 31, 2023.

---

| | | |
|:---|:---|:---|
| | **Location of Gain Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** | **Location of Gain Recognized in<br>Net Loss on Cash Flow Hedging<br>Relationships** |
| | **2023** | **2023** |
| | **Other Operating Revenues** | **Cost of Products Sold** |
|  | **(In thousands)** | **(In thousands)** |
| Total amounts of income and expense line items presented on the consolidated statements of operations in which the effects of cash flow hedges are recorded | 960904 | 544439 |
| Gain on cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from accumulated other comprehensive income into net margins and earnings | $29410 | $767 |

---

The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss) for the years ended December 31.

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Increase (decrease) in fair value of commodity derivatives | $6976 | $(3264) | $17387 |
| Recognition of gains in earnings due to settlements on commodity derivatives | (1301) | (2859) | (30177) |
| Total other comprehensive income (loss) from hedging | $5675 | $(6123) | $(12790) |

---

Based on December 31, 2025 prices, a $4.0 million gain would be realized, reported in pre-tax earnings and reclassified from Accumulated other comprehensive income during the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods.

There are certain commodity derivative financial instruments that do not meet the criteria for hedge accounting under ASC 815 when using the critical terms match effectiveness assessment. For those derivatives, gains or losses are recorded in the consolidated statements of operations. The following table summarizes the impact of commodity derivatives that do not meet the criteria. This does not reflect the expected gains or losses arising from the underlying physical transactions; therefore it is not indicative of the economic gross profit or loss realized when the underlying physical and financial transactions were settled.

---

| | | | |
|:---|:---|:---|:---|
|<br>**Location of Gain (Loss) on Derivatives<br>Recognized in Net Margin and Earnings** | **2025**<br>**Recognized Loss** | **2024**<br>**Recognized Loss** | **2023**<br>**Recognized Gain (Loss)** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Derivatives not designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating revenues | $(432) | $(2042) | $(1924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating revenues | - | - | 612 |
| Total | $(432) | $(2042) | $(1312) |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**9.&nbsp;&nbsp;&nbsp;&nbsp;REGULATORY ASSETS AND LIABILITIES**

Regulatory assets and liabilities were as follows as of December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **Remaining<br>Recovery<br>Period** | **2025** | **2024** |
| | | **(In thousands)** | **(In thousands)** |
| Regulatory assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | Over Plant lives | $160754 | $155660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Refinancing fees | Up to 24 years | 80122 | 86297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on interest rate swaps | Up to 7 years | 21066 | 17385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on commodity derivatives | Up to 8 years | 28239 | 10283 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | Up to 50 years | 21192 | 25532 |
|  |  | $311373 | $295157 |
| Regulatory liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue |  | (272000) | (290000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on purchase power contracts |  | - | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on equity investments |  | (18489) | (15696) |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-retirement medical gain |  | (21044) | (16389) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (24772) | (15056) |
|  |  | (336305) | (337241) |
| Net regulatory liabilities |  | $(24932) | $(42084) |

---

If all or a separable portion of Basin Electric's operations no longer are subject to the provisions of ASC 980, a write-off of net related regulatory assets (liabilities) would be required, unless some form of transition recovery (refund) continues through rates established and collected for Basin Electric's remaining regulated operations. In addition, Basin Electric would be required to determine any impairment to the carrying costs of deregulated plant and inventory assets.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**10.&nbsp;&nbsp;&nbsp;&nbsp;EQUITY**

**ACCUMULATED OTHER COMPREHENSIVE INCOME**–The following table includes the changes in the balances of the components of accumulated other comprehensive income on the consolidated balance sheets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Post Employment<br> Benefit <br>Plans** | **Unrealized <br>Gain (Loss) on <br>Securities** | **Unrealized <br>Gain (Loss) on <br>Cash Flow <br>Hedges** | **Total** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, December 31, 2022 | (1525) | (3813) | 14413 | 9075 |
| Comprehensive income (loss) | 4010 | 2756 | (10103) | (3337) |
| Balance, December 31, 2023 | 2485 | (1057) | 4310 | 5738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | 2826 | 1079 | (4837) | (932) |
| Balance, December 31, 2024 | 5311 | 22 | (527) | 4806 |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | 4180 | (6) | 4483 | 8657 |
| Balance, December 31, 2025 | $9491 | $16 | $3956 | $13463 |

---

**OTHER EQUITY**–From November 1981 through August 1983, Basin Electric sold approximately $894.0 million of electric plant under sale and leaseback agreements in exchange for $310.0 million in cash and $584.0 million in notes. Annual lease payments are equal to the payments the purchaser is required to make on its notes to Basin Electric. The sale and lease transactions have not been recognized for financial reporting purposes, as such transactions were entered into solely for tax purposes under the Economic Recovery Tax Act of 1981 and the Tax Equity and Fiscal Responsibility Act of 1982 and do not affect Basin Electric's rights with respect to the property. The $310.0 million, net of expenses of $28.0 million, was reserved in other equity.

Beginning in March 2001, Basin Electric allocated its before tax margin to members and recorded any provision for or benefit from income taxes in other equity. In 2025, 2024, and 2023, net income tax (benefit) expense of $(9.1) million, $1.3 million and $59.9 million, respectively, was closed into other equity. As of December 31, 2025, $21.0 million of cumulative net income tax benefit was closed into other equity.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**11.&nbsp;&nbsp;&nbsp;&nbsp;LONG-TERM DEBT AND OTHER FINANCING**

Outstanding long-term debt was as follows as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Due Date** | **Weighted <br>Average Interest <br>Rate at <br>December 31, 2025** | **2025** | **2024** |
| | | | **(In thousands)** | **(In thousands)** |
| Basin Electric Power Cooperative |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;First Mortgage Bonds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006 Series | June 2041 | 6.13% | $200000 | $200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017 Series | April 2047 | 4.75% | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 Series | Oct. 2055 | 5.85% | 700000 | - |
|  |  |  | 1400000 | 700000 |
| &nbsp;&nbsp;&nbsp;&nbsp;First Mortgage Obligations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005 Series | Dec. 2028-May 2030 | 5.85% | 90000 | 90000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2007 Series | Sep. 2042 | 5.74% | 216854 | 225216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2008 Series | Dec. 2028-Dec. 2038 | 5.98% | 413389 | 429333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2009 Series | Oct. 2027-April 2040 | 5.47% | 132222 | 143333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2011 Series | Oct. 2031-Oct. 2049 | 4.53% | 208080 | 223745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2012 Series | Nov. 2044 | 4.07% | 73949 | 76489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015 Series | June 2027-June 2044 | 4.50% | 1353420 | 1427590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 CoBank Note | April 2046 | 4.48% | 68333 | 71667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 CFC Note | April 2046 | 3.74% | 51050 | 53571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 Series | Feb. 2042-Feb. 2062 | 3.00% | 276810 | 276810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 CoBank Note | Nov. 2034- May 2035 | 6.14% | 200000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 Series | Feb. 2029-Feb. 2054 | 6.22% | 350525 | 363508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2007 and 2008 Notes | June 2027-Dec. 2028 | 5.09% | 4750 | 6750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 Note | Oct. 2043 | 5.56% | 72000 | 76000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 RUS Loan | June 2033 | 4.33% | 538 | - |
|  |  |  | 3511920 | 3564012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment Notes | Dec. 2035- Mar. 2026 | 5.09% | 21617 | 9600 |
| &nbsp;&nbsp;&nbsp;&nbsp;2019 Tax-Exempt Bonds | July 2039 | 3.63% | 150000 | 150000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable to affiliates |  |  | - | 4400 |
|  |  |  | 171617 | 164000 |
| Dakota Coal |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment Notes | Jan. 2026-July 2036 | 4.91% | 66462 | 78523 |
| Dakota Gasification Company |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior Secured Notes 2015 Series |  |  | - | 289066 |
| Other |  | Various | 11806 | 12568 |
|  |  |  | 78268 | 380157 |
|  |  |  | 5161805 | 4808169 |
| Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion |  |  | (176019) | (193198) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized debt issue costs |  |  | (35447) | (26598) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount payable |  |  | (1075) | - |
| Long-term debt, net of current portion |  |  | $4949264 | $4588373 |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The estimated fair value of debt at December 31, 2025 and 2024 was $5.1 billion and $4.5 billion, respectively, based on cash flows discounted at interest rates for similar issues or at the current rates offered to Basin Electric for debt of comparable maturities.

The scheduled maturities of long-term debt for the next five years as of December 31, 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2026** | **2027** | **2028** | **2029** | **2030** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Long-term debt | $176019 | $184837 | $152297 | $209347 | $208265 |

---

All of Basin Electric's long-term debt is secured under the Amended and Restated Indenture dated May 5, 2015 (the "Indenture"), between Basin Electric and U.S. Bank National Association, as trustee. Pursuant to the Indenture, Basin Electric created a first lien on substantially all of its tangible and certain of its intangible assets in favor of the Indenture trustee to secure certain long-term debt on a pro-rata basis.

Basin Electric's and its subsidiaries' debt agreements contain various restrictive financial and non-financial covenants which, among other matters, require Basin Electric to maintain a defined margins for interest ratio. As of December 31, 2025 Basin Electric is in compliance with all financial covenants related to the debt agreements.

All of Dakota Gas's long-term debt was secured under an Indenture dated as of May 1, 2015 between Dakota Gas and U.S. Bank, N.A., as trustee. Dakota Gas's long-term debt was also supported by an unsecured Guarantee dated as of May 8, 2015 by Basin Electric, its parent, in favor of U.S. Bank National Association, as Trustee. In December 2025, DGC's long-term debt of $261.5 million was paid in full by means of a capital contribution by Basin Electric.

Dakota Coal's equipment notes are collateralized by security interests in certain mining equipment granted to the lender. Certain of Dakota Coal's equipment notes are also supported by an unsecured Guarantee dated as of March 23, 2012, by Basin Electric.

In order to invest in DCS and effectuate the contribution of the assets to DCS, Dakota Gas was required to receive consent and waiver of certain conditions in its Indenture from the noteholders of the senior secured notes. As a part of the consent and waiver from the noteholders, Dakota Gas made a prepayment on the notes in the amount of $34.1 million in March 2024.

**NOTES PAYABLE–**Basin Electric has outstanding revolving credit facilities and a term loan which are included in notes payable on the consolidated balance sheets as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Facility** | **Expiration Date** | **Total Availability** | **Outstanding Amounts as of December 31, 2025** |
| | | **(In thousands)** | **(In thousands)** |
| Commercial Paper/Revolving Credit Agreement (a) (b) | March 2026 | $130000 | $100000 |
| Revolving Credit Agreement | May 2030 | 1250000 | - |
| 2025 Term Loan | October 2026 | 375000 | 375000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total notes payable |  | $1755000 | $475000 |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

_______________

(a)The taxable and tax-exempt commercial paper programs are supported by revolving credit agreements with various banks. Balances reflect commercial paper amounts outstanding. There were no amounts outstanding under the revolving credit agreements.

(b)On March 13, 2026, Basin Electric amended and restated this credit agreement to decrease the available borrowing capacity to $100.0 million and extend the expiration date to March 2031.

As of December 31, 2025 and 2024, the effective interest rate of the outstanding advances was 4.74 percent and 4.73 percent, respectively.

**MEMBER INVESTMENT PROGRAM–**Basin Electric holds notes related to funds invested by the members under a member investment program. These funds are used by Basin Electric to reduce short-term borrowings. The members receive investment earnings based on market rates, adjusted for administrative costs. The notes held as part of this program were as follows at December 31:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Long-term debt, net of current portion | $- | $4400 |
| Notes payable-Members | 159495 | 142390 |
|  | $159495 | $146790 |

---

**12.&nbsp;&nbsp;&nbsp;&nbsp;REVENUE**

The following tables disaggregate revenue by major source. The tables also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on Basin Electric's business segments, see Note 17.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Elimination of Intersegment** | **Total** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Sales of electricity to members | $2162056 | $- | $- | $- | $2162056 |
| Sales of electricity to non-members | 196428 | - | - | - | 196428 |
| Synthetic natural gas | - | 105988 | - | - | 105988 |
| Fertilizer and DEF products | - | 318982 | - | - | 318982 |
| Other byproducts | - | 64576 | - | - | 64576 |
| Lignite coal | - | - | 276028 | (106917) | 169111 |
| Miscellaneous | 7346 | 2969 | 28231 | - | 38546 |
| Revenue from contracts with customers | 2365830 | 492515 | 304259 | (106917) | 3055687 |
| Regulatory deferred revenue recognized | 18000 | - | - | - | 18000 |
| Other revenue | 12534 | 1550 | - | - | 14084 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | $2396364 | $494065 | $304259 | $(106917) | $3087771 |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Elimination of Intersegment** | **Consolidated** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Sales of electricity to members | $1995959 | $- | $- | $- | $1995959 |
| Sales of electricity to non-members | 205762 | - | - | - | 205762 |
| Synthetic natural gas | - | 75926 | - | - | 75926 |
| Fertilizer and DEF products | - | 227749 | - | - | 227749 |
| Other byproducts | - | 75566 | - | - | 75566 |
| Lignite coal | - | - | 234253 | (96740) | 137513 |
| Miscellaneous | 6500 | 1395 | 24651 | - | 32546 |
| Revenue from contracts with customers | 2208221 | 380636 | 258904 | (96740) | 2751021 |
| Regulatory deferred revenue recognized  | 60000 | - | - | - | 60000 |
| Other revenue | 2611 | 1767 | - | - | 4378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | $2270832 | $382403 | $258904 | $(96740) | $2815399 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Elimination of Intersegment** | **Total** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Sales of electricity to members | $1926214 | $- | $- | $- | $1926214 |
| Sales of electricity to non-members | 257953 | - | - | - | 257953 |
| Synthetic natural gas | - | 107295 | - | - | 107295 |
| Fertilizer and DEF products | - | 235260 | - | - | 235260 |
| Other byproducts | - | 72131 | - | - | 72131 |
| Lignite coal | - | - | 218544 | (79779) | 138765 |
| Miscellaneous | 7563 | 1445 | 24586 | - | 33594 |
| Revenue from contracts with customers | 2191730 | 416131 | 243130 | (79779) | 2771212 |
| Regulatory deferred revenue recognized  | 65000 | - | - | - | 65000 |
| Other revenue | 22808 | 28098 | - | - | 50906 |
| &nbsp;&nbsp;&nbsp;Total operating revenue | $2279538 | $444229 | $243130 | $(79779) | $2887118 |

---

**NET DEFERRED REVENUE AND OTHER REVENUE**–Revenue from nonmember wholesale electricity sales of $18.0 million, $60.0 million and $65.0 million that was previously deferred was recognized in 2025, 2024 and 2023, respectively, by Basin Electric's Board of Directors, in its capacity as regulator. This deferred revenue is accounted for under ASC 980. Other revenue includes derivative revenue from hedging activities for synthetic natural gas, tar oil, and electricity sales which is accounted for under ASC 815.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**CONTRACT BALANCES**–At times, Basin Electric and its subsidiaries will receive payment in advance of performing an obligation under a contract. Unearned revenue, a contract liability, is recognized when this occurs. At December 31, 2025 and 2024, the unearned revenue balance (included in other current liabilities on the consolidated balance sheets) was $7.6 million and $301,000, respectively. There were no contract assets at December 31, 2025 and 2024. The balance in receivables, net on the consolidated balance sheets represent the unconditional right to consideration from customers.

**13.&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES**

Basin Electric is a nonexempt cooperative subject to federal and state income taxation, but as a cooperative is allowed to exclude from income margins allocated as patronage capital. Basin Electric and its subsidiaries (the Consolidated Group) file a consolidated income tax return and have entered into tax-sharing agreements. Income taxes are allocated among members of the Consolidated Group based on a systematic, rational and consistent method under which such taxes approximate the amount that would have been computed on a separate company basis, subject to limitations on the Consolidated Group.

Basin Electric's margin before income taxes by geographic location was as follows for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Margin before income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | $145200 | $130893 | $162098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign - Canada | 602 | 64 | 294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total margin before income taxes | $145802 | $130957 | $162392 |

---

The components of Basin Electric's income tax expense (benefit) were as follows for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Current income tax expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $6429 | $3101 | $5849 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | 89 | 239 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign - Canada | 364 | (29) | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current income tax expense | 6882 | 3311 | 6037 |
| Deferred income tax benefit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | 644 | (16064) | (11748) |
| &nbsp;&nbsp;&nbsp;&nbsp;State | (688) | (450) | (453) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign - Canada | (308) | 166 | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total deferred income tax benefit | (352) | (16348) | (12244) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total income tax expense (benefit) | $6530 | $(13037) | $(6207) |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The tax sharing agreement between Basin Electric and Dakota Gas requires reimbursement for the usage of net operating losses and other tax attributes. At December 31, 2025, Basin Electric had a receivable from Dakota Gas in the amount of $2.5 million for a reduction of the utilization of net operating losses which is included in current tax expense. The tax effect of significant temporary differences representing deferred tax assets and liabilities were as follows at December 31:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayment and installment payments | $53093 | $58188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Patronage loss | 22273 | 24439 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease obligation | 27024 | 25998 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 57120 | 60900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred credits | 18978 | 17374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax credits available | 16097 | 15391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense carryover | 40380 | 35883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mine related | 20915 | 15378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating loss carryforward | 80154 | 71946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other deferred tax assets | 19755 | 19623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (35741) | (25766) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets | 320048 | 319354 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and property | (315363) | (299590) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax benefit transfer leases | (25823) | (23434) |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use lease asset | (27016) | (25989) |
| &nbsp;&nbsp;&nbsp;&nbsp;Patronage capital | (4200) | (5361) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt refinancing expense | (13245) | (14318) |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct financing leases | (9710) | (12835) |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous deferred expenses | (823) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other deferred tax liabilities | - | (9327) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains | (14790) | (10508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liability | (410970) | (401362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax liability | $(90922) | $(82008) |

---

The net deferred tax liability is recorded in deferred income tax liability on the consolidated balance sheets. Deferred taxes have been provided for temporary income tax differences associated with utility operations with an offsetting amount recorded as a regulatory asset as such amounts are expected to be recovered through rates charged to members at such time as the Board of Directors, in its capacity as regulator, deems appropriate.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Income taxes differ from the income tax expense (benefit) computed using the statutory rate for the years ended December 31 as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| U.S Federal statutory income tax | $30618 | 21.0% | $27501 | 21.0% | $34102 | 21.0% |
| State income taxes, net of federal income tax benefit <sup>(a)</sup> | (599) | (0.4)% | (211) | (0.2)% | (390) | (0.2)% |
| Patronage capital allocated | (22249) | (15.3)% | (24457) | (18.7)% | (31770) | (19.6)% |
| Tax credits | (1149) | (0.8)% | (1178) | (0.9)% | - | -% |
| Nontaxable or nondeductible items | (351) | (0.2)% | (266) | (0.2)% | (881) | (0.5)% |
| Change in regulatory asset associated with deferred taxes | (5366) | (3.7)% | (20974) | (16.0)% | (11958) | (7.4)% |
| Changes in valuation allowances | 7034 | 4.8% | 7517 | 5.7% | 1619 | 1.0% |
| Foreign tax effects - Canada | (121) | (0.1)% | - | -% | (13) | -% |
| Changes in unrecognized tax benefits | (274) | (0.2)% | (446) | (0.3)% | (246) | (0.2)% |
| Other: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | (1633) | (1.1)% | (2030) | (1.6)% | (1538) | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 620 | 0.5% | 1507 | 1.2% | 4868 | 3.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) and effective income tax rate | $6530 | 4.5% | $(13037) | (10.0)% | $(6207) | (3.8)% |

---

______________

(a)State taxes in North Dakota made up the majority (greater than 50 percent) of the tax effect in this category.

Basin Electric had available federal and state research and carbon sequestration tax credit carryforwards of approximately $16.1 million. The research tax credits expire in varying amounts from 2026 through 2039 and the carbon sequestration credits generated in 2025 expire in 2045. Basin Electric has a consolidated net operating loss carryforward as of December 31, 2025 of $381.7 million, and a patron net operating loss of $106.1 million. The losses are carried forward indefinitely.

Deferred tax assets are reduced by a valuation allowance when it is more likely than not that a portion or all of the deferred tax assets will not be realized. The valuation allowance on deferred tax assets increased from $25.8 million in 2024 to $35.7 million in 2025. It is more likely than not that the benefit from certain federal and state net operating losses and federal and state tax credits will not be fully realized. In recognition of this risk, Basin Electric recorded an incremental partial valuation allowance on the related deferred tax assets. Basin Electric has a federal interest expense carryforward that is carried forward indefinitely. As it is unlikely the benefit from the interest expense carryforward will be fully realized, Basin Electric recorded an incremental partial valuation allowance on the related deferred tax asset.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

In accordance with the provisions of ASC 740, *Income Taxes*, Basin Electric records a liability for unrecognized tax benefits. A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, January 1 | $5946 | $6392 | $6638 |
| &nbsp;&nbsp;&nbsp;&nbsp;Addition for tax positions of current period | 199 | 5 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Reduction for tax positions of prior periods | (473) | (451) | (246) |
| Balance, December 31 | $5672 | $5946 | $6392 |

---

Basin Electric recognizes interest and penalties related to unrecognized tax benefits, if any, in the respective interest and penalties expense accounts and not in the income tax expense (benefit) on the consolidated statements of operations.

As of December 31, 2025, with limited exceptions, Basin Electric is no longer subject to examinations by taxing authorities for tax years prior to 2022 for federal and prior to 2021 for most states and for Canadian taxing authorities. Management does not believe future settlements with the IRS will be material to Basin Electric's financial position.

Income taxes paid (net of refunds) for the years ended December 31 as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Cash paid (received) for income taxes, net: |  |  |  |
| Federal | $50  | $2000  | $(743) |
| State | (22) | 228  | 88  |
| Foreign - Canada | 125  | 183  | 52  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income taxes paid (net of refunds) | $153  | $2411  | $(603) |
| State income taxes paid (net of refunds) exceeding 5 percent of total income taxes paid (net of refunds): |  |  |  |
| Texas | $88  | $32  | $87  |
| Minnesota | $(111) | $193  | (a) |

---

______________

(a)Jurisdiction below the threshold for the period presented.

**14.&nbsp;&nbsp;&nbsp;&nbsp;ASSETS AND LIABILITIES MEASURED AT FAIR VALUE**

Level 1 inputs utilize observable market data in active markets for identical assets or liabilities. Level 2 inputs consist of observable market data, other than that included in Level 1, that is either directly or indirectly observable. Level 3 inputs consist of unobservable market data which are typically based on an entity's own assumptions of what a market participant would use in pricing an asset or liability as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Basin Electric's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

On December 31, 2025 and 2024, Basin Electric had government obligations, equity securities, bond market funds and corporate bonds included in restricted and designated investments, mine related assets and other investments, recorded at a fair value, using quoted prices in active markets for identical assets as the fair value measurement (Level 1).

Basin Electric recorded derivative financial instruments including commodity contracts and interest rate swaps using significant other observable inputs as the fair value measurement (Level 2). The fair value for commodity contracts is determined by comparing the difference between the net present value of the cash flows for the commodity contracts at their initial price and the current market price. The initial price is quoted in the commodity contract and the current market price is corroborated by observable market data. The fair value for interest rate swap contracts is determined by comparing the difference between the net present value of the cash flows for the swaps at their initial fixed rate and the current market interest rate. The initial fixed rate is quoted in the swap agreement and the current market interest rate is corroborated by observable market data.

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2025, aggregated by the level in the fair value hierarchy within which those measurements fall:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| | **Fair Value** | **Quoted Prices in<br>Active Markets<br>for Identical<br>Assets and Liabilities<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs <br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equities and equity funds | $128659 | $128659 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and government bonds | 1971 | 1971 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond market funds | 73004 | 73004 | - | - |
|  | 203634 | 203634 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | 42880 | - | 42880 | - |
|  | $246514 | $203634 | $42880 | $- |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $22031 | $- | $22031 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives  | 31440 | - | 31440 | - |
|  | $53471 | $- | $53471 | $- |

---

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2024, aggregated by the level in the fair value hierarchy within which those measurements fall:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
| | **Fair Value** | **Quoted Prices in<br>Active Markets<br>for Identical<br>Assets and<br>Liabilities<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equities and equity funds | $120596 | $120596 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and government bonds | 117093 | 117093 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond market funds | 57582 | 57582 | - | - |
|  | 295271 | 295271 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | 34560 | - | 34560 | - |
|  | $329831 | $295271 | $34560 | $- |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $18351 | $- | $18351 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives  | 18903 | - | 18903 | - |
|  | $37254 | $- | $37254 | $- |

---

**15.&nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEE BENEFIT PLANS**

**POSTRETIREMENT BENEFITS**–Employees of Basin Electric, Dakota Gas, and MLC retiring at or after attaining age 55 and completing five years of service may elect to continue medical and dental benefits by paying premiums to Basin Electric, Dakota Gas or MLC for participating in the current employee plan, subject to deductible, coinsurance and copayment provisions. Eligible dependents of retired employees continue to receive benefits after the death of the former employee, with certain limitations. Participation in Basin Electric's, Dakota Gas's or MLC's medical plan can continue until the retiree or spouse becomes eligible for Medicare. Once a retiree becomes eligible for Medicare, the spouse may continue under each of the plans until the spouse becomes eligible for Medicare. Basin Electric, Dakota Gas, and MLC reserve the right to change or terminate these benefits at any time.

Basin Electric, Dakota Gas and MLC fund postretirement medical benefits from general funds, and in 2025, 2024 and 2023 funding was $1.2 million, $2.2 million and $2.4 million, respectively.

Coteau also maintains medical care and life insurance plans which provide benefits to eligible retired employees.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following sets forth the changes in the postretirement benefit obligation and plan assets during the year and amounts recognized in the consolidated balance sheets, as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Basin Electric and<br>Subsidiaries** | **Basin Electric and<br>Subsidiaries** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Change in postretirement benefit obligation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at January 1 | $21947 | $24061 | $1320 | $2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service cost | 1278 | 1168 | 19 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 1031 | 934 | 65 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss | (3206) | (1021) | 251 | (710) |
| &nbsp;&nbsp;&nbsp;&nbsp;Assumption changes | (6229) | (970) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit payments | (4766) | (6924) | (514) | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;Plan participant contributions | 3571 | 4699 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31 | $13626 | $21947 | $1141 | $1320 |
| Change in plan assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets at beginning of year | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer contributions | 1195 | 2225 | 514 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plan participant contributions | 3571 | 4699 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit payments | (4766) | (6924) | (514) | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets at end of year | $- | $- | $- | $- |
| As of December 31, the funded status of the plan was: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Postretirement benefit liability | $13626 | $21947 | $1141 | $1320 |
| Amounts recognized in the balance sheets are: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | $1420 | $1991 | $152 | $218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 12206 | 19956 | 989 | 1102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net amount recognized | $13626 | $21947 | $1141 | $1320 |
| Amounts not yet reflected in periodic postretirement benefit expense and included in accumulated other comprehensive income (loss) and regulatory liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service cost | $(308) | $(538) | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain | 31695 | 23909 | 2176 | 3103 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income and regulatory liabilities | $31387 | $23371 | $2176 | $3103 |

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Net periodic postretirement benefit expense (income) for the years ended December 31, 2025, 2024, and 2023 for Basin Electric and subsidiaries was $891,000, $497,000 and $1.0 million, respectively, and for Coteau was $(592,000), $(548,000) and $(822,000), respectively.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Basin Electric and<br>Subsidiaries** | **Basin Electric and<br>Subsidiaries** | **Basin Electric and<br>Subsidiaries** | **Coteau** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Other changes recognized in other comprehensive income (loss) and regulatory liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (gain) loss arising during the period | $(9435) | $(1990) | $3008 | $251 | $(710) | $(156) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service (cost) credit | (230) | (233) | (232) | - | - | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial gain | 1649 | 1838 | 1608 | 676 | 662 | 822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recognized in other comprehensive income (loss) and regulatory liabilities | $(8016) | $(385) | $4384 | $927 | $(48) | $805 |

---

Assumptions used in accounting for the postretirement benefit obligations were as follows for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Basin Electric and<br>Subsidiaries** | **Basin Electric and<br>Subsidiaries** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average discount rates | 5.41% | 5.62% | 4.63% | 5.26% |
| Initial health care cost trend rate | 8.50% | 6.74% | 7.50% | 6.50% |
| Ultimate health care cost trend rate | 4.00% | 4.00% | 4.75% | 4.75% |
| Year that the rate reaches the ultimate trend rate | 2051 | 2048 | 2037 | 2033 |

---

Assumptions used to determine net periodic postretirement benefit expense (income) were as follows for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Basin Electric and<br>Subsidiaries** | **Basin Electric and<br>Subsidiaries** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average discount rates | 5.62% | 5.14% | 5.26% | 4.98% |
| Initial health care cost trend rate | 6.74% | 7.37% | 6.50% | 6.50% |
| Ultimate health care cost trend rate | 4.00% | 4.00% | 4.75% | 4.75% |
| Year that the rate reaches the ultimate trend rate | 2048 | 2048 | 2033 | 2033 |

---

Basin Electric and its subsidiaries and Coteau expect to make contributions of $1.4 million and $153,000, respectively, in 2026 to their postretirement benefit plans.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following are the expected future benefits to be paid:

---

| | | |
|:---|:---|:---|
| | **Basin Electric<br>and <br>Subsidiaries** | **Coteau** |
| | **(In thousands)** | **(In thousands)** |
| 2026 | $1420 | $153 |
| 2027 | $1326 | $157 |
| 2028 | $1147 | $151 |
| 2029 | $1045 | $120 |
| 2030 | $957 | $131 |
| 2031-2035 | $4627 | $529 |

---

**DEFINED BENEFIT PLANS**

**NRECA RS PLAN**–Pension benefits for Basin Electric and Dakota Gas employees participating in the pension plan are provided through participation in the National Rural Electric Cooperative Association (NRECA) Retirement Security Plan (RS Plan) which is a defined benefit pension plan qualified under Section 401 and tax-exempt under Section 501(a) of the Internal Revenue code. It is a multiemployer plan under GAAP.

A unique characteristic of a multiemployer plan compared to a single employer plan is that all plan assets are available to pay benefits of any plan participant. Separate asset accounts are not maintained for participating employers. This means that assets contributed by one employer may be used to provide benefits to employees of other participating employers.

Basin Electric and Dakota Gas contributions to the RS Plan in 2025 and in 2024 represented less than 5 percent of the total contributions made to the RS Plan by all participating employers. Pension costs charged to expense during 2025, 2024 and 2023 were $37.5 million, $36.8 million and $36.0 million, respectively.

In the RS Plan, a "zone status" determination is not required, and therefore not determined, under the Pension Protection Act of 2006. In addition, the accumulated benefit obligations and plan assets are not determined or allocated separately by individual employer. In total, the RS Plan was over 80 percent funded at January 1, 2025 and 2024.

Future contribution requirements are determined each year as part of the actuarial valuation of the plan and may change as a result of plan experience.

**BCS AND COTEAU PLANS**–BCS's former United Mine Workers of America employees are covered under a defined benefit plan which is funded by BCS.

Substantially all of Coteau's salaried employees hired prior to January 1, 2000, participate in the Coteau Pension Plan (the Plan), a noncontributory defined benefit plan sponsored by NACoal. Benefits under the defined benefit pension plan are based on years of service and average compensation during certain periods. The Plan benefits were frozen effective December 31, 2013. Employees whose benefits were frozen subsequently receive retirement benefits under defined contribution plans. In 2025, Coteau terminated the Plan and settled all future obligations by transferring the remaining benefit obligations to a third-party insurance company. The excess funds from the Plan will be utilized by the Coteau defined contribution plan, which is a qualified replacement plan. These funds will be used for future profit sharing contributions to eligible defined contribution plan participants. A non-cash pension settlement charge of

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

$2.8 million was recognized. The settlement charge accelerated the loss recorded in accumulated other comprehensive income that would have otherwise been recognized in subsequent periods.

The following sets forth the changes in the pension benefit obligation and plan assets during the year and amounts recognized in the consolidated balance sheets as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **BCS** | **BCS** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Change in pension benefit obligation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at January 1 | $2576 | $2800 | $67945 | $72754 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 128 | 124 | 3016 | 3545 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial (gain) loss | (19) | (70) | 3588 | (2332) |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits payments | (259) | (278) | (6026) | (6022) |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlements | - | - | (68523) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31 | $2426 | $2576 | $- | $67945 |
| Change in plan assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets at beginning of year | $2848 | $2906 | $94672 | $93365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actual return on plan assets | 275 | 220 | 6465 | 7329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer contributions | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits payments | (259) | (278) | (6026) | (6022) |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlements | - | - | (68523) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets at end of year | $2864 | $2848 | $26588 | $94672 |
| As of December 31, the funded status of the plan was: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets | $2864 | $2848 | $26588 | $94672 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated postretirement benefit liability | 2426 | 2576 | - | 67945 |
| &nbsp;&nbsp;&nbsp;&nbsp;Funded status – over  | $438 | $272 | $26588 | $26727 |
| Amounts recognized in the balance sheets are: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments and special funds | $438 | $272 | $26588 | $26727 |
| Amounts not yet reflected in periodic postretirement benefit expense and included in accumulated other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss | $(630) | $(837) | $- | $(2285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | $(630) | $(837) | $- | $(2285) |

---

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Net periodic pension expense (income) for the years ended December 31, 2025, 2024 and 2023 for BCS was $41,000, $49,000 and $83,000, respectively and for Coteau was $2.4 million, $(3.2) million and $(3.0) million, respectively.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **BCS** | **BCS** | **BCS** | **Coteau** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Other changes recognized in other comprehensive income (loss): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (gain) loss arising during the period | $(159) | $(152) | $(184) | $546 | $(2944) | $(4769) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial loss | (48) | (63) | (83) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognition of settlement cost | - | - | - | (2831) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recognized in other comprehensive income (loss) | $(207) | $(215) | $(267) | $(2285) | $(2944) | $(4769) |

---

Assumptions used to account for the pension benefit obligation were as follows for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **BCS** | **BCS** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average discount rate | 4.94% | 5.27% | N/A | 5.56% |

---

The assumptions used to determine net periodic pension expense were as follows for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **BCS** | **BCS** | **Coteau** | **Coteau** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average discount rate | 5.27% | 4.65% | 5.56% | 5.07% |
| Expected return on plan assets | 5.00% | 5.00% | 4.40% | 7.00% |

---

BCS does not expect to make any contributions in 2026 to its defined benefit plans. The following are the expected future benefit payments for the BCS Plan:

---

| | |
|:---|:---|
| | **BCS** |
| | **(In thousands)** |
| 2026 | $255 |
| 2027 | $248 |
| 2028 | $241 |
| 2029 | $233 |
| 2030 | $224 |
| 2031-2035 | $974 |

---

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

The following is the actual and target allocation percentages for the Plan and BCS Plan assets as of December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **BCS** | **BCS** |
| | **Actual<br>Allocation** | **Target<br>Allocation** |
| Fixed income securities | 66.2% | 60.0% |
| Equity securities | 28.8% | 37.0% |
| Other | 5.0% | 3.0% |
|  | 100.0% |  |

---

BCS Plan assets are invested with a trust that is responsible for maintaining an appropriate investment ratio in common stocks, long-term corporate bonds and money market funds.

**DEFINED CONTRIBUTION PLANS**–Basin Electric, Dakota Gas and MLC have qualified tax deferred savings plans for eligible employees. Eligible participants of the tax deferred savings plans may make pre-tax and after-tax contributions, as defined, with Basin Electric, Dakota Gas and MLC matching various percentages of the participants' annual compensation. Contributions to these plans by Basin Electric, Dakota Gas, and MLC were $17.6 million, $15.0 million and $13.1 million for 2025, 2024 and 2023, respectively.

For employees hired after December 31, 1999, Coteau established a defined contribution plan which requires Coteau to make retirement contributions based on a formula using age and salary as components of the calculation. Employees are vested at a rate of 20 percent for each year of service and are 100 percent vested after five years of employment. Coteau recorded contribution expense of approximately $3.6 million, $3.5 million and $3.3 million related to this plan in 2025, 2024 and 2023, respectively.

Substantially all of Coteau's salaried employees also participate in a defined contribution plan sponsored by NACoal. Employee contributions are matched by Coteau up to a limit of 5 percent of the employee's salary. Coteau's contributions to this plan were approximately $3.4 million, $3.2 million and $2.7 million in 2025, 2024 and 2023, respectively.

Under the provisions of the lignite sales agreement between Dakota Coal and Coteau, retirement related costs are recovered as a cost of coal as tonnage is sold.

**16.&nbsp;&nbsp;&nbsp;&nbsp;ASSET RETIREMENT OBLIGATIONS**

An asset retirement obligation is the result of legal or contractual obligations associated with the retirement of a tangible long-lived asset that results from the acquisition, construction, or development and/or the normal operation of a long-lived asset. Basin Electric and Coteau determine these obligations based on an estimated asset retirement cost adjusted for inflation and projected to the estimated settlement dates, and discounted using a credit-adjusted risk-free interest rate.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

A reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligation included in other noncurrent liabilities on the consolidated balance sheets is as follows:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| Balance, January 1 | $216721 | $214666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions and revisions | 27785 | (2375) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion expense | 14791 | 12851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities settled | (2117) | (8421) |
| Balance, December 31 | $257180 | $216721 |

---

**17.&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT REPORTING**

Basin Electric's reportable segments include the Electric Utility, Gasification, and Coal and Limestone Operations. Certain activities that support the reportable segments, ancillary projects, or operating segments that do not meet the quantitative threshold for a reportable segment are presented as Other. The operating segments are based on Basin Electric's method of internal reporting that the Chief Operating Decision Maker (CODM) reviews to make decisions on overall resource allocation and to assess performance. The CODM is Basin Electric's Chief Executive Officer and General Manager. The CODM reviews actual financial information and forecasted financial information at an operating segment level and primarily uses segment net margin and earnings for making decisions on resource allocation and assessing performance. The CODM uses segment net income in assessing financial performance on a monthly basis, reviewing and approving annual operating budgets and long-term forecasts, allocating capital or financial resources to our segments and in making strategic decisions.

The Electric Utility reportable segment provides wholesale electric service and other ancillary services to Basin Electric's members throughout its service territory with its own electrical generation and transmission assets and various contractual arrangements.

The Gasification reportable segment includes Dakota Gasification Company (DGC). DGC operates a gasification facility that converts lignite coal into synthetic natural gas and other products including fertilizers, diesel exhaust fluid, carbon dioxide, and other oil and chemical products.

The Coal and Limestone Operations reportable segment purchases coal and coordinates deliveries of coal to Basin Electric's Electric Utility generation facilities and Gasification operations. It also produces lime and limestone that is used for emissions control at the generation facilities.

Other consists of Basin Cooperative Services, Nemadji River Generation, and certain tax adjustments and other activity not associated with the reportable segments. Basin Cooperative Services provides certain nonutility property management services to Basin Electric. Nemadji River Generation owned an undivided interest in a proposed electric generation facility. In January 2026, Nemadji River Generation exited the project.

Substantially all of Basin Electric's assets and revenues are located in the United States. Revenues and assets outside the United States were not material for the periods presented.

Major Customer – For the years ended December 31, 2025, 2024, and 2023, revenues from a single customer, Upper Missouri, represented approximately 29.9 percent, 30.5 percent, and 27.5 percent respectively, of Basin Electric's consolidated revenues, all of which were attributable to the Electric Utility reportable segment. No other customer contributed 10 percent or more of consolidated revenues for the periods.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Information on Basin Electric's segments as of December 31 and for the years ended December 31 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Total Reportable Segments** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | $2396364 | $494065 | $197342 | $3087771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | - | 106917 | 106917 |
|  | 2396364 | 494065 | 304259 | 3194688 |
| Elimination of intersegment revenue |  |  |  | (106917) |
| Total operating revenue |  |  |  | $3087771 |
| Less: |  |  |  |  |
| Electric fuel and purchased power | 1116603 | - | - |  |
| Electric operations and maintenance | 758006 | - | - |  |
| Cost of products sold: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | - | 361780 | 235452 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | 106917 | - |  |
| Nonelectric selling, general and administrative | - | 104800 | 9810 |  |
| Depreciation, depletion and amortization | 216612 | 41537 | 18612 |  |
| Impairment of assets | - | 4164 | - |  |
| Interest and other charges, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | 229173 | 34671 | 13669 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | 35027 | - | - |  |
| Other income | (64981) | (122072) | (16217) |  |
| Income tax expense (benefit) | 1212 | (2981) | 7235 |  |
| Net margin and earnings attributable to noncontrolling interest | - | - | 23000 |  |
| **Segment net margin and earnings** | 104712 | (34751) | 12698 | 82659 |
| Elimination of intercompany loss |  |  |  | 35027 |
| Other net expenses |  |  |  | (1414) |
| **Net margin and earnings attributable to Basin Electric** |  |  |  | $**116272** |
| **Segment capital expenditures** <sup>(a)</sup> | $757474 | $28192 | $21558 | $807224 |
| Other capital expenditures |  |  |  | - |
| Total consolidated capital expenditures |  |  |  | $**807224** |
| **Segment total assets** | $9014439 | $1053066 | $568599 | $10636104 |
| Other assets |  |  |  | 35504 |
| Elimination of intersegment assets |  |  |  | (1273951) |
| Total consolidated assets |  |  |  | $**9397657** |

---

_______________

(a)Does not include accruals for property, plant and equipment as disclosed in the supplemental cash flow information to the consolidated statements of cash flows.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Total Reportable Segments** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | $2270832 | $382403 | $162164 | $2815399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | - | 96740 | 96740 |
|  | 2270832 | 382403 | 258904 | 2912139 |
| Elimination of intersegment revenue |  |  |  | (96740) |
| Total operating revenue |  |  |  | $2815399 |
| Less: |  |  |  |  |
| Electric fuel and purchased power | 1074416 | - | - |  |
| Electric operations and maintenance | 679558 | - | - |  |
| Cost of products sold: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | - | 325257 | 217038 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | 96740 | - |  |
| Nonelectric selling, general and administrative | - | 39373 | 8752 |  |
| Depreciation, depletion and amortization | 204903 | 38532 | 16042 |  |
| Impairment of assets | - | 4013 | - |  |
| Interest and other charges, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | 216511 | 36967 | 11379 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | 56804 | - | - |  |
| Other income | (77804) | (125968) | (16467) |  |
| Income tax expense (benefit) | (9139) | (1211) | 2603 |  |
| Net margin and earnings attributable to noncontrolling interest | - | - | 23215 |  |
| **Segment net margin and earnings** | 125583 | (31300) | (3658) | 90625 |
| Elimination of intercompany loss |  |  |  | 56804 |
| Impairment of assets, net of tax |  |  |  | (25504) |
| Other net expenses |  |  |  | (1146) |
| **Net margin and earnings attributable to Basin Electric** |  |  |  | $**120779** |
| **Segment capital expenditures** <sup>(a)</sup> | $561450 | $13946 | $68355 | $643751 |
| Other capital expenditures |  |  |  | 1375 |
| Total consolidated capital expenditures |  |  |  | $**645126** |
| **Segment total assets** | $7770419 | $1051134 | $528844 | $9350397 |
| Other assets |  |  |  | 33015 |
| Elimination of intersegment assets |  |  |  | (888630) |
| Total consolidated assets |  |  |  | $**8494782** |

---

_______________

(a)Does not include accruals for property, plant and equipment as disclosed in the supplemental cash flow information to the consolidated statements of cash flows.

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2023** | **2023** | **2023** | **2023** |
| | **Electric Utility** | **Gasification** | **Coal and Limestone Operations** | **Total Reportable Segments** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | $2279538 | $444229 | $163351 | $2887118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | - | 79779 | 79779 |
|  | 2279538 | 444229 | 243130 | 2966897 |
| Elimination of intersegment revenue |  |  |  | (79779) |
| Total operating revenue |  |  |  | $2887118 |
| Less: |  |  |  |  |
| Electric fuel and purchased power | 1077496 | - | - |  |
| Electric operations and maintenance | 662056 | - | - |  |
| Cost of products sold: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | - | 335448 | 208991 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | - | 79779 | - |  |
| Nonelectric selling, general and administrative | - | 33525 | 5722 |  |
| Depreciation, depletion and amortization | 203527 | 32883 | 13090 |  |
| Impairment of assets | - | 5035 | - |  |
| Interest and other charges, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;External | 221013 | 26533 | 8157 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment | 47722 | - | - |  |
| Other income | (83548) | (9252) | (15608) |  |
| Income tax expense (benefit) | 1304 | (12000) | 3109 |  |
| Net margin and earnings attributable to noncontrolling interest | - | - | 21083 |  |
| **Segment net margin and earnings** | 149968 | (47722) | (1414) | 100832 |
| Elimination of intercompany loss |  |  |  | 47722 |
| Other net expenses |  |  |  | (1038) |
| **Net margin and earnings attributable to Basin Electric** |  |  |  | $**147516** |
| **Segment capital expenditures** <sup>(a)</sup> | $469748 | $31095 | $17449 | $518292 |
| Other capital expenditures |  |  |  | 6347 |
| Total consolidated capital expenditures |  |  |  | $**524639** |
| **Segment total assets** | $7685441 | $1034954 | $454891 | $9175286 |
| Other assets |  |  |  | 54895 |
| Elimination of intersegment assets |  |  |  | (884193) |
| Total consolidated assets |  |  |  | $**8345988** |

---

_______________

(a)Does not include accruals for property, plant and equipment as disclosed in the supplemental cash flow information to the consolidated statements of cash flows.

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<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**18.&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES**

**POWER PURCHASE COMMITMENTS**–Basin Electric entered into various power purchase contracts with terms ranging from one to 50 years. The estimated commitments under these contracts as of December 31, 2025 were $423.9 million in 2026, $447.4 million in 2027, $468.3 million in 2028, $451.9 million in 2029, $442.0 million in 2030, and $5.6 billion thereafter. Amounts purchased under the contracts totaled $364.5 million in 2025, $338.5 million in 2024, and $317.0 million in 2023.

Basin Electric entered into various power purchase agreements with its Class A member, Corn Belt Power Cooperative (Corn Belt), under which Basin Electric buys substantially all of the output from Corn Belt's generation resources at cost through December 2075. Basin Electric also entered into a transmission lease agreement with Corn Belt which expires in December 2075. ASC 810, *Consolidation*, requires that certain of Corn Belt's generation assets and liabilities associated with the power purchase agreements be consolidated in Basin Electric's consolidated balance sheets. As of December 31, 2025 and 2024, the assets and liabilities of Corn Belt included in the consolidated balance sheets totaled $8.6 million and $9.8 million, respectively.

**CONTRACT COMMITMENTS**–Basin Electric has outstanding contractual commitments for pipeline transportation totaling $8.8 million as of December 31, 2025. Basin Electric also has various other outstanding contractual commitments totaling $2.9 billion as of December 31, 2025, for various construction projects, equipment purchases, supplies, and for miscellaneous services to be provided.

Coteau has outstanding commitments of $4.1 million to purchase equipment and $1.0 million committed under various diesel fuel contracts through October 2026.

**MINE CLOSING COSTS AND COAL PURCHASE COMMITMENTS**–Under the terms of the Coteau Lignite Sales Agreement (Agreement) between Dakota Coal and Coteau, Dakota Coal is obligated to purchase all of its lignite requirements for AVS, the Synfuels Plant and LOS from Coteau, and Coteau is obligated to sell and deliver the required coal to Dakota Coal from contractually defined dedicated coal reserves. The coal purchase price includes all costs incurred by Coteau for development and operation of the dedicated coal reserves and may include costs to be incurred in connection with the Freedom Mine closing. During 2025, 2024 and 2023, Dakota Coal paid $263.2 million, $246.5 million and $235.0 million, respectively, to Coteau for coal purchased under the lignite sales agreement. As a result of applying ASC 810, Coteau is consolidated with Dakota Coal and coal purchases from Coteau are eliminated within the consolidated financial statements.

Under certain federal and state regulations, Coteau is required to reclaim land disturbed as a result of mining. Reclamation of disturbed land is a continuous process throughout the term of the Agreement. Costs of ongoing reclamation are charged to expense in the period incurred and are recovered as a cost of coal as tonnage is sold to Dakota Coal. Costs to complete reclamation after mining is completed in a specific mine area are reimbursed under the Agreement as costs of reclamation are actually incurred.

Coteau accounts for its asset retirement obligations under ASC 410, *Asset Retirement and Environmental Obligations*, which provides accounting requirements for retirement obligations associated with tangible long-lived assets and requires that an asset's retirement cost be capitalized as part of the cost of the related long-lived asset and subsequently allocated to expense using a systematic and rational method.

Coteau's annual costs related to amortization of the asset and accretion of the liability totaled $9.9 million, $6.5 million, and $6.2 million in 2025, 2024 and 2023, respectively.

Dakota Coal has established designated funds for mine closing costs. The Agreement includes provisions whereby, upon expiration of the agreement, Dakota Coal has the option to purchase the

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

outstanding common stock of Coteau for its book value from NACoal. Dakota Coal may exercise this option only if Coteau has not exercised its right to extend the Agreement. NACoal has the option to require Dakota Coal to purchase the outstanding stock of Coteau for its book value in the event all of the plants Dakota Coal presently sells lignite coal to are closed or if lignite coal may no longer be legally mined in North Dakota and Dakota Coal exercises its right to terminate the Agreement with Coteau. Under the current mine plan, mining is anticipated to cease in 2047.

**COAL PURCHASE AND FINANCING COMMITMENTS**–Basin Electric, on behalf of the MBPP, has executed an agreement with Western Fuels for all coal purchase requirements through the life of LRS, with an option to extend the contract with approval by both parties. The average price of coal under this agreement during 2025, 2024 and 2023 was approximately $23.19, $22.75, and $22.23 per ton, respectively.

Basin Electric executed an agreement with Western Fuels for all coal purchase requirements through the life of DFS, with an option to extend the contract with approval by both parties. Coal purchased under this agreement is used at the DFS. The average price of coal purchased under this agreement during 2025, 2024, and 2023 was approximately $12.98, $15.67, and $14.91 per ton, respectively.

**RECLAMATION GUARANTEES**–Basin Electric provides guarantees of certain reclamation obligations of Coteau. These guarantees cover the reclamation of mined areas as required by the State of North Dakota's Public Service Commission (PSC). The bonds are released by the PSC after a period of time (generally ten years after final reclamation is completed) when it has been determined that the mined area has been returned to its original condition. As of December 31, 2025, the aggregated value of these guarantees is $215.0 million.

Basin Electric guarantees certain reclamation obligations of WFW. Those guarantees cover the reclamation of mined areas as approved by the Wyoming Department of Environmental Quality (WDEQ) with the use of surety bonds. The bonds are released by the WDEQ after a period of time (generally ten years after final reclamation is completed) when it has been determined that the mined area has been returned to its approved post-mining use. As of December 31, 2025, the aggregated value of these guarantees is $31.9 million.

**DEBT GUARANTEE**–Basin Electric guarantees, on an unsecured basis, a certain debt obligation of Dakota Coal totaling $21.4 million as of December 31, 2025. In the event Dakota Coal defaults under this obligation, Basin Electric would be required to make payments under its guarantee.

**DISMANTLEMENT COSTS**–The county zoning permit requires Dakota Gas to dismantle the Synfuels Plant at such time that operations or other alternative uses approved by the Board of County Commissioners are terminated. Although Dakota Gas has no current plans to cease operations at the plant site, in accordance with ASC 410, Dakota Gas accrues an obligation for the eventual dismantlement and discontinuation of use of the Synfuels Plant.

**LEASE INDEMNIFICATIONS**–In general, under the terms of Basin Electric's sale and leaseback agreements discussed in Note 10, the lessors are indemnified should certain disqualifying events occur resulting in the recapture of tax credits, accelerated cost recovery deductions and interest deductions. Management believes that if indemnification occurs, there will not be a material adverse effect on Basin Electric's financial position, results of operations or cash flows.

**CO2 SALES COMMITMENTS**–Dakota Gas has contracts involving commitments for the sale of CO2 for enhanced oil recovery. These agreements extend through December 2027.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**LEGAL**

**CARBON CAPTURE AND SEQUESTRATION**–In February 2024, Dakota Gas entered into an LLC agreement with an investor in which DCS has been formed to monetize tax credits for the CO2 it sequesters. Dakota Gas has made certain representations to the investor with respect to the project qualifying for the credits as well as to the level of the credit. Dakota Gas will be liable to indemnify the investor to the extent the tax credits are disqualified or recaptured by the IRS. In February 2024, Dakota Gas procured tax credit insurance for protection of liability under certain conditions. Basin Electric has provided a limited guarantee of Dakota Gas's obligations under the project agreements.

**CCR RULE**–The 2015 Coal Combustion Residuals Rule (CCR Rule) mandated closure of unlined surface impoundments upon a specified triggering event. If after multiple levels of monitoring and an alternate source demonstration, a statistically significant level of contamination could not be attributed to another source, a company was required to retrofit or close a surface impoundment.

In August 2018, the D.C. Circuit Court of Appeals vacated and remanded to EPA three provisions of the original 2015 CCR Rule including the provision allowing unlined surface impoundments to continue to operate unless they detected a leak. On December 2, 2019, EPA published proposed amendments to the CCR Rule that included new deadlines to cease waste receipt and initiate closure for unlined surface impoundments. The proposed amendments indicated all five Laramie River Station ponds would be required to cease accepting waste by August 31, 2020 (with a potential extension to November 30, 2020). On July 29, 2020, EPA released a final rule (Part A Rule), which established April 11, 2021 as the cease waste receipt deadline for unlined surface impoundments.

Basin Electric has substantially completed the implementation of a long-term compliance plan for its surface impoundments to meet the CCR Rule. Four surface impoundments have been retrofitted and are in compliance with the CCR Rule. The remaining surface impoundment is undergoing retrofit or closure activities.

On May 8, 2024, EPA published a final rule titled "Hazardous and Solid Waste Management System: Disposal of Coal Combustion Residuals from Electric Utilities; Legacy CCR Surface Impoundments" (the 2024 CCR Rule). The 2024 CCR Rule removes the exemption for inactive CCR surface impoundments at inactivate generation facilities and establishes regulations for CCR management units (CCRMUs). The 2024 CCR Rule becomes effective 180 days after publication. EPA has identified one surface impoundment at Basin Electric's former WJ Neal Station as being regulated under the 2024 CCR Rule. EPA has also identified two specific CCRMUs – one at Antelope Valley Station and one at Leland Olds Station – as being subject to the 2024 CCR Rule. Basin Electric is in the process of determining a compliance plan for the 2024 CCR Rule at all facilities. However, the 2024 CCR Rule is subject to petitions for review in the D.C. Circuit Court of Appeals. In addition, EPA has issued a proposed rule extending certain deadlines in the 2024 CCR Rule and is reconsidering the 2024 CCR Rule. The D.C. Circuit Court of Appeals litigation is being held in abeyance so that EPA can complete its reconsideration. Basin Electric considered this matter and currently have not made an accrual for this and is unable to predict what cost, if any, may be incurred to comply.

**EGU MATS RULE**–On May 7, 2024, EPA published a final rule titled "National Emission Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review" (EGU MATS Rule). The EGU MATS Rule eliminates the lignite subcategory for mercury emission limits, lowers the filterable particulate matter limits, and requires all units to install a particulate matter continuous emissions monitoring system. Basin Electric is in the process of determining a compliance plan for the EGU MATS Rule at all facilities, though Basin Electric has been granted a presidential exemption granting a 2-year extension to the compliance deadline. However, Basin Electric, other industry, and several states have filed petitions for review in the D.C.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Circuit Court of Appeals, which is currently being held in abeyance. On February 24, 2026, EPA published a final rule that repeals the more stringent standards in the EGU MATS Rule and reinstates the former standards. On March 30, 2026, a coalition of environmental groups filed a petition for review in the D.C. Circuit Court of Appeals challenging the repeal. Basin Electric considered this matter and currently has not made an accrual for this and is unable to predict what cost, if any, may be incurred to comply.

**GHG RULE**–On May 9, 2024, EPA published a final rule titled "New Source Performance Standards for Greenhouse Gas Emissions from New, Modified, and Reconstructed Fossil Fuel-Fired Electric Generating Units; Emission Guidelines for Greenhouse Gas Emissions from Existing Fossil Fuel-Fired Electric Generating Units" (GHG Rule). As part of this rulemaking, EPA also repealed the Affordable Clean Energy Rule.

For new sources, the GHG Rule establishes performance standards for three categories of natural gas generation: low load, intermediate load, and base load. These new source performance standards apply to all combustion turbines that commenced construction on or after May 23, 2023. The standard for low load facilities is based on the use of lower emitting fuels. The standard for intermediate load facilities is based on highly efficient simple cycle technology with best operation and maintenance practices. The standard for base load facilities is divided into two phases. For phase one, the standard is based on highly efficient combined cycle generation with best operation and maintenance practices. For phase two, which applies beginning January 1, 2032, the standard is based on phase one with the addition of 90 percent capture of CO2.

For existing sources, the GHG Rule establishes emission guidelines for two categories of coal-fired electric generating units (EGUs): medium-term and long-term. EGUs that permanently cease operation before January 1, 2032, are exempt. The emission guidelines for medium-term facilities – operating on or after January 1, 2032, and ceasing operating by January 1, 2039 – are based on co-firing 40 percent natural gas. The compliance date for medium-term facilities is January 1, 2030. The emission guidelines for long-term facilities are based on 90 percent capture of CO2. The compliance date for long-term facilities is January 1, 2032. States must submit plans setting standards for existing sources using these emission guidelines and incorporating other factors.

Basin Electric is in the process of determining a compliance plan for the GHG Rule at all facilities. However, industry, and several states have filed petitions for review in the D.C. Circuit Court of Appeals. In addition, EPA issued a proposed rule that includes significant changes to the GHG Rule, and the D.C. Circuit Court of Appeals litigation is being held in abeyance so that EPA can complete its reconsideration. Basin Electric considered this matter and currently have not made an accrual for this and is unable to predict what cost, if any, may be incurred to comply.

**REGIONAL HAZE**– On December 2, 2024, EPA issued a final partial approval and partial disapproval of North Dakota's and Wyoming's Regional Haze plans. On January 31, 2025, Basin Electric filed petitions for reconsideration with EPA and petitions for judicial review of the disapprovals. The states and other industry have also filed similar petitions. For North Dakota, EPA disagreed with the state's determination that no additional controls were required for Antelope Valley and Leland Olds. In particular, EPA disagreed with North Dakota's consideration of visibility impacts. For Wyoming, EPA argued that the state should have done a four-factor analysis for PM. EPA has not proposed federal plans to replace the state plans. EPA has granted reconsideration of its decision of both states' plans but has not yet issued new proposals. Basin Electric considered this matter and currently has not made an accrual for this and is unable to predict what cost, if any, may be incurred to comply.

**LITIGATION**– On November 7, 2019, McKenzie Electric Cooperative, Inc. (McKenzie), a Class C member of Basin Electric and a member of Class A Member Upper Missouri G&T Electric Cooperative, Inc. (Upper Missouri), filed a lawsuit in North Dakota State Court against both Basin Electric and Upper

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Missouri. The complaint brought multiple claims against Basin Electric, some of which have since been dismissed. McKenzie's remaining claims against Basin Electric are: (1) breach of the wholesale power contract (WPC) between Basin Electric and Upper Missouri (either as an alleged three-tier contract among Basin Electric, Upper Missouri and McKenzie, or with McKenzie being a third-party beneficiary to the WPC) by including losses associated with Dakota Gas in rates; and (2) declaratory judgment that the WPC permits McKenzie to terminate its contract with Upper Missouri prior to the expiration of the contract. Summary judgment motions were argued in April 2025 and are currently pending before the court. In September 2025, the parties reached a non-binding settlement in principle, through which the parties agreed to a settlement of all claims and allegations related to the matter. The settlement in principle is contingent upon execution of a mutually acceptable settlement agreement and corporate and regulatory approvals, as applicable to each party. At this time, while a loss is reasonably possible, Basin Electric does not believe that the amount of loss can be reasonably estimated pending finalization of a definitive settlement agreement and therefore has not currently made any accrual for this matter.

**FERC REGULATION**–Effective November 1, 2019, Basin Electric met certain criteria making the cooperative subject to the jurisdiction of the FERC. In July 2020, Basin Electric began filing with FERC its wholesale power contracts and rate schedule A. FERC accepted Basin Electric's filings, subject to settlement and hearing procedures. Class A Member Tri-State Generation & Transmission Association, Inc. (Tri-State), Class C Members McKenzie, Minnesota Valley Electric Cooperative (Minnesota Valley), and Wright-Hennepin Cooperative Electric Association, and the Sierra Club opposed in several FERC dockets Basin Electric's rate schedule A filings with FERC on various matters. In particular, the Sierra Club argued that Basin Electric should not be allowed to recover costs in its rates relating to certain of its coal generation assets; McKenzie argued that Basin Electric should not be allowed to recover costs in its rates relating to Dakota Gas; and Tri-State argued that Basin Electric's calculation of rates for depreciation expense and transmission service are not just and reasonable. A hearing before an administrative law judge was held from August 28, 2023, to October 27, 2023, and a second phase from February 5, 2024, through February 7, 2024. An initial non-binding decision by the administrative law judge was issued in June 2024. In September 2024, Basin Electric filed a brief on exceptions to the initial decision. No final decision has been issued by FERC, and the case remains pending. On July 16, 2025, Basin Electric received financing under the Rural Electrification Act of 1936. Basin Electric subsequently filed a motion at FERC to dismiss the active rate proceedings on the basis that, pursuant to Federal Power Act (FPA) Section 201(f), Basin Electric is no longer a public utility subject to FERC rate regulation and also filed notices of cancellation of its rate schedules, tariffs, and other agreements. The motion to dismiss remains pending before FERC. On September 12, 2025, FERC issued an order accepting the notices of cancellation, finding that, due to Basin Electric's change of jurisdictional status, it is no longer required to maintain tariff records with FERC. The cancellation order has since been appealed by Tri-State to the D.C. Circuit Court of Appeals, and remains pending with the appellate court. Minnesota Valley has subsequently voluntarily dismissed its objections in this proceeding and withdrawn as a participant in the matter. In September 2025, Basin Electric and McKenzie reached a settlement in principle, through which McKenzie agreed to withdraw its objections to Basin Electric's rates in the FERC proceedings and withdraw from and dismiss any other FERC proceedings and/or appeals in which it had intervened against Basin Electric. The settlement in principle is contingent upon execution of a mutually acceptable settlement agreement and corporate and regulatory approvals, as applicable to each party. See also "Litigation" above. Basin Electric considered these FERC proceedings and currently has not made an accrual.

**RUS FINANCING** – On June 10, 2025, McKenzie filed with FERC a Federal Power Act complaint against Basin Electric. The complaint requests that FERC find that Basin Electric is not authorized to obtain financing under the Rural Electrification Act of 1936 and that FERC retain jurisdiction over Basin Electric notwithstanding Basin Electric receiving such financing. Basin Electric contests the allegations of the complaint, and further contests McKenzie's right to the relief requested under the Federal Power Act.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Basin Electric has filed an Answer to the Complaint and a motion to dismiss. No further action has been taken by FERC and the case remains pending. In September 2025, Basin Electric and McKenzie reached a settlement in principle, through which McKenzie agreed to dismiss with prejudice its FERC complaint. The settlement in principle is contingent upon execution of a mutually acceptable settlement agreement and regulatory approval, as applicable to each party. See also "Litigation" above. Basin Electric considered this FERC proceeding and currently has not made an accrual.

**NORTHWEST RURAL PUBLIC POWER DISTRICT** *–* On March 26, 2024, Northwest Rural Public Power District (NRPPD) filed with FERC a complaint against Basin Electric and Tri-State. The complaint requested that FERC find that NRPPD is permitted to withdraw its membership in Tri-State, terminate its wholesale electric service contract (WESC) with Tri-State, and that its withdrawal and termination is permissible under the wholesale power contract between Basin Electric and Tri-State. In December 2024, FERC issued its order denying the complaint, but finding that NRPPD's withdrawal from Tri-State and termination of its WESC is not a breach of the wholesale power contract between Basin Electric and Tri-State. Basin Electric filed an appeal of the FERC order with the D.C. Circuit Court of Appeals and the matter remains pending with the appellate court. In April 2026, Basin Electric and NRPPD reached a settlement in principle, through which NRPPD will dismiss its pending appeal at the D.C. Circuit and the underlying FERC complaint. The settlement in principle is contingent on execution of a mutually acceptable settlement agreement and regulatory approval, as applicable to each party. Basin Electric considered this matter and currently has not made an accrual.

Additionally, NRPPD has filed a complaint against Basin Electric in federal district court in Nebraska. In its amended complaint, NRPPD seeks a declaratory judgment that Basin Electric and Tri-State are bound by the December 2024 FERC Order that NRPPD's withdrawal as a member of Tri-State, and therefore as a Class C Member of Basin Electric, is not a breach of the wholesale power contract for the Eastern Interconnection between Basin Electric and Tri-State. NRPPD further claims that it is a third-party beneficiary of the wholesale power contract between Basin Electric and Tri-State, and that Basin Electric has breached its obligations to Tri-State under the wholesale power contract by failing to provide NRPPD with an exit fee. Additional claims were added against Basin Electric for tortious interference with contract, tortious interference with a business relationship, and tortious interference with a prospective business relationship. Basin Electric contests the allegations of the complaint and has filed a motion to dismiss, which remains pending with the court. In April 2026, Basin Electric and NRPPD reached a settlement in principle, through which NRPPD will dismiss the pending complaint. The settlement in principle is contingent on execution of a mutually acceptable settlement agreement and regulatory approval, as applicable to each party. Basin Electric considered this complaint and currently has not made an accrual.

**19.&nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY TRANSACTIONS**

Basin Electric provides wholesale electricity sales and other services to its members. Basin Electric had accounts receivable from its members related to member wholesale power agreements of $202.4 million and $191.4 million as of December 31, 2025 and 2024, respectively.

Other receivables include $2.3 million and $3.7 million as of December 31, 2025 and 2024, respectively, for amounts Basin Electric, as operating agent, and its subsidiaries, have billed to MBPP. Included in special funds on the consolidated balance sheets is Basin Electric's advance to MBPP of approximately $17.0 million at both December 31, 2025 and 2024.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

**CONTRACTUAL COMMITMENTS**–Basin Electric provides and receives power, various materials, supplies and services to and from affiliates which are under the following agreements through 2026, except as noted below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• POWER SUPPLY–Basin Electric provides all electric capacity, energy and transmission service needed to meet Dakota Gas's Synfuels Plant requirements under an agreement that extends through 2050.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SCREENED COAL–Dakota Gas's Synfuels Plant provides screened coal to Basin Electric under an agreement that extends through 2037.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• COAL SUPPLY–Dakota Coal provides all coal requirements of Dakota Gas's Synfuels Plant and Basin Electric's AVS and LOS. This agreement extends through 2037.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ADMINISTRATIVE SERVICES–Basin Electric provides various administrative and financial services to Dakota Gas, Dakota Coal, MLC and BCS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• LIME SALES–Dakota Coal provides lime to Basin Electric's AVS and LRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• LIMESTONE SALES–Dakota Coal provides limestone to Basin Electric's LOS under an agreement that extends through 2040.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• WATER SUPPLY–Basin Electric provides water supply facilities for use by Dakota Gas's Synfuels Plant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SALE OF NATURAL GAS–Dakota Gas sells natural gas to Basin Electric for operation of utility gas generating plants and AVS (includes pipeline related costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• USE OF TRANSMISSION ASSETS–Basin Electric uses certain Dakota Gas transmission assets for a fee under an agreement that extends through 2047.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SALE OF FERTILIZERS, UREA AND DEF-Dakota Gas sells fertilizers, urea and DEF to Basin Electric and MBPP for operation of power generation units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PROJECT SERVICES–Basin Electric provides the use of operational assets to Dakota Gas' Synfuels Plant.

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**BASIN ELECTRIC POWER COOPERATIVE AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued**

Related party amounts that were not eliminated in consolidation in accordance with ASC 980 were billed as follows for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Sales of goods and services to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dakota Gas: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Power supply | $61887 | $57645 | $58350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative services | 27262 | 23175 | 22867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Water supply | 2339 | 2482 | 2541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project and other services | 491 | 369 | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dakota Coal: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative services | 2535 | 2457 | 2410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $94514 | $86128 | $86389 |
| Goods and services provided by: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dakota Gas: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Screened coal | $67942 | $59711 | $50637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas | 14241 | 11524 | 14164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transmission and other misc. services | 990 | 1037 | 1060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fertilizers, urea and DEF | 4774 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Dakota Coal: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Coal supply | 101160 | 77794 | 88128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lime | 15797 | 11970 | 11425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limestone | 2570 | 2709 | 2804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $207474 | $164745 | $168218 |

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Various other intercompany management, administrative and financial services were performed, which were not significant.

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![basinelectric.jpg](basinelectric.jpg)

Offer to Exchange

$700,000,000 aggregate principal amount of

5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055

for

$700,000,000 aggregate principal amount of

5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055

that have been registered under the Securities Act

**P R O S P E C T U S**

***The Exchange Agent for the Exchange Offer is:***

**U.S. Bank Trust Company, National Association**

---

| | | |
|:---|:---|:---|
| *By Mail:* | *By Hand or Overnight Courier:* | *For Information or Confirmation by Email or Telephone:* |
| U.S. Bank Trust Company,<br>National Association<br>Corporate Trust Services<br>P.O. Box 64111<br>St. Paul, MN 55164-0111 | U.S. Bank Trust Company, <br>National Association<br>Corporate Trust Services<br>60 Livingston Avenue<br>1st Fl – Bond Drop Window<br>St. Paul, MN 55107 | 1-800-934-6802<br>cts.specfinance@usbank.com |

---

Requests for additional copies of this prospectus and the letter of transmittal may be directed to the Exchange Agent at the address or telephone number set forth above. Beneficial owners also may contact their custodian for assistance concerning the Exchange Offer.

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026**

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**Part II**

**Item 20. Indemnification of Directors and Officers**

Sections 10-13-10 and 10-15-31 of the North Dakota Century Code generally provide that the directors and officers of an electric cooperative, and the manager of an electric cooperative who is the person most responsible for carrying out the policies and directives of the officers or board of directors of such electric cooperative, are immune from civil liability for any act or omission relating to their service or function as a director, officer or manager, unless the act or omission constitutes gross or willful negligence or gross or willful misconduct. Section 10-15-31 further provides that members of a cooperative are neither obligated to pay, nor liable upon, any cooperative obligation.

Subsection 10 of Section 10-15-03 of the North Dakota Century Code generally provides that a cooperative may indemnify any present or former director, officer, agent, or manager of a cooperative who is the person most responsible for carrying out the policies and directives of the officers or board of directors of such cooperative against actual expenses necessarily incurred in defense of any proceeding in which the person is a party because the person is or was a director, officer, agent, or manager, except for any proceeding in which the person is adjudged liable for gross or willful negligence or gross or willful misconduct in the performance of duty. Such indemnification is not exclusive of other rights to which the person may be entitled.

Basin Electric's amended and restated bylaws expressly provide for the indemnification of its directors and officers as authorized by such Section 10-15-03. Our bylaws further provide that expenses incurred by a director or officer in defending a civil or criminal action, suit or proceeding may be paid by Basin Electric in advance of the final disposition of such action, suit or proceeding as authorized by our Board of Directors, provided that, such expenses shall be advanced only upon delivery to us of an undertaking by or on behalf of such director or officer to repay such amount unless it shall ultimately be determined that they are entitled to be indemnified by us as authorized in the bylaws. The indemnification provided for in our bylaws is expressly not exclusive of any other rights to which those seeking indemnification may be entitled as a matter of law.

The directors and officers of Basin Electric are insured against certain liabilities, including certain liabilities arising under the Securities Act, which might be incurred by them in such capacities and against which they cannot be indemnified by Basin Electric.

**Item 21. Exhibits, Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits**

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| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 3.1 | <u>[Restated Articles of Incorporation of Basin Electric Power Cooperative.](exhibit31-sx4.htm)</u> |
| 3.2 | <u>[Amended and Restated Bylaws of Basin Electric Power Cooperative.](exhibit32-sx4.htm)</u> |
| 4.1† | <u>[Amended and Restated Indenture, dated as of May 5, 2015, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee.](exhibit41-sx4.htm)</u> |
| 4.1(a) | <u>[Twelfth Supplemental Indenture, dated as of December 1, 2005, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2005 Series Notes.](exhibit41a-sx4.htm)</u> |
| 4.1(b) | <u>[Thirteenth](exhibit41b-sx4.htm)[Supplemental Indenture, dated as of](exhibit41b-sx4.htm)[April 1](exhibit41b-sx4.htm)[,](exhibit41b-sx4.htm)[2006](exhibit41b-sx4.htm)[, between Basin Electric Power Cooperative and U.S. Bank](exhibit41b-sx4.htm)[National Association, as](exhibit41b-sx4.htm)[trustee, relating](exhibit41b-sx4.htm)[to](exhibit41b-sx4.htm)[the 2006 Series Bonds](exhibit41b-sx4.htm)[.](exhibit41b-sx4.htm)</u> |
| 4.1(c) | <u>[Fourteenth Supplemental Indenture, dated as of March 1, 2007, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the Wells Fargo Notes.](exhibit41c-sx4.htm)</u> |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

---

| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 4.1(d) | <u>[Sixteenth Supplemental Indenture](exhibit41d-sx4.htm)[, dated as of](exhibit41d-sx4.htm)[November 1](exhibit41d-sx4.htm)[,](exhibit41d-sx4.htm)[2007](exhibit41d-sx4.htm)[,](exhibit41d-sx4.htm)[between](exhibit41d-sx4.htm)[Basin Electric Power Cooperative and](exhibit41d-sx4.htm)[U.S.](exhibit41d-sx4.htm)[Bank National Association](exhibit41d-sx4.htm)[, as](exhibit41d-sx4.htm)[trustee, relating to](exhibit41d-sx4.htm)[the](exhibit41d-sx4.htm)[2007 Series Notes](exhibit41d-sx4.htm)[.](exhibit41d-sx4.htm)</u> |
| 4.1(d)(1) | <u>[Amendment No. 1 to Sixteenth Supplemental](exhibit41d1.htm)[Indenture, dated as of February 15, 2010, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2007 Series A Notes.](exhibit41d1.htm)</u> |
| 4.1(d)(2) | <u>[Amendment No. 2 to Sixteenth Supplemental Indenture, dated as of October 12, 2012, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2007 Series B Notes.](exhibit41d2-sx4.htm)</u> |
| 4.1(e) | <u>[Seventeenth Supplemental and Amendatory Indenture, dated as](exhibit41e-sx4.htm)[of](exhibit41e-sx4.htm)[February 1, 2008, between Basin Electric Power Cooperative and U.S](exhibit41e-sx4.htm)[.](exhibit41e-sx4.htm)[Bank National Association](exhibit41e-sx4.htm)[,](exhibit41e-sx4.htm)[as trustee, relating to the 2008 Series A Notes](exhibit41e-sx4.htm)[.](exhibit41e-sx4.htm)</u> |
| 4.1(e)(1) | <u>[Amendment No. 1 to Seventeenth Supplemental and Amendatory Indenture, dated as of June 1, 2023, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2008 Series A Notes.](exhibit41e1-sx4.htm)</u> |
| 4.1(f) | <u>[Eighteenth Supplemental Indenture, dated as of February 15, 2008, between](exhibit41f-sx4.htm)[Basin Electric Power Cooperative](exhibit41f-sx4.htm)[and U.S. Bank National Association](exhibit41f-sx4.htm)[,](exhibit41f-sx4.htm)[as trustee, relating to the 2008 Series B Notes](exhibit41f-sx4.htm)[.](exhibit41f-sx4.htm)</u> |
| 4.1(f)(1) | <u>[Amendment No. 1 to Eighteenth Supplemental Indenture, dated as](exhibit41f1-sx4.htm)[of](exhibit41f1-sx4.htm)[June 1, 2023, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2008 Series B Notes](exhibit41f1-sx4.htm)[.](exhibit41f1-sx4.htm)</u> |
| 4.1(g) | <u>[Nineteenth Supplemental Indenture, dated as](exhibit41g-sx4.htm)[of](exhibit41g-sx4.htm)[March 1, 2008, between Basin Electric Power Cooperative and U.S](exhibit41g-sx4.htm)[.](exhibit41g-sx4.htm)[Bank National Association](exhibit41g-sx4.htm)[,](exhibit41g-sx4.htm)[as trustee, relating to the 2008 Series C Notes](exhibit41g-sx4.htm)[.](exhibit41g-sx4.htm)</u> |
| 4.1(g)(1) | <u>[Amendment No. 1 to Nineteenth Supplemental Indenture, dated as](exhibit41g1-sx4.htm)[of](exhibit41g1-sx4.htm)[June 1, 2023, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to](exhibit41g1-sx4.htm)[the](exhibit41g1-sx4.htm)[2008 Series C Notes](exhibit41g1-sx4.htm)[.](exhibit41g1-sx4.htm)</u> |
| 4.1(h) | <u>[Twenty-Seventh Supplemental](exhibit41h-sx4.htm)[Indenture, dated as of](exhibit41h-sx4.htm)[October 1](exhibit41h-sx4.htm)[,](exhibit41h-sx4.htm)[2009](exhibit41h-sx4.htm)[, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee](exhibit41h-sx4.htm)[, relating to the 2009 Series Notes](exhibit41h-sx4.htm)[.](exhibit41h-sx4.htm)</u> |
| 4.1(i) | <u>[Thirtieth Supplemental Indenture, dated as](exhibit41i-sx4.htm)[of](exhibit41i-sx4.htm)[September 15, 2011, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2011 Series Notes](exhibit41i-sx4.htm)[.](exhibit41i-sx4.htm)</u> |
| 4.1(j) | <u>[Thirty-Second Supplemental Indenture, dated as of September 15, 2012, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2012 Series Notes](exhibit41j-sx4.htm)[.](exhibit41j-sx4.htm)</u> |
| 4.1(k) | <u>[Thirty-Third Supplemental and Amendatory Indenture, dated as of June 15, 2015, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2015 Series Notes.](exhibit41k-sx4.htm)</u> |
| 4.1(l) | <u>[Thirty-Fourth Supplemental Indenture, dated as of April 29, 2016, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2016 CoBank Note.](exhibit41l-sx4.htm)</u> |
| 4.1(m) | <u>[Thirty-Fifth Supplemental Indenture, dated as of April 29, 2016, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2016 CFC Note.](exhibit41m-sx4.htm)</u> |
| 4.1(n) | <u>[Thirty-Sixth Supplemental Indenture, dated as of April 1, 2017, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2017 Series Bonds.](exhibit41n-sx4.htm)</u> |

---

------

<u>[**Table of Contents**](#i0b5983c249b84b3db1dc97769c25fdb6_4)</u>

---

| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 4.1(o) | <u>[Thirty-Eighth Supplemental Indenture, dated as of April 15, 2019, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee, relating to the 2019 Series A Note.](exhibit41o-sx4.htm)</u> |
| 4.1(p) | <u>[Thirty-Ninth Supplemental Indenture, dated as of February 15, 2022, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2022 Series Notes.](exhibit41p-sx4.htm)</u> |
| 4.1(q) | <u>[Fortieth Supplemental Indenture, dated as of February 1, 2024, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2024 Series Notes.](exhibit41q-sx4.htm)</u> |
| 4.1(r) | <u>[Forty-First Supplemental Indenture, dated as of November 1, 2024, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2024 CoBank Notes.](exhibit41r-sx4.htm)</u> |
| 4.1(s) | <u>[Forty-Second Supplemental Indenture, dated as of September 15, 2025, between Basin Electric Power Cooperative and U.S. Bank Trust Company, National Association, as trustee, relating to the 2025 Series Bonds.](exhibit41s-sx4.htm)</u> |
| 4.2†§ | <u>[Loan Agreement, dated as of December 1, 2005, between Basin Electric Power Cooperative and CoBank, ACB, as lender, relating to the 2005 CoBank Notes.](exhibit42-sx4.htm)</u> |
| 4.3†§ | <u>[Loan Agreement, dated as of](exhibit43-sx4.htm)[November 1, 2007](exhibit43-sx4.htm)[, between Basin Electric Power Cooperative and CoBank, ACB, as lender, relating to the 200](exhibit43-sx4.htm)[7](exhibit43-sx4.htm)[CoBank Notes.](exhibit43-sx4.htm)</u> |
| 4.4†§ | <u>[Term Loan Agreement, dated as of April 29, 2016, between Basin Electric Power Cooperative and CoBank, ACB, as lender, relating to the 2016 CoBank Note.](exhibit44-sx4.htm)</u> |
| 4.5 | <u>[Term Loan Agreement, dated as of April 29, 2016, between Basin Electric Power Cooperative and National Rural Utilities Cooperative Finance Corporation, as lender, relating to the 2016 CFC Note.](exhibit45-sx4.htm)</u> |
| 4.6†§ | <u>[Term Loan Agreement, dated as of November 27, 2024, between Basin Electric Power Cooperative and CoBank, ACB, as lender, relating to the 2024 CoBank Notes.](exhibit46-sx4.htm)</u> |
| 4.7†§ | <u>[Credit Agreement, dated as of](exhibit47-sx4.htm)[May 1, 2025](exhibit47-sx4.htm)[, amongst](exhibit47-sx4.htm)[Bas](exhibit47-sx4.htm)[in Electric](exhibit47-sx4.htm)[Power Cooperative](exhibit47-sx4.htm)[, as borrower, each lender from time to time party thereto, including Bank of America, N.A., as administrative agen](exhibit47-sx4.htm)[t.](exhibit47-sx4.htm)</u> |
| 4.8†§ | <u>[Term Loan Agreement, dated as of](exhibit48-sx4.htm)[December 10, 2025](exhibit48-sx4.htm)[, between Basin Electric Power Cooperative and](exhibit48-sx4.htm)[Roya](exhibit48-sx4.htm)[l B](exhibit48-sx4.htm)[a](exhibit48-sx4.htm)[nk of Canada](exhibit48-sx4.htm)[, as lender](exhibit48-sx4.htm)[.](exhibit48-sx4.htm)</u> |
| 4.9 | <u>[Exchange and Registration Rights Agreement, dated as of October 14, 2025, by and among Basin Electric Power Cooperative and Wells Fargo Securities, LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc., as representatives of the purchasers identified therein.](exhibit49-sx4.htm)</u> |
| 5.1 | <u>[Opinion of](exhibit51-sx4.htm)[Matthew R. Kolling, Esq.](exhibit51-sx4.htm)</u> |
| 10.1 | <u>[Missouri Basin Power Project—Laramie River Electric Generating Station and Transmission System Participation Agreement, executed on various dates during the months of September, November and December, 1975, taking effect as of May 25, 1977, amongst Basin Electric Power Cooperative, Tri-State Generation and Transmission Association, Inc., Western Minnesota Municipal Power Agency, and City of Lincoln, Nebraska, as amended by Amendment No. 1, dated as of March 15, 1977, Amendment No. 2, dated as of March 16, 1977, Amendment No. 3, dated as of August 1, 1982, Amendment No. 4, dated as of September 1, 1982, Amendment No. 5, dated as of May 2, 1983, Amendment No. 6, dated as of March 1, 1986, Amendment No. 7, dated as of September 15, 1986, Amendment No. 8, dated as of June 10, 1997, Amendment No. 9, dated as of April 16, 1999, Amendment No. 10, dated as of July 31, 2014, Amendment No. 11, dated as of July 10, 2015, Amendment No. 12, dated as of September 20, 2018, Amendment No. 13, dated as of May 27, 2021, and Amendment No. 14, dated as of May 1, 2023.](exhibit101-sx4.htm)</u> |

---

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---

| | |
|:---|:---|
| Exhibit No. | Description of Exhibit |
| 10.2†# | <u>[Coteau](exhibit102s-4.htm)[Lignite Sales](exhibit102s-4.htm)[Agreement](exhibit102s-4.htm)[, dated January 1, 1990](exhibit102s-4.htm)[,](exhibit102s-4.htm)[between](exhibit102s-4.htm)[Dakota C](exhibit102s-4.htm)[oal Company](exhibit102s-4.htm)[and](exhibit102s-4.htm)[The Cotea](exhibit102s-4.htm)[u](exhibit102s-4.htm)[P](exhibit102s-4.htm)[roperties Company, as amended by Amendment No. 1](exhibit102s-4.htm)[.](exhibit102s-4.htm)[date](exhibit102s-4.htm)[d June](exhibit102s-4.htm)[1](exhibit102s-4.htm)[, 1994.](exhibit102s-4.htm)</u> |
| 10.3† | <u>[Wholesale Power Contract](exhibit103s-4.htm)[, dated May 22, 1962, between Upper Missouri](exhibit103s-4.htm)[G.](exhibit103s-4.htm)[&](exhibit103s-4.htm)[T. Electric Cooperative, Inc.](exhibit103s-4.htm)[and Basin Electric Power Cooperative](exhibit103s-4.htm)[,](exhibit103s-4.htm)[as amended and supplemented through March 24, 2022.](exhibit103s-4.htm)</u> |
| 10.4† | <u>[Wholesale Power Contract](exhibit104s-4.htm)[, dated April 5, 1962, between East River](exhibit104s-4.htm)[Electric Power Cooperative](exhibit104s-4.htm)[, Inc.](exhibit104s-4.htm)[and Basin Electric Power Cooperative](exhibit104s-4.htm)[, as amended](exhibit104s-4.htm)[and supplemented](exhibit104s-4.htm)[through September 2](exhibit104s-4.htm)[5](exhibit104s-4.htm)[, 2015](exhibit104s-4.htm)[.](exhibit104s-4.htm)</u> |
| 10.5§ | <u>[Employment agreement, dated December 22, 2025, of Basin Electric Power Cooperative and agreed and accepted by Todd Brickhouse.](exhibit105-sx4.htm)</u> |
| 10.6 | <u>[Board Deferred Compensation Plan effective January 1, 2009,](exhibit106-sx4.htm)[a](exhibit106-sx4.htm)[s amended by](exhibit106-sx4.htm)[Amendment](exhibit106-sx4.htm)[No](exhibit106-sx4.htm)[s](exhibit106-sx4.htm)[.](exhibit106-sx4.htm)[1](exhibit106-sx4.htm)[through](exhibit106-sx4.htm)[5](exhibit106-sx4.htm)</u>. |
| 10.7 | <u>[Amended and Restated Executive Deferred Compensation Plan effective January 1, 2026](exhibit107-sx4.htm)[.](exhibit107-sx4.htm)</u> |
| 10.8† | <u>[Executive Benefit Restoration Plan effective November 23, 2015](exhibit108-sx4.htm)[,](exhibit108-sx4.htm)[as amended by Amendment No. 1, dated as of December 19, 2018.](exhibit108-sx4.htm)</u> |
| 21.1 | <u>[Basin Electric Power Cooperative Subsidiaries as of December 31, 2025.](exhibit211-sx4.htm)</u> |
| 23.1 | <u>[Consent of Deloitte & Touche LLP.](exhibit231-sx4.htm)</u> |
| 23.2 | <u>[Consent of](exhibit51-sx4.htm)[Matthew R. Kolling, Esq.](exhibit51-sx4.htm)[(included in Exhibit 5.1).](exhibit51-sx4.htm)</u> |
| 24.1 | <u>[Powers of Attorney (included on the signature page of the Registration Statement).](#i0b5983c249b84b3db1dc97769c25fdb6_193)</u> |
| 25.1 | <u>[Statement of Eligibility on Form T-1 of U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, a national banking association, as trustee under the Amended and Restated Indenture, dated as of May 5, 2015, between Basin Electric Power Cooperative and U.S. Bank National Association, as trustee.](exhibit251-sx4.htm)</u> |
| 99.1 | <u>[Form of Letter of Transmittal.](exhibit991-sx4.htm)</u> |
| 107 | <u>[Filing Fee Table.](exfilingfees.htm)</u> |

---

______________

†Certain exhibits and schedules to this exhibit have been omitted in accordance with Item 601(a)(5) of Regulation S-K. The registrant hereby agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon its request.

§Portions of this exhibit have been redacted in accordance with Item 601(a)(6) of Regulation S-K.

#Certain portions of this exhibit (indicated by "[\*\*\*]") have been omitted pursuant to Item 601(b)(10) of Regulation S-K.

Certain instruments defining rights of holders of long-term debt of the registrant and its consolidated subsidiaries have been omitted in accordance with Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant hereby agrees to furnish supplementally copies of such instruments to the SEC upon its request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statement Schedules**

None applicable.

**Item 22. Undertakings**

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses

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incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Filing Fee Tables" or "Calculation of Registration Fee" table, as applicable, in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness; provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following

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communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)To supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

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**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City and State of Bismarck, North Dakota, on April 15, 2026.

---

| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: | /s/ Todd Brickhouse |
| Name:  | Todd Brickhouse |
| Title: | Chief Executive Officer and General Manager |

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KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Todd Brickhouse, Christopher A. Johnson and James Horan, and each of them, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for him or her, and in his or her name in any and all capacities, to sign any and all amendments to this registration statement on Form S-4, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, and either of them, his or her substitute or resubstitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Todd Brickhouse | Chief Executive Officer and General Manager (Principal Executive Officer) | April 15, 2026 |
| Todd Brickhouse | Chief Executive Officer and General Manager (Principal Executive Officer) | April 15, 2026 |
| /s/ Christopher A. Johnson | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | April 15, 2026 |
| Christopher A. Johnson | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | April 15, 2026 |
| /s/ Katrina Wald | Vice President and Controller (Principal Accounting Officer) | April 15, 2026 |
| Katrina Wald | Vice President and Controller (Principal Accounting Officer) | April 15, 2026 |
| /s/ Wayne Peltier | Chairman, President and Director | April 15, 2026 |
| Wayne Peltier | Chairman, President and Director | April 15, 2026 |
| /s/ Paul Baker | Director | April 15, 2026 |
| Paul Baker | Director | April 15, 2026 |
| /s/ Kermit Pearson | Director | April 15, 2026 |
| Kermit Pearson | Director | April 15, 2026 |
| /s/ Leo Brekel | Director | April 15, 2026 |
| Leo Brekel | Director | April 15, 2026 |
| /s/ Tom Wagner | Director | April 15, 2026 |
| Tom Wagner | Director | April 15, 2026 |
| /s/ David Meschke | Director | April 15, 2026 |
| David Meschke | Director | April 15, 2026 |
| /s/ Daniel Gliko, Jr. | Director | April 15, 2026 |
| Daniel Gliko, Jr. | Director | April 15, 2026 |
| /s/ Troy Presser | Director | April 15, 2026 |
| Troy Presser | Director | April 15, 2026 |
| /s/ Anthony Larson | Director | April 15, 2026 |
| Anthony Larson | Director | April 15, 2026 |
| /s/ Jerry Beck | Director | April 15, 2026 |
| Jerry Beck | Director | April 15, 2026 |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-4**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **BASIN ELECTRIC POWER COOPERATIVE**  |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Debt | 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 | 457(o) | $700000000.00 | 0.0001381 | $96670.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $700000000.00  |  | $96670.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $96670.00  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Represents the aggregate principal amount of the registrant's 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 to be offered in the exchange offer to which the registration statement relates.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---

## Exhibit 3.1

**Exhibit 3.1**

Originally Adopted May 5, 1961

Restated November 20, 1995

Amended Effective Date April 17, 1998

**RESTATED**

**ARTICLES OF INCORPORATION**

**BASIN ELECTRIC POWER COOPERATIVE**

The following Articles of Incorporation restate and supersede the Articles of Incorporation of Basin Electric Power Cooperative adopted May 5, 1961, and all amendments thereto.

**ARTICLE I**

The name of the Cooperative shall be BASIN ELECTRIC POWER COOPERATIVE.

The Cooperative is organized under Chapters 10-13 and 10-15 of the North Dakota Century Code.

The principal office of the Cooperative shall be located at Bismarck, in Burleigh County, State of North Dakota.

The name and address of the Agent of the Cooperative upon whom process may be served is Ronald R. Harper, Bismarck, North Dakota.

**ARTICLE II**

The purpose or purposes for which the Cooperative is organized are to engage in rural electrification and such other businesses as may be approved by resolution of the Membership adopted at any annual or special meeting of the Members and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.To generate, manufacture, purchase, acquire and accumulate electric energy for its Members and to transmit, distribute, furnish, sell and dispose of such electric energy to its Members and Non-Members, and to construct, erect, purchase, lease as lessee and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange and mortgage plants, buildings, works, machinery, supplies, apparatus, equipment and electric transmission and distribution lines or systems necessary, convenient or useful for carrying out and accomplishing any or all of the foregoing purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.To form one or more subsidiary business organizations to provide such other services as may be permitted by law for the benefit of the Cooperative, its Members or Non-Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.To acquire, own, hold, use, exercise and, to the extent permitted by law, to sell, mortgage, pledge, hypothecate and in any manner dispose of franchises, rights, privileges, licenses,

------

rights-of-way and easements necessary, useful or appropriate to accomplish any or all of the purposes of the Cooperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.To purchase, receive, lease as lessee or in any other manner acquire, own, hold, maintain, use, convey, sell, lease as lessor, exchange, mortgage, pledge or otherwise dispose of any and all real and personal property or any interest therein necessary, useful or appropriate to enable the Cooperative to accomplish any or all of its purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.To borrow money, to make and issue bonds, notes and other evidences of indebtedness, secured or unsecured for moneys borrowed or in payment for property acquired or for any of the other objects or purposes of the Cooperative; to secure the payments of such bonds, notes or other evidences of indebtedness by mortgages, or deed or deeds of trust upon, or by the pledge of or other lien upon, any or all of the property, rights, privileges or permits of the Cooperative, wheresoever situated, acquired or to be acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.To make advances and to extend credit to or for the account of its Members and to take any form of obligations or security therefore, to acquire, hold, transfer or pledge any note or other obligation, and to make any contract, endorsement or guaranty deemed desirable incident to the transfer or pledge of any such obligation, note or security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.To do and perform, either for itself or its Members, any and all acts and things, and to have and exercise any and all powers, as may be necessary or convenient to accomplish any or all of the foregoing purposes, or as may be permitted by the Acts under which the Cooperative is formed.

The enumeration of the foregoing powers shall not be held to limit or restrict in any manner the general powers of this Cooperative, and this Cooperative is authorized to exercise and enjoy all of the powers, rights and privileges granted to or conferred upon associations of the character of this Cooperative by the laws of the State of North Dakota, now or hereafter in force.

**ARTICLE III**

The duration of the Cooperative shall be perpetual.

**ARTICLE IV**

The business and affairs of the Cooperative shall be managed by a Board of not less than five (5) nor more than fifteen (15) Directors.

**ARTICLE V**

This Cooperative is not organized for profit, and shall have no capital stock, but shall be a membership cooperative. There shall be four classes of membership in the Cooperative: Class A, Class B, Class C and Class D. The qualifications for membership and the rights and obligations thereof shall be as provided by law and as set forth in the Bylaws. Interest shall not be paid on the membership fee paid by the Member.

------

**ARTICLE VI**

Upon dissolution or liquidation, after

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.all debts and liabilities of the Cooperative shall have been paid,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.all capital furnished through patronage shall have been retired as provided in the Bylaws, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.all membership fees shall have been repaid,

the remaining property and assets of the Cooperative shall be distributed among those Members which are Members on the date of dissolution in the proportion which the aggregate patronage of each such Member bears to the total patronage of all such Members, unless otherwise provided by law. Members of the Cooperative which (i) shall have withdrawn from membership, (ii) shall have been expelled from the Cooperative, or (iii) shall have been dissolved or whose corporate existence shall have expired, other than by reason of merger or consolidation with another Member, shall be deemed to have forfeited all interest in the Cooperative on and as of the date of withdrawal, expulsion or dissolution and shall not be entitled to any distribution upon dissolution of the Cooperative.

**ARTICLE VII**

The names and addresses of the original incorporators were as follows:

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| | |
|:---|:---|
| Arthur Jones | Oliver G. Rose |
| Britton, South Dakota | Nisland, South Dakota |
| John Irving | Jacob Nordberg |
| Mount Ayr, Iowa | Jacobson, Minnesota |
| Dennis Lindberg | C. R. Thiessen |
| Odebolt, Iowa | Lambert, Montana |
| Henry Swenson | Alfred J. Lien |
| Columbus, North Dakota | Platte, South Dakota |
| O. N. Gravgaard | Henry Meyerink |
| Hawick, Minnesota | Platte, South Dakota |
| Norman H. Andrew | Floyd Rasmussen |
| Jefferson, Iowa | Platte, South Dakota |
| Frank Wright | Austin G. Zander |
| Turton, South Dakota | Watertown, South Dakota |

---

------

---

| | |
|:---|:---|
| Oscar Torstenson | Charles E. Jewett |
| Dawson, Minnesota | Wibaux, Montana |
| Eddie H. Lake | Loyd Aten |
| Montevideo, Minnesota | Tabor, South Dakota |
| Lloyd D. Zimbrick | Ralph A. Sapp |
| Wheaton, Minnesota | Lake Preston, South Dakota |
| Vernon C. Johnson | Wm. Raabe |
| Lake Andes, South Dakota | Tyndall, South Dakota |
| Walter M. Lohr | Pat Plummer |
| Raymond, South Dakota | Baker, Montana |
| Ralph Dennis | Roger W. Giles |
| Canova, South Dakota | Lake Preston, South Dakota |
| Ted Anderson | Maynard Opsahl |
| Mitchell, South Dakota | Carpenter, South Dakota |
| Walter Smith | Harold Nahr |
| Grand Rapids, Minnesota | Stanley, North Dakota |
| R. M. St. Cyr | Lyle Herriott |
| Sidney, Montana | Timber Lake, South Dakota |
| John J. Hyde | Leon Birdsall |
| Creston, Iowa | Berthold, North Dakota |
| E. J. Dickinson | Bernard R. Riley |
| Le Mars, Iowa | Salem, South Dakota |
| R. L. Potts | Arthur Gabel |
| Columbus, North Dakota | Spencer, South Dakota |
| Richard Stoltenburg | Donald Waugh |
| Watertown, South Dakota | Salem, South Dakota |
| Otto Richter | O. N. Benjamin, Jr. |
| South Shore, South Dakota | Valley City, North Dakota |
| Harvey Bly | Wm. H. Wisdom |
| Brandon, South Dakota | Des Moines, Iowa |
| W. H. Van Orsdel | Mrs. V. T. Hanlon |
| Marion, South Dakota | Madison, South Dakota |

---

------

---

| | |
|:---|:---|
| George M. Hunter | Ransom Knutson |
| Madison, South Dakota | Ralph, South Dakota |
| L.H. Jacobson | Ted Anderson |
| Rapid City, South Dakota | Mitchell, South Dakota |
| H. A. Pinkerton | Otto A. Schneider |
| Redfield, South Dakota | McLaughlin, South Dakota |
| Clarence Johnson | Herbert Weber |
| Sturgis, South Dakota | Hazelton, North Dakota |
| Roger F. Johnson | Fritjof Fossum |
| Armour, South Dakota | Claire City, South Dakota |
| C. Peter Eggen | Harlan M. Severson |
| Sisseton, South Dakota | Madison, South Dakota |
| Otto Krapf | V. T. Hanlon |
| Cavour, South Dakota | Madison, South Dakota |
| Edward E. Wolter | Elmer Jorgenson |
| Anoka, Minnesota | Lemmon, South Dakota |
| Ellwood H. Johnson | Leroy D. Schacher |
| Minneapolis, Minnesota | Bison, South Dakota |
| Albert C. Hauffe | G. T. Johnson |
| Leola, South Dakota | Shade Hill, South |
| Robert E. Monkman | John H. Hubers, Jr. |
| Desmet, South Dakota | Harrison, South Dakota |
| George W. Comog | Alfred Anderson |
| Linton, North Dakota | Bison, South Dakota |

---

------

**ARTICLE VIII**

The first Board of Directors was composed of eight (8) Members as follows:

---

| | |
|:---|:---|
| **<u>Name</u>** | **<u>Address</u>** |
| Norman H. Andrew | Jefferson, Iowa |
| Arthur Jones | Britton, South Dakota |
| Jacob Nordberg | Jacobson, Minnesota |
| Dennis Lindberg | Odebolt, Iowa |
| 0. N. Gravgaard | Hawick, Minnesota |
| Oliver G. Rose | Nisland, South Dakota |
| John Irving | Mt. Ayr, Iowa |
| Henry Swenson | Columbus, North Dakota |

---

**ARTICLE IX**

The Cooperative may not sell, lease or otherwise dispose of any of its property other than:

a.property which, in the judgment of the Board of Directors will be neither necessary nor useful in operating and maintaining the Cooperative's system; provided, however, that sales of such property shall not in any one year exceed in value five per centum of the value of all of the property of the Cooperative;

b.services of all kinds, including electric energy; and

c.personal property acquired for resale;

unless such sale, lease or other disposition is authorized at a meeting of the Members by the affirmative vote of at least two-thirds (2/3) of the entire membership which is eligible to vote at such meeting which vote shall be cast In person, and the notice of such proposed sale, lease or other disposition shall have been contained in the notice of the meeting; provided, however, that notwithstanding anything herein contained, the Board of Directors, without authorization by the Members, shall have full power and authority to borrow money and in connection with such borrowing to authorize the making and issuance of bonds, notes or other evidences of indebtedness and, to secure the payment thereof, to authorize the execution and delivery of a mortgage or mortgages, or a deed or deeds of trust upon, or the pledging or encumbrancing of any or all of the property, assets, rights, privileges, licenses, franchises and permits of the Cooperative, whether acquired or to be acquired, and wherever situated, all upon such terms and conditions as the Board of Directors shall determine.

**ARTICLE X**

The Cooperative may amend or repeal any provision contained in these Articles of Incorporation in the manner now or hereafter prescribed by law.

------

**BASIN ELECTRIC POWER COOPERATIVE CERTIFICATE**

I, Claire M. Olson, Assistant Secretary of Basin Electric Power Cooperative, certify that the attached is a true and correct copy of the Restated Articles of Incorporation of Basin Electric Power Cooperative, adopted by the Membership of Basin Electric Power Cooperative on March 8, 1998, at its notified Special Membership Meeting held in Nashville, Tennessee, and to be effective on April 17, 1998.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Cooperative on this 1<sup>st</sup> day of September, 2010.

---

| |
|:---|
| /s/Claire M. Olson |
| Claire M. Olson |
| Assistant Secretary |

---

## Exhibit 3.2

**Exhibit 3.2**

---

| | |
|:---|:---|
| Originally Adopted November 1, 1961 | Amended November 7, 2013 |
| Restated November 17, 1995 | Amended November 5, 2015 |
| Amended November 15, 1996 | Amended November 10, 2016 |
| Amended November 7, 1997 | Amended November 8, 2017 |
| Amended March 8, 1998 | Amended November 7, 2018 |
| Amended November 10, 2000 | Amended November 6, 2019 |
| Amended June 28, 2001 | Amended November 4, 2020 |
| Amended November 6, 2003 | Amended November 8, 2022 |
| Amended November 3, 2005 | Amended August 16, 2023 |
| Amended November 8, 2007 | Amended August 14, 2024 |
| Amended August 13, 2009 | Amended August 13, 2025 |
| Amended November 10, 2011 |  |

---

**AMENDED AND RESTATED BYLAWS** 

**OF**

**BASIN ELECTRIC POWER COOPERATIVE**

The following Bylaws restate and supersede the Bylaws of Basin Electric Power Cooperative adopted November 1, 1961, and all amendments thereto.

**ARTICLE I**

**Members**

**<u>Section 1, General.</u>** The limitations, conditions, restrictions and rights pertaining to membership and the privileges, duties and obligations of Members are set forth in these Bylaws.

**<u>Section 2, Classes of Membership.</u>** The Cooperative shall have no stock, but membership in the Cooperative shall be evidenced by a membership certificate. Membership in the Cooperative shall be of four classes as follows:

a.**<u>Class</u> <u>"A"</u> <u>Membership.</u>** Any incorporated cooperative association organized under the laws of North Dakota, or under a cooperative law in any other state, or any association of municipalities organized under the laws of North Dakota or under the laws of any other state (which association serves municipalities: located outside of a District or portion of a District that the Cooperative serves on an all requirements or all supplemental requirements basis and which are not served by another Member of the Cooperative), for the purposes, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and transmitting and selling electric energy may become a Class "A" Member, upon compliance with Article I, Section 4, and executing a contract to purchase electric service from the Cooperative's generating units as soon as electric service is needed to meet such Member's electric requirements in excess of such Member's existing generation capacities or contracts for the purchase of electric service, or the obligations to purchase power from others pursuant to Federal or

------

state statute. Class "A" Members may also purchase any other class of electric service, if available.

Each Class "A" Member shall pay for such power and/or energy monthly at rates or on a basis to be determined from time to time in accordance with the Bylaws and contracts entered into between the Cooperative and the Member. Each Class "A" Member shall pay to the Cooperative all other amounts per month, regardless of the amount of electric energy consumed, as shall be fixed by the Board of Directors from time to time. Each Class "A" Member shall also pay all amounts owed to the Cooperative as and when the same shall become due and payable.

b.**<u>Class "B" Membership.</u>** Any municipality or association of municipalities organized under the laws of the State of North Dakota or any other state for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines; transmitting, distributing and selling electric energy and doing business within the geographic area served by a Class "A" Member, which is a member of the cooperative association holding a Class "A" Membership, which contracts for its electric power and/or energy from said Class "A" member and which is not eligible for Class "C" Membership may become a Class "B" Member.

After November 17, 1995, any entity holding a Class "B" Membership which Member does not meet the requirements of this revised Class "B" membership description shall be deemed to be disqualified from membership. The Membership fee of such member shall be returned and the membership certificate shall be deemed to be void. Any accumulated capital credits of such Class "B" Member shall remain the obligation of Basin Electric until retired in the normal course of business.

c.**<u>Class "C" Membership.</u>** Any incorporated cooperative association organized under the laws of North Dakota, or under a cooperative law in any other state or any Public Power and Irrigation District organized under Chapter 70, Article 6 of the Nebraska Revised Statutes, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems transmitting, distributing, and selling electric energy and which is a Member of the cooperative association holding a Class "A" Membership in Basin Electric Power Cooperative and contracts for a portion of its electric power and/or energy from said Class "A" Member may become a Class "C" Member.

d.**<u>Class "D" Membership.</u>** Any incorporated cooperative association, or a municipality or association of municipalities organized under the laws of North Dakota, or under the laws in any other state, for the purposes, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and transmitting and selling electric energy, that contracts to purchase electric service from the Cooperative other than as a Class A, B or C Member, may become a Class "D" Member upon complying with Article I, Section 4, and executing a contract to purchase electric service from the Cooperative. Class "D" Members shall be collectively entitled to a single vote in District No. 9."

------

**<u>Section 3, Membership Fee.</u>** The membership fee for each class of membership in the Cooperative shall be as follows:

---

| | |
|:---|:---|
| a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class "A" Membership: | $500.00 |
| b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class "B" Membership: | $100.00 |
| c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class "C" Membership: | $100.00 |
| d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class "D" Membership: | $100.00 |

---

No membership certificate in the Cooperative shall be issued for less than the appropriate membership fee, nor until such membership fee has been fully paid for in cash. No dividend shall be paid upon the fee paid for membership in the Cooperative.

**<u>Section 4, Requirements for Membership.</u>** Any party eligible for a class of membership as provided for in Article I of these Bylaws, upon payment of the appropriate fee for a class of membership applied for, may become a Member in Basin Electric Power Cooperative by:

a.Executing a written application for the class of membership therein applied for;

b.Agreeing to purchase electric service from the Cooperative or from a Class "A" Member in accordance with the provisions of these Bylaws for the class of membership applied for; and

c.Agreeing to comply with and be bound by the Articles of Incorporation and Bylaws of the Cooperative and any rules and regulations adopted by the Board of Directors.

However, no municipality, association of municipalities, or incorporated cooperative association, except the incorporators of the Cooperative, shall become a Member unless and until it has been accepted for membership by the Board of Directors or the Members. No Member may hold more than one Membership in the Cooperative. Membership in the Cooperative shall not be transferable.

**<u>Section 5, Membership Certificates</u>.** Certificates representing membership in the Cooperative, shall state the restrictions or limitations upon its ownership voting, transfer or cancellation, and shall contain such other provisions and be in such form as shall be determined by the Board of Directors. Such certificates shall be signed by the President and by the Secretary of the Cooperative and shall be sealed with its seal. Each certificate, among other things, shall state in substance:

a.That no dividends shall be payable upon the issuing price of membership in the Cooperative; provided, however, that this limitation shall not prohibit the payment of patronage credits except as provided in these Bylaws; and

b.That all Members within the same class shall have the same rights, privileges, and duties; and that holders of Class "A" membership shall have one vote, and no more, by a duly authorized representative, as provided in these Bylaws; and

c.That no membership shall be transferable and all certificates thereof shall be surrendered to the Cooperative upon a Member becoming ineligible for membership or upon the expiration of the corporation existence, dissolution or expulsion of the Member holding such certificate.

------

In case of a lost, destroyed or mutilated certificate, a new certificate may be issued thereafter upon such terms and such indemnity to the Cooperative as the Board of Directors may prescribe.

**<u>Section 6, Expulsion of Members.</u>** The Board of Directors of the Cooperative may, by the affirmative vote of not less than two-thirds (2/3) of the Members of the Board of Directors, expel any Member of the Cooperative, which shall have willfully violated or refused to comply with any of the provisions of the Articles of Incorporation or the Bylaws of the Cooperative or any rules or regulations promulgated by the Board of Directors or which shall have ceased to engage in or carry on in a substantial degree the business which made it eligible for membership in the Cooperative, or which shall have ceased to engage in or carry on in a substantial degree the business of transmitting, distributing and selling electric energy, or which, shall have failed to pay any debt or obligation due the Cooperative when the same shall have become due and payable.

Any Member so expelled who undertakes to comply with all of the provisions of the Articles of Incorporation, the Bylaws, and all rules and regulations promulgated by the Board of Directors may be reinstated as a Member by a vote of the Members at any annual or special meeting of the Members. Except in the instance of fresh violations or refusals to comply with the provisions of the Articles of Incorporation and of these Bylaws and of any rules or regulations promulgated by the Board of Directors, or the substantial cessation of the business which makes a cooperative eligible for membership in the Cooperative, the action of the Members with respect to any such reinstatement shall be final.

**<u>Section 7, Termination of Membership.</u>** If (i) the corporate existence of any Member shall expire or such Member shall be dissolved, (ii) any Member shall voluntarily withdraw from membership in the Cooperative, or (iii) any Member should be expelled from the Cooperative, the membership of such Member shall forthwith be canceled. In any such case, the Cooperative shall pay to such Member the value of its membership as shown by the books of the Cooperative on the date of such cancellation, but in no event shall such payment exceed the amount of the original issuing price of such membership. Such payment shall be made within sixty (60) days after the date of such cancellation. Interest shall not, in any case, be paid upon the value of any such membership determined as hereinabove provided.

**<u>Section 8, Withdrawal of Membership.</u>** Subject to the provisions of Section 7 of this Article I, a Member may withdraw from membership upon compliance with such equitable terms and conditions as the Board of Directors may prescribe; provided, however, that no Member shall be permitted to withdraw until it has met all its contractual obligations to the Cooperative.

**<u>Section 9, Non-liability for Debts of Cooperative.</u>** The property of the Members of the Cooperative shall not be subject to the payment of the corporate debts of the Cooperative, and no Member shall be individually liable for the corporate debts of the Cooperative except as may otherwise be agreed.

**ARTICLE II**

**Meetings of Members**

**<u>Section 1, Annual Meeting.</u>** Regular Annual Meetings of the Members of the Cooperative shall be held on such date as shall be fixed by the Board of Directors, for the purpose of electing Directors, passing upon reports covering the previous fiscal year and transacting such other

------

business as may come before the meeting. If the election of Directors shall not be held on the day designated herein for any Annual Meeting, or at any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of the Members as soon thereafter as conveniently may be. Failure to hold the Annual Meeting at the designated time shall not work a forfeiture or dissolution of the Cooperative.

**<u>Section 2, Special Meetings.</u>** Special meetings of the Members of the Cooperative may be called by the President or the Board of Directors, and the Board shall do so upon the written demand of at least twenty percent (20%) of the Members.

**<u>Section 3, Video Conference Meetings.</u>** To the extent authorized by the Board of Directors and subject to any guidelines and procedures adopted by the Board of Directors, an Annual Meeting or Special Meeting of the Members of the Cooperative may be held without a geographic location if the meeting is held utilizing the internet or other electronic communications technology in a manner: a) permitting the Cooperative to verify that a person is the duly authorized representative of a Member, and b) permitting the duly authorized representatives of the Members the opportunity to: i) read and hear the proceedings substantially concurrently as they occur, ii) vote on matters submitted to the Membership, iii) ask questions and iv) make comments.

**<u>Section 4, Notice.</u>** Each Member shall be entitled to receive not less than thirty (30) days nor more than seventy-five (75) days written notice of the time and place, location or manner of all meetings and of the purpose of all special meetings. The Notice for any Annual Meeting or for any Special Meeting shall contain a copy of proposed amendments to the Articles of Incorporation, amendments to the Bylaws, or any resolutions which would enable the Cooperative to participate in any business purpose not previously authorized. Such notice shall be given by electronic mail directed to the e-mail address of the Member's general manager or chief executive officer. Notice shall be deemed delivered when sent to the last known e-mail address of the Member's general manager or chief executive officer as provided by the Cooperative. Information about the electronic mail notice shall be sent by United States mail to the last known address of the Member. Any Member may waive in writing notice of any meeting of the Members.

**<u>Section 5, Quorum.</u>** Forty percent (40%) of the number of Class "A" Members, plus ten percent (10%) of the Class "C" Members of the Cooperative represented by their duly authorized representatives shall constitute a quorum for the transaction of business at all meetings of the Members of the Cooperative. If less than a majority of the Members shall be so represented at any meeting of the Members, a majority of such representatives present may adjourn the meeting from time to time without further notice.

**<u>Section 6, Rules of Order.</u>** Except as otherwise provided by law or these Bylaws, all regular and special meetings of the members shall be conducted according to Robert's Rules of Order Newly Revised.

**<u>Section 7, Voting.</u>** No Member of the Cooperative shall own more than one (1) membership and each Member shall be entitled to one (1) vote and no more in the affairs of the Cooperative, provided, however, when one or more Members merge or consolidate with another Member, the merged or consolidated entity shall be entitled to one (1) vote in the affairs of the Cooperative for each Member which consolidated or merged for a period of three (3) years after the merger or consolidation. At the expiration of the three (3) years, only the remaining Member shall be

------

entitled to vote. Class B members of each Membership district shall be collectively entitled to one (1) vote per district. The vote of each Member of the Cooperative shall be cast by its duly authorized representative, evidenced by an instrument in writing, executed by its President and Secretary under its corporate seal, pursuant to a resolution duly adopted by the Board of Directors. At all meetings of the Members at which a quorum shall be present all elections shall be had and all questions decided by vote of a majority, except as otherwise specifically provided in these Bylaws or by law, of the authorized representatives of the Members present.

**<u>Section 8, List of Members Entitled to Vote.</u>** The Secretary of the Cooperative shall, at least two (2) days prior to each meeting of the Members of the Cooperative, make a complete list arranged in alphabetical order by district of the Members entitled to vote at such meeting and their respective addresses. Such list shall be produced and kept open at the time and place of each meeting and shall be subject to the inspection of any officer or duly authorized representative of any Member during the time of the meeting.

**<u>Section 9, Order of Business.</u>** The order of business at the regular Annual Meeting of the Members of the Cooperative and, so far as possible, at all other meetings of the Members, shall be as follows:

a.Call of the roll.

b.Reading of the notice of the meeting, together with the proof of the due giving thereof or the waiver or waivers of notice of such meeting.

c.Presentation and reading of unapproved minutes of previous meetings of the Members and the taking of necessary action thereon.

d.Presentation and consideration of, and acting upon, reports of officers, directors and committees.

e.Election of directors.

f.Unfinished business.

g.New business.

h.Adjournment.

**ARTICLE III**

**Directors - Territorial Districts**

**<u>Section 1, Districts.</u>** The Directors of the Cooperative shall be elected for three (3) year terms from territorial districts. The territorial districts shall be as follows:

**<u>District No. 1</u>** (East River): All Members organized under a cooperative or municipal law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Beadle, Bon Homme, Brown, Charles Mix, Clay, Codington, Davison, Day, Deuel, Douglas, Edmunds, Grant, Hughes, Kingsbury, Lake, Lincoln, Moody, or Union Counties, all in South Dakota; or Lincoln, Meeker, Redwood, Renville, Swift, Traverse or Watonwan Counties, Minnesota.

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**<u>District No. 2</u>** (L&O): All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Jackson County, Minnesota; or Lyon or Osceola Counties, Iowa; or Moody County, South Dakota.

**<u>District No. 3</u>** (Central Power): All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Bottineau, Burleigh, Foster, McHenry, McLean, Sargent or Ward Counties, North Dakota.

**<u>District No. 4</u>** (NIPCO): All Members organized under a cooperative or municipal law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Carroll, Crawford, Harrison, Shelby, Sioux or Woodbury Counties, all in Iowa.

**<u>District No. 5</u>** (Tri-State): All Members organized under a cooperative law in any state, or Chapter 70 of the Revised Statutes of Nebraska, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Adams, Chaffee, Delta, Denver, Grand, Gunnison, Larimer, La Plata, Lincoln, Montezuma, Morgan, Otero, Phillips, Pueblo, Rio Blanco, Rio Grande or Washington Counties, all in Colorado; Box Butte, Cheyenne, Morrill, Perkins, Scotts Bluff or Sheridan Counties, all in Nebraska; Cibola, Colfax, Luna, Mora, Otero, Rio Arriba, Sierra, Socorro, Torrance or Union Counties, all in New Mexico; or Big Horn, Carbon, Fremont, Goshen, Laramie, Niobrara, Park or Platte Counties, all in Wyoming.

**<u>District No. 6</u>** (Central Montana): All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Cascade, Hill, McCone, Park, Phillips, Teton, Toole, Valley or Yellowstone Counties, all in Montana.

**<u>District No. 7</u>** (Rushmore): All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Bennett, Butte, Custer, Dewey, Jones, Pennington, Todd or Walworth Counties, all in South Dakota.

**<u>District No. 8</u>** (Upper Missouri): All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Burke, Hettinger, McKenzie, Mercer or Williams Counties, all in North Dakota; or Carter, McCone, Richland, Sheridan, Treasure or Wibaux Counties, all in Montana.

**<u>District No. 9:</u>** All Members which are Government Agencies, or whose principal business is other than the furnishing of electric service for resale whose principal place

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of business is located other than in the specific areas described in District 1 through 8, 10 and 11.

**<u>District No. 10 (</u>**<u>Members 1st</u>**<u>)</u>**: All Members organized under the cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Crook County, Wyoming or Fergus or Rosebud Counties in Montana.

**<u>District No. 11 (</u>**<u>Corn Belt</u>**<u>)</u>**: All Members organized under a cooperative law in any state, for the purpose, among other things, of constructing, operating and maintaining electric transmission and distribution lines or systems and whose principal place of business is located in Humboldt, Butler, Calhoun, Franklin, Carroll, Grundy, Emmet, Greene or Wright Counties, all in Iowa.

Any such member having a principal place of business in a county included in two such Districts described above may vote in each District for the nomination and election of a Director of this Cooperative. Such Member, however, shall have only one vote at meetings of the Membership; furthermore, no Member shall have more than one of their members serving as a Director of the Cooperative.

**<u>Section 2, Amend Description.</u>**

In the event of a merger or consolidation of Class C Members, the Secretary of the Cooperative is authorized to amend the description of the District or Districts in which such members are located upon approval by the Board of Directors of a new membership certificate in the name of the merged entity and without further action by the Membership to amend these Bylaws.

**<u>Section 3, Nomination and Election of Director</u>.**

The Members in such territorial Districts shall nominate and elect one (1) Director to become a member of the Board of Directors of this Cooperative. Except for District No. 9, in each year in which an election is provided for, the board of directors of the Class A Member in each such District shall set the time (which shall be no more than ninety (90) days prior to the Annual Meeting of the Members of this Cooperative) and place for the members of the District to meet and nominate and elect such Director. The secretary of such meeting shall certify the results of such election to this Cooperative at the Annual Meeting of Members. In each year in which an election is provided for, the Members of District No. 9 shall hold a meeting during the Annual Meeting of the Members of this Cooperative to nominate and elect a Director. The secretary of such meeting shall certify the results of such election to this Cooperative.

Except for District No. 9 and Districts authorized by the membership pursuant to Article III, Section 4, no District shall be entitled to elect a Director unless such District shall include an operating federated cooperative of Member distribution Cooperatives with principal places of business located in the enumerated district and providing to its Members the following minimum services and membership:

a.Full time staff service.

b.Central billing under contracts to furnish bulk electric service to its Members.

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c.Perform subtransmission facilities planning for delivery of bulk electric service to its Members.

d.Maintain at least (3) Member distribution cooperatives.

e.Hold regular meetings of its Board of Directors, at least quarterly.

Those Member systems that are collectively represented on the federated Cooperative's Board of Directors as one Membership Class or District shall be entitled to one collective vote in the election of the Director from that territorial District.

Except as otherwise provided, any District which shall not provide the minimum service and membership enumerated herein shall be automatically terminated, and the Members of the Cooperative having principal places of business located within the counties enumerated in said District shall thereafter vote in District No. 9.

**<u>Section 4, Increase or Decrease in Membership.</u>** In the case of an increase or decrease in the number of Class "A" Members of this Cooperative which limit their membership to similarly organized cooperative associations, municipalities or associations of municipalities, the Bylaws of the Cooperative shall be amended by increasing or decreasing, as the case may be, the number of Districts and the number of Directors, to the end that each such Class "A" Member which limits its membership to similarly organized cooperative associations, municipalities or associations of municipalities shall constitute one District and elect one Director, and that all other cooperative associations, which are Class "A" Member distribution cooperatives or Class "D" Members of this Cooperative shall constitute one District collectively and elect one Director.

**ARTICLE IV**

**Directors**

**<u>Section 1, General.</u>**

a.The business and affairs of the Cooperative shall be managed by a Board of not less than five (5) nor more than fifteen (15) Directors; provided that the Bylaws may authorize the Board of Directors to appoint an executive committee from their own number to exercise such of the powers and functions of the Board as the Board may by resolution prescribe.

b.The Directors from Districts No. 1, 2, 3, 4, 5, 6, 7, 8, 10 and 11 shall be chosen from persons who are directors of both a Class "A" and a Class "C" Member of the Cooperative. The Directors so chosen shall serve for a period of three (3) years as provided in the Bylaws and for so long as they shall be directors of Class "A" and Class "C" Members of the Cooperative, unless sooner removed from office.

c.The Director from District No. 9 shall be chosen from persons who are directors of a Class "A" Member of the Cooperative. The Director so chosen shall serve for a period of three (3) years as provided in the Bylaws and for so long as they shall be directors of a Class "A" Member of the Cooperative, unless sooner removed from office.

The foregoing provision of this Section 1 which requires that a Director be a director of a Class "C" Member shall apply to all persons nominated and elected for the first time to the Board of Directors following the 1984 Annual Meeting of the Cooperative.

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Nothing in this section shall affect in any manner whatsoever the validity of any action taken at any meeting of the Board of Directors.

**<u>Section 2, Election and Tenure of Office.</u>** Directors shall be elected for three (3) year terms and until their respective successors shall have been elected and shall have qualified, in the manner provided in these Bylaws. In the event the Articles of Incorporation of the Cooperative are amended by increasing the number of Directors as provided in Section 4 of Article III, then the number of Districts provided for in these Bylaws shall be increased to provide the same number of Districts as is provided for the number of Directors. No person shall continue to be a Director of the Cooperative after the Member of which such person is a director shall have ceased to be a Member of the Cooperative, or after such person shall have ceased to be a Director of the Member they represent.

**<u>Section 3, Vacancy.</u>** In the event a vacancy shall occur on the Board of Directors at any time more than ninety (90) days prior to the expiration of the term of the Director whose office is vacated, the Cooperative shall, within thirty (30) days after such vacancy shall occur, notify each Member of the Cooperative which is a member of the District that a vacancy exists in the office of Director for that District. No later than thirty (30) days after the date of such notice, the Members of the Cooperative, which are Members of said District, shall convene in caucus at such time and place as shall be agreeable to no less than sixty percent (60%) of those Members. Sixty percent (60%) of the Members located in said District, present by delegate and eligible to vote shall constitute a quorum for the conduct of business at said caucus. The first order of business at said caucus shall be the election of a Chairman and a Recording Secretary. The caucus shall then elect a nominee to fill the unexpired term of the Director for that District. The Recording Secretary of the caucus shall certify said nominee to the Cooperative. If the nominee of the District caucus shall meet the other qualifications provided in the Bylaws of the Cooperative for the office of Director of the Cooperative, the remaining Members of the Board of Directors of the Cooperative shall appoint said nominee to fill the unexpired term of the Director for that District, and until their successor shall have been elected and qualified.

In the event a vacancy shall occur in the Board of Directors at any time less than ninety (90) days prior to the expiration of the term of office of Director for that District, the vacancy shall be filled by the vote of the Members of the District in the manner otherwise provided for election of Directors.

**<u>Section 4, Removal of Directors by Members.</u>** Any Member may bring charges against a Director for cause by filing them in writing with the Secretary, together with a petition signed by at least twenty percent (20%) of the Members requesting the removal of the Director in question. The removal shall be voted upon at the next regular or special meeting of the Members. The Director against whom such charges have been brought shall be informed in writing of the charges 30 days prior to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present evidence; and the person or persons bringing the charges against them shall have the same opportunity. Any vacancy pursuant to this Section 4 may be filled in the manner prescribed in Section 3 of Article IV of these Bylaws.

**<u>Section 5, General Power.</u>** The Board of Directors shall have power to make and adopt such rules and regulations, not inconsistent with these Bylaws of the Cooperative, as it may deem advisable for the management, administration and regulation of the business and affairs of the Cooperative.

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**<u>Section 6, Compensation.</u>** The Directors shall not receive salaries for their services, but by resolution of the Board of Directors, a fixed sum may be allowed any Director not otherwise receiving compensation as hereinafter provided, for attendance at each regular or special meeting of the Board of Directors, and expenses of attendance, if any. Any Director representing the Cooperative on any duty authorized by the Board of Directors other than regular or special meetings of the Board of Directors, shall receive such fixed sum and expenses, if any, as shall be fixed by the Board of Directors. Except in emergencies, no Director shall receive compensation for serving the Cooperative in any other capacity, unless authorized by a vote of the Board of Directors.

**<u>Section 7, Conflict of Interest.</u>** No person shall be eligible to become or remain a Director or to hold any position of trust in the Cooperative who is in any way employed by or financially interested in a competing enterprise or a business selling electric energy or supplies to the Cooperative. No person shall be eligible to serve on the Board of Directors of the Cooperative if any member of his/her immediate family is then an employee of the Cooperative; and no person shall be eligible to be employed by the Cooperative if he/she is a member of the immediate family of a Director or the General Manager of the Cooperative. For the purpose of this section, the term "immediate family" shall mean spouse, son, daughter, parent, grandchild, grandfather, grandmother, brother, or sister, and shall include such relatives through marriage. Nothing in this section contained shall, or shall be construed to, affect in any manner whatsoever the validity of any action taken at any meeting of the Board of Directors.

**<u>Section 8, Accounting Systems and Reports.</u>** The Board of Directors shall cause to be established and maintained a complete system of accounts subject to applicable laws, rules, and regulations of any applicable regulatory body. All accounts of the Cooperative may be examined at any time by the Board Audit Committee. The Board of Directors shall also, after the close of each fiscal year, cause a full and complete audit to be conducted of the accounts, books and records of the Cooperative as of the end of such fiscal year. Such audit report shall be submitted to the Members at the following Annual Meeting of Members.

**<u>Section 9, Delegate.</u>** The Board of Directors shall have full power and authority on behalf of the Cooperative to select one or more of the Directors (a) to attend any meeting of the Members or security holders of another cooperative or other corporation of which the Cooperative may be a member or otherwise hold securities, and (b) to vote on behalf of this Cooperative. At such meeting, the Director or Directors so selected shall possess and may exercise the rights and powers incident to the ownership of such membership certificates or securities as the Cooperative possesses. The Board of Directors may, from time to time, confer or delegate such powers to one or more other persons.

**<u>Section 10, Authority to Sell and Encumber.</u>** The Board of Directors shall have full power and authority on behalf of the Cooperative to purchase, sell, transfer or encumber any and all membership certificates or other securities of any other cooperative or corporation owned by the Cooperative, and may execute and deliver such documents as may be necessary to effectuate such purchase, sale, transfer or encumbrance. The Board of Directors may, from time to time, confer or delegate such powers to one or more other persons.

**ARTICLE V**

**Meetings of Directors**

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**<u>Section 1, Regular Meetings.</u>** A regular meeting of the Board of Directors shall be held without notice other than this Bylaw, immediately after, and at the same place, as each regular Annual Meeting of the Members of the Cooperative. A regular meeting of the Board of Directors shall also be held monthly and at such time and place as the Board may provide by resolution. Such regular monthly meeting may be held without notice other than such resolution fixing the time and place thereof.

**<u>Section 2, Special Meetings.</u>** Special meetings of the Board of Directors may be called by the President or any three (3) or more Directors. The President or any three or more Directors who shall, pursuant hereto, call a special meeting of the Board of Directors shall fix the time and place for the holding of any such special meeting of the Board of Directors called by them.

**<u>Section 3, Notice.</u>** Notice of the time, place and purpose of any special meeting shall be given at least two (2) days previous thereto by written notice, delivered personally or mailed to the Directors at their last known address. Any Director may waive notice of any meeting. The attendance of a Director at any meeting shall constitute a waiver of notice of such meeting, except in the event that a Director shall attend a meeting for the express purpose of objecting to the transaction of any business because the meeting shall not have been lawfully called or convened.

With the consent of a Director, notice of the date, time, place or purpose of a regular or special meeting of the Board of Directors may be given to the Director by electronic transmission. Notice under this Section 3 shall be deemed given to the Director when the notice is transmitted to an electronic mail address provided or consented to by the Director for the purpose of receiving notice; (b) posted on an electronic network and a message is sent to the Director at the address provided or consented to by the Director for the purpose of alerting the Director of a posting of such a notice; or (c) communicated to the Director by any other form of electronic transmission consented to by the Director for the purpose of receiving notice.

**<u>Section 4, Quorum.</u>** A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors; provided, that if less than a majority of the Directors shall be present at said meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice. The act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

**<u>Section 5, Presence at Meetings.</u>** Any or all Directors may participate in any meeting of the Board of Directors, or of any duly constituted committee thereof, by any means of communication through which the Directors may simultaneously hear and speak to each other during such meeting. For the purposes of establishing a quorum and taking any action, such Directors participating pursuant to this Section 5 shall be deemed present in person at the meeting.

**ARTICLE VI**

**Officers**

**<u>Section 1, Officers.</u>** The officers of the Cooperative shall be a President, Vice President, Secretary, Assistant Secretary, Treasurer, and such other officers as may be determined by the Board of Directors from time to time. The offices of Secretary and of Treasurer may be held by the same person.

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**<u>Section 2, Election.</u>** The officers of the Cooperative, except one Assistant Secretary, shall be elected by ballot, annually by and from the Board of Directors at the first meeting of the Board of Directors held after each regular meeting of the Members of the Cooperative. One Assistant Secretary may be elected by the Board of Directors, but shall not be required to be a Member of the Board of Directors. Each officer shall hold office until the next Annual Meeting of the Board of Directors and until their successor shall have been chosen and shall qualify, unless removed as hereinafter provided. The Directors may also choose and may remove such officers and employees as they deem proper.

**<u>Section 3, Removal.</u>** At any meeting called for that purpose, any officer of the Cooperative may be removed by a vote of a majority of the Members of the Cooperative.

**<u>Section 4, Vacancy.</u>** A vacancy in any office may be filled by the Board of Directors for the unexpired portion of the term.

**<u>Section 5, President.</u>** The President:

a.Shall be the principal executive officer of the Cooperative and shall preside at all meetings of the Members of the Cooperative and of the Board of Directors;

b.Shall sign, with the Secretary, certificates of membership, the issue of which shall have been authorized by resolution of the Board of Directors, and may sign any deeds, mortgages, deeds of trust, notes, bonds, contracts or other instruments authorized by the Board of Directors to be executed, except in cases in which the signing and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the Cooperative, or shall be required by law to be otherwise signed or executed; and

c.In general shall perform all duties incident to the office of President and such other duties as may be prescribed by the Board of Directors from time to time.

**<u>Section 6, Vice President.</u>** In the absence of the President, or in the event of their inability or refusal to act, the Vice President shall perform the duties of the President, and when so acting, shall have all powers of and be subject to all restrictions upon the President and shall perform such other duties as from time to time may be assigned to them by the Board of Directors.

**<u>Section 7, Secretary.</u>** The Secretary shall:

a.Keep the minutes of the meetings of the Members and the Board of Directors in one or more books provided for that purpose;

b.See that all notices are duly given in accordance with these Bylaws or as required by law;

c.Be custodian of the corporate records and of the seal of the Cooperative and see that the seal of the Cooperative is affixed to all certificates for membership prior to the issue thereof and to all documents, the execution of which on behalf of the Cooperative under its seal is duly authorized in accordance with the provisions of these Bylaws;

d.Keep a register of the post office address of each Member which shall be furnished to the Secretary by such Member;

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e.Sign with the President certificates for membership in the Cooperative, the issue of which, subject to the provisions of these Bylaws, shall have been authorized by resolution of the Board of Directors; and

f.In general perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to them by the Board of Directors.

**<u>Section 8, Assistant Secretary.</u>** In the absence of the Secretary, or in the event of their inability or refusal to act, the Assistant Secretary shall perform the duties of the Secretary, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Secretary and shall perform such other duties as from time to time may be assigned to them by the Board of Directors.

**<u>Section 9, Treasurer.</u>** The Treasurer shall:

a.Have charge and custody of and be responsible for all funds and securities of the Cooperative;

b.Receive and give receipts for monies due and payable to the Cooperative from any source whatsoever, and deposit all such monies in the name of the Cooperative in such banks as shall be selected in accordance with the provisions of Section 2 of Article X of these Bylaws; and

c.In general perform all the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to them by the Board of Directors.

**<u>Section 10, Non-Director Assistant Secretary.</u>** Should the Board of Directors elect an Assistant Secretary who is not a Member of the Board of Directors, such Assistant Secretary, in the absence of the Secretary and the Assistant Secretary who is a Member of the Board of Directors, shall perform the duties of the Secretary, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Secretary, and perform such other duties as from time to time may be assigned to them by the Board of Directors.

**<u>Section 11, General Manager.</u>** The Board of Directors may appoint a General Manager who may be, but who shall not be required to be, a member of any incorporated cooperative association which is a Member of the Cooperative. The Board of Directors may by resolution designate such additional titles as it deems necessary and as permitted by law. The General Manager shall perform such duties as the Board of Directors may from time to time require and shall have such authority as the Board of Directors may from time to time vest in that position. The salary of the General Manager shall be fixed by the Board of Directors.

**<u>Section 12, Bonds.</u>** The Board of Directors shall require the Treasurer and any Manager and any other officer or employee of the Cooperative charged with responsibility for the custody of any of its funds or property to give bonds for the faithful discharge of their duties, in such form and containing such terms and conditions and with such surety and sureties as the Board of Directors shall determine.

**<u>Section 13, Salary.</u>** The salaries of the officers of the Cooperative shall be fixed from time to time by the Members, and no officer shall be prevented from receiving such salary by reason of the fact that they are also a Director of the Cooperative. The salaries, duties and terms of

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employment of all other employees of the Cooperative shall be fixed and determined by the Board of Directors.

**<u>Section 14, Fiscal Report.</u>** The officers of the Cooperative shall submit at each regular Annual Meeting of the Members reports covering the business of the Cooperative for the previous fiscal year and showing the condition of the Cooperative at the close of such fiscal year.

**ARTICLE VII**

**Board Committees**

**<u>Section 1, Appointment of Executive Committee.</u>** The Board of Directors shall have the power, by resolution, to appoint an Executive Committee consisting of four (4) Members of the Board, two (2) of whom shall be the President and Secretary. The Executive Committee shall hold office at the pleasure of the Board of Directors and shall exercise such powers of the Board as the Board may by resolution delegate to it; and it may be given responsibility for the general direction and management of the Cooperative when the Board of Directors is not in session.

**<u>Section 2, Executive Committee Meetings.</u>** The Executive Committee shall make rules for the calling of its meetings and the conduct of its business. Three (3) members of the Executive Committee shall constitute a quorum for the transaction of its business. Record of all business transacted at meetings of the Executive Committee shall be kept by the Secretary and preserved with the minutes of the meetings of the Board of Directors and the Members.

**<u>Section 3, Audit Committee.</u>** The Board of Directors shall establish and maintain an Audit Committee whose principal purpose is to oversee the Cooperative's and its subsidiaries' accounting and financial reporting processes, internal systems of control, independent auditor relationships, internal audits and the audits of the consolidated financial statements of the Cooperative and its subsidiaries. The Audit Committee shall consist of a minimum of five (5) members of the Board. The Audit Committee shall have the power and authority to conduct investigations of matters subject to the Audit Committee's responsibilities, access the Cooperative's and responsibilities of the Audit Committee shall be as follows: (1) recommend to the Board of Directors the appointment, retention, evaluation, and when appropriate, the termination and replacement of the independent certified public accounting firm to serve as the Cooperative's outside auditing firm, (2) monitor the Cooperative's financial reporting process and internal controls, (3) monitor the Cooperative's compliance with applicable financial laws, rules and regulations, (4) address allegations concerning fraud, financial irregularities or mismanagement and (5) approve contracting for any non-audit services provided to the Cooperative by the independent auditing firm. The minutes of the meetings of the Audit Committee shall be kept and preserved with the minutes of the meetings of the Board of Directors and the Members.

**<u>Section 4, Advisory Committees.</u>** The Board of Directors shall have the power, by resolution, to appoint one or more Advisory Committees, each consisting of a minimum of three (3) members of the Board. Advisory Committees may not exercise the authority of the Board of Directors to make decisions on behalf of the Cooperative, but are restricted to making recommendations to the Board of Directors. Each Advisory Committee shall determine its meeting rules and whether minutes shall be kept.

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**ARTICLE VIII**

**Non-Profit Operation**

**<u>Section 1, Interest or Dividends on Capital Prohibited.</u>** The Cooperative shall at all times be operated on a cooperative non-profit basis for the mutual benefit of its Members. No interest shall be paid or payable by the Cooperative on any capital furnished by its Members.

**<u>Section 2, Patronage Capital in Connection with Furnishing Electric Service.</u>** In the furnishing of electric service, the Cooperative's operation shall be so conducted that all Members will, through their patronage, furnish capital for the Cooperative. In order to induce patronage and to assure that the Cooperative will operate on a non-profit basis, the Cooperative is obligated to account on a patronage basis to all its patrons for all amounts received and receivable from the furnishing of electric energy in excess of the sum of (a) operating and maintenance expenses, taxes, depreciation or principal and interest on outstanding obligations, and expenses properly chargeable against the furnishing of electric energy, and (b) to the extent of such amount as may be determined by the Board of Directors, to (i) offset any losses incurred during the current or any prior fiscal year, (ii) to reduce future rates to Members, (iii) abate current charges for electric energy, or (iv) otherwise return such amounts to the Members on a pro-rata basis according to the amount of business done with each Member during the year, provided, however that the Board of Directors shall exclude from the amount returned to any Member, on a pro-rata basis, any amounts attributable to sales to that Member for which the Member waived the right to receive patronage. Any non-operating margins shall be applied to reduce the operating costs and expenses of furnishing electric service. All such amounts in excess of operating costs and expenses are received with the understanding that they are furnished by the patrons as capital. The Cooperative is obligated to pay by credits to a capital account for each Member all such amounts in excess of operating costs and expenses. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each Member is clearly reflected and credited in an appropriate record to the capital account of each Member, and the Cooperative shall within a reasonable time after the close of the fiscal year notify each Member of the amount of capital so credited to their account.

All such amounts credited to the capital account of any Member shall have the same status as though they had been paid to the patron in cash in pursuance of a legal obligation to do so and the Member had then furnished the Cooperative corresponding amounts for capital.

Subject to the limitations on the use of deferred revenues for the purposes described in this Article VIII, the Board of Directors shall determine the amount of any revenue deferral, not to exceed four hundred fifteen million dollars ($415,000,000.00) and such deferred revenues must be used for purposes described herein within a period of seven (7) years after the revenue is initially collected and deposited.

All other amounts received by the Cooperative from its operations in excess of costs and expenses shall, insofar as permitted by law, be (a) used to offset any losses incurred during the current or any prior fiscal year, and (b) used to fund such reserves for improvement, new construction, depreciation and contingencies as the Board of Directors may prescribe from time to time, and to the extent not needed for those purposes, such amounts received by the Cooperative from its operations in excess of costs and expenses shall be allocated to its patrons

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on a patronage basis and any amount so allocated shall be included as part of the capital credited to the accounts of Members, as herein provided.

The Board of Directors shall have the power to adopt rules providing for the separate retirement of that portion ("other cooperative portion") of capital credited to the accounts of Members which corresponds to capital credited to the account of the Cooperative by fuel supply or financial services cooperatives of which this Cooperative is a Member. Such rules shall (a) establish a method for determining the other cooperative portion of capital credited to each Member for each applicable fiscal year, (b) provide for separate identification on the Cooperative's books of the other cooperative portion of capital credited to the Cooperative's Members, (c) provide for appropriate notifications to Members with respect to the other cooperative portion of capital credited to their accounts, and (d) preclude a general retirement of the other cooperative portion of capital credited to Members for any fiscal year prior to retirement of such capital credits by such fuel supply or financial services cooperative.

In the event of dissolution or liquidation of the Cooperative, after all outstanding indebtedness of the Cooperative shall have been paid, outstanding capital credits shall be retired without priority on a pro-rata basis before any payments are made on account of property rights of Members. If, at any time prior to the dissolution or liquidation, the Board of Directors shall determine that the financial condition of the Cooperative will not be impaired thereby, the capital then credited to Members' accounts may be retired in full or in part in the order of priority according to the year in which the capital was furnished and credited, the capital first received by the Cooperative being the first retired. Any such retirements of capital shall be made in accordance with the laws of the state of North Dakota, the Articles of Incorporation, these Bylaws and the financial covenants set forth in the Cooperative's indenture and other financing agreements, provided however, for any fiscal year after December 30, 2018, to the extent the Cooperative's consolidated net margin and earnings for the year exceed the targeted consolidated net margin the Board of Directors deems necessary in order to maintain an "A" rating from the nationally recognized statistical rating agencies, the Board of Directors may retire the capital representing such excess, or a portion of such capital, on a last-in, first-out basis, provided such payment is made in the following fiscal year.

Capital credited to the account of each Member shall be assignable only on the books of the Cooperative pursuant to written instruction from the assignor and only to the successors in interest in the business or the physical assets of such patron served by the Cooperative unless the Board of Directors, acting under policies of general application, shall determine otherwise.

The provisions of the first, second, third, fourth and fifth paragraphs of this Section 2 shall not apply to any Member receiving a class of service not requiring contributions of capital.

The Members of the Cooperative, by dealing with the Cooperative, acknowledge that the terms and provisions of the Articles of Incorporation and Bylaws shall constitute and be a contract between the Cooperative and each Member, and both the Cooperative and Members are bound by such contract, as fully as though each Member had individually signed a separate instrument containing such terms and provisions. The provisions of this Article of the Bylaws shall be called to the attention of each Member of the Cooperative by posting in a conspicuous place in the Cooperative's office.

**<u>Section 3, Patronage Refunds in Connection with Furnishing Other Services.</u>** In the event that the Cooperative should engage in the business of furnishing goods or services other than

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electric service, to patrons other than those receiving such service under a class of service which does not provide for contributions of capital, all amounts received and receivable therefrom which are in excess of costs and expenses properly chargeable against the furnishing of such goods or services may be used to offset any losses associated with the providing of such goods or services incurred during the current or any prior fiscal year or to fund reserves for improvement, new construction, depreciation and contingencies, all in such amounts as may be determined by the Board of Directors, and the remaining excess amount shall, insofar as permitted by law, be prorated annually on a patronage basis and returned to those Members from whom such amounts were obtained.

**<u>Section 4, Capital Credits.</u>** All capital credited to the account of each Member shall continue to be the obligation of the Cooperative to such Member until paid or otherwise discharged in accordance with the provisions of the Articles of Incorporation and Bylaws of the Cooperative; provided, however, that should any Member (i) voluntarily withdraw from membership in the Cooperative, (ii) be expelled from the Cooperative, or (iii) be dissolved or have its corporate existence expire other than by reason of merger or consolidation with another Member, the capital credited to the account of such Member shall be forfeited and the amount thereof shall be credited to the capital account of each remaining Member in the proportion which the capital balance in the account of each such Member on such date bears to the total capital balance in the accounts of all such Members on such date.

**ARTICLE IX**

**Fiscal Year**

The fiscal year of the Cooperative shall begin on the first (1st) day of January in each year and end on the thirty-first (31st) day of December in each year.

**ARTICLE X**

**Deposits, Checks and Execution of Instruments**

**<u>Section 1, Checks, Drafts, Etc.</u>** All checks, drafts or other orders for the payment of money, notes, bonds or other evidences of indebtedness in the name of the Cooperative shall be signed by such officer or officers, agent or agents, employee or employees of the Cooperative, as may be authorized so to do by the Board of Directors, and in such manner as shall from time to time be determined by resolution of the Board of Directors.

**<u>Section 2, Deposits.</u>** All funds of the Cooperative shall be deposited from time to time to the credit of the Cooperative in such bank or banks as the Board of Directors may select.

**<u>Section 3, Authorization to Contract.</u>** The Board of Directors may authorize any officer or officers, agent or agents to enter into any contract or execute and deliver any instrument in the name and on behalf of the Cooperative, and such authority may be general or confined to specific instances.

**<u>Section 4, Indemnification of Officers, Directors and Employees; Insurance.</u>**

a.The Cooperative shall indemnify any person who was or is a party or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Cooperative) by reason of the fact that they are or were a Director, officer or

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employee of the Cooperative, or are or were serving at the request of the Cooperative as a Director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by them in connection with such action, suit or proceeding if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the Cooperative and, with respect to any criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which they reasonably believed to be in or not opposed to the best interests of the cooperative, and, with respect to any criminal action or proceeding, had reasonable cause to believe that their conduct was unlawful.

b.The Cooperative shall indemnify any person who was or is a party or is threatened to be made a party to any threatened pending or completed action or suit by or in the right of the Cooperative to procure a judgment in its favor by reason of the fact that they are or were a Director, officer or employee of the Cooperative or are or were serving at the request of the Cooperative as a Director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by them in connection with the defense or settlement of such action or suit if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the cooperative and except that no indemnification shall be made in respect to any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of their duty to the Cooperative unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

c.To the extent that a Director, officer or employee of an Cooperative has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections (a) and (b), or in defense of any claim, issue or matter therein, they shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by them in connection therewith.

d.Any indemnification under the foregoing provision of this section (unless ordered by a court) shall be made by the Cooperative only as authorized in the specific case upon a determination that indemnification of the Director, officer or employee is proper in the circumstances because they have met the applicable standard of conduct as set forth in subsections (a) and (b). Such determination shall be made (i) by the Board of Directors by a majority vote of a quorum consisting of Directors who were not parties to such action, suit or proceeding, or (ii) if such quorum is not obtainable, or, even if obtainable a quorum of disinterested Directors so directs, by independent legal counsel in a written opinion, or (iii) by the Members of the Cooperative.

e.Expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Cooperative in advance of the final disposition of such action, suit or proceeding

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as authorized by the Board of Directors in the specific case upon receipt of an undertaking by or on behalf of the Director, officer or employee to repay such amount unless it shall ultimately be determined that they are entitled to be indemnified by the Cooperative as authorized in this section.

f.The indemnification provided by this section shall not be deemed exclusive of any other rights to which those seeking indemnity may be entitled under any Bylaw, agreement, vote of Members or disinterested Directors or otherwise, both as to action in their official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a Director, officer or employee and shall inure to the benefit of the heirs, executors and administrators of such a person.

g.The Cooperative may purchase and maintain insurance on behalf of any person who is or was a Director, officer or employee of the Cooperative, or is or was serving at the request of the Cooperative as a Director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against them and incurred by them in any such capacity, or arising out of their status as such whether or not the Cooperative would have the power to indemnify them against such liability under the provisions of this section.

**ARTICLE XI**

**Amendments**

Except as provided in Article III, Section 2, with respect to amending the description of Districts in the event of merger or consolidation, these Bylaws may be altered, amended or repealed only by the Members at any regular or special meeting. The notice of any meeting of Members at which such action is taken shall contain notice of the proposed alteration, amendment or repeal.

\* \* \* \* \* \* \*

## Exhibit 4.1

**Exhibit 4.1**

**BASIN ELECTRIC POWER COOPERATIVE, GRANTOR**

**To**

**U.S. BANK NATIONAL ASSOCIATION, TRUSTEE**

**AMENDED AND RESTATED INDENTURE**

**Dated as of May 5, 2015**

**FIRST MORTGAGE OBLIGATIONS**

*THIS INSTRUMENT GRANTS A SECURITY INTEREST IN A TRANSMITTING UTILITY. THE TYPES OF PROPERTY COVERED BY THIS INSTRUMENT ARE DESCRIBED ON PAGES 1-3. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. THE ADDRESSES AND THE SIGNATURES OF THE PARTIES TO THIS INSTRUMENT ARE STATED ON PAGES 39, 176 AND 177. THIS DOCUMENT WAS DRAFTED BY CARL F. LYON, JR., ESQ., ORRICK, HERRINGTON & SUTCLIFFE LLP, 51 WEST 52ND STREET, NEW YORK, NEW YORK 10019, (212) 506-5180. NOTICE - THIS INDENTURE SECURES AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.*

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|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| | **Page** |

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| | | |
|:---|:---|:---|
| RECITALS OF THE COMPANY | RECITALS OF THE COMPANY | 1 |
| GRANTING CLAUSES | GRANTING CLAUSES | 1 |
| GRANTING CLAUSE FIRST | GRANTING CLAUSE FIRST | 2 |
| GRANTING CLAUSE SECOND | GRANTING CLAUSE SECOND | 2 |
| GRANTING CLAUSE THIRD | GRANTING CLAUSE THIRD | 3 |
| GRANTING CLAUSE FOURTH | GRANTING CLAUSE FOURTH | 3 |
| EXCEPTED PROPERTY | EXCEPTED PROPERTY | 3 |
| EXCLUDABLE PROPERTY | EXCLUDABLE PROPERTY | 6 |
| ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | 7 |
| Section 1.1 | Definitions. | 7 |
| Section 1.2 | Acts of Holders. | 31 |
| Section 1.3 | Notices, etc., to Trustee and Company. | 32 |
| Section 1.4 | Notices to Holders; Waiver. | 33 |
| Section 1.5 | Form and Contents of Documents Delivered to Trustee. | 33 |
| Section 1.6 | Compliance Certificates and Opinions. | 35 |
| Section 1.7 | Conflict with Trust Indenture Act. | 35 |
| Section 1.8 | Effect of Headings and **Table of Contents**. | 35 |
| Section 1.9 | Successors and Assigns. | 35 |
| Section 1.10 | Severability Clause. | 36 |
| Section 1.11 | Benefits of Indenture. | 36 |
| Section 1.12 | Governing Law. | 36 |
| Section 1.13 | Action by Credit Enhancer When Action by Holders Required. | 36 |
| Section 1.14 | Bank Holidays. | 37 |
| Section 1.15 | Security Agreement and Financing Statement. | 37 |
| Section 1.16 | Maturity of Secured Indebtedness. | 37 |
| Section 1.17 | Acceptance of Trust by Trustee. | 37 |
| Section 1.18 | Investment of Cash Held by Trustee. | 38 |
| Section 1.19 | Principal Amount of Obligations Other than Bonds. | 38 |

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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| | | |
|:---|:---|:---|
| Section 1.20 | RUS as Holder. | 38 |
| ARTICLE II OBLIGATION FORMS | ARTICLE II OBLIGATION FORMS | 39 |
| Section 2.1 | Forms of Additional Obligations Generally. | 39 |
| Section 2.2 | Form of Trustee's Certificate of Authentication for Existing Obligations. | 39 |
| Section 2.3 | Form of Trustee's Certificate of Authentication for Additional Obligations. | 40 |
| ARTICLE III THE OBLIGATIONS | ARTICLE III THE OBLIGATIONS | 40 |
| Section 3.1 | Terms and Forms of Existing Obligations. | 40 |
| Section 3.2 | General Title; General Limitations; Issuable in Series. | 40 |
| Section 3.3 | Terms of Particular Series. | 41 |
| Section 3.4 | Denominations. | 42 |
| Section 3.5 | Execution, Authentication, Delivery and Dating. | 42 |
| Section 3.6 | Temporary Obligations. | 43 |
| Section 3.7 | Registration; Registration of Transfer and Exchange. | 43 |
| Section 3.8 | Mutilated, Destroyed, Lost and Stolen Obligations. | 44 |
| Section 3.9 | Payment of Interest; Interest Rights Preserved. | 45 |
| Section 3.10 | Persons Deemed Owners. | 46 |
| ARTICLE IV AUTHENTICATION AND DELIVERY OF ADDITIONAL OBLIGATIONS | ARTICLE IV AUTHENTICATION AND DELIVERY OF ADDITIONAL OBLIGATIONS | 47 |
| Section 4.1 | General Provisions. | 47 |
| Section 4.2 | Authentication and Delivery of Additional Obligations upon Basis of Bondable Additions. | 49 |
| Section 4.3 | Authentication and Delivery of Additional Obligations Upon Basis of Retirement or Defeasance of Obligations or Payments on Obligations. | 56 |
| Section 4.4 | Authentication and Delivery of Additional Obligations Upon Basis of Designated Qualifying Securities. | 58 |
| Section 4.5 | Authentication and Delivery of Additional Obligations upon Deposit of Cash with Trustee. | 60 |
| Section 4.6 | Withdrawal of Deposited Cash. | 61 |
| Section 4.7 | Credit Obligations. | 62 |
| Section 4.8 | Conditional Obligations. | 63 |

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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| | | |
|:---|:---|:---|
| Section 4.9 | RUS Reimbursement Obligations. | 63 |
| Section 4.10 | Assumption of Qualifying Securities. | 64 |
| Section 4.11 | Authentication and Delivery of Additional Obligations Upon Basis of Certified Progress Payments. | 64 |
| Section 4.12 | Conversion of Additional Obligations. | 65 |
| ARTICLE V RELEASES | ARTICLE V RELEASES | 67 |
| Section 5.1 | Right of Company to Possess and Operate Trust Estate; Dispositions without Release. | 67 |
| Section 5.2 | Releases. | 69 |
| Section 5.3 | Eminent Domain. | 75 |
| Section 5.4 | Written Disclaimer of Trustee. | 75 |
| Section 5.5 | Powers Exercisable Notwithstanding Event of Default. | 76 |
| Section 5.6 | Powers Exercisable by Trustee or Receiver. | 76 |
| Section 5.7 | Purchaser Protected. | 77 |
| Section 5.8 | Disposition of Collateral on Discharge of Prior Liens. | 77 |
| Section 5.9 | Disposition of Obligations Received. | 77 |
| Section 5.10 | Excludable Property. | 77 |
| ARTICLE VI APPLICATION OF TRUST MONEYS | ARTICLE VI APPLICATION OF TRUST MONEYS | 78 |
| Section 6.1 | "Trust Moneys" Defined. | 78 |
| Section 6.2 | Withdrawal on Basis of Bondable Additions. | 78 |
| Section 6.3 | Withdrawal on Basis of Retirement or Defeasance of Obligations or Payments on Obligations. | 79 |
| Section 6.4 | Withdrawal on Basis of Designated Qualifying Securities. | 79 |
| Section 6.5 | Retirement of Obligations or Payments on Obligations. | 80 |
| Section 6.6 | Withdrawal on Basis of Certified Progress Payments. | 81 |
| Section 6.7 | Withdrawal of Insurance Proceeds. | 82 |
| Section 6.8 | Amounts under $25,000. | 85 |
| Section 6.9 | Powers Exercisable Notwithstanding Default. | 85 |
| Section 6.10 | Powers Exercisable by Trustee or Receiver. | 86 |
| Section 6.11 | Disposition of Obligations Retired. | 86 |
| ARTICLE VII DEFEASANCE | ARTICLE VII DEFEASANCE | 86 |

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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| | | |
|:---|:---|:---|
| Section 7.1 | Termination of Company's Obligations. | 86 |
| Section 7.2 | Application of Deposited Money and Money From Defeasance Securities. | 89 |
| Section 7.3 | Repayment to Company. | 89 |
| Section 7.4 | Reinstatement. | 90 |
| ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | 90 |
| Section 8.1 | Events of Default. | 90 |
| Section 8.2 | Acceleration of Maturity; Rescission and Annulment. | 92 |
| Section 8.3 | Entry. | 93 |
| Section 8.4 | Power of Sale; Suits for Enforcement. | 93 |
| Section 8.5 | Incidents of Sale. | 94 |
| Section 8.6 | Covenant to Pay Trustee Amounts Due on Obligations and Right of Trustee to Judgment. | 95 |
| Section 8.7 | Application of Money Collected. | 96 |
| Section 8.8 | Receiver. | 97 |
| Section 8.9 | Trustee May File Proofs of Claim. | 98 |
| Section 8.10 | Trustee May Enforce Claims Without Possession of Obligations. | 98 |
| Section 8.11 | Limitation on Suits. | 98 |
| Section 8.12 | Unconditional Right of Holders to Receive Principal, Premium and Interest. | 99 |
| Section 8.13 | Restoration of Positions. | 99 |
| Section 8.14 | Rights and Remedies Cumulative. | 100 |
| Section 8.15 | Delay or Omission Not Waiver. | 100 |
| Section 8.16 | Control by Holders. | 100 |
| Section 8.17 | Waiver of Past Defaults. | 100 |
| Section 8.18 | Undertaking for Costs. | 101 |
| Section 8.19 | Waiver of Appraisement and Other Laws. | 101 |
| Section 8.20 | Suits to Protect the Trust Estate. | 102 |
| Section 8.21 | Remedies Subject to Applicable Law. | 102 |
| Section 8.22 | Principal Amount of Original Issue Discount Obligation. | 102 |
| Section 8.23 | Default Not Affecting All Series of Obligations. | 102 |

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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|:---|:---|:---|
| Section 8.24 | Defaults Under Qualifying Securities Indentures. | 102 |
| ARTICLE IX THE TRUSTEE | ARTICLE IX THE TRUSTEE | 103 |
| Section 9.1 | Certain Duties and Responsibilities. | 103 |
| Section 9.2 | Notice of Defaults. | 104 |
| Section 9.3 | Certain Rights of Trustee. | 104 |
| Section 9.4 | Not Responsible for Recitals or Issuance of Obligations or Application of Proceeds. | 106 |
| Section 9.5 | May Hold Obligations. | 106 |
| Section 9.6 | Money Held in Trust. | 106 |
| Section 9.7 | Compensation and Reimbursement. | 106 |
| Section 9.8 | Disqualification; Conflicting Interests. | 107 |
| Section 9.9 | Corporate Trustee Required; Eligibility. | 112 |
| Section 9.10 | Resignation and Removal; Appointment of Successor. | 112 |
| Section 9.11 | Acceptance of Appointment by Successor. | 114 |
| Section 9.12 | Merger, Conversion, Consolidation or Succession to Business. | 114 |
| Section 9.13 | Preferential Collection of Claims against Company. | 114 |
| Section 9.14 | Co-trustees and Separate Trustees. | 118 |
| Section 9.15 | Authenticating Agent. | 119 |
| ARTICLE X HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY | ARTICLE X HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY | 121 |
| Section 10.1 | Company to Furnish Trustee Semi-Annual Lists of Holders. | 121 |
| Section 10.2 | Preservation of Information; Communications to Holders. | 121 |
| Section 10.3 | Reports by Trustee. | 122 |
| Section 10.4 | Reports by Company. | 124 |
| ARTICLE XI CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER | ARTICLE XI CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER | 125 |
| Section 11.1 | Consolidation, Merger, Conveyance or Transfer only on Certain Terms. | 125 |
| Section 11.2 | Successor Person Substituted. | 126 |
| Section 11.3 | Merger of a Subsidiary into the Company. | 127 |
| ARTICLE XII SUPPLEMENTAL INDENTURES | ARTICLE XII SUPPLEMENTAL INDENTURES | 129 |
| Section 12.1 | Supplemental Indentures Without Consent of Holders. | 129 |

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|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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|:---|:---|:---|
| Section 12.2 | Supplemental Indentures With Consent of Holders. | 132 |
| Section 12.3 | Execution of Supplemental Indentures. | 133 |
| Section 12.4 | Effect of Supplemental Indentures. | 133 |
| Section 12.5 | Conformity with Trust Indenture Act. | 133 |
| Section 12.6 | Reference in Obligations to Supplemental Indentures. | 133 |
| ARTICLE XIII COVENANTS | ARTICLE XIII COVENANTS | 133 |
| Section 13.1 | Payment of Principal, Premium and Interest. | 133 |
| Section 13.2 | Maintenance of Office or Agency. | 134 |
| Section 13.3 | Money for Obligation Payments to be Held in Trust; Repayment of Unclaimed Money. | 134 |
| Section 13.4 | Ownership of Property. | 135 |
| Section 13.5 | After-Acquired Property; Further Assurances; Recording. | 136 |
| Section 13.6 | Limitations on Liens; Payment of Taxes. | 137 |
| Section 13.7 | Maintenance of Properties. | 138 |
| Section 13.8 | To Insure. | 138 |
| Section 13.9 | Corporate Existence. | 139 |
| Section 13.10 | To Keep Books; Inspection by Trustee. | 139 |
| Section 13.11 | Use of Trust Moneys and Advances by Trustee. | 140 |
| Section 13.12 | Statement as to Compliance. | 140 |
| Section 13.13 | Waiver of Certain Covenants. | 140 |
| Section 13.14 | Rate Covenant. | 141 |
| Section 13.15 | Distributions to Members. | 141 |
| ARTICLE XIV REDEMPTION OF OBLIGATIONS; SINKING FUNDS | ARTICLE XIV REDEMPTION OF OBLIGATIONS; SINKING FUNDS | 141 |
| Section 14.1 | Applicability of Sections 14.1 Through 14.7. | 141 |
| Section 14.2 | Election to Redeem; Notice to Trustee. | 142 |
| Section 14.3 | Selection by Trustee of Obligations to be Redeemed. | 142 |
| Section 14.4 | Notice of Redemption. | 143 |
| Section 14.5 | Deposit of Redemption Price. | 144 |
| Section 14.6 | Obligations Payable on Redemption Date. | 144 |
| Section 14.7 | Obligations Redeemed in Part. | 145 |
| Section 14.8 | Applicability of Sections 14.8 Through 14.9. | 145 |

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|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| **(continued)** | **(continued)** |
| | **Page** |

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|:---|:---|:---|
| Section 14.9 | Satisfaction of Sinking Fund Payments with Obligations. | 146 |
| Section 14.10 | Redemption of Obligations for Sinking Fund. | 146 |
| ARTICLE XV CONTROL OF PLEDGED SECURITIES | ARTICLE XV CONTROL OF PLEDGED SECURITIES | 146 |
| Section 15.1 | Pledged Securities Deposited with Trustee. | 146 |
| Section 15.2 | Form of Holding. | 147 |
| Section 15.3 | Right of Trustee to Preserve Issuers; Directors' Qualifying Shares. | 147 |
| Section 15.4 | Income Before Event of Default. | 147 |
| Section 15.5 | Income After Event of Default. | 148 |
| Section 15.6 | Principal and Other Payments. | 148 |
| Section 15.7 | Voting. | 149 |
| Section 15.8 | Limitations on Issue of Voting Stock or Grant of Membership Interests of Pledged Subsidiaries. | 150 |
| Section 15.9 | Increase, Reduction or Reclassification of Stock; Dissolution; Consolidation, etc. | 150 |
| Section 15.10 | Enforcement. | 151 |
| Section 15.11 | Acquisition of Property of Issuers of Pledged Securities. | 151 |
| Section 15.12 | Reorganization. | 152 |
| Section 15.13 | Renewal and Refunding. | 152 |
| Section 15.14 | Expenses. | 152 |
| Section 15.15 | Opinion of Counsel. | 153 |
| ARTICLE XVI QUALIFYING SECURITIES; QUALIFYING SECURITIES INDENTURES | ARTICLE XVI QUALIFYING SECURITIES; QUALIFYING SECURITIES INDENTURES | 153 |
| Section 16.1 | Registration and Ownership of Designated Qualifying Securities. | 153 |
| Section 16.2 | Payments on Qualifying Securities. | 153 |
| Section 16.3 | Surrender or Redesignation of Designated Qualifying Securities. | 154 |
| Section 16.4 | No Transfer of Qualifying Securities. | 156 |
| Section 16.5 | Voting of Qualifying Securities. | 156 |
| Section 16.6 | Reorganization. | 156 |

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EXHIBIT A SCHEDULE OF MORTGAGED PROPERTIES

EXHIBIT B SCHEDULE OF EXISTING OBLIGATIONS

EXHIBIT C SCHEDULE OF CERTAIN PLEDGED CONTRACTS

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**THIS AMENDED AND RESTATED INDENTURE**, dated as of May 5, 2015, is between Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the **"Company"**), and U.S. Bank National Association (fka First Bank National Association), a national banking association, as Trustee (hereinafter called the **"Trustee"**).

**RECITALS OF THE COMPANY**

The Company previously has entered into an Indenture, dated as of January 1, 1998, with the Trustee (as supplemented and amended, the **"Existing Indenture"**), pursuant to which the Company has issued Obligations (as defined therein) of various series. All Obligations issued under the Existing Indenture are secured by a lien on and security interest in substantially all of the tangible assets and certain of the intangible assets of the Company.

The Company desires that the new notes, bonds and other obligations for the payment of money as hereinafter provided issued on or after the date hereof in one or more series (**"Additional Obligations"**), together with all Obligations Outstanding (hereinafter, collectively, called the **"Obligations"**), shall become governed by and subject to the terms and conditions stated in this Amended and Restated Indenture, dated as of the date set forth above (the **"Amended and Restated Indenture"**).

All things have been done which are necessary to amend and restate the Existing Indenture on the terms and conditions set forth herein, including to retain the lien of the Existing Indenture as provided herein, and to make Obligations executed by the Company and authenticated and delivered by the Trustee and duly issued by the Company, the valid obligations of the Company, and to constitute this Amended and Restated Indenture (hereinafter referred to as this **"Indenture"**) a valid indenture of mortgage and a security agreement and contract for the security of the Obligations, in accordance with the terms of the Obligations and this Indenture.

Accordingly, the parties hereto hereby amend and restate the Existing Indenture and otherwise agree as follows:

**GRANTING CLAUSES**

**NOW, THEREFORE, THIS INDENTURE WITNESSETH,** that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations (as hereinafter defined) and the performance of the covenants therein and herein contained and to declare the terms and conditions on which the Outstanding Secured Obligations are secured, and in consideration of the premises and of the purchase of, or loans and other obligations evidenced by, the Obligations, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, and its successors and assigns in the trust created hereby, in trust, all property, rights, privileges and franchises of the Company, except any Excepted Property (as hereinafter defined) and any Excludable Property (as hereinafter defined), of every kind and description, real, personal or mixed, tangible or intangible, whether now owned or hereafter acquired by the Company, wherever located and including all and singular the following

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described property, and does grant a security interest therein for the purposes herein expressed, subject in all cases to Sections 5.2 and 11.2B and to the rights of the Company under this Indenture, including the rights set forth in Article V:

**GRANTING CLAUSE FIRST**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;All fee, leasehold and other interests in real property described in Exhibit A attached hereto, subject in each case to the restrictions, exceptions, reservations, terms, conditions, agreements, covenants, limitations, interests and other matters of record on the date such property becomes subject to the lien of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;All fixtures, easements, permits, licenses and rights-of-way comprising real property and all other interests in real property comprising any portion of the System (as hereinafter defined), but excluding any such property relating solely to Excludable Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;All contracts of the Company listed on Exhibit C attached hereto and all contracts of the Company (i) that relate to the ownership, operation or maintenance of any electric generation, transmission or distribution facility owned or leased, whether solely or jointly, by the Company, (ii) entered into prior to the date of this Amended and Restated Indenture for the purchase or sale of electric power and energy by the Company and having an original term in excess of one (1) year, including, without limitation, all rights of the Company in and to the contracts listed on Exhibit C attached hereto (iii) entered into on or after the date of this Amended and Restated Indenture for the purchase or sale of electric power and energy between the Company and a Class A Member of the Company, (iv) that constitute Qualified EPC Contracts, and (v) for the transmission of electric power and energy by or on behalf of the Company and having an original term in excess of one (1) year, including in respect of any of the foregoing, any amendments, supplements and replacements thereto, but excluding any of such contracts (a) that relate solely to a facility or other property that constitutes Excludable Property or the output of such Excludable Property or (b) for the purchase of electric power and energy by the Company for which the seller has no recourse, directly or indirectly, to the general credit of the Company or (c) for the resale of the electric power and energy purchased pursuant to a contract described in the immediately preceding clause (b).

**GRANTING CLAUSE SECOND**

All other property, rights, privileges and franchises of the Company of every kind and description, real, personal or mixed, tangible or intangible, whether now owned or hereafter acquired by the Company, wherever located, including, without limitation, goods (including equipment, fuel charged to fixed plant accounts, materials and supplies, but excluding electricity), Trust Moneys (as hereinafter defined), Designated Qualifying Securities (as hereinafter defined), and, with respect to contracts subjected to the lien of this Indenture by Subdivision (C) of Granting Clause First, general intangibles and accounts, and real property and interests in real property located in any of the states in which any property described in Subdivision A or B of Granting Clause First is located, but excluding Excepted Property and Excludable Property, it being the intention hereof that all of such property, rights, privileges and franchises now owned by the Company or acquired by the Company after January 1, 1998 (other

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than Excepted Property and Excludable Property) shall be as fully embraced within and subjected to the lien hereof as if such property were specifically described herein.

**GRANTING CLAUSE THIRD**

Also any Excepted Property or Excludable Property that may, from time to time hereafter, by delivery or by writing of any kind, be subjected to the lien hereof by the Company or by anyone in its behalf; and the Trustee is hereby authorized to receive the same at any time as additional security hereunder. Such subjection to the lien hereof of any Excepted Property or Excludable Property as additional security may be made subject to any reservation, limitation or condition which shall be set forth in a written instrument executed by the Company or the person so acting in its behalf or by the Trustee respecting the ownership, use and disposition of such property or the proceeds thereof.

**GRANTING CLAUSE FOURTH**

Together (other than Excepted Property and Excludable Property) with all and singular the tenements, hereditaments and appurtenances belonging or in anywise appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and remainders and all the rents, issues, profits, revenues and other income, products and proceeds of the property subjected or required to be subjected to the lien of this Indenture, all buildings, improvements, plants, systems, works, structures, electric power plants, stations and substations, powerhouses, electric transmission and distribution lines and systems, conduits, towers, poles, wires, cables, meters, office buildings, warehouses, garages, sheds, shops, and all other structures and buildings, machinery, engines, boilers, dynamos, generators, turbines, fuel handling and transportation facilities and devices, air and water pollution control and sewage and solid waste disposal facilities, transformers, electric and mechanical appliances, tools and other equipment, apparatus, appurtenances, and all other property of any nature appertaining to any of the electric utility plants, systems, business or operations of the Company, whether or not affixed to the realty, used in the operation of any of the premises or plants or the System, or otherwise, which are now owned or hereafter acquired by the Company, and all the estate, right, title and interest of every nature whatsoever, at law, as well as in equity, of the Company in and to the same and every part thereof.

**EXCEPTED PROPERTY**

There is, however, expressly excepted and excluded from the lien and operation of this Indenture the following described property of the Company, now owned or hereafter acquired (herein sometimes referred to as **"Excepted Property"**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;all cash on hand or in banks or in other financial institutions (excluding amounts deposited or required to be deposited with the Trustee pursuant to this Indenture and amounts representing proceeds of the Trust Estate in which, and for so long as, perfection of the lien of this Indenture continues pursuant to the Uniform Commercial Code), claims, choses in action and judgments, accounts and general intangibles (except with respect to contracts referred to in Subdivision (C) of Granting Clause First), contracts and contract rights and associated

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intangibles (except with respect to contracts referred to in Subdivision (C) of Granting Clause First), Stock (including, without limitation, any interest of the Company in the National Rural Utilities Cooperative Finance Corporation or in CoBank ACB, but excluding Stock of the Company in any Subsidiary then issuing Designated Qualifying Securities), Undesignated Qualifying Securities (as hereinafter defined), attributes of an environmental or similar nature that are created or otherwise arise from the generation, purchase or sale of electricity or that result from the avoidance or reduction of the emission of any gas, chemical or other substance (including any and all environmental air quality credits, green credits, white credits, renewable energy credits or certificates, carbon credits, emissions reduction credits, energy efficiency or energy use reduction credits, certificates, tags, offsets, tax credits, emission allowances, or similar products or rights as well as reporting rights, however entitled, currently existing or later arising under local, state, regional, federal, or international legislation or regulation or voluntary program), bonds, notes, repurchase agreements, evidences of indebtedness and other securities and instruments, bills, patents, patent licenses and other patent rights, patent applications, service marks, trade names and trademarks, other than (i) Pledged Securities (as hereinafter defined), (ii) Designated Qualifying Securities and (iii) any other property referred to in this paragraph which is specifically described in Granting Clause First or is by the express provisions of this Indenture subjected or required to be subjected to the lien hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;all automobiles, buses, trucks, truck cranes, tractors, trailers, rolling stock, railcars and similar vehicles and movable equipment, and all parts, tools, accessories and supplies used in connection with any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;all vessels, boats, barges and other marine equipment, all airplanes, airplane engines and other flight equipment, and all parts, tools, accessories and supplies used in connection with any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;all goods, inventory, wares and merchandise acquired or produced for the purpose of resale in the ordinary course of business including electricity, all materials and supplies and other personal property which are consumable (otherwise than by ordinary wear and tear) in their use in the operation of the business of the Company, fuel not charged to fixed plant accounts and all hand and other portable tools and equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;all office furniture, equipment and supplies and all data processing, accounting and other computer equipment, software and supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;all leasehold interests of the Company (for other than office purposes) under leases for an original term (including any period for which the Company shall have a right of renewal) of less than five (5) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;all leasehold interests for office purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;all timber separated from the land included in the Trust Estate (as hereinafter defined) and all coal, ore, gas (natural or otherwise), oil and other minerals, mined, extracted or otherwise separated from the land included in the Trust Estate and all electric energy, gas, steam, water and other products generated, produced or purchased;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;the last day of the term of each leasehold estate (oral or written) and any agreement therefor, now or hereafter enjoyed by the Company and whether falling within a general or specific description of property herein; **PROVIDED, HOWEVER,** that the Company covenants and agrees that it will hold each such last day in trust for the use and benefit of the Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;all permits, licenses, franchises, leases, contracts, agreements, contract rights and other rights not specifically subjected or required to be subjected to the lien hereof by the express provisions of this Indenture, whether now owned or hereafter acquired by the Company, which by their terms or by reason of applicable law would become void or voidable if granted, conveyed, mortgaged, transferred, assigned or pledged hereunder by the Company or which cannot be granted, conveyed, mortgaged, transferred, assigned or pledged by this Indenture without the consent of other parties whose consent is not secured, or without subjecting the Trustee to a liability not otherwise contemplated by the provisions of this Indenture, or the granting, conveying, mortgaging, transferring or assigning of which would result in a breach or a default thereof or would permit the termination or cancellation thereof, or which otherwise may not be hereby lawfully and effectively granted, conveyed, mortgaged, transferred and assigned by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;all property, real, personal and mixed, located outside the States of North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa and Nebraska which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;not specifically described in the Granting Clauses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;not specifically subjected or required to be subjected to the lien of this Indenture by any provision hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;not part of or used or for use in connection with any property specifically subjected or required to be subjected to the lien hereof by the express provisions of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;all personal property located outside the States of North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa and Nebraska in which a security interest cannot be perfected solely by the filing of a financing statement under the Uniform Commercial Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.&nbsp;&nbsp;&nbsp;&nbsp;any personal property in which a security interest cannot be lawfully perfected under the laws of the United States or of any state or in which the grant of a security interest would in the Opinion of Counsel be prohibited by applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.&nbsp;&nbsp;&nbsp;&nbsp;all property released from the lien of this Indenture without being sold, exchanged or otherwise disposed of by the Company, as provided in Section 5.2.

**PROVIDED, HOWEVER,** that if, upon the occurrence of an Event of Default (as hereinafter defined), the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property

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described or referred to in the foregoing paragraphs A through H, inclusive, then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in paragraphs I, J, L and N, upon demand of the Trustee or such other trustee or receiver, become subject to the lien hereof to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien hereof to the extent and otherwise as hereinabove set forth.

**EXCLUDABLE PROPERTY**

There is also, however, expressly excepted and excluded from the lien and operation of this Indenture all Excludable Property, now owned or hereafter acquired.

The Company may, however, pursuant to Granting Clause Third, subject to the lien of this Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

**TO HAVE AND TO HOLD** all such property, rights, privileges and franchises hereby and hereafter (by Supplemental Indenture (as hereinafter defined) or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated herein not to be deemed part of the Trust Estate) being herein collectively called the **"Trust Estate"**), unto the Trustee, and its successors and assigns in the trust herein created, forever.

**BUT IN TRUST, NEVERTHELESS,** with power of sale, for the equal and proportionate benefit and security of the Holders (as hereinafter defined) from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

**UPON CONDITION** that, until the happening of an Event of Default and subject to the provisions of Article V, and not in limitation of the rights elsewhere provided in this Indenture, including the rights set forth in Article V, the Company shall be permitted to (i) possess and use

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the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate.

Should the indebtedness secured by this Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then this Indenture shall be cancelled and surrendered.

**AND IT IS HEREBY COVENANTED AND DECLARED** that all the Existing Obligations are to be authenticated, the Additional Obligations are to be authenticated and delivered, the Outstanding Secured Obligations are to be secured and the Trust Estate is to be held and applied by the Trustee, subject to the further covenants, conditions and trusts hereinafter set forth, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations as follows:

**ARTICLE I**

**DEFINITIONS AND OTHER PROVISIONS**

**OF GENERAL APPLICATION**

**Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions.**

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;At any time at which this Indenture is qualified or required to be qualified under the TIA (as hereinafter defined), all other terms used herein which are defined in the TIA either directly or by reference therein, have the meanings assigned to them therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;All accounting terms not otherwise defined herein have the meanings assigned to them, and all determinations and computations herein provided for shall be made, in accordance with Accounting Requirements (as hereinafter defined), and the express reference to "Accounting Requirements" with respect to certain terms, determinations or computations shall not imply that other terms, determinations and computations shall not be defined or made in accordance with "Accounting Requirements"; **PROVIDED, HOWEVER,** for purposes of all determinations and computations hereunder (i) if the Company elects to adopt Financial Accounting Standards Board Accounting Standards Codification 825, Financial Instruments (or any successor accounting standard) with respect to any indebtedness, such adoption shall be

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disregarded; and (ii) the assets, liabilities, equities, revenues, expenses or margins of any variable interest entity that is consolidated for accounting purposes with the Company but which is not a Subsidiary of the Company shall be disregarded

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;All references herein to "Accounting Requirements" refer to such requirements as are in use in the United States at the time of the determination of any computation required or permitted hereunder, or, at the option of the Company, such requirements in use at the date of the execution and delivery of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;The words "include" and "including" shall not be terms of limitation, and shall in all cases, whether or not expressly provided, be read to be "include, without limitation," and "including, without limitation," respectively.

Certain terms used principally in Article IX are defined in that Article.

**"Accountant"** means a Person engaged in the practice of accounting who (except as otherwise expressly provided in this Indenture) may be employed by or affiliated with the Company and who need not be independent, certified, licensed or public.

**"Accounting Requirements"** means the requirements of the system of accounts prescribed by any regulatory authority having jurisdiction over the Company or, in the absence thereof, **"Accounting Requirements"** means the requirements of generally accepted accounting principles applicable to similar entities conducting business similar to that of the Company. Generally accepted accounting principles refers to a common set of accounting standards and procedures that are either promulgated by an authoritative accounting rulemaking body or accepted as appropriate due to wide-spread application in the United States.

**"acquired"** means to acquire by purchase, exchange, construction, consolidation, conveyance, transfer or otherwise. The terms **"acquired," "acquiring"** and **"acquisition"** have meanings correlative to the foregoing.

**"Acquired Facility"** means any property which, within six (6) months prior to the date of its acquisition by the Company, has been used or operated by a Person or Persons other than the Company for a purpose similar to that in which such property has been or is to be used or operated by the Company.

**"Act"** when used with respect to any Holder or Holders has the meaning stated in Section 1.2.

**"Additional Obligations"** has the meaning stated in the first recital of this Indenture and includes any Obligation authenticated and delivered hereunder after the date hereof.

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**"Affiliate"** of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, **"control"** of any specified Person means the power to direct the management and policies of such specified Person, directly or indirectly, whether through the ownership of Stock, by contract or otherwise; and the terms **"controlling"** and **"controlled"** have meanings correlative to the foregoing.

**"Amount of Property Additions"** or **"Amount"** as applied to any Property Additions means the Cost to the Company of such Property Additions or the Fair Value to the Company of such Property Additions, whichever is less.

**"Application"** means an application for the authentication and delivery of Additional Obligations, the advance or issuance of any unadvanced or unissued portion of any Conditional Obligation or series of Obligations, the release of property, the withdrawal of cash or the surrender or redesignation of Designated Qualifying Securities under any provision of this Indenture and shall consist of, and shall not be deemed complete until there shall have been delivered to the Trustee, such cash, Obligations, Designated Qualifying Securities, securities and documents as are required by such provision to establish the right of the Company to the action applied for. The date of a particular Application shall be deemed to be the date of completion of all such deliveries to the Trustee and not the date on any particular document so delivered.

**"Appraiser"** means a Person engaged in the business of appraising property who (except as otherwise expressly provided in this Indenture) may be employed by or affiliated with the Company and who need not be independent, certified or licensed.

**"Assumed Qualifying Securities"** shall mean Qualifying Securities which have been unconditionally assumed by the Company.

**"Authenticating Agent"** when used with respect to any particular series of Obligations means any Person named as Authenticating Agent for said series in the provisions of this Indenture creating said series until a successor Authenticating Agent therefor becomes such pursuant thereto, and thereafter **"Authenticating Agent"** shall mean such successor.

**"Available Margins Certificate"** means an Officers' Certificate, dated not more than thirty (30) days prior to the date of the related Application, and signed by, in addition to the two Officers signing the same, a Person, who may be one of such Officers, signing as an Accountant, stating that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the Margins for Interest for either (i) the fiscal year of the Company immediately preceding the fiscal year in which the relevant Application is made; **PROVIDED, HOWEVER,** that if such Application is made within 90 days of the end of the immediately preceding fiscal year for purposes of the Application the Company may use the fiscal year of the Company immediately preceding such immediately preceding fiscal year of the Company or (ii) any twelve (12) consecutive calendar months during the period of eighteen (18) calendar months immediately preceding the first day of the

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calendar month in which the relevant Application is made, are not less than 1.10 times the Interest Charges during such fiscal year or other twelve (12) month period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the Margins for Interest have been calculated in accordance with the definitions contained in this Section.

If any period of twelve (12) months referred to in such Available Margins Certificate has been a period with respect to which an annual report is required to be filed by the Company pursuant to Section 10.4, such Certificate shall be accompanied by a report of an Independent Accountant stating in substance that nothing came to the attention of such Accountant in connection with the audit of such period which would lead such Accountant to believe that there was any incorrect or inaccurate statement in such Certificate; **PROVIDED, HOWEVER,** that if the Application is made prior to the date on which an annual report is required to be filed by the Company pursuant to Section 10.4, such Certificate shall not be accompanied by such Independent Accountant's report.

**"Board of Directors"** means either the board of directors of the Company or any duly authorized committee of such board.

**"Board Resolution"** means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

**"Bondable Additions"** means the excess of (i) the Amount of Property Additions over (ii) the amount of Retirements (less credits thereto), computed in accordance with Section 4.2 and certified as Bondable Additions in the Summary of Certificate as to Bondable Additions then being filed in accordance with Section 4.2.

**"Bondable Property"** means all Property Additions, and all property owned by the Company on the Cut-Off Date which would constitute Property Additions if acquired after that date (except for the requirement to deliver Title Evidence with respect to such property).

**"Book-Entry System"** means that system whereby the clearance and settlement of transactions in Obligations held in such system is made through electronic book-entry changes, thereby eliminating the need for physical movement of Obligations certificates or other instruments.

**"Capital Assets Lease"** has the meaning stated in Section 6.7.

**"Certificate as to Bondable Additions"** means an Officers' Certificate, dated not more than thirty (30) days prior to the date of the related Application, complying with the requirements of Section 4.2 and signed, in addition to the two Officers signing the same as officers, by a Person, who may be one of such Officers, signing as an Engineer or an Appraiser and a Person, who may be one of such Officers, signing as an Accountant; **PROVIDED, HOWEVER,** that, unless a Person signing as an Engineer, Appraiser or Accountant is also one of the two signing Officers, a Person signing as one of such experts may state that he is signing only with respect to

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the particular portions of the Certificate as to Bondable Additions that are within his expertise; **PROVIDED FURTHER, HOWEVER,** that all portions of the Certificate as to Bondable Additions must be within the expertise of one of such signing experts.

**"Certified Progress Payments"** means payments, made by the Company under or in connection with a Qualified EPC Contract, for generation and related facilities (including electric transmission and fuel supply facilities) that will constitute Property Additions upon the performance of such Qualified EPC Contract, that are certified by the Company to the Trustee as the basis for (i) the withdrawal of Deposited Cash under Section 4.6, (ii) loans or advances under Conditional Obligations under Section 4.8, (iii) the authentication and delivery of Additional Obligations under Section 4.11 or (iv) the withdrawal and payment of Trust Moneys under Section 6.6.

**"Commission"** means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, or if at any time after the execution of this instrument such Commission is not existing and performing the duties theretofore assigned to it under the TIA, then the body performing such duties at such time.

**"Company"** means the Person named as the "Company" in the first paragraph of this instrument until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter, except to the extent otherwise contemplated by Section 11.2B, **"Company"** shall mean such successor Person.

**"Company Consent," "Company Order"** and **"Company Request"** mean, respectively, a written consent, order or request signed in the name of the Company by an Officer of the Company, and delivered to the Trustee.

**"Conditional Obligations"** has the meaning stated in Section 4.8.

**"Cost to the Company"** of Property Additions means the actual cost of acquisition thereof by the Company determined in accordance with Accounting Requirements. Such cost of acquisition shall include capitalized interest and other expenses (including, without limitation, taxes, engineering costs and expenses, legal costs and expenses, allocated administrative charges, insurance, casualties and supervisory fees and expenses) relating to such acquisition and properly chargeable to the Company's property accounts in accordance with Accounting Requirements. When the consideration for Property Additions consists (in whole or in part) of property or securities, the fair market value of such consideration (as of the date of the transfer and delivery thereof) shall be deemed the equivalent of cash in the determination of cost. The Cost to the Company of any Property Additions acquired as an Acquired Facility shall include the cost to the Company of any franchises, contracts, operating agreements and other rights and Non-Bondable Property simultaneously acquired with, and related to, such Property Additions, for which no separate or distinct consideration shall have been paid or apportioned; and, except in such case, the Cost to the Company of any property, only part of which constitutes Property Additions and all of which is acquired for a single consideration, shall be properly allocated in the Certificate as to Bondable Additions in which such Property Additions are certified to the Trustee. In the case of Property Additions consisting of property owned by a successor corporation at the time it shall

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have become such by consolidation, merger, conveyance or transfer as provided in Article XI, or acquired by it by such consolidation, merger, conveyance or transfer, unless otherwise provided for in Paragraph C of Section 11.3 hereof, the Cost to the Company shall be the gross amount at which such property is recorded in the plant or property accounts (exclusive of any amounts carried in plant or property adjustment accounts) on the books of such successor corporation, or the constituent or predecessor corporation from which such property was acquired, immediately prior to such consolidation, merger, conveyance or transfer, less related reserves for depreciation, depletion, obsolescence, retirements and amortization as of that date.

**"Credit Enhancement"** means, with respect to any Obligation, the provision of an insurance policy, letter of credit, surety bond or any other undertaking, whereby the provider thereof becomes unconditionally obligated to pay when due, to the extent not paid by the Company or otherwise, the principal of and interest on such Obligation or on another obligation the payment on which is (i) secured by such Obligation or (ii) credited against the principal and interest due on such Obligation.

**"Credit Enhancer"** means any Person that, pursuant to this Indenture or a Supplemental Indenture, is designated as a Credit Enhancer and which provides Credit Enhancement.

**"Credit Obligations"** has the meaning stated in Section 4.7.

**"Cut-Off Date"** means January 1, 1998.

**"Dakota Coal Indenture"** means the Third Amended and Restated Indenture of Trust and Security Agreement dated as of January 1, 1994 from Dakota Coal Company to Northwest Bank Minnesota, National Association as Trustee, as the same may be amended and supplemented in accordance with its terms.

**"Defaulted Interest"** has the meaning stated in Section 3.9.

**"Defeasance Securities"** means and includes any of the following securities, if and to the extent the same are not subject to redemption or call prior to maturity by anyone other than the holder thereof and are at the time legal for investment of the Company's funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;any certificates or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in paragraph A above.

**"Deposited Cash"** has the meaning stated in Section 4.5.

**"Depository"** means Cede & Co., as nominee for DTC, and any successor nominee of DTC and any other comparable companies performing similar functions both within and without the United States.

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**"Designated Qualifying Securities"** means, as of the date of determination, such Qualifying Securities held by the Trustee which have been designated by the Company (i) pursuant to Section 4.4 as the basis for the issuance and delivery of Additional Obligations, (ii) pursuant to Section 4.6 as the basis for the withdrawal of Deposited Cash, (iii) pursuant to Section 4.8 as the basis for the advance or issuance of any unadvanced or unissued portion of any Conditional Obligation or series of Conditional Obligations, (iv) pursuant to Section 5.2 as the basis for the release of property, (v) pursuant to Section 6.4 as the basis for the withdrawal of Trust Moneys or (vi) pursuant to Section 16.3B as the basis for surrender or redesignation of other Designated Qualifying Securities; subject in all such cases to redesignation or surrender thereof pursuant to Section 16.3 and; **PROVIDED, HOWEVER,** that Qualifying Securities issued pursuant to the Dakota Coal Indenture, to be designated by the Company and held by the Trustee, shall be issued in an aggregate principal amount not to exceed 90.91% of the Acquisition Cost, as defined in the Dakota Coal Indenture, of the Related Group of Collateral, as such terms are defined in the Dakota Coal Indenture, securing such securities.

**"Distribution"** has the meaning stated in Section 13.15.

**"DTC"** means The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, and its successors and assigns.

**"Election Date"** shall have the meaning set forth in Section 16(d) of the Facility Assets Lease.

**"Engineer"** means a Person regularly engaged in the engineering profession who (except as otherwise expressly provided in this Indenture) may be employed by or affiliated with the Company and who need not be independent, certified or licensed.

**"Event of Default"** has the meaning stated in Section 8.1 or in any Supplemental Indenture. An Event of Default shall "exist" if an Event of Default shall have occurred and be continuing.

**"Excepted Property"** has the meaning stated in the Granting Clauses hereof.

**"Excludable Property"** means property with respect to which an Officers' Certificate has been delivered to the Trustee pursuant to paragraph (5) of the definition of "Property Additions" below, the output of such property, and all property rights, privileges and franchises of every kind and description, real, personal or mixed, tangible or intangible, whether now owned or hereafter acquired by the Company, wherever located, including, without limitation, goods (including equipment, fuel, materials and supplies), accounts and general intangibles relating solely to such certified property or the output of such property.

**"Existing Obligations"** means the promissory notes and other obligations identified on Exhibit B attached hereto and authenticated by the Trustee, pursuant to Section 2.1, and any amendments, supplements, extensions, replacements or restatements thereof consistent with Section 3.2(a).

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**"Fair Value to the Company"** means, when used with respect to any particular Property Additions, the fair value thereof to the Company, determined as of the date of the Company's acquisition of such Property Additions and in accordance with the provisions of this Indenture; **PROVIDED, HOWEVER,** that the "Fair Value to the Company" of Property Additions that would not constitute Property Additions but for satisfaction of the conditions set forth in clauses (i) and (ii) of paragraph (4) of the definition of "Property Additions" set forth below shall not exceed the product obtained by multiplying the Fair Value to the Company of such Property Additions (determined as if the remaining term of the leasehold interest to which such property relates were equal to the remaining useful economic life of such property) by a fraction, the numerator of which shall be the remaining term of the leasehold interest to which such property relates (including any periods for which the Company has the option to extend or renew such leasehold interest) as of the date of the Application and the denominator of which is the useful economic life of such Property Additions; and **PROVIDED, FURTHER,** that the "Fair Value to the Company" of Property Additions that would not constitute Property Additions but for satisfaction of the conditions set forth in clause (ii) of paragraph C of the definition of "Property Additions" shall take into account any irrevocable deposit by the Company of cash or securities (which securities must be rated by any nationally recognized statistical rating organization the higher of (1) "A" or (2) as high as any series of Obligations are rated) in a fund or funds for the exclusive purposes of discharging or securing the Company's obligations to make rental payments and payments of a fixed price purchase option under any such lease.

The Fair Value to the Company of any particular Property Additions subject to a lien constituting a Permitted Exception or permitted by the proviso to Section 5.2D(2), shall be determined as if such property were free of such lien.

**"Holder"** when used with respect to any Obligation means the Person in whose name such Obligation is registered in the Obligation Register.

**"Indenture"** means this Amended and Restated Indenture supplementing, amending and restating the Existing Indenture as originally executed or as it may from time to time be supplemented, modified or amended by one or more indentures or other instruments supplemental hereto (including Supplemental Indentures) entered into pursuant to the applicable provisions hereof.

**"Independent"** when used with respect to any specified Person means such a Person who (i) is in fact independent, (ii) does not have any direct financial interest or any material indirect financial interest in the Company or in any other obligor upon the Obligations or in any Affiliate of the Company or of such other obligor and (iii) is not connected with the Company or such other obligor as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. Whenever it is herein provided that any Independent Person's opinion or certificate shall be furnished to the Trustee, such opinion or certificate shall state that the signer has read this definition and that the signer is Independent within the meaning thereof.

**"Interest Charges"** for any period means the total interest charges (whether capitalized or expensed) of the Company for such period on all Outstanding Secured Obligations and

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outstanding Prior Lien Obligations, in all cases including amortization of debt discount and premium on issuance but excluding all interest accruing in respect of Obligations authenticated and delivered on the basis of Qualifying Securities issued by a wholly-owned Subsidiary of the Company if such Subsidiary is required under such Qualifying Securities Indenture to earn Margins for Interest of not less than 1.10 times Interest Charges under a rate covenant substantially identical in substance to Section 13.14 and such Designated Qualifying Securities bear interest at the rate of interest to accrue on the Obligations authenticated and delivered on the basis of such Designated Qualifying Securities, determined in accordance with Accounting Requirements.

**"Interest Payment Date"** means the Stated Maturity of an installment of interest on the Obligations.

**"Leased Assets"** has the meaning stated in Section 6.7.

**"Margins for Interest"** means, for any period, the sum of (i) net margins of the Company for such period, which shall include revenues of the Company, if any, subject to possible refund at a later date; **PROVIDED, HOWEVER,** no deductions shall be made as a result of refunds ordered in a subsequent period; <u>plus</u> (ii) Interest Charges; <u>plus</u> (iii) accruals of Federal income and other taxes imposed on income after deduction of Interest Charges for such period; <u>plus</u> (iv) the amount, if any, included in net margins for any losses incurred by any Subsidiary or Affiliate of the Company other than amounts included pursuant to clause (viii) below; <u>plus</u> (v) the amount, if any, the Company actually receives in such period as a dividend or other distribution of earnings of any Subsidiary or Affiliate (whether or not such earnings were for such period or any earlier period or periods) which amount has not otherwise been reflected as an increase in net margins; <u>plus</u> (vi) the amount of any expenses or provisions for any non-recurring charge to income or margins or retained earnings of whatever kind or nature (including, without limitation, the recognition of expense due to the non-recoverability of assets or expenses) that may have been deducted or otherwise taken into account in arriving at net margins whether or not recorded as a non-recurring charge in the Company's books of account; <u>minus</u> (vii) the amount, if any, included in net margins for any income, gain, earnings or profits of any Subsidiary or Affiliate of the Company other than amounts included pursuant to clause (v) above; and <u>minus</u> (viii) the amount, if any, the Company actually contributes to the capital of, or actually pays under a guarantee by the Company of an obligation of, any Subsidiary or Affiliate in such period to the extent of any accumulated losses incurred by such Subsidiary or Affiliate (whether or not such losses were for such period or any earlier periods), but only to the extent (x) such losses have not otherwise caused other contributions or payments to be included in net margins for purposes of computing Margins for Interest for a prior period and (y) such amount has not otherwise been included in net margins. Margins for Interest shall be determined in accordance with Accounting Requirements; **PROVIDED, HOWEVER,** that such determination shall be made on a Company only and not on a consolidated basis.

**"Maturity"** means, when used with respect to any Obligation, the date on which the principal of such Obligation, or any installment thereof, becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration or call for

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redemption or purchase or prepayment or otherwise; **PROVIDED, HOWEVER,** that any obligation to purchase or otherwise acquire any Additional Obligation from its Holder shall not constitute an undertaking to pay the principal of such Obligation if so provided in the Supplemental Indenture creating such Additional Obligation.

**"Non-Bondable Property"** means any property owned by the Company other than Bondable Property.

"**Obligation Register**" and **"Obligation Registrar"** have the respective meanings stated in Section 3.7.

**"Obligations"** has the meaning stated in the first recital of this Indenture.

**"Officer"** for purposes of any consent, order, certificate, opinion, request or other action hereunder means the President, any Vice President of the Company, the Treasurer, the Secretary, any Assistant Secretary, the General Manager, the Chief Financial Officer, or the General Counsel or any other officer or employee of the Company authorized by a Board Resolution to give such consent, order, certificate or opinion, or make such request or perform such action.

**"Officers' Certificate"** means a certificate signed by any two Officers of the Company. Wherever this Indenture requires that an Officers' Certificate be signed also by an Engineer or an Accountant or other expert, such Engineer, Accountant or other expert may (except as otherwise expressly provided in this Indenture) be employed by the Company and may be one of the two signing Officers.

**"Opinion of Counsel"** means a written opinion (or, in the case of matters relating to title, real or personal records or the existence or priority of liens, a written certificate) of counsel who may (except as otherwise expressly provided in this Indenture) be employed by, or be outside counsel to the Company and who shall be reasonably acceptable to the Trustee. The acceptance by the Trustee of such opinion shall be sufficient evidence that such counsel is reasonably acceptable to the Trustee.

**"Original Issue Discount Obligation"** means any Obligation declared to be an "Original Issue Discount Obligation" in the Supplemental Indenture establishing the series to which such Obligation belongs.

**"Outstanding"** when used with respect to Obligations means, as of the date of determination, all Existing Obligations authenticated under this Indenture and all Additional Obligations authenticated and delivered under this Indenture, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Obligations, or any portion thereof, theretofore canceled by the Trustee or delivered to the Trustee for cancellation or delivered to the Trustee marked canceled, satisfied or otherwise evidenced to the Trustee's satisfaction as paid (and which amount may not be readvanced);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Obligations for whose payment or redemption money or Defeasance Securities in the necessary amount has been theretofore deposited with the Trustee, any Paying Agent (other than the Company) or any other bank, trust company or financial institution in trust for the Holders of such Obligations, **PROVIDED** that, if such Obligations are to be redeemed, or prepaid, irrevocable notice of such redemption or prepayment has been duly given or other provision therefor satisfactory to the Trustee has been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Obligations which have been paid pursuant to Section 3.8 or in exchange for or in lieu of which other Obligations have been authenticated and delivered pursuant to this Indenture, other than any such Obligations in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Obligations are held by a bona fide purchaser in whose hands such Obligations are valid obligations of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Additional Obligations which have not been sold, pledged or subjected to a security interest and have been surrendered to the Trustee, or which a portion thereof has not been advanced and with respect to such portion any commitment to advance thereunder has terminated, as provided in the last paragraph of Section 4.1;

**PROVIDED, HOWEVER,** that in determining whether the Holders of the requisite principal amount of Obligations Outstanding or the Obligations Outstanding of a series, as the case may be, have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Obligations owned by the Company or any other obligor upon the Obligations or any Affiliate of the Company or of such other obligor (unless the Company, such obligor and such Affiliate or Affiliates own all Obligations Outstanding under this Indenture, or as to matters relating solely to a particular series all Obligations Outstanding of such series, as the case may be, determined without regard to this proviso) shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Obligations which are registered in the name of the Company or an Affiliate of the Company of which the Trustee has been given written notice shall be so disregarded. Obligations so owned which have been pledged in good faith may be regarded as Outstanding for such purposes if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Obligations and that the pledgee is not the Company or any other obligor upon the Obligations or any Affiliate of the Company or of such other obligor. For purposes of the definition of "Outstanding" neither any Credit Enhancer nor RUS shall be an obligor upon the Obligations.

**"Outstanding"** when used with respect to Qualifying Securities, has the meaning contained in the related Qualifying Securities Indenture.

**"Outstanding Secured Obligations"** means, as of the date of determination, (i) all Obligations then Outstanding other than Obligations then owned by the Company or any wholly-owned Subsidiary and held in its treasury and (ii) all Obligations, if any, alleged to have been destroyed, lost or stolen which have been replaced or paid as provided in Section 3.8 but whose ownership and enforceability by the Holder thereof have been established by a court of

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competent jurisdiction or other competent tribunal or otherwise established to the satisfaction of the Company and the Trustee.

**"Paying Agent"** means the Company and any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Obligations on behalf of the Company.

**"Periodic Offering"** means an offering of Additional Obligations of a series from time to time any or all of the specific terms of which Additional Obligations, including the rate or rates of interest, if any, thereon, the Stated Maturity or Maturities thereof and the redemption provision, if any, with respect thereto, are to be determined by the Company or its agents at or about the time of the issuance of such Additional Obligations.

**"Permitted Exceptions"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;as to the property described in subdivisions A and B of Granting Clause First, the restrictions, exceptions, reservations, terms, conditions, agreements, leases, subleases, covenants, limitations, interests and other matters which are of record on the date such property becomes subject to the lien of this Indenture; **PROVIDED,** that such matters do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;as to property which the Company may hereafter acquire, any restriction, exception, reservation, term, condition, agreement, covenant, limitation, interest or other matter which is of record on the date of such acquisition or expressed or provided in the deeds or other instruments under which the Company shall acquire the same, **PROVIDED,** with respect to an acquisition of property of a Subsidiary in connection with a merger of a Subsidiary into the Company pursuant to Section 11.3, any such restriction, exception, reservation, term, condition, agreement, covenant, limitation, interest or other matter of record on the date of such acquisition or expressed or provided in the deeds or other instruments under which the Company acquires such property shall constitute a Permitted Exception hereunder only if the foregoing constituted a permitted exception under the Qualifying Securities Indenture of such Subsidiary, **PROVIDED, FURTHER,** that all such matters do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;liens for taxes, assessments and other governmental charges not delinquent, and ordinances establishing assessments for sewer, lighting or other local improvement districts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;liens for taxes, assessments and other governmental charges already delinquent which are currently being contested in good faith by appropriate proceedings and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;mechanics', workmen's, repairmen's, materialmen's, warehousemen's, contractors', subcontractors' and carriers', liens and other similar liens arising in the

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ordinary course of business or incident to current construction for charges which (i) are not delinquent or (ii) are being contested in good faith and have not proceeded to judgment and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;liens in respect of judgments or awards (i) with respect to which the Company shall in good faith currently be prosecuting an appeal or proceedings for review and shall have secured a stay of execution pending such appeal or proceedings for review **PROVIDED** the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements or (ii) which are fully covered by insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;easements and rights granted by the Company under Section 5.1D and similar rights granted by any predecessor in title of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;easements, leases, restrictions, rights-of-way, exceptions, reservations or other rights of others in any property of the Company for streets, roads, expressways, bridges, pipes, pipe lines, railroads, towers, poles, wires, conduits, mains, metering stations, electric, electronic, optical, or other power or signal transmission and distribution lines, telecommunications and telephone lines, the removal of oil, gas, coal or other minerals, and other similar purposes, flood rights, river control and development rights, sewage and drainage rights, restrictions against pollution and zoning laws and minor defects and irregularities in the record evidence of title of any property, to the extent that such easements, leases, restrictions, rights-of-way, exceptions, reservations, other rights, laws, defects and irregularities do not in the aggregate materially impair the use of the Trust Estate taken as a whole for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;liens upon lands over which easements, licenses or rights-of-way are acquired by the Company for any of the purposes specified in paragraph H of this definition, securing indebtedness neither created, assumed nor guaranteed by the Company nor on account of which it customarily pays interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;leases or permits for occupancy existing at January 1, 1998 affecting property owned by the Company at said date (and future modifications, renewals and extensions thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;leases to, and permits for occupancy by, other Persons entered into after January 1, 1998 affecting property owned by the Company, whether acquired before or after the date of this instrument (i) for a term of not more than ten (10) years (including any extensions or renewals) or (ii) if for a term of more than ten (10) years which do not materially impair the Company's use of the property in the conduct of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;any lien or privilege vested in any lessor, landlord, licensor, permittor or other person for rent to become due or for other obligations or acts to be performed, the

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payment of which rent or the performance of which other obligations or acts is required under leases, usufructs, subleases, licenses or permits, so long as the payment of such rent or the performance of such other obligations or acts is (i) not delinquent or (ii) being contested in good faith and has not proceeded to judgment and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.&nbsp;&nbsp;&nbsp;&nbsp;liens or privileges of any employees of the Company for salary or wages earned but not yet payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.&nbsp;&nbsp;&nbsp;&nbsp;the burdens of any law or governmental regulation, license or permit requiring the Company to maintain certain facilities or perform certain acts as a condition of the carrying on of the Company's business or the occupancy of or interference with any public lands or any river or stream or navigable waters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O.&nbsp;&nbsp;&nbsp;&nbsp;any restrictions, covenants, defects or irregularities in or other deficiencies of title to any easement or rights-of-way of or used by the Company for pipe lines, telephone lines, telecommunications lines, power lines, towers, poles, wires, conduits, mains, electric transmission lines and distribution lines, substations, metering stations, signal transmission and distribution lines or for similar purposes, to any real property of the Company owned in fee used or to be used by the Company primarily for such purposes, or to any appurtenances to any such easement, right-of-way or real property or other improvements on any such easement, right-of-way or real property, if (i) in the case of easements or rights-of way, the Company shall have obtained from the apparent owner of the lands or estates therein covered by any such easement or right-of-way a sufficient right, by the terms of the instrument granting such easement or right-of-way, to the use thereof for the construction, operation or maintenance of the lines, appurtenances or improvements for which the same are used or are to be used, (ii) the Company has power under eminent domain, or similar statutes, to remove such restrictions, covenants, defects, irregularities or other deficiencies, or (iii) such restrictions, covenants, defects, irregularities or other deficiencies may be otherwise remedied without undue effort or expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.&nbsp;&nbsp;&nbsp;&nbsp;rights reserved to, or vested in, any municipality or governmental or other public authority to control or regulate any property of the Company or the use thereof, or to use such property in any manner, which rights do not materially impair the use of such property for the purposes for which it is held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q.&nbsp;&nbsp;&nbsp;&nbsp;any obligations or duties, affecting the property of the Company, to or established by any municipality or governmental or other public authority in connection with any franchise, grant, license or permit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R.&nbsp;&nbsp;&nbsp;&nbsp;any right which any municipal or governmental authority may have by virtue of any franchise, license, contract or statute;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S.&nbsp;&nbsp;&nbsp;&nbsp;any restrictions, including restrictions on transfer, liens or other matters arising from, permitted by, or required by, any law or governmental regulation relating to environmental matters so long as such restrictions, liens or other matters do not materially impair the use of such property for the purposes for which it is held and as to any liquidated liens with respect thereto, the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.&nbsp;&nbsp;&nbsp;&nbsp;reservations contained in U.S. patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.&nbsp;&nbsp;&nbsp;&nbsp;slope and drainage reservations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V.&nbsp;&nbsp;&nbsp;&nbsp;deposits to secure duties or public or statutory obligations, deposits to secure, or in lieu of, surety, stay or appeal bonds, and deposits as security for the payment of taxes or assessments or similar charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W.&nbsp;&nbsp;&nbsp;&nbsp;any lien or other matter required by law or governmental regulation as a condition to the transaction of any business or the exercise of any privilege or license, or to enable the Company to maintain self-insurance or to participate in any funds established to cover any insurance risks or in connection with worker's compensation, unemployment insurance, retirement pensions or other social security, or to share in the privileges or benefits required for companies participating in such arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X.&nbsp;&nbsp;&nbsp;&nbsp;any lien or other encumbrance created or assumed by the Company in connection with the issuance of debt securities the interest on which is excludable from gross income of the holder of such security pursuant to the Internal Revenue Code, as amended, for the purposes of financing or refinancing, in whole or in part, the acquisition or construction of property used or to be used by the Company to the extent such lien covers only such acquired or constructed property and the proceeds upon the sale, transfer or exchange thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y.&nbsp;&nbsp;&nbsp;&nbsp;the pledge of current assets, in the ordinary course of business, to secure current liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z.&nbsp;&nbsp;&nbsp;&nbsp;liens or other encumbrances securing indebtedness for the payment of which money or Defeasance Securities, maturing as to principal and interest in such amounts and at such times, as are sufficient to provide for the full and timely payment of such indebtedness shall have been irrevocably deposited in trust or escrow with the trustee or other holder of such lien, and liens on such deposited money or Defeasance Securities, **PROVIDED** that if such indebtedness is to be redeemed or otherwise prepaid prior to the stated maturity thereof, any notice requisite to such redemption or prepayment shall have been irrevocably given in accordance with the mortgage or other instrument creating such lien or other encumbrance or irrevocable instructions to give such notice shall have been given to such trustee or other holder;

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AA.&nbsp;&nbsp;&nbsp;&nbsp;the undivided or other interest of other owners, and liens on such interest, in property owned in common or jointly with the Company or in which the Company has an executory or future interest, and all rights of such co-owners or joint owners in such property, including the rights of such owners to such property pursuant to ownership contracts;

AB.&nbsp;&nbsp;&nbsp;&nbsp;any liens or other encumbrances of any person arising on account of the ownership in common or jointly with the Company of an undivided or other interest in property which relate to amounts which are not due and payable, or which are being contested by the Company in good faith, and with respect to which the Company shall have set aside on its books adequate reserves with respect thereto if such reserves are required by Accounting Requirements; and

AC.&nbsp;&nbsp;&nbsp;&nbsp;liens which have been bonded for the full amount of the obligations secured by such lien or for the payment of which the Company has deposited with the Trustee or with an escrow agent cash or other property with a value equal to the full amount of the obligations secured by such lien.

**"Person"** means any individual, corporation, cooperative, partnership, joint venture, association, joint-stock company, limited liability company or partnership, trust, unincorporated organization or government or any agency or political subdivision thereof.

**"Place of Payment"** when used with respect to the Obligations of any series means a city or any political subdivision thereof in which the Company is by this Indenture required to maintain an office or agency for the payment of the principal of or interest on the Obligations of such series.

**"Pledged Securities"** has the meaning stated in Section 15.1.

**"Pledged Subsidiary"** means a Subsidiary of the Company at least a majority of whose outstanding Voting Stock shall at the time be deposited and pledged or required to be deposited and pledged with the Trustee.

**"Pledged Wholly-Owned Subsidiary"** means any Subsidiary of the Company all Stock of all classes of which (other than directors' qualifying shares required to be owned by directors under any applicable law) shall at the time be owned directly by the Company and deposited and pledged or required to be deposited and pledged with the Trustee.

**"Predecessor Obligations"** of any particular Obligation means every previous Obligation evidencing all or a portion of the same debt as that evidenced by such particular Obligation; and, for purposes of this definition, any Obligation authenticated and delivered under Section 3.8 in lieu of a lost, destroyed or stolen Obligation shall be deemed to evidence the same debt as the lost, destroyed or stolen Obligation.

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**"Prior Lien"** means any mortgage, lien, security title, charge or encumbrance on or pledge of or security interest in any of the Trust Estate prior to or on a parity with the lien of this Indenture, other than Permitted Exceptions.

**"Prior Lien Obligation"** means any indebtedness and the evidence thereof, if any, secured by a Prior Lien.

**"Property Additions"** means property as to which the Company shall provide Title Evidence (which, as to Retired property, may be dated as of a date immediately prior to the Retirement) and which shall be (or, if Retired, shall have been) subject to the lien of this Indenture, which shall be properly chargeable to the Company's fixed plant accounts under Accounting Requirements (including property acquired to replace property Retired and credited to such accounts) and which shall be acquired by the Company after the Cut-Off Date, including property in the process of construction, insofar as not reflected on the books of the Company with respect to periods on or prior to the Cut-Off Date. Property Additions need not consist of a specific or completed development, plan, betterment, addition, extension, improvement or enlargement, but may include construction work in progress and property in the process of purchase insofar as title has been vested in the Company.

**"Property Additions"** shall also include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;easements and rights-of-way that are useful for the conduct of the business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;property located or constructed (i) on, over or under public highways, rivers or other public property if the Company has the lawful right under permits, licenses or franchises granted by a governmental body having jurisdiction in the premises or by the law of the state in which such property is located or (ii) on, over or under other property subject to easements and rights of way described in paragraph A above, if the Company has the right under such permits, licenses, franchises, law, easements or rights of way to maintain and operate such property for an unlimited, indeterminate or indefinite period or for the period, if any, specified in such permit, license, franchise, law, easement or right of way and to remove such property at the expiration of the period covered by such permit, license, franchise, law, easement or right of way or if the terms of such permit, license, franchise, law, easement or right of way require any public authority or grantor thereof having the right to take over such property to pay fair consideration therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;tangible property, which would be properly chargeable to the Company's fixed plant accounts under Accounting Requirements (including property acquired to replace property Retired and credited to such accounts) if title were vested in the Company, if (i) such property itself (in addition to the Company's leasehold interest in such property) is subject to the lien of this Indenture and (ii) such property is leased to the Company.

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**"Property Additions"** shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;good will, going concern value, contracts, agreements, franchises, licenses or permits, whether acquired as such, separate and distinct from the property operated in connection therewith, or acquired as an incident thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Stock, indebtedness or other securities, including certificates or evidences of interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;any property that is to remain subject to a Prior Lien (except to the extent permitted by the proviso to Section 5.2D(2)) after the granting of the related Application, or subject to the Permitted Exception described in paragraph X of the definition of "Permitted Exceptions";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;except as provided in paragraph C above, any plant or system or other property in which the Company shall acquire only a leasehold interest, or any betterments, extensions, improvements or additions (other than movable physical personal property which the Company has the right to remove), of, upon or to any plant or system or other property in which the Company shall own only a leasehold interest unless in the case of betterments, extensions, improvements or additions of, upon or to any plant or system or other property in which the Company shall own only a leasehold interest (i) the term of the leasehold interest in the property to which such betterment, extension, improvement or addition relates (including any periods for which the Company has the option to extend or renew such leasehold interest) shall extend for at least 75% of the estimated useful economic life of such betterment, extension, improvement or addition and (ii) the lessor shall have agreed to give the Trustee reasonable notice and opportunity to cure any default by the Company under such lease and not to disturb the Trustee's possession of such leasehold estate in the event the Trustee succeeds to the Company's interest in such lease upon the Trustee's exercise of any remedies under this Indenture so long as there is no default in the performance of the tenant's covenants contained therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;property otherwise constituting Property Additions, but with respect to which the Company has delivered to the Trustee, prior to the Company's acquisition of such property, an Officers' Certificate specifically identifying such property to be acquired and stating that (i) such property is not to be subject to the lien of this Indenture and (ii) if the Company does not have the use of such property, it would remain capable of complying with the requirements of Section 13.14; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;property otherwise constituting Property Additions which has been (i) acquired from a Subsidiary, (ii) previously subject to the lien and security interest of a Qualifying Securities Indenture, (iii) previously certified as Bondable Property under such Qualifying Securities Indenture and (iv) used as the basis on which Assumed Qualifying Securities were issued.

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**"Qualified EPC Contract"** means any contract providing for the engineering, procurement or construction of generation or related facilities (including electric transmission and fuel supply facilities) intended to be owned by the Company, payments made under or in connection with which are used as the basis for (i) loans or advances under Conditional Obligations under Section 4.8 or (ii) the authentication and delivery of Additional Obligations under Section 4.11.

**"Qualifying Securities"** means bonds or other instruments evidencing indebtedness for borrowed money or purchase money indebtedness issued and Outstanding under a Qualifying Securities Indenture.

**"Qualifying Securities Indenture"** means any indenture, mortgage, deed to secure debt, deed of trust or similar instrument entered into by any Subsidiary of the Company or, in the case of a transaction described in the last sentence hereof, by any Person, (i) which contains provisions (and related definitions) substantially identical in substance to the provisions (and related definitions) contained in this Indenture (with such variations and omissions as are appropriate in view of the fact that the Subsidiary and not the Company is a party thereto), except that it may omit or have different provisions (and related definitions) relating to (a) the need to deliver an Available Margins Certificate upon the authentication and delivery of Qualifying Securities issued thereunder, (b) the requirement to establish and collect the rates, rents, charges, fees and other compensation of such Subsidiary reasonably expected to yield any particular level of Margins for Interest, (c) limiting distributions or dividends, and (d) such other matters as the Trustee shall determine in its reasonable judgment do not materially and adversely affect the value of the Qualifying Securities issued thereunder as security for the Obligations; **PROVIDED, HOWEVER**, that in making any such determination the Trustee may rely upon certificates of investment bankers or other financial professionals or consultants, and (ii) under which Qualifying Securities are issued and; **PROVIDED, FURTHER,** that the Dakota Coal Indenture shall be a Qualifying Securities Indenture for all purposes under this Indenture. A Qualifying Securities Indenture may be entered into by any Person that succeeds to the Company's interest in any property constituting part of the Trust Estate prior to such transaction where either (i) the property transferred from the Company is more than 50% of the property owned by the Person immediately after the completion of the transfer or (ii) after the transfer the Person will be engaged in providing utility services to the Company and/or to entities that were direct or indirect customers of the Company immediately prior to the transfer and the Company delivers a certificate to the Trustee, simultaneously with the issuance of the Qualifying Securities, that certifies that the property constituting part of the Trust Estate was transferred to the Person as part of a plan of the Company to restructure in order to be more competitive, deal with regulatory requirements or respond to changes in the utility industry generally (collectively, referred to hereinafter as a "Restructuring Transaction").

**"Rates"** has the meaning stated in Section 13.14.

**"Redemption Date"** when used with respect to any Obligation to be prepaid means the date of such prepayment and when used with respect to any Obligation to be redeemed means the date fixed for such redemption pursuant to this Indenture.

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**"Redemption Price"** when used with respect to any Obligation to be prepaid means the amount of the indebtedness to be prepaid and when used with respect to any Obligation to be redeemed means the price at which it is to be redeemed pursuant to this Indenture. It includes the applicable premium, if any, including any prepayment penalty, but does not include installments of interest whose Stated Maturity is on or before the Redemption Date.

**"Regular Record Date"** for the interest payable on any Interest Payment Date on the Obligations of any series means the date immediately preceding the Interest Payment Date or, for any series of Additional Obligations, as may otherwise be set forth in a Supplemental Indenture.

**"Responsible Officer"** when used with respect to the Trustee means the chairman or vice-chairman of the board of directors of the Trustee, the chairman or vice-chairman of the executive committee of such board, the president, any vice-president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the cashier, any assistant cashier, any trust officer or assistant trust officer, the controller, any assistant controller or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer of the Trustee to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

**"Restructuring Transaction"** has the meaning set forth in the definition of "Qualifying Securities Indenture".

**"Retired"** means, when used with respect to property, Bondable Property that, since the Cut-Off Date, has been retired, abandoned, destroyed, worn out, removed, permanently discontinued, lost through the enforcement of any liens or released, sold or otherwise disposed of free of the lien of this Indenture or taken by eminent domain or under the exercise of a right of a government authority to purchase or take the same or recorded as retired on the books of the Company or permanently retired from service for any reason, whether or not replaced, or shall have permanently ceased to be used or useful in the business of the Company, including as a consequence of the termination of any lease, whether or not recorded as retired on the books of the Company, except that, when a minor item of property has been replaced by other property of equal value and efficiency and the cost of such replacement has been charged to other than fixed property accounts such as maintenance, repairs or other similar account, the property replaced shall not be considered as Retired.

**"Retirements"** means Bondable Property that has been Retired. The "amount" of Retirements shall be computed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;as to property owned by the Company on the Cut-Off Date, the net book value of such property as recorded on the books of the Company as of the Cut-Off Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;as to Property Additions, the Cost to the Company thereof or the Fair Value to the Company thereof, whichever is less, as certified to the Trustee at the time such Property Additions were certified in a Certificate as to Bondable Additions filed in

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accordance with Section 4.2 (estimated, if necessary, as to particular property), or if not theretofore so certified, then the Cost to the Company of such Property Additions.

In the case of property acquired by the Company in connection with a merger under Section 11.3, the "amount" of Retirements shall be computed as follows: (i) for property owned by the Subsidiary on the cut-off date under its Qualifying Securities Indenture, the net book value of such property as recorded on the books of the Subsidiary as of such cut-off date, and (ii) as to property additions of such Subsidiary under its Qualifying Securities Indenture, the cost to the company thereof or the fair value to the company under such Qualifying Securities Indenture, whichever is less, as certified at the time such property additions were certified in a certificate as to bondable additions filed in accordance with the Qualifying Securities Indenture (estimated, if necessary, as to particular property), or if not theretofore so certified, then the cost to the company of such property additions.

In determining the amount of Retirements for any purpose under this Indenture, neither any reduction in book values of property recorded in the Company's fixed plant accounts nor the transfer of any amount appearing in any such accounts to intangible or adjustment accounts, required or arising from adjustments required to be made by any regulatory body or otherwise, nor the elimination of any amount so transferred, otherwise than in connection with the actual retirement of physical property, shall be taken into account.

**"RUS"** means the Rural Utilities Service, or any agency or other governmental body succeeding to the functions thereof relating to this Indenture.

**"RUS Reimbursement Obligation"** means any Obligation issued by the Company for the purpose of evidencing the Company's obligation to reimburse the United States of America, acting by and through the Administrator of RUS, for all amounts paid, or for any advances or loans made to or on behalf of the Company, on account of the guarantee by the United States of America, pursuant to the Rural Electrification Act of 1936, as amended, of any other Obligation, and related interest, fees, costs, penalties, charges and other amounts.

**"Special Record Date"** for the payment of any Defaulted Interest on Obligations means a date fixed by the Trustee pursuant to Section 3.9.

**"Stated Maturity"** when used with respect to any Obligation, any installment of principal thereof, or any installment of interest thereon, means the date specified in such Obligation as the date on which the principal of such Obligation or any installment thereof, or such installment of interest, is due and payable (without regard to any provisions for redemption, prepayment, acceleration, purchase or extension).

**"Stock"** means and includes all stock, shares, interests, membership interests, participations or other similar ownership, voting or other interests (however designated) in corporations, cooperatives, partnerships, joint-ventures, associations, joint-stock companies, limited liability companies, trusts, unincorporated organizations or other types of legal entities.

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**"Subsidiary"** of any specified entity means any corporation, cooperative, partnership, joint-venture, association, joint-stock company, limited liability company, partnership, trust, unincorporated organization or any other type of legal entity at least a majority of whose outstanding Voting Stock shall at the time be owned or held, directly or indirectly, by the specified entity or by one or more of its Subsidiaries.

**"Supplemental Indenture"** means any indenture supplemental hereto and duly authorized in the manner provided herein.

**"System"** means all properties and interest in properties of the Company other than Excludable Property, it being the intent that "System" be broadly construed to encompass and include the Company's interests in all electric production, transmission, distribution, conservation, load management, general plant and other related facilities, equipment or property and in any mine, well, pipeline, plant, structure or other facility for the development, production, manufacture, storage, fabrication or processing of fossil, nuclear or other fuel of any kind or in any facility or rights with respect to the supply of water, in each case for use, in whole or in major part, in any of the Company's generating plants, now existing or hereafter acquired by lease, contract, purchase or otherwise or constructed by the Company, including any interest or participation of the Company in any such facilities or any rights to the output or capacity thereof, together with all additions, betterments, extensions and improvements to any of the foregoing or any part thereof hereafter made and together with all lands, easements and rights of way of the Company and all other works, property or structures of the Company and contract rights and other tangible and intangible assets of the Company used or useful in connection with or related to any of the foregoing, including, without limitation, a contract right or other contractual arrangement for the long-term or short-term interconnection, interchange, exchange, pooling, wheeling, transmission, purchase or sale of electric power and energy and other similar arrangements with entities having generation and transmission capabilities.

**"TIA"** or **"Trust Indenture Act"** means, as of any time, the Trust Indenture Act of 1939, or any successor statute, as amended and in force at such time.

**"Title Evidence"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;with respect to any real property, other than real property covered by paragraphs B, C or D below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;an Opinion of Counsel to the effect that the Company has such title, whether fairly deducible of record or based upon prescriptive rights, as in the opinion of counsel, based upon information from the Company as to the nature and duration of the use of such property, is satisfactory for the use thereof in connection with the operations of the Company, and counsel, in giving such opinion, may disregard any irregularity or deficiency in the record evidence of title which, in the opinion of such counsel, can be cured by proceedings within the power of the Company or, based upon information from the Company as to the nature and duration of the use of such property, does not substantially impair the usefulness of such property for the purpose for which the Company intends or expects to use such property, and may base such opinion upon his

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own investigation or upon affidavits, certificates, abstracts of title, statements or investigations made by Persons in whom such counsel has confidence or upon certificates or guaranties of title or policies of title insurance in which he has confidence, and, without limiting the foregoing, counsel may rely solely upon an Officers' Certificate as to matters regarding the use of such property in the operations of the Company or the usefulness of such property for the purpose for which the Company intends or expects to use such property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a loan policy of title insurance (or a commitment to issue a loan policy of title insurance containing only standard conditions to issuance or such other conditions to issuance as are satisfactory to the Trustee) in the amount of the Cost to the Company of the land included in Property Additions, issued in favor of the Trustee by an entity authorized to insure title in the state in which the real property is located, showing the Company as the owner of the subject land and insuring the lien of this Indenture as to such land; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;with respect to easements or rights-of-way, other than easements or rights-of-way covered by paragraphs C or D below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;an Opinion of Counsel to the effect that (i) the Company shall have obtained from the apparent owner of the lands or estates therein covered by any such easement or right-of-way a sufficient right, by the terms of the instrument granting such easement or right-of-way, to the use thereof for the construction, operation or maintenance of the lines, appurtenances or improvements for which the same are used or are to be used, (ii) the Company has power under eminent domain, or similar statutes, to remove any restrictions, covenants, defects or irregularities in or other deficiencies of title to such easements or rights-of-way, or (iii) any restrictions, covenants, defects or irregularities in or other deficiencies of title to such easements or rights-of-way may be otherwise remedied without undue effort or expense, and counsel, in giving such opinion, may base such opinion upon his own investigation or upon affidavits, certificates, abstracts of title, statements or investigations made by Persons in whom such counsel has confidence or upon certificates or guaranties of title or policies of title insurance in which he has confidence, and, without limiting the foregoing, counsel may rely solely upon an Officers' Certificate as to the identity of the apparent owner of the lands or estates therein covered by any such easement or right-of-way, the use or intended use of such easement or right-of-way by the Company and the ability to remedy any restrictions, covenants, defects or irregularities in or other deficiencies of title without undue effort or expense; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a loan policy of title insurance (or a commitment to issue a loan policy of title insurance containing only standard conditions to issuance or such other conditions to issuance as are satisfactory to the Trustee) in the amount of the Cost to the Company of the easement or right-of-way included in Property Additions, issued in favor of the Trustee by an entity authorized to insure title in the state in which the easement or right-of-way is located, showing the Company as the owner of the subject easement or right-of-way and insuring the lien of this Indenture as to such easement or right-of-way; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;with respect to any property described in paragraph C of the definition of "Property Additions" or any betterments, extensions, improvements or additions described in paragraph (4) of the definition of "Property Additions":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;as to any such property or betterments, extensions, improvements or additions not covered by paragraph C(2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) an Opinion of Counsel to the effect that the owner-lessor has such title to any land subject to the leasehold interest, whether fairly deducible of record or based upon prescriptive rights, as in the opinion of counsel, based upon information from the Company as to the nature and duration of the use of such property, is satisfactory for the use thereof in connection with the operations of the Company, and counsel, in giving such opinion, may disregard any irregularity or deficiency in the record evidence of title which, in the opinion of such counsel, can be cured by proceedings within the power of the Company or, based upon information from the Company as to the nature and duration of the use of such property, does not substantially impair the usefulness of such property for the purpose for which the Company intends or expects to use such property, and may base such opinion upon his own investigation or upon affidavits, certificates, abstracts of title, statements or investigations made by Persons in whom such counsel has confidence or upon certificates or guaranties of title or policies of title insurance in which he has confidence, and, without limiting the foregoing, counsel may rely solely upon an Officers' Certificate as to matters regarding the use of such property in the operations of the Company or the usefulness of such property for the purpose for which the Company intends or expects to use such property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a loan policy of title insurance including a leasehold endorsement (or a commitment to issue a loan policy of title insurance including a leasehold endorsement containing only standard conditions to issuance or such other conditions to issuance as are satisfactory to the Trustee) in the amount of the fair market value of the land subject to the leasehold interest determined on the date of such policy, issued in favor of the Trustee by an entity authorized to insure title in the state in which the land is located, showing the owner-lessor as the owner of the subject land and insuring the lien of this Indenture as to the Company's leasehold interest in such land and, in the case of property described in paragraph C of the definition of "Property Additions," as to such land; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate, (i) in the case of property described in paragraph C of the definition of "Property Additions," stating that the Company has a valid leasehold interest in, and is possessed of, such property and (ii) in the case of betterments, extensions, improvements or additions described in paragraph (4) of the definition of "Property Additions," stating that the Company owns such betterments, extensions, improvements or additions and has a valid leasehold interest in the plant or system or other property of, upon or to which such

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betterments, extensions, improvements or additions were made, and the related lease complies with the requirements of paragraph (4) of the definition of "Property Additions"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;with respect to (i) any such property that constitutes personal property or fixtures or real property solely as a consequence of being affixed to or erected on either (y) real property that was leased by the Company prior to the Cut-Off Date or (z) real property that was leased by the Company after the Cut-Off Date and as to which the Company has concurrently or previously provided Title Evidence to the Trustee as described in paragraph C(1) above, and (ii) any betterments, extensions, improvements or additions of, upon or to (I) any plant or system or other property that was leased by the Company prior to the Cut-Off Date or (II) any plant or system or other property that was leased by the Company after the Cut-Off Date and as to which the Company has concurrently or previously provided Title Evidence to the Trustee as described in paragraph C(1) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate, (i) in the case of property described in paragraph C of the definition of "Property Additions," stating that the Company has a valid leasehold interest in, and is possessed of, such property and (ii) in the case of betterments, extensions, improvements or additions described in paragraph (4) of the definition of "Property Additions," stating that the Company owns such betterments, extensions, improvements or additions and has a valid leasehold interest in the plant or system or other property of, upon or to which such betterments, extensions, improvements or additions were made, and the related lease complies with the requirements of paragraph (4) of the definition of "Property Additions"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;with respect to any personal property or any other property (other than personal property or other property covered by paragraph C above) that may constitute fixtures or real property solely as a consequence of being affixed to or erected on any of (i) real property that was owned by the Company prior to the Cut-Off Date or subject to easements or rights-of-way in favor of the Company prior to the Cut-Off Date, or (ii) real property that was acquired by the Company after the Cut-Off Date or subject to easements or rights-of-way in favor of the Company after the Cut-Off Date and as to which the Company has concurrently or previously provided Title Evidence to the Trustee an Officers' Certificate stating that the Company owns such personal property, fixtures or real property, as applicable, and with respect to such fixtures or real property, the Company has or continues to have title to, or easements or rights-of-way in, the real property referred to in subclauses (i) or (ii) in paragraph D above, as the case may be, satisfactory for the use thereof in connection with the operations of the Company and of a nature consistent with paragraphs A and B of this definition of "Title Evidence."

**"Trustee"** means the Person named as the "Trustee" in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" means such successor Trustee.

**"Trust Estate"** has the meaning stated in the Habendum to the Granting Clauses.

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**"Trust Moneys"** has the meaning stated in Section 6.1.

**"Undesignated Qualifying Securities"** means, as of the date of determination, all Qualifying Securities deposited with the Trustee and held by the Trustee which are not Designated Qualifying Securities.

**"Uniform Commercial Code"** means, with respect to any particular part of the Trust Estate, the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to such part of the Trust Estate.

**"Vice President"** means, when used with respect to the Company or the Trustee, any vice president, whether or not designated by a number or a word added to the title.

**"Voting Stock**" means Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the members of the board of directors (or other governing body) of a corporation or other Person, other than Stock having such power only by reason of the happening of a contingency.

**Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;Acts of Holders.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the **"Act"** of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Company and (subject to Section 9.1) in favor of the Trustee, if made in the manner provided in this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Whenever such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, and the authority of the Person executing the same, may also be proved in any manner which the Trustee deems sufficient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The ownership of Obligations shall be proved by the Obligation Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Obligation shall bind every future Holder of the same Obligation and the Holder of every Obligation issued upon the transfer thereof or in exchange therefor or in lieu

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thereof, in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Obligation. However, unless such Obligation is held in the Book-Entry System and the DTC letter of representations executed by the Company in connection therewith, as amended from time to time, does not permit such revocation, any such Holder or subsequent Holder may revoke by written instrument any such instrument as to his Obligation or portion of an Obligation until such time as written instruments have been received by the Trustee with respect to the requisite percentage of principal amount of Obligations for the action contemplated by such instruments; **PROVIDED, HOWEVER,** that such revocation shall be effective only if the Trustee receives written notice of revocation before the date the Trustee or the Company does or suffers to be done anything in reliance on such instrument.

**Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;Notices, etc., to Trustee and Company.**

Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its principal corporate trust office, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (except as otherwise expressly provided in Sections 8.1C and 8.1E) if in writing and mailed, first-class postage prepaid, to the Company addressed to it at 1717 East Interstate Avenue, Bismarck, North Dakota 58501, or at any other address previously furnished in writing to the Trustee by the Company.

**Section 1.4&nbsp;&nbsp;&nbsp;&nbsp;Notices to Holders; Waiver.**

Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder of such Obligations, at the address of such Holder as it appears in the Obligation Register not later than the latest date, and not earlier than the earliest date, prescribed for such notice.

In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

In case, by reason of the suspension of mail service or by reason of any other cause, it shall be impossible to give such notice by mail, then such notification as shall be specified by the

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Company and satisfactory to the Trustee shall constitute a sufficient notification for every purpose hereunder.

**Section 1.5&nbsp;&nbsp;&nbsp;&nbsp;Form and Contents of Documents Delivered to Trustee.**

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, advice of, or representations by, counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the certificate, opinion, advice or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any Opinion of Counsel may be based, insofar as it relates to factual matters, including locations of real and personal property subject to, subjected to or required to be subjected to the lien of the Indenture, or matters of business judgment, upon a certificate or opinion of, and upon advice, statements and representations by, an Officer or Officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, and counsel may rely thereon in rendering such Opinion of Counsel unless such counsel has current actual knowledge, without independent inquiry, investigation or verification, that the certificate, opinion, advice, statements or representations with respect to such matters are erroneous. Any Opinion of Counsel may be based upon such assumptions, may be subject to such exceptions, qualifications and limitations, and may be stated in such language as at the time delivered is considered in the jurisdiction whose laws are covered by such opinion to be appropriate, customary and consistent with standard practice with respect to opinions of counsel relating to such matters. In addition, in giving any Opinion of Counsel, counsel may rely upon legal opinions addressed to the Company or such counsel as appropriate and consistent with standard practice with respect to reliance on legal opinions of other counsel. Without limiting, and in addition to, the foregoing, in giving any Opinion of Counsel with respect to matters involving title or lien priority, counsel rendering such Opinion of Counsel (A) may rely upon certificates, opinions, advices, statements and representations in an Officers' Certificate of the Company as and to the extent provided herein, and (B) may rely upon (1) prior opinions or certificates of counsel for the Company, regardless of to whom such opinions are addressed, and whether delivered by such counsel, other outside counsel, or general counsel, special counsel, local counsel or in-house counsel for the Company, unless such counsel has current actual knowledge, without independent inquiry, investigation or verification, that such reliance is unwarranted, and (2) title insurance policies, title insurance commitments and reports, record or lien search certificates, abstracts of title and other public records, judgments, orders and decrees of courts of competent jurisdiction, and other similar evidences of matters reflected in public records and of the existence of liens.

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Whenever any Person is required to make, give or execute two or more Applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one document.

Wherever in this Indenture, in connection with any Application, certificate or report to the Trustee, it is provided that the Company shall deliver any document as a condition of the granting of such Application, or as evidence of the Company's compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such Application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Company to have such Application granted or to the sufficiency of such certificate or report. Notwithstanding anything else herein to the contrary, the validity of any action taken or Obligation issued hereunder based upon any application, certificate or report shall not be affected by the truth and accuracy of such application, certification or report. Nothing in the immediately preceding sentence shall, however, limit any rights or remedies available to the Trustee or the Holders under this Indenture or at law or equity against the Company or any officer thereof with respect to a false or inaccurate application, certification or report other than any remedy seeking to invalidate the action so taken or Obligation issued.

Whenever a clerical, typographical, inadvertent or unintentional error or omission shall be discovered in any instrument filed with the Trustee, a new instrument in corrected form, executed as prescribed herein for that originally filed and which may bear the same date as the instrument originally filed, may be substituted therefor with the same force and effect as if the instrument originally filed had been filed in the corrected form, or in lieu of such substitution an appropriate adjustment may be made in a like instrument filed with the Trustee after such discovery. To the extent that action has been taken hereunder which could not have been taken had the original instrument been filed in corrected form, such action shall be validated and rendered effective if the substituted or adjusting instrument shall indicate that any deficiency has been fully satisfied since the filing of the original instrument.

**Section 1.6&nbsp;&nbsp;&nbsp;&nbsp;Compliance Certificates and Opinions.**

Upon any Application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate identifying the relevant provisions of this Indenture and stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such Counsel all such conditions precedent, if any, have been complied with, except that in the case of any such Application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular Application or request, no additional certificate or opinion need be furnished.

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Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than certificates provided pursuant to Section 13.12 hereof) shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;a statement that, each Person signing such certificate or opinion has read such condition or covenant and the definitions herein relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;a statement that, in the opinion of each such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such condition or covenant has been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;a statement as to whether, in the opinion of each such Person, such condition or covenant has been complied with.

**Section 1.7&nbsp;&nbsp;&nbsp;&nbsp;Conflict with Trust Indenture Act.**

At any time at which this Indenture is qualified or required to be qualified under the TIA, if any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by any of the provisions of the TIA, such required provision shall control.

**Section 1.8&nbsp;&nbsp;&nbsp;&nbsp;Effect of Headings and **Table of Contents**.**

The Article and Section headings herein and in the **Table of Contents** are for convenience only and shall not affect the construction hereof.

**Section 1.9&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.**

All covenants and agreements in this Indenture by the Company shall, subject to Section 11.2B, bind its successors and assigns, whether so expressed or not.

**Section 1.10&nbsp;&nbsp;&nbsp;&nbsp;Severability Clause.**

In case any provision in this Indenture or in the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

**Section 1.11&nbsp;&nbsp;&nbsp;&nbsp;Benefits of Indenture.**

Nothing in this Indenture or in the Obligations, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any separate trustee or co-trustee appointed under Section 9.14 and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

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**Section 1.12&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.**

This Indenture and the Obligations shall be governed by and construed in accordance with the laws of the State of North Dakota; **PROVIDED, HOWEVER,** that any Obligation as to which RUS is the Holder shall be governed by and construed in accordance with federal laws.

**Section 1.13&nbsp;&nbsp;&nbsp;&nbsp;Action by Credit Enhancer When Action by Holders Required.**

Notwithstanding anything herein to the contrary, with respect to Additional Obligations issued after the date of this Amended and Restated Indenture, a Supplemental Indenture authorizing Obligations of any series or maturity within a series for which Credit Enhancement is being provided may provide that, if not in default in respect of any of its obligations with respect to Credit Enhancement for such Obligations, the Credit Enhancer for, and not the actual Holders of, such Obligations, shall be deemed to be the Holder of such Obligations at all times for the purpose of (i) giving any approval or consent to the effectiveness of any Supplemental Indenture or to any amendment, change or modification of this Indenture which requires the written approval or consent of Holders of such Obligations; **PROVIDED, HOWEVER,** that the provisions of this clause (i) shall not apply to any change which could not be made pursuant to Section 12.2 without the consent of each Holder of Obligations affected thereby, and (ii) giving any other approval or consent, giving any notice, effecting any waiver or authorization, exercising any remedies, giving any direction or taking any other action in accordance with the provisions of this Indenture. Any such Supplemental Indenture providing for Credit Enhancement may also contain additional conditions applicable to the ability of a Credit Enhancer to give approvals and consents.

With respect to Obligations Outstanding on the date of this Amended and Restated Indenture, notwithstanding anything in the Existing Indenture to the contrary, except as otherwise provided in the Supplemental Indenture authorizing Obligations of any such series or maturity within a series for which Credit Enhancement is being provided, if not in default in respect of any of its obligations with respect to Credit Enhancement for such Obligations, the Credit Enhancer for, and not the actual Holders of, such Obligations, shall be deemed to be the Holder of such Obligations at all times for the purpose of (i) giving any approval or consent to the effectiveness of any Supplemental Indenture or to any amendment, change or modification of this Indenture which requires the written approval or consent of Holders of such Obligations; **PROVIDED, HOWEVER,** that the provisions of this clause (i) shall not apply to any change which could not be made pursuant to Section 12.2 without the consent of each Holder of Obligations affected thereby, and (ii) giving any other approval or consent, giving any notice, effecting any waiver or authorization, exercising any remedies, giving any direction or taking any other action in accordance with the provisions of this Indenture.

**Section 1.14&nbsp;&nbsp;&nbsp;&nbsp;Bank Holidays.**

Except as specified in an Existing Obligation or a Supplemental Indenture, if the specified date for the making of any payment or the last date for performance of any act or the exercising of any right, as provided in this Indenture, shall be a Saturday, Sunday or legal holiday or a day on which banking institutions in the city in which is located the office from

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which the Trustee performs the functions to which such act or right relates are authorized by law to remain closed, such payment may be made or act performed or right exercised on the next succeeding day which is not one of the foregoing days without additional interest and with the same force and effect as if made, performed or exercised on the specified date for such payment.

**Section 1.15&nbsp;&nbsp;&nbsp;&nbsp;Security Agreement and Financing Statement.**

To the extent permitted by applicable law, this Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code.

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| | |
|:---|:---|
| The mailing address of | |
| the Company is: | 1717 East Interstate Avenue |
| | Bismarck, North Dakota 58501 |
| The mailing address of | |
| the Trustee is: | 60 Livingston Avenue |
| | St. Paul, Minnesota 55107 |
| | Attn: Corporate Trust – Basin Electric |
| Power | |

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**Section 1.16&nbsp;&nbsp;&nbsp;&nbsp;Maturity of Secured Indebtedness.**

The maturity of the indebtedness initially secured by this Indenture is set forth in the Existing Obligations. The maturity of additional indebtedness authorized pursuant to Article IV and secured by this Indenture shall be as provided in Supplemental Indentures adopted in accordance with and pursuant to Sections 3.3 and 12.1.

**Section 1.17&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of Trust by Trustee.**

The Trustee accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein set forth.

**Section 1.18&nbsp;&nbsp;&nbsp;&nbsp;Investment of Cash Held by Trustee.**

Any cash held by the Trustee or any Paying Agent under any provision of this Indenture shall, except as otherwise provided in Article VII, at the request of the Company evidenced by a Company Request be invested or reinvested as designated by the Company, and, unless an Event of Default shall exist, any interest on such investments shall be promptly paid over to the Company as received free and clear of any lien, including the lien of this Indenture. Such investments shall be held subject to the same provisions hereof as was the cash used to purchase the same, but upon a like request of the Company shall be sold, in whole or in designated part, and the proceeds of such sale shall be held subject to the same provisions hereof as was the cash

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used to purchase the investments so sold. If such sale shall produce a net sum less than the cost of the investments so sold, the Company shall pay to the Trustee or any such Paying Agent, as the case may be, such amount in cash as, together with the net proceeds from such sale, shall equal the cost of the investments so sold, and if such sale shall produce a net sum greater than the cost of the investments so sold, the Trustee or any such Paying Agent, as the case may be, shall promptly pay over to the Company an amount in cash equal to such excess, free and clear of any lien, including the lien of this Indenture, unless an Event of Default shall exist.

**Section 1.19&nbsp;&nbsp;&nbsp;&nbsp;Principal Amount of Obligations Other than Bonds.**

At any point in time, the principal amount of an Obligation in any form other than a bond shall not include any amount not then advanced and outstanding thereunder. The principal amount of any Obligation evidencing an assumption by the Company of all or a part of another obligation shall be the principal amount of the other obligation, or the portion thereof, assumed pursuant to such Obligation. The principal amount of such an Obligation shall be reduced as the principal amount of such Obligation (or the obligation it evidences an assumption of) is paid or otherwise reduced. Such payment or reduction shall be treated as a payment or retirement pursuant to Sections 4.3, 4.6, 4.8, 5.2, 6.3 and 16.3 unless the Company retains the right to have such amount readvanced. If any such payment or reduction shall not be treated as a payment or retirement under such Sections because the Company retains the right to readvance such amount, once that right to readvance expires or is terminated, such payment or reduction may thereupon be treated as a payment or retirement under such Sections. The principal amount of such an Obligation may be evidenced from time to time by an Officers' Certificate delivered to the Trustee and the Holder of such Obligation. In the absence of any timely objection by the Holder to the principal amount of such an Obligation set forth in such Officers' Certificate, the Trustee may conclusively rely on such Officers' Certificate. Following any timely objection by the Holder, the Trustee may require such other evidence of the principal amount of such Obligation as shall be satisfactory to the Trustee in its sole discretion.

**Section 1.20&nbsp;&nbsp;&nbsp;&nbsp;RUS as Holder.**

As to any Obligation guaranteed or insured by the United States of America, pursuant to the Rural Electrification Act of 1936, as amended, or any other Federal statute, the United States of America, acting through the Administrator of RUS, and not the actual payee of such Obligation, shall be, and shall have the rights of, the Holder of such Obligation for all purposes under this Indenture at all times at which such Obligation continues to be so guaranteed or insured. The rights of RUS pursuant to this Section with respect to any such Obligation shall not be affected by whether RUS possesses such Obligation, and the exercise of such rights shall not require the production of any such Obligation. With respect to any such Obligation, any Obligation as to which RUS is the actual payee and any RUS Reimbursement Obligation, the Obligation Register shall show the Holder of all such Obligations to be "United States of America, acting by and through the Administrator of the Rural Utilities Service" unless and until RUS requests that the Obligation Register show a different name (including, without limitation, in the event RUS transfers any such Obligation). RUS may hold Obligations, and be registered as the Holder thereof, in a number of different capacities, including, without limitations, as

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provided in this Section 1.20 as to Obligations guaranteed or insured by the United States of America, acting through the Administrator of RUS, and as the actual payee of Obligations evidencing loans or advances made or to be made to the Company.

**ARTICLE II**

**OBLIGATION FORMS**

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Forms of Additional Obligations Generally.**

Additional Obligations of each series shall be in substantially the form set forth in the Supplemental Indenture creating such series, or in a Board Resolution establishing such series and delivered to the Trustee, or in an Officers' Certificate pursuant to a Supplemental Indenture or Board Resolution delivered to the Trustee, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the Officers executing such Additional Obligations, as evidenced by their execution of such Additional Obligations. Any portion of the text of any Additional Obligation may be set forth on the reverse or subsequent pages thereof, with an appropriate reference thereto on the face of the Additional Obligation if desired. Such Additional Obligations may be printed, lithographed, typewritten, mimeographed or otherwise produced.

**Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Certificate of Authentication for Existing Obligations.**

The Trustee's certificate of authentication for Existing Obligations shall be in substantially the following form:

This is one of the Existing Obligations referred to in and secured by the Indenture, dated as of May 5, 2015, by Basin Electric Power Cooperative to U.S. Bank National Association fka First Bank National Association.

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| | |
|:---|:---|
| as Trustee | as Trustee |
| By: |  |
|  | Authorized Signatory |

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**Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Certificate of Authentication for Additional Obligations.**

The Trustee's certificate of authentication for Additional Obligations shall be in substantially the following form:

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| |
|:---|
| As Trustee |
| Authorized Signatory |

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**ARTICLE III**

**THE OBLIGATIONS**

**Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;Terms and Forms of Existing Obligations.**

There shall be an initial series of Obligations, which the Trustee upon delivery of a Company Request dated the date of this Indenture, shall authenticate. Such Obligations shall constitute Existing Obligations. Such authentication shall be in substantially the form set forth in Section 2.2 and may be either on the Existing Obligations or on an allonge to be affixed to such Existing Obligation. Only such Obligations authenticated by the Trustee pursuant to this Section shall constitute Existing Obligations and be entitled to the benefits of and security of this Indenture as Existing Obligations. For purposes of this Indenture, all Existing Obligations shall be treated as part of a single series of Obligations.

The Existing Obligations shall be in the forms of such instruments as are delivered to the Trustee for authentication on or about the date of this Indenture. The terms and conditions of the Existing Obligations, including the principal amounts, maturity dates, interest rates and payment and redemption provisions, shall be as provided for therein. The maximum aggregate principal amount of the Existing Obligations shall be as provided therein and as limited by paragraph (b) of Section 3.2.

**Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;General Title; General Limitations; Issuable in Series.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If specified by a Company Request, the general title of the Obligations of all series of Additional Obligations shall be "**FIRST MORTGAGE OBLIGATIONS,**" **"FIRST MORTGAGE NOTES"** or **"FIRST MORTGAGE BONDS,"** as so specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any increase in the principal amount of any Existing Obligation (other than an advance under an Existing Obligation held by a Credit Enhancer or under a RUS Reimbursement

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Obligation) shall be deemed an issuance of an Additional Obligation and shall, therefore, be subject to satisfying the conditions for the issuance of Additional Obligations provided in Article IV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate principal amount of Additional Obligations which may be authenticated and delivered and Outstanding under this Indenture is not limited, except as provided in Article IV and the provisions of any Supplemental Indenture creating any series of Obligations and except as may be limited by law.

The Additional Obligations may be issued in series as from time to time authorized by the Board of Directors.

With respect to the Additional Obligations of any particular series, the Company may incorporate in or add to the general title of such Additional Obligations any words, letters or figures designed to distinguish that series.

**Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;Terms of Particular Series.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of the Existing Obligations, including, without limitation, the timing and amount of principal and interest payments due thereon and prepayment rights, shall be as provided in the Existing Obligations.

The Company may, at the time of the creation of any series of Additional Obligations or at any time thereafter, make, and the Additional Obligations of such series may contain, provision for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the exchange or conversion of the Additional Obligations of such series, at the option of the Holders thereof, for or into new Additional Obligations of a different series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;a sinking, amortization, improvement or other analogous fund or for other payment of principal by installments or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;limiting the aggregate principal amount of the Additional Obligations of such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;exchanging Additional Obligations of such series, at the option of the Holders thereof, for other Additional Obligations of the same series of the same aggregate principal amount of a different authorized kind or authorized denomination or denominations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;the authentication of Additional Obligations of such series by the Authenticating Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;providing for the issuance of Additional Obligations of such series in bearer or book-entry form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;specifying redemption or prepayment terms and procedures with respect to such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;specifying business days, grace periods, other provisions and such covenants and/or events of default or remedies with respect to such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;any other terms of the Additional Obligations of such series, or any maturity thereof, not inconsistent with the provisions of this Indenture;

all upon such terms as the Board of Directors may determine as evidenced by a Board Resolution.

All Additional Obligations of like maturity of the same series shall be substantially identical except that any series may have serial maturities and different interest rates for different maturities and except as may otherwise be provided in the Supplemental Indenture creating such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;With respect to Additional Obligations of a series subject to a Periodic Offering, the Supplemental Indenture or the Board Resolution, or Officers' Certificate pursuant to the Supplemental Indenture or Board Resolution, as the case may be, which establishes such series may provide general terms or parameters for Additional Obligations of such series and specify procedures, acceptable to the Trustee, by which such specific terms are to be established (which procedures may provide for authentication and delivery pursuant to oral or electronic instructions from the Company or any agent or agents thereof, which oral instructions are to be promptly confirmed electronically or in writing).

**Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;Denominations.**

The Additional Obligations of each series shall be issuable in such denominations as shall be provided in the provisions of any Supplemental Indenture creating such series. In the absence of any such provision with respect to the Additional Obligations of any particular series, the Additional Obligations of such series shall be of the denomination of $1,000 or any integral multiple thereof.

Additional Obligations may be in the form of bonds, notes, guarantees or any other undertaking for the payment of borrowed money or purchase money indebtedness.

**Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;Execution, Authentication, Delivery and Dating.**

The Additional Obligations shall be executed on behalf of the Company by any Officer, and attested by its Secretary or one of its Assistant Secretaries. The signature of any of these

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Officers on the Additional Obligations may be manual or facsimile. Additional Obligations bearing the manual or facsimile signatures of individuals who were at any time the proper Officers of the Company shall bind the Company, notwithstanding that such individuals or any of them shall have ceased to hold such offices prior to the authentication and delivery of such Additional Obligations or shall not have held such offices at the date of such Additional Obligations.

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Additional Obligations executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Additional Obligations, and the Trustee shall authenticate and deliver such Additional Obligations as in this Indenture provided and not otherwise.

The dated date of Additional Obligations shall be as set forth in the Supplemental Indenture authorizing such series of Additional Obligations. If the Supplemental Indenture does not set forth a dated date, then such Additional Obligations shall be dated the date of their authentication.

No Obligation shall be secured by, or be entitled to any lien, right or benefit under, this Indenture or be valid or obligatory for any purpose, unless there appears on such Obligation (or an allonge thereto) a certificate of authentication substantially in the form provided for herein, executed by the Trustee or the Authenticating Agent by manual signature, and such certificate upon any Obligation (or an allonge thereto) shall be conclusive evidence, and the only evidence, that such Obligation has been duly authenticated and delivered hereunder.

**Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;Temporary Obligations.**

Pending the preparation of definitive Additional Obligations, the Company may execute, and upon Company Request the Trustee shall authenticate and deliver, temporary Additional Obligations which are printed, lithographed, typewritten, photocopied or otherwise produced or reproduced, in any authorized denomination, substantially of the tenor of the definitive Additional Obligations in lieu of which they are issued, and with such appropriate insertions, omissions, substitutions and other variations as the Officers executing such Additional Obligations may determine, as evidenced by their execution of such Additional Obligations.

If temporary Additional Obligations are issued, the Company will cause the definitive Additional Obligations to be prepared without unreasonable delay. After the preparation of definitive Additional Obligations, the temporary Additional Obligations shall be exchangeable for definitive Additional Obligations upon surrender of the temporary Additional Obligations at the office or agency of the Trustee in a Place of Payment therefor, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Additional Obligations, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Additional Obligations of authorized denominations. Until so exchanged, temporary Additional Obligations shall in all respects be entitled to the security and benefits of this Indenture.

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**Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Registration; Registration of Transfer and Exchange.**

The Company shall cause to be kept at one of the offices or agencies maintained by the Trustee as provided in Section 13.2 a register (herein sometimes referred to as the **"Obligation Register"**) in which, subject to such reasonable regulations as it may prescribe, the Trustee shall provide for the registration of Obligations and registration of transfers of Obligations. The Trustee is hereby appointed **"Obligation Registrar"** for the purpose of registering Obligations and transfers of Obligations as herein provided.

Upon surrender for registration of transfer of any Obligation at the office or agency of the Trustee in a Place of Payment therefor (or the delivery of other evidence satisfactory to the Trustee of the transfer of an Obligation), the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Obligations of the same series and maturity, of any authorized denomination and of a like aggregate principal amount (in the event such Obligation is not surrendered for transfer, upon delivery to the Trustee of such satisfactory evidence of a transfer, the Obligation Registrar shall register such transfer on the Obligations Register).

All Obligations surrendered upon registration of any exchange or transfer provided for in this Indenture shall be promptly canceled by the Trustee and thereafter the Trustee shall retain such Obligations or destroy such Obligations and deliver a certificate of destruction to the Company.

All Obligations issued upon any registration of transfer or exchange of Obligations shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same security and benefits under this Indenture, as the Obligations surrendered upon such registration of transfer or exchange.

Every Obligation presented or surrendered for registration of transfer or exchange shall (if so required by the Company or the Obligation Registrar) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Obligation Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing.

No service charge shall be made for any registration, discharge from registration, registration of transfer or exchange of Obligations, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Obligations, other than exchanges under Sections 3.6, 12.6 or 14.7 not involving any transfer.

Except as provided in a Supplemental Indenture and with respect to Existing Obligations, the Company shall not be required (i) to issue, register the transfer of or exchange any Obligation of any series during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice of redemption of Obligations of such series under Section 14.4 and ending at the close of business on the day of such mailing, or (ii) to register the transfer of or exchange any Obligation so selected for redemption in whole or in part, except the unredeemed portion of an Obligation being redeemed in part.

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**Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;Mutilated, Destroyed, Lost and Stolen Obligations.**

If (i) any mutilated Obligation is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Obligation, and (ii) there is delivered to the Trustee such security or indemnity as may be required to save the Company and the trustee each of them harmless, then, in the absence of notice to the Company or the Trustee that such Obligation has been acquired by a bona fide purchaser, the Company shall execute and upon its written request the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Obligation, a new Obligation of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

In case any such mutilated, destroyed, lost or stolen Obligation has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Obligation, pay amounts to become due and payable under such Obligation.

Upon the issuance of any new Obligation under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expense (including the fees and expenses of the Trustee) connected therewith.

Every new Obligation issued pursuant to this Section in lieu of any destroyed, lost or stolen Obligation shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Obligation shall be at any time enforceable by anyone, and shall be entitled to all the security and benefits of this Indenture equally and ratably with all other Outstanding Secured Obligations.

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Obligations.

**Section 3.9&nbsp;&nbsp;&nbsp;&nbsp;Payment of Interest; Interest Rights Preserved.**

Interest on any Obligation of any series which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Obligation (or one or more Predecessor Obligations) is registered at the close of business on the Regular Record Date for such interest as specified herein or in the provisions of the Supplemental Indenture creating such series.

Any interest on any Obligation of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called **"Defaulted Interest"**) shall be payable as provided in such Obligation, or if not so provided, shall forthwith cease to be payable to the Holder on the relevant Regular Record Date solely by virtue of such Holder having been

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such Holder, and such Defaulted Interest may be paid by the Company, at its election, as provided in paragraphs A or B below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Company may elect to make payment of any Defaulted Interest on the Obligations of any series to the Persons in whose names such Obligations (or their respective Predecessor Obligations) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Obligation and the date of the proposed payment (which date shall be such as will enable the Trustee to comply with the next sentence hereof), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Subsection provided and not to be deemed part of the Trust Estate or Trust Moneys. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than fifteen (15) days nor less than ten (10) days prior to the date of the proposed payment and not less than ten (10) days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of an Obligation of such series at his address as it appears in the Obligation Register not less than ten (10) days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the Obligations of such series (or their respective Predecessor Obligations) are registered on such Special Record Date and shall no longer be payable pursuant to the following paragraph B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The Company may make payment of any Defaulted Interest on the Obligations of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Obligations may be listed and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Subsection, such payment shall be deemed practicable by the Trustee.

Subject to the foregoing provisions of this Section, each Obligation delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Obligation shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Obligation and each such Obligation shall bear interest from such date, that neither gain nor loss in interest shall result from such transfer, exchange or substitution.

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**Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;Persons Deemed Owners.**

Subject to the provisions of Sections 1.13 and 1.20, prior to due presentment of such Obligation for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Obligation is registered as the owner of such Obligation for the purpose of receiving payment of principal of (and premium, if any) and (subject to Section 3.9) interest on such Obligation and for all other purposes whatsoever, whether or not such Obligation be overdue, and, to the extent permitted by law, neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

All Obligations surrendered for payment, redemption, transfer, exchange or conversion, if surrendered to the Trustee, shall be promptly canceled by it, and, if surrendered to any Person other than the Trustee, shall be delivered to the Trustee and, if not already canceled, shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Obligations previously authenticated and delivered hereunder, which the Company may have acquired in any manner whatsoever, and all Obligations so delivered shall be promptly canceled by the Trustee. No Obligation shall be authenticated in lieu of or in exchange for any Obligation canceled as provided in this Section, except as expressly provided by this Indenture. All canceled Obligations held by the Trustee shall be destroyed and thereafter the Trustee shall deliver a certificate of destruction to the Company.

**ARTICLE IV**

**AUTHENTICATION AND DELIVERY OF ADDITIONAL OBLIGATIONS**

**Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;General Provisions.**

Additional Obligations of any one or more series, or within a series, may from time to time be executed by the Company and delivered to the Trustee for authentication and thereupon the same shall be authenticated and delivered by the Trustee upon Company Request, upon the basis permitted by, and upon compliance with the conditions of, Section 4.2 (upon the basis of Bondable Additions), Section 4.3 (upon the basis of retirement or defeasance of, or payments of principal on, Obligations previously Outstanding), Section 4.4 (upon the basis of Designated Qualifying Securities), Section 4.5 (upon the basis of Deposited Cash), Section 4.7 (in connection with Credit Enhancement), Section 4.9 (in connection with RUS Reimbursement Obligations), Section 4.11 (upon the basis of Certified Progress Payments) and certain Qualifying Securities may be assumed by the Company and thereupon constitute Additional Obligations upon compliance with the provisions of Section 4.10, upon receipt in each case by the Trustee of the following (as modified by such Sections) on or prior to the date of the initial issuance of Additional Obligations of such series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Board Resolution authorizing and requesting the authentication and delivery under one or more designated Sections of this Article from time to time or at any time of a specified principal amount of Additional Obligations of a designated series or authorizing the assumption of Qualifying Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated within thirty (30) days of the date of the relevant Application for the authentication and delivery of the initial issuance of such Additional Obligations or the assumption of such Qualifying Securities and stating that no Event of Default exists, and that none of the Trust Estate is subject to any Prior Lien other than Prior Liens permitted by Section 13.6, and that all conditions precedent provided for in this Indenture relating to the initial authentication and delivery of such Additional Obligations or the assumption of such Qualifying Securities have been complied with (and, in the event such Additional Obligations are subject to a Periodic Offering, that the statements made in such Certificates shall be deemed remade at the time of each subsequent authentication and delivery of such Additional Obligations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel (which may be based on opinions of other counsel believed by such counsel to be reliable):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;specifying the certificate or other evidence that shows, or cash deposit that will provide for, compliance with the requirements, if any, of any tax or recording or filing law applicable to the initial issuance of the Additional Obligations or the assumption of such Qualifying Securities then applied for, or stating that there is no such legal requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;specifying the certificate or other evidence that shows the authorization, approval or consent of or to the initial issuance by the Company of the Additional Obligations or the assumption of such Qualifying Securities then applied for by any Federal, state or other governmental regulatory agency whose authorization, approval or consent is at the time required to be obtained by the Company having jurisdiction in the premises, or stating that no such authorization, approval or consent is required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;stating that all conditions precedent provided for in this Indenture relating to the authentication and delivery of the initial issuance of such Additional Obligations or the assumption of such Qualifying Securities have been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;stating that such Additional Obligations, when executed by the Company and authenticated and delivered by the Trustee and when issued by the Company (and, in the event of Additional Obligations subject to a Periodic Offering, when the terms of such Additional Obligations have been established as provided in the manner contemplated by this Indenture or the Supplemental Indenture under which such Additional Obligations are established) or the assumption of such Qualifying Securities, will be the legal, valid and binding obligations of the Company enforceable in accordance with their terms and the terms of this Indenture and entitled to the benefits of and secured by the lien of this Indenture equally and ratably with all other Outstanding Secured Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit specified in such Opinion of Counsel, which cash deposit, if any, shall be held by the Trustee as part of the Trust Estate and applied by the Trustee for the purpose specified therein and, to the extent that such cash deposit ultimately proves to be excessive, returned to the Company upon Company Request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;Title Evidence, dated within thirty (30) days of the date of the relevant Application for the authentication and delivery of the initial issuance of such Additional Obligations, indicating that the Trust Estate is subject only to the Permitted Exceptions and Prior Liens permitted by Section 13.6.

In addition, Additional Obligations of any one or more series, or within a series, may from time to time be executed by the Company and delivered to the Trustee for authentication and thereupon the same shall be authenticated and delivered by the Trustee upon Company Request, upon the basis permitted by, and upon compliance with the conditions of, Section 4.8 (Conditional Obligations).

In addition, in the event that any portion of an Obligation or series of Obligations shall not be advanced or issued, and the Company's right to receive an advance or issue such portion is terminated to the satisfaction of the Trustee, such portion shall thereafter be treated as though it had never been Outstanding.

**Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;Authentication and Delivery of Additional Obligations upon Basis of Bondable Additions.**

Additional Obligations may from time to time be executed by the Company and delivered to the Trustee for authentication, and the same shall be authenticated and delivered by the Trustee upon Company Request, in an aggregate principal amount up to but not exceeding 90.91% of the Bondable Additions (as determined below) available as a basis for such authentication and delivery as shown in item 7 of the "Summary of Certificate as to Bondable Additions" filed with the Trustee in accordance with this Section, upon receipt by the Trustee of the instruments and cash referred to in this Section.

Whenever requesting the authentication and delivery of Additional Obligations under this Section or the withdrawal of Deposited Cash under Section 4.6 upon the basis of Bondable Additions or the withdrawal of Trust Moneys under Section 6.2 or the use of Bondable Additions as a basis, in whole or in part, for the release of any part of the Trust Estate under Section 5.2 or the use of Bondable Additions as a basis in whole or in part, for the redesignation or surrender of Designated Qualifying Securities under Section 16.3, the conversion of outstanding principal amounts under Section 4.12 upon the basis of Bondable Additions or in connection with loans or advances under Conditional Obligations pursuant to Section 4.8, the Company shall deliver to the Trustee the relevant instruments (comprising the related Application) specified in the following paragraphs A through G:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;In the case of a request for the authentication and delivery of Additional Obligations, the documents and any cash deposit required by Section 4.1 and an Available Margins Certificate; in the case of a request for the withdrawal of Deposited Cash under Section 4.6 upon the basis of Bondable Additions, the Company Request, Board Resolution and Officers' Certificate required by Section 4.6; in the case of a request for the withdrawal of Trust Moneys under Section 6.2, the Company Request, Board Resolution and Officers' Certificate required by Section 6.2; in the case of a request for the use of Bondable Additions as a basis for the release of any part of the

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Trust Estate under Section 5.2, the relevant documents required by Section 5.2 in addition to those specified in the following paragraphs B through G below, which documents may be modified under certain circumstances as stated in the proviso to Section 5.2D(2); in the case of a request for the use of Bondable Additions as a basis for the redesignation or surrender of Designated Qualifying Securities under Section 16.3, the relevant documents required by Section 16.3; and in the case of a request for the conversion of outstanding principal amounts under Section 4.12 upon the basis of Bondable Additions, the documents required by Section 4.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;A Certificate as to Bondable Additions showing in substance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;In the case of the first Certificate as to Bondable Additions, $50,000,000 and, in the case of any subsequent Certificate as to Bondable Additions, the balance (item 1 in Summary of Certificate as to Bondable Additions set forth below), if any, of Bondable Additions stated in item 9 of the most recent Summary of Certificate as to Bondable Additions, if any, theretofore filed with the Trustee, as the balance of Bondable Additions to remain after the action applied for in such most recent Summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The Amount (item 2 in Summary) of Property Additions not described in any previous Certificate as to Bondable Additions (except that the Amount of Property Additions may include the Amount of Property Additions described in any previous Certificate as to Bondable Additions and used as a basis for the authentication and delivery of Additional Obligations surrendered to the Trustee pursuant to the last paragraph of Section 4.1 or as the basis for any portion of an Obligation or series of Obligations which has not been advanced or issued and for which the right to advance or issue has been terminated as provided in the last paragraph of Section 4.1). With respect to such Property Additions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Certificate shall describe in reasonable detail, and state the Cost to the Company of, such Property Additions, which may include Property Additions to be acquired concurrently with the granting of the related Application which shall be considered as already acquired for the purpose of computing the Amount of Property Additions. The Certificate shall state that none of such Property Additions has been described in any previous Certificate as to Bondable Additions (except Property Additions described in any previous Certificate as to Bondable Additions and used as the basis for the authentication and delivery of Additional Obligations surrendered to the Trustee pursuant to the last paragraph of Section 4.1 or as the basis for any portion of an Obligation or series of Obligations which has not been advanced or issued and for which the right to advance or issue has been terminated as provided in the last paragraph of Section 4.1). Except for major items, such Property Additions may be grouped by major classifications then being used by the Company in the maintenance of its fixed plant accounts and may, in the case of tracts or parcels of land or easements or rights-of-way, be described by reference to the deeds through which they were acquired or to the Supplemental Indenture conveying them to the Trustee. The Certificate shall specify and separately describe any Property Additions consisting of a major item or an Acquired

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Facility or acquired and paid for in whole or in part through the transfer or delivery of securities or other property, together with a description of the kind and respective amounts of such securities or other property. The Cost to the Company shall be shown separately for each of such Property Additions which is separately described, whether described as a major item or as an Acquired Facility or as Property Additions acquired and paid for in whole or in part through the transfer or delivery of securities or other property. The Cost to the Company may be shown in the aggregate for all Property Additions grouped within each particular major classification and the Cost to the Company may be allocated among major items and major classifications by an estimate of such nature and upon such basis as the signers deem proper.

The Certificate shall also state the Fair Value to the Company, in the opinion of the Engineer or Appraiser signing such Certificate, of such Property Additions, separately for each thereof or group thereof for which Cost to the Company is shown separately in the Certificate; **PROVIDED, HOWEVER,** that if such Property Additions include an Acquired Facility, the Fair Value to the Company thereof shall be stated as being the amount thereof set forth in the Independent Engineer's or Independent Appraiser's Certificate required by paragraph C below. In addition the Certificate shall also state the fair market value in cash, as stated in any Independent Appraiser's Certificate required by paragraph D below, of any securities or other property transferred or delivered to acquire or pay for any such Property Additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Certificate shall state that, with respect to each of such Property Additions or group thereof for which Cost to the Company is shown separately or by groups in the Certificate, the certified Amount of Property Additions is the lower of the certified Cost to the Company thereof and the certified Fair Value to the Company thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this Section shall prevent the Company from certifying any Property Additions acquired by the Company during any period without simultaneously certifying other Property Additions that the Company may have acquired in that or any other period, and by so doing the Company shall not lose the right so to certify later such other Property Additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount (item 3 in Summary) of all Retirements during the period from the date to which Retirements had been included in item 3 of the most recent Summary theretofore filed with the Trustee (or the Cut-Off Date in the case of the first such Certificate) to a date not earlier than the ninetieth (90th) day before the date of the related Application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The credits (item 4 in Summary) against Retirements, which shall equal, subject to the provisions of the last sentence of clause (5) below, the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the excess of credits against Retirements carried forward from the most recent Certificate, as provided in the last sentence of clause (5) below;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate amount of 100% of (i) any cash, (ii) purchase money obligations, (iii) the principal amount of retired Obligations or paid on Obligations (which amount may not be readvanced under such Obligation), (iv) Bondable Additions and (v) Designated Qualifying Securities, in each case, delivered or certified to the Trustee for use as a basis for releases under Section 5.2 during the period covered by clause (3) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;all insurance moneys received by the Trustee pursuant hereto or paid to a trustee, mortgagee or other holder under a Prior Lien during the period covered by clause (3) above on account of the damage, loss or destruction of any Bondable Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;The excess (item 6 in Summary) of the Amount of Property Additions shown pursuant to clause (2) above (item 2) over the net amount of Retirements (item 5), which net amount shall be determined by deducting the credits shown pursuant to clause (4) above (item 4) from the aggregate amount of Retirements shown pursuant to clause (3) above (item 3), and such excess shall be the amount of the net Bondable Additions then being certified. If in any case the credits against Retirement exceed the aggregate amount of Retirements shown pursuant to clause (3) above (item 3), the net amount of Retirements for the purpose of this clause shall be zero, but such excess of credits against Retirements shall be carried forward and used as a credit against Retirements in the next Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;The sum (item 7 in Summary) of the amount shown pursuant to clause (1) above (item 1) and the amount shown pursuant to clause (5) above (item 6), which sum is the total Bondable Additions then available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;The total amount (item 8 in Summary) of Bondable Additions which are then being used, which shall equal (in any combination) (i) 110% of the aggregate principal amount of any Additional Obligations whose authentication and delivery are then being applied for under this Section, (ii) 110% of the aggregate principal amount of the advances or issuances under Conditional Obligations which are then being applied for under Section 4.8, (iii) 110% of the amount of any Deposited Cash which is then being withdrawn under Section 4.6, (iv) 100% of any Trust Moneys which are then being withdrawn under Section 6.2, (v) 100% of any Bondable Additions which are then being used as a basis for a release under Section 5.2, (vi) 110% of the aggregate principal amount of Designated Qualifying Securities then being redesignated or surrendered under Section 16.3 and (vii) 110% of the outstanding principal amount then being converted under Section 4.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;The balance (item 9 in Summary) of the Bondable Additions shown by the Certificate that will remain after the granting of the Application then being made, which shall be computed by deducting the sum shown pursuant to clause (7) above (item 8) from the total amount shown pursuant to clause (6) above (item 7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;That the Property Additions described in the Certificate, except such as have been Retired, are used or useful in the conduct of the business of the Company; that

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the allocation of the Cost to the Company of such Property Additions to each major item or major classification thereof is, in the opinion of the signers, proper; that all property described in the Certificate as Property Additions qualifies as Property Additions and that the balance of the Bondable Additions to remain after the action applied for (item 9 in Summary) plus the Cost to the Company or the Fair Value to the Company, whichever is less, of uncertified Property Additions is at least equal to the aggregate amount of uncertified Retirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;That the allowances or charges, if any, for interest, taxes, engineering, legal and accounting expenses, insurance, casualties and other items during construction (or in connection with the acquisition of Property Additions) which are included in the Cost to the Company of such of the Property Additions described in the Certificate as were constructed or acquired by or for the Company have been charged and are properly chargeable to fixed plant accounts in accordance with Accounting Requirements and are, in the opinion of the signers, proper in respect of the Property Additions specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&nbsp;&nbsp;&nbsp;That no portion of the Cost to the Company of the Property Additions described in the Certificate should properly have been charged to maintenance or repairs and that no expenditures are included in the Certificate which under Accounting Requirements are not properly chargeable to fixed plant accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;&nbsp;&nbsp;&nbsp;That the terms used in the Certificate which are defined herein are used as herein defined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)&nbsp;&nbsp;&nbsp;&nbsp;Except when converting outstanding principal amounts under Section 4.12, that if any of the Property Additions described in the Certificate were acquired with Certified Progress Payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the amount of such Property Additions acquired with Certified Progress Payments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal amount of the Additional Obligations authenticated and delivered upon the basis of the Certified Progress Payments used to acquire the Property Additions certified pursuant to paragraph (a) above that has been paid, redeemed or otherwise retired or defeased under Article VII, which shall equal at least 90.91% of the amount of Property Additions certified pursuant to paragraph (a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)&nbsp;&nbsp;&nbsp;&nbsp;That the Property Additions described in the Certificate have not previously been certified for use as the basis for converting outstanding principal amounts under Section 4.12.

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The Certificate as to Bondable Additions required by this paragraph B shall be subdivided into lettered or numbered paragraphs corresponding to the foregoing clauses (1) to (8), inclusive, and shall include a Summary in substantially the following form:

*Summary of Certificate as to Bondable*

*Additions No - - - - - - - - - - - - -*

The undersigned hereby certify that the following is a true Summary of the Certificate as to Bondable Additions:

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*Start with:*

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| | | |
|:---|:---|:---|
| 1. | In the case of the first Certificate as to Bondable Additions filed, $50,000,000, and, in the case of any subsequent Certificate as to Bondable Additions, the balance of Bondable Additions remaining after the action applied for in the next previous Certificate (Certificate No. &nbsp;&nbsp;&nbsp;&nbsp;) | $ |
| *Then take the new gross Property Additions as shown in item 2 below:* | *Then take the new gross Property Additions as shown in item 2 below:* |  |
| 2. | Amount of additional Property Additions now certified (none of which has been certified in any previous Certificate as to Bondable Additions except Property Additions used as the basis for the authentication and delivery of Additional Obligations surrendered to the Trustee pursuant to the last paragraph of Section 4.1 or as the basis for any portion of an Obligation or series of Obligations which has not been advanced or issued and for which the right to advance or issue has been terminated as provided in the last paragraph of Section 4.1) | $ |
| *Then determine the deductions for Retirements by deducting item 4 below from item 3 below to produce item 5:* | *Then determine the deductions for Retirements by deducting item 4 below from item 3 below to produce item 5:* |  |
| 3. | The aggregate amount of all Retirements | $ |
| 4. | The sum of the credits against Retirements | $ |
| 5. | The net amount of Retirements to be deducted (if less than zero, enter zero) | $ |
| *Then determine the net Bondable Additions now being certified by deducting item 5 from item 2 to produce item 6:* | *Then determine the net Bondable Additions now being certified by deducting item 5 from item 2 to produce item 6:* |  |
| 6. | Net Bondable Additions now being certified | $ |
| *Then add item 1 and item 6 to produce item 7:* | *Then add item 1 and item 6 to produce item 7:* |  |
| 7. | Total Bondable Additions available for the action applied for the action applied for | $ |
| 8. | Bondable Additions now being used | $ |
| *Deduct item 8 from item 7 to produce item 9:* | *Deduct item 8 from item 7 to produce item 9:* |  |
| 9. | Balance of Bondable Additions to remain after the action applied for | $ |

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| | |
|:---|:---|
| Dated <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> , <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>. | |
| | (Title) |
| | (Title) |
| | (Engineer or Appraiser) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Accountant)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;In case any Property Additions described in the Certificate consist of an Acquired Facility, an Engineer's or Appraiser's Certificate (which shall be given by an Independent Engineer or Independent Appraiser if this Indenture is qualified under the TIA and the Amount of Property Additions attributed to such Acquired Facility is not less than $25,000 and not less than 1% of the aggregate principal amount of Obligations then Outstanding), dated within ninety (90) days prior to the date of the related Application, stating, in the opinion of the signer, the Fair Value to the Company of the Property Additions constituting such Acquired Facility, except such as have been Retired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;In case any Property Additions are shown in the Certificate to have been acquired or paid for in whole or in part through the transfer or delivery of securities or other property, an Appraiser's Certificate (which shall be given by an Independent Appraiser if this Indenture is qualified under the TIA and the fair market value of such securities as set forth in such Certificate is not less than $25,000 and not less than 1% of the aggregate principal amount of Obligations then Outstanding stating, in the opinion of the signer, the fair market value in cash of such securities and other property at the time of the transfer or delivery thereof in payment for such Property Additions, which fair market value shall be deemed to be the Cost to the Company of such Property Additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;Such instruments of conveyance, transfer and assignment as may be necessary to vest in the Trustee as a part of the Trust Estate all right, title and interest of the Company in and to the Property Additions so described and an Opinion of Counsel identifying such instruments of conveyance or stating that no such instruments are necessary for such purpose.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel (which may be based on opinions of other counsel believed by such counsel to be reliable), dated within five (5) days prior to the date of filing thereof, to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;if such Property Additions include any property located or constructed on, over or under public highways, rivers or other public property, the Company has the lawful right under permits or franchises granted by a governmental body having jurisdiction in the premises or by the law of the state in which such property is located to maintain and operate such property for an unlimited, indeterminate or indefinite period of time or for the period, if any, specified in such permit, franchise or law, and to remove such property at the expiration of the period covered by such permit, franchise or law, or that the terms of such permit, franchise or law require any public authority having the right to take over such property to pay fair consideration therefor or the term of such permit or franchise extends beyond the useful life of such property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Company has corporate power to own and operate such Property Additions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the documents which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture for an Application for the action applied for and, upon the basis of such Application, all conditions precedent herein provided for relating to the authentication and delivery of the Obligations therein applied for, the loan or advance under Conditional Obligations, the release of any part of the Trust Estate then requested, the withdrawal of the Deposited Cash or Trust Moneys then requested or the conversion of outstanding principal amounts under Section 4.12 of Bondable Additions then requested have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;Title Evidence indicating that the Company has or, contemporaneously with the taking of the action applied for, will have or, in the case of property of the type described in paragraph C of the definition of "Property Additions," at the time the lien of the Indenture attached thereto, had title to the Property Additions described in the Certificate (except Property Additions that have been Retired), dated within five (5) days prior to the date of filing thereof (except Property Additions that have been Retired, in which case the Title Evidence may be dated as of a date immediately prior to the Retirement), and, to the extent not otherwise covered by such Title Evidence, an Opinion of Counsel (which may be based on opinions of other counsel believed by such counsel to be reliable), dated within five (5) days prior to the date of filing thereof, to the effect that the Indenture is or, upon delivery of the instruments of conveyance, transfer or assignment, if any, specified therein, will be (i) a valid lien upon the Property Additions described in the Certificate (except Property Additions that have been Retired), and (ii) with respect to Property Additions described in paragraph C or paragraph (4) of the definition of "Property Additions," a valid lien upon the Company's leasehold interest, in each case subject to no Prior Liens other than Prior Liens permitted by the proviso to Section 5.2D(2); PROVIDED, that such opinion may be limited, with respect to personal

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property, to such Property Additions in which a lien may be perfected by filing a financing statement under the Uniform Commercial Code.

**Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;Authentication and Delivery of Additional Obligations Upon Basis of Retirement or Defeasance of Obligations or Payments on Obligations.**

Additional Obligations may from time to time be executed by the Company and delivered to the Trustee for authentication, and the same shall be authenticated and delivered by the Trustee upon Company Request, in an aggregate principal amount up to but not exceeding the aggregate principal amount of the Obligations and the principal amount of the payments on the Obligations made the basis for such authentication and delivery, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit required by Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the restrictions of paragraph D below, Additional Obligations theretofore authenticated and delivered under this Indenture and in transferable form, matured or unmatured, canceled or uncancelled, in an aggregate principal amount, along with the aggregate amount of principal payments on the Obligations pursuant to paragraph C below, equal to the aggregate principal amount of Additional Obligations whose authentication and delivery are then applied for under this Section; **PROVIDED, HOWEVER,** that, in lieu of delivering Obligations to the Trustee, the Company may deposit with or deliver to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;cash sufficient to pay or redeem certain specified Obligations, **PROVIDED** that, if such Obligations are to be redeemed, notice of such redemption shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee shall have been made; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of such Additional Obligations, stating,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;that cash sufficient to pay or redeem certain specified Obligations theretofore authenticated and delivered hereunder is then held by the Trustee in trust for such purpose and, if such Obligations are to be redeemed, that irrevocable notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;that certain specified Obligations have been paid, redeemed or otherwise retired or have ceased to be Outstanding; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of such Additional Obligations, stating that certain specified Obligations have been defeased under Article VII and are no longer Outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the restrictions of paragraph D below, an Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of such Additional Obligations, stating that certain specified Obligations have been paid, in whole or in part, in an aggregate principal amount, along with the aggregate principal amount of the Obligations delivered to or with respect to which a deposit or delivery has been made with the Trustee pursuant to paragraph B above, equal to the aggregate principal amount of Additional Obligations whose authentication and delivery are then applied for under this Section; **PROVIDED, HOWEVER,** that in lieu of delivery of such Officers' Certificate, the Company may deposit with or deliver to the Trustee cash sufficient to pay certain specified Obligations, in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of such Additional Obligations, stating that the Obligations and the principal payments on Obligations then being made the basis for the authentication and delivery of Additional Obligations do not include

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation or any principal payment on an Obligation which shall have theretofore been made, or are currently being otherwise made, the basis for the authentication and delivery of Additional Obligations (or any advance of issuance thereunder), the release of property, the withdrawal or application of Deposited Cash or Trust Moneys or the surrender or redesignation of Designated Qualifying Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation (i) whose payment, redemption or other retirement, or provision therefor, has been effected through the operation of any sinking, amortization, improvement or other analogous fund and (ii) whose use under this Article is at the time precluded by any provision of this Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation which has been surrendered upon any exchange or transfer or any Obligation in lieu of which another Obligation has been authenticated and delivered under Section 3.8; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation which, in accordance with the last paragraph of Section 4.1, is treated as though it had never been Outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation authenticated and delivered on the basis of Designated Qualifying Securities or any Obligation that has been paid or deemed paid by the proceeds of the payment or redemption of Designated Qualifying Securities (in all cases after giving effect to any provision of this Indenture whereby Obligations originally authenticated and delivered on one basis shall be deemed to be authenticated and delivered upon another basis); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation or any principal payment on an Obligation retired or paid pursuant to or by an advance or loan under (i) an Obligation held by a Credit Enhancer and evidencing Credit Enhancement or (ii) an RUS Reimbursement Obligation; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;any Obligation authenticated and delivered on the basis of Certified Progress Payments or any principal payment of amounts outstanding under an Obligation authenticated and delivered on the basis of Certified Progress Payments unless such Obligation or principal payment has been paid, redeemed, or otherwise retired or defeased under Article VII using the proceeds of the Additional Obligations whose authentication and delivery are then being applied for (and each such Additional Obligation, or principal amount loaned or advanced thereunder, shall be deemed to have been authenticated and delivered or, in the case of a loan or advance, made on the basis of Certified Progress Payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents and cash and/or Obligations which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture and that, upon the basis of the relevant Application, the conditions precedent to authentication and delivery of the Obligations applied for under this Article have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;An Available Margins Certificate.

Every Obligation received by the Trustee and on the basis of which an Additional Obligation is authenticated and delivered under this Article, if not already canceled, shall be promptly canceled and thereafter the Trustee shall retain such Obligations or destroy such Obligations and deliver a certificate of destruction to the Company.

**Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;Authentication and Delivery of Additional Obligations Upon Basis of Designated Qualifying Securities.**

Additional Obligations may from time to time be executed by the Company and delivered to the Trustee for authentication and the same shall be authenticated and delivered by the Trustee upon Company Request, in an aggregate principal amount up to but not exceeding the aggregate principal amount of the Designated Qualifying Securities made the basis of such authentication and delivery, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit required by Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Available Margins Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Designated Qualifying Securities, which (i) the Company designates as the basis for authentication and delivery of such Additional Obligations; (ii) shall be redeemable at the demand of the Trustee on or after an Event of Default; **PROVIDED, HOWEVER,** that in the case of Designated Qualifying Securities issued in connection with a Restructuring Transaction, this clause shall not be applicable; (iii) may, but need not, bear interest; (iv) may, but need not, contain provisions for the redemption thereof at the option of the issuer thereof, any such redemption to be made at a redemption price or prices not less than the principal amount thereof; (v) mature on such date or dates and in such principal amounts as shall correspond to the maturity date or dates and principal amounts of the Additional Obligations to be authenticated and delivered upon the basis of

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such Designated Qualifying Securities or on the basis of Deposited Cash to the extent any of such Deposited Cash is withdrawn on the basis of such Designated Qualifying Securities; (vi) containing mandatory redemption provisions corresponding to the mandatory and optional redemption provisions (pursuant to a sinking fund, at the option of the Holder thereof, or otherwise) of the Additional Obligations to be authenticated and delivered on the basis of such Designated Qualifying Securities or on the basis of Deposited Cash to the extent any of such Deposited Cash is withdrawn on the basis of Designated Qualifying Securities; and (vii) shall be held by the Trustee in accordance with Article XVI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of Additional Obligations, stating that the Designated Qualifying Securities then being made the basis for such authentication and delivery of Additional Obligations do not include any Designated Qualifying Securities which shall have theretofore been made, or are currently being otherwise made, the basis for the authentication and delivery of Additional Obligations (or any advance or issuance thereunder), the release of property, the withdrawal of Deposited Cash or Trust Moneys or the surrender or redesignation of Designated Qualifying Securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;A Certificate of an Appraiser or other expert (which shall be given by an Independent Appraiser or other Independent expert if (i) the aggregate of the fair value of such Designated Qualifying Securities to be deposited with the Trustee in connection with such Application and the fair value of all Designated Qualifying Securities and other securities deposited with the Trustee since the commencement of the then current calendar year (as previously certified to the Trustee) is 10% or more of the aggregate principal amount of Obligations then Outstanding and (ii) the fair value of such Designated Qualifying Securities to be deposited with the Trustee in connection with such Application is not less than $2,000,000 (or, if this Indenture is qualified under the TIA, $25,000) and not less than 1% of the aggregate principal amount of Obligations then Outstanding), dated within thirty (30) days prior to the date of the related Application, stating, in the opinion of the signer, the fair value to the Company of such Designated Qualifying Securities to be deposited with the Trustee in connection with such Application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel (which as to clauses (1), (2) and (3) below may be from counsel to the issuer of the Designated Qualifying Securities) to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The forms of the Qualifying Securities delivered pursuant to paragraph C above have been duly approved by the issuer of the Designated Qualifying Securities and have been established in conformity with the provisions of the related Qualifying Securities Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The terms of such Qualifying Securities have been duly authorized by the issuer of the Designated Qualifying Securities and have been established in conformity with the provisions of the related Qualifying Securities Indenture;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Such Qualifying Securities have been duly issued under the related Qualifying Securities Indenture and constitute valid and legally binding obligations of the issuer of the Designated Qualifying Securities entitled to the benefits provided by such Qualifying Securities Indenture, and are enforceable in accordance with their terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The documents, cash, if any, and Designated Qualifying Securities which have been or are therewith delivered to Trustee and the Qualifying Securities Indenture pursuant to which such Designated Qualifying Securities have been issued conform to the requirements of this Indenture and that, on the basis of the relevant Application, the conditions precedent to authentication and delivery of the Additional Obligations applied for under this Article have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;Certified copies of all opinions, certificates and other documents delivered to the trustee under the applicable Qualifying Securities Indenture in connection with the issuance of such Designated Qualifying Securities.

**Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;Authentication and Delivery of Additional Obligations upon Deposit of Cash with Trustee.**

Additional Obligations may from time to time be executed by the Company and delivered to the Trustee for authentication and the same shall be authenticated and delivered by the Trustee upon Company Request, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit required by Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Cash (which may be cash representing the purchase price of, or the proceeds of a loan or advance evidenced by the Additional Obligations to be authenticated and delivered under this Section 4.5) equal to the aggregate principal amount of the Additional Obligations whose authentication and delivery are then applied for under this Section (such cash being herein sometimes referred to as **"Deposited Cash"**);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture and that, upon the deposit of an amount of cash equal to the aggregate principal amount of the Additional Obligations whose authentication and delivery are so applied for, the conditions precedent to such authentication and delivery of such Additional Obligations under this Article shall have been satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Available Margins Certificate.

**Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal of Deposited Cash.**

Until paid upon Company Order as provided in this Section, the Trustee shall hold all Deposited Cash as a part of the Trust Estate; and, upon any sale of the Trust Estate or any part thereof under Article VIII, any Deposited Cash then held by the Trustee shall be applied in

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accordance with Section 8.7; but, prior to any such sale, all or any part of the Deposited Cash shall be applied by the Trustee from time to time as provided in this Section.

From time to time, whenever the Company becomes entitled to the authentication and delivery of Additional Obligations under Section 4.2 (upon the basis of Bondable Additions), under Section 4.3 (upon the basis of the retirement or defeasance of Obligations previously Outstanding or payments on Obligations), under Section 4.4 (upon the basis of Designated Qualifying Securities) or under Section 4.11 (upon the basis of Certified Progress Payments), the Trustee shall (in lieu of authenticating and delivering Additional Obligations) pay upon Company Request, and the Company shall be entitled to withdraw, Deposited Cash in an amount equal to the principal amount of the Additional Obligations to whose authentication and delivery the Company would be so entitled, but only upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;a Board Resolution requesting the withdrawal and payment of Deposited Cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate, dated within five (5) days of the date of the relevant Application for such withdrawal and payment, stating that no Event of Default exists, and that all conditions precedent provided for in this Indenture relating to such withdrawal and payment have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Application for the withdrawal of Deposited Cash upon the basis of Bondable Additions, the additional documents specified in Section 4.2 (other than an Available Margins Certificate) for delivery whenever requesting the use of Bondable Additions as a basis for such withdrawal of Deposited Cash under this Section, **PROVIDED** that thereafter any Additional Obligation that was authenticated and delivered on the basis of Deposited Cash that is withdrawn and paid on the basis of Bondable Additions thereafter shall be deemed to have been authenticated and delivered on the basis of Bondable Additions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Application for the withdrawal of Deposited Cash upon the basis of the retirement or defeasance of Obligations or payments on Obligations, the documents and Obligations specified in paragraphs B, C, D(1) and E of Section 4.3 for delivery to the Trustee (with such omissions and variations as are appropriate in view of the fact that the Application involves the withdrawal of Deposited Cash and not the authentication and delivery of Additional Obligations), together with an Opinion of Counsel stating that all conditions precedent provided for in this Indenture relating to such withdrawal of Deposited Cash have been complied with, **PROVIDED** that thereafter any Additional Obligation that was authenticated and delivered on the basis of Deposited Cash that is withdrawn and paid on the basis of the retirement or defeasance of, or principal payments on Obligations thereafter shall be deemed to have been authenticated and delivered on the basis of retirement of Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Application for the withdrawal of Deposited Cash upon the basis of Designated Qualifying Securities, the documents and Designated Qualifying Securities specified in paragraphs C, D, E, F and G of Section 4.4 for delivery to the

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Trustee (with such omissions and variations as are appropriate in the view of the fact that the Application involves the withdrawal of Deposited Cash and not the authentication and delivery of any Additional Obligations), together with an Opinion of Counsel stating that all conditions precedent provided for in this Indenture relating to such withdrawal of Deposited Cash have been complied with; **PROVIDED** that thereafter the Additional Obligations authenticated and delivered on the basis of such Deposited Cash that is then withdrawn on the basis of Designated Qualifying Securities shall be deemed to be authenticated and delivered on the basis of Designated Qualifying Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;In the case of an Application for the withdrawal and payment of Deposited Cash upon the basis of Certified Progress Payments, the documents specified in Subsections (C) and (D) of Section 4.11 for delivery to the Trustee (with such omissions and variations as are appropriate in the view of the fact that the Application involves the withdrawal and payment of Deposited Cash and not the authentication and delivery of Additional Obligations); **PROVIDED** that thereafter any Additional Obligation that was authenticated and delivered on the basis of Deposited Cash that is withdrawn and paid on the basis of Certified Progress Payments thereafter shall be deemed to have been authenticated and delivered on the basis of Certified Progress Payments.

**Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;Credit Obligations.**

Additional Obligations (**"Credit Obligations"**) of one or more series, or within a series, may from time to time be executed by the Company and delivered to the Trustee for authentication, and the same shall be authenticated and delivered by the Trustee upon Company Request, concurrently with the authentication and delivery of any Additional Obligations authorized pursuant to the provisions of Section 4.2, 4.3, 4.4, 4.5, 4.8 or 4.11 for the purpose of evidencing the Company's obligation to repay any advances or loans made to, or on behalf of, the Company (and related interest, fees, charges and other amounts) in connection with Credit Enhancement or liquidity support of such other authorized Additional Obligations; **PROVIDED, HOWEVER**, that the stated maximum principal amount of any such Credit Obligations shall not exceed the aggregate principal amount of the Additional Obligations with respect to which such Credit Enhancement or liquidity support is being provided, such number of days' interest thereon as the Company shall determine prior to the issuance thereof computed at the maximum interest rate applicable thereto, and related fees and other charges related thereto or the enforcement thereof. Except as otherwise provided in a Supplemental Indenture, for the purposes of (i) receiving payment of a Credit Obligation, whether at maturity, upon redemption or if the principal of all Obligations is declared immediately due and payable following an Event of Default, as provided in Section 8.1 of this Indenture, or (ii) computing the principal amount of Obligations held by the Holder of a Credit Obligation in giving any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders, the principal amount of a Credit Obligation shall be the actual principal amount that the Company shall owe thereon at the time. The proceeds of any payment pursuant to, or any loan or advance under, any Credit Obligation shall be used solely in connection with the payment of the related Obligation or in connection with the enforcement of, or protection of the security for, such Credit Obligation, and for other related fees and charges.

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**Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;Conditional Obligations.**

Additional Obligations (**"Conditional Obligations"**)of one or more series, or within a series, may from time to time be executed by the Company and delivered to the Trustee for authentication, and the same shall be authenticated and delivered by the Trustee upon Company Request, upon receipt by the Trustee of the documents and cash deposit, if any, specified in paragraphs A, B, C and D of Section 4.1 (except that the certification and Opinion of Counsel with respect to the compliance with conditions precedent shall apply only to the conditions precedent set forth in Section 4.1) on or prior to the date of such authentication and delivery; **PROVIDED, HOWEVER,** no advance under or issuance of such Conditional Obligations shall be permitted or made without the consent of the Trustee, which consent shall be given by the Trustee only upon the Company's delivery of (a) (i) the relevant documents specified in paragraphs B through G, inclusive, of Section 4.2, (ii) the relevant documents and Obligations specified in paragraphs B, C and D(1) of Section 4.3, (iii) the relevant documents and Designated Qualifying Securities specified in paragraphs C through G, inclusive, of Section 4.4 or (iv) the relevant documents specified in paragraphs C and D of Section 4.11 (in each case with such omissions and variations as are appropriate in view of the fact that such Sections are being used as the basis for advances under or issuances of Conditional Obligations rather than the authentication and delivery of Additional Obligations), which documents would permit the authentication and delivery of Additional Obligations in an aggregate principal amount equal to such requested advance or issuance, (b) an Available Margins Certificate and (c) an Officers' Certificate and an Opinion of Counsel each stating that all conditions precedent provided for in this Section relating to such advance or issuance have been complied with. For the purposes of (i) receiving payment of Conditional Obligations, whether at maturity, upon redemption or if the principal of Obligations is declared immediately due and payable following an Event of Default, as provided in Section 8.1 of this Indenture, or (ii) computing the principal amount of such Conditional Obligations held by the Holder thereof in giving any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders, the principal amount of such Conditional Obligations shall be deemed to be the actual principal amount that the Company shall owe thereon, which shall equal the aggregate of the amounts advanced to, or on behalf of, the Company in connection therewith, less any prior repayments thereof.

**Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;RUS Reimbursement Obligations.**

Additional Obligations constituting RUS Reimbursement Obligations of one or more series, or within a series, may from time to time be executed by the Company and delivered to the Trustee for authentication, and the same shall be authenticated and delivered by the Trustee upon Company Request, concurrently with the authentication and delivery of any Additional Obligations authorized pursuant to the provisions of Section 4.2, 4.3, 4.4, 4.5 or 4.8 and guaranteed by the United States of America, acting through the Administrator of RUS. Except as otherwise provided in a Supplemental Indenture, for the purposes of (i) receiving payment of a RUS Reimbursement Obligation, whether at maturity, upon redemption or if the principal of all Obligations is declared immediately due and payable following an Event of Default, as provided in Section 8.1 of this Indenture, and (ii) computing the principal amount of any RUS

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Reimbursement Obligation held by a Holder thereof in giving any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders, the principal amount of such RUS Reimbursement Obligation shall be the actual principal amount that the Company shall owe thereon at the time. The proceeds of any payment pursuant to, or loan or advance under, any RUS Reimbursement Obligation, shall be used solely in connection with the payment of the related guaranteed Obligation, or in connection with the enforcement of, or protection of the security for, such RUS Reimbursement Obligation, and for other related fees and charges.

**Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;Assumption of Qualifying Securities.**

Qualifying Securities issued and Outstanding under any Qualifying Securities Indenture and payable to any Person other than the Company or the Trustee may be assumed by the Company in connection with the merger of a Subsidiary into the Company pursuant to the provisions of Section 11.3, and thereupon shall become Additional Obligations, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit required by Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Available Margins Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The Opinion of Counsel delivered pursuant to Section 11.3 A (5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel to the effect that the documents which have been or are therewith delivered to Trustee conform to the requirements of this Indenture and that, on the basis of the relevant Application, the conditions precedent to the assumption of the Assumed Qualifying Securities applied for under this Article have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;Certified copies of all opinions, certificates and other documents delivered to the trustee under the applicable Qualifying Securities Indenture in connection with the assumption by the Company of all obligations of the Subsidiary under such Assumed Qualifying Securities.

**Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;Authentication and Delivery of Additional Obligations Upon Basis of Certified Progress Payments.**

Additional Obligations of one or more new series, or Additional Obligations of an existing series, may from time to time be executed by the Company and delivered to the Trustee for authentication, and thereupon such Additional Obligations shall be authenticated and delivered by the Trustee upon Company Request, in an aggregate principal amount up to but not exceeding 90.91% of the Certified Progress Payments made the basis for such authentication and delivery, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The documents and any cash deposit required by Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Available Margins Certificate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated within five (5) days of the relevant Application for the authentication and delivery of Additional Obligations, stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the total amount of Certified Progress Payments which are then being made the basis for the authentication and delivery of Additional Obligations, which shall equal 110% of the aggregate principal amount of Additional Obligations whose authentication and delivery are then being applied for under this Section;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that the sum of (i) the aggregate principal amount of all Additional Obligations then Outstanding that were authenticated and delivered on the basis of Certified Progress Payments (or any loan or advance made under a Conditional Obligation on the basis of Certified Progress Payments), to the extent such principal amount has not been converted under Section 4.12 plus (ii) the aggregate principal amount of the Additional Obligations whose authentication and delivery are then being applied for under this Section does not exceed 40% of the sum of (a) the aggregate principal amount of all Obligations then Outstanding plus (b) the aggregate principal amount of the Additional Obligations whose authentication and delivery are then being applied for under this Section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;that the Certified Progress Payments then being made the basis for the authentication and delivery of Additional Obligations do not include any Certified Progress Payments which shall have theretofore been made, or are otherwise currently being made, the basis for the authentication and delivery of Additional Obligations (or any loan or advance thereunder) or the withdrawal and payment of Trust Moneys to the Company pursuant to Section 6.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that either (i) the applicable Qualified EPC Contract or (ii) if the property with respect to which the proceeds of the Certified Progress Payments have been paid is jointly or commonly owned, the contracts evidencing and governing such joint ownership, is or are part of the Trust Estate and that the actions taken by the Company under this Section with respect to the delivery of documents to the Trustee conforms to the requirements of this Indenture and that, upon the basis of the Application, the conditions precedent provided for in this Indenture relating to the authentication and delivery of the Additional Obligations therein applied for have been complied with.

**Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;Conversion of Additional Obligations.**

From time to time, upon Company Request, all or a portion of the principal amount outstanding under Additional Obligations authenticated and delivered upon the basis of Certified Progress Payments under Section 4.11 or under Conditional Obligations, under which loans or advances were made upon the basis of Certified Progress Payments under Section 4.8, shall be converted to principal amounts outstanding under Additional Obligations deemed to have been authenticated and delivered upon the basis of Bondable Additions under Section 4.2, in an aggregate principal amount up to but not exceeding 90.91% of Bondable Additions acquired with

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the proceeds of Certified Progress Payments and made the basis for such conversion as shown in item 8 of the Summary of Certificate as to Bondable Additions delivered to the Trustee under this Section, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The relevant documents specified in paragraphs B through G, inclusive, of Section 4.2 for delivery to the Trustee whenever requesting the use of Bondable Additions as the basis for converting principal amounts outstanding under Additional Obligations under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated within five (5) days of the relevant Application requesting the conversion of principal amounts outstanding under Additional Obligations under this Section, stating that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;no Event of Default exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the conditions precedent provided for in this Indenture relating to such conversion have been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;identifying the Additional Obligations all or a portion of the principal amount of which is to be converted under this Section and specifying the principal amount to be converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture, and that, upon the basis of the Application, the conditions precedent provided for in this Indenture relating to the conversion of principal amounts outstanding under Additional Obligations under this Section have been complied with.

Upon compliance with the foregoing provisions of this Section, the principal amount outstanding under Additional Obligations specified in the Officers' Certificate delivered to the Trustee pursuant to paragraph B above shall be converted. By virtue of such conversion, and notwithstanding any other provision of this Indenture, (i) such specified principal amount shall be deemed always to have been outstanding under Additional Obligations authenticated and delivered under Section 4.2 and never to have been outstanding under Additional Obligations upon the basis of Certified Progress Payments and (ii) Property Additions acquired with Certified Progress Payments made the basis for the authentication and delivery of such specified principal amount so converted shall be deemed never to have been acquired with Certified Progress Payments.

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**ARTICLE V**

**RELEASES**

**Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;Right of Company to Possess and Operate Trust Estate; Dispositions without Release.**

So long as no Event of Default shall exist, the Company shall have the right, subject to the provisions of this Article, to possess, use, manage, operate and enjoy the Trust Estate (other than any cash and securities constituting part of the Trust Estate and deposited with the Trustee), to use and consume such materials, equipment, fuel and supplies as may be necessary or appropriate to generate, transmit and distribute electricity or operate the System, and to collect, receive, use, invest and dispose of the rents, issues, tolls, earnings, profits, revenues and other income, products and proceeds from the Trust Estate, with power, in the ordinary course of business, freely and without restriction on the part of the Trustee or of the Holders, to gather, cut, mine and produce crops, timber, coal, ore, gas, oil, minerals or other natural resources and products, materials and supplies and to use, consume and dispose of any thereof, and to alter, repair and change the position or location of any of its lines, railroads, mines, mills, warehouses, buildings, works, structures, machinery, equipment and other property, **PROVIDED** that such alterations, repairs or changes shall not materially diminish the value thereof or impair the lien of this Indenture thereon, and to deal with, exercise any and all rights under, receive and enforce performance under, modify or amend, and adjust and settle all matters relating to current performance of, choses in action, leases, contracts and other agreements.

The Company shall have, in addition to and not in limitation of the rights set forth in the preceding paragraph, the right, at any time and from time to time if no Event of Default exists freely and without restriction on the part of the Trustee or of the Holders, without any release from or consent by the Trustee,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;to sell, exchange or otherwise dispose of, free and clear of the lien of this Indenture, any machinery, equipment, furniture, apparatus, tools or implements, materials or supplies or other similar property subject to the lien hereof, which shall have become old, inadequate, obsolete, worn out, unfit, unadaptable, unserviceable, undesirable or unnecessary for use in the operations of the Company, upon substituting for the same other machinery, equipment, furniture, apparatus, tools or implements, materials or supplies or other property not necessarily of the same character but of at least equal value to the Company as the property disposed of, which shall forthwith become, without further action, subject to the lien of this Indenture; and no purchaser of any such property shall be bound to inquire into any question affecting the right of the Company to sell or otherwise dispose of the same free from the lien of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;to abandon, terminate, cancel or release, free and clear of the lien of this Indenture, or amend or make alterations in or substitutions of any leases, contracts, easements, rights-of-way or other agreements subject to the lien of this Indenture, **PROVIDED** that any amended, altered or substituted leases, contracts, easements, rights-of-way or other agreements shall forthwith, without further action, become subject to the

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lien of this Indenture to the same extent as those previously existing and **PROVIDED FURTHER** that, if the Company shall receive any money or property as consideration or compensation for such abandonment, termination, cancellation, release, amendment, alteration or substitution, such money (to the extent it exceeds $100,000 per abandonment, termination, cancellation, release, amendment, alteration or substitution) or property, forthwith upon its receipt by the Company, shall be deposited with the Trustee (unless otherwise required by a Prior Lien) or otherwise subjected to the lien of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;to surrender, free and clear of the lien of this Indenture, or modify any franchise, right (charter and statutory), license or permit subject to the lien of this Indenture which it may own or hold or under which it may be operating, **PROVIDED** that, in the opinion of the Board of Directors or an Officer of the Company, the preservation of such franchise, right, license or permit is no longer reasonably necessary, or with respect to any modification, that such modification is desirable, in the conduct of the business of the Company, **PROVIDED FURTHER** that the exercise of the right of any municipality or any other political subdivision to terminate a permit, license or franchise shall not be deemed to be a surrender or modification of the same, and **PROVIDED FURTHER** that, if the Company shall receive any money or property as consideration or compensation for such surrender or modification, such money (to the extent it exceeds $500,000 per surrender or modification) or property, forthwith upon its receipt by the Company, shall be deposited with the Trustee (unless otherwise required by a Prior Lien) or otherwise subjected to the lien of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;to grant, and subordinate the lien of the Indenture to, rights-of-way, easements, licenses and permits over or in respect of any property constituting part of the Trust Estate, or release or cancel, free and clear of the lien of this Indenture, rights-of-way, easements, licenses and permits constituting part of the Trust Estate, **PROVIDED** that, in the opinion of the Board of Directors or an Officer of the Company, no such grant will in any material respect impair the usefulness of such property in the conduct of the Company's business and no such release shall occur with respect to any right-of-way, easement, license or permit that is necessary to the operation of the System, and **PROVIDED FURTHER** that any cash consideration in excess of $500,000 (per grant or release) received by the Company upon or in connection with the granting thereof, forthwith upon its receipt by the Company, shall be deposited with the Trustee (unless otherwise required by a Prior Lien);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;to demolish, dismantle, tear down or use for scrap or abandon any property in the Trust Estate, or abandon any thereof other than land and estates in land, free and clear of the lien of this Indenture, if in the opinion of the Board of Directors or any Officer of the Company such demolition, dismantling, tearing down, scrapping or abandonment is desirable in the conduct of the business of the Company and the value and utility of the Trust Estate as an entirety will not thereby be materially impaired;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;to alter, repair, replace, change the location or position of and add to its plants, structures, machinery, systems, equipment, fixtures and appurtenances, **PROVIDED** that no change shall be made in the location of any such property subject to the lien of this Indenture which removes such property into a jurisdiction in which this Indenture and any required financing or continuation statement covering security interests in such property have not been recorded, registered or filed in the manner required by law to preserve the lien of this Indenture on such property or otherwise impairs in any material respect the lien hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;to deal in, sell, dispose of or otherwise use inventory which are subject to the lien of this Indenture in the ordinary course of the Company's business, collect or liquidate accounts which are subject to the lien of this Indenture in the ordinary course of the Company's business or use cash proceeds of the Trust Estate which are subject to the lien of the Indenture (other than cash deposited or required to be deposited with the Trustee pursuant to this Indenture) in the business of the Company, **PROVIDED**, that the Company's right to rely upon this paragraph G shall be conditioned upon and the Company shall deliver to the Trustee, within thirty (30) days following January 1 and July 1 in each year (each, a **"Six-Month Period"**), an Officers' Certificate to the effect that all dealings in, and sales, dispositions and other uses of, such inventory by the Company and all collections and liquidations of such accounts by the Company during such Six-Month Period were in the ordinary course of the Company's business and that all such cash proceeds were used by the Company in connection with its business or to make other cash payments permitted by this Indenture, and **PROVIDED FURTHER** that this paragraph G shall not apply to any dealing in, or sale, disposition or other use of, such inventory, collection or liquidation of such accounts, or use of such cash proceeds in any single transaction or related series of transactions involving more than 10% of the fair value of the Trust Estate and, in such event, such action shall be made pursuant to the provisions of Section 5.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;to sell, lease, sublease or otherwise dispose of, subject to the lien of this Indenture, any property, **PROVIDED** that the Company shall maintain possession and control of such property pursuant to a lease or sublease meeting the requirements of paragraph C of the definition of "Property Additions"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;to sell, exchange or otherwise dispose of any fuel in the ordinary course of business, free and clear of the lien of this Indenture.

The Trustee shall, from time to time, execute a written instrument to evidence and confirm any sale, grant, subordination, release or other action taken under this Section, upon receipt by the Trustee of (i) a Board Resolution or Officers' Certificate requesting the same and expressing any required opinions, (ii) an Officers' Certificate stating that no Event of Default exists and that said action was duly taken in conformity with a designated paragraph of this Section, and (iii) an Opinion of Counsel stating that said action was duly taken by the Company in conformity with this Section and that the execution of such written instrument by the Trustee is appropriate to confirm such action under this Section.

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**Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;Releases.**

The Company shall have the right, at any time and from time to time, to sell, exchange or otherwise dispose of any part of the Trust Estate (except cash, Pledged Securities and other personal property held by, or required to be deposited with, the Trustee hereunder), or to have any part of the Trust Estate (except cash, Pledged Securities and other personal property held by, or required to be deposited with, the Trustee hereunder) released from the lien of this Indenture without selling, exchanging or otherwise disposing of such part of the Trust Estate, and the Trustee shall, from time to time, release such property from the lien of this Indenture, but only upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Board Resolution requesting such release and describing the property so to be released; **PROVIDED, HOWEVER,** that no Board Resolution shall be required as to any item of property if the Officers' Certificate delivered pursuant to paragraph B below states that the value of such item of property to be released does not exceed 0.5% of the fair value of the Trust Estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate (hereinafter called a **"Release Certificate"**), dated not more than thirty (30) days prior to the date of the Application for such release and signed, in the case of the following clause (2), by an Engineer, and in the case of the following clauses (5) and (6), by an Engineer or an Appraiser, setting forth in substance as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;identifying the property requested to be released;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;such release is desirable in the conduct of the business of the Company and the property to be released is no longer reasonably necessary in the conduct of the business of the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any sale, exchange or other disposition of the property has been or is to be made in lieu and reasonable anticipation of the taking of such property by eminent domain by the United States of America or a designated state, municipality or other governmental authority having the power to take such property by eminent domain, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any sale, exchange or other disposition of the property has been or is to be made in lieu and reasonable anticipation of the exercise of a right of the United States of America or a designated state, municipality or other governmental authority to purchase, or designate a purchaser or order the sale of, such property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;such release is in connection with the sale and leaseback of any property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;that, in the opinion of the signers, the proposed release will not impair the security under this Indenture in contravention of the provisions hereof and that all

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conditions precedent herein provided for relating to such release have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;the fair value, in the opinion of said Engineer or Appraiser, of the property to be released at the date of the Release Certificate; and if, by virtue of clause (7) of this paragraph, any of the property to be released shall be separately described in the Release Certificate, the fair value of such property shall be separately stated; **PROVIDED, HOWEVER**, that it shall not be necessary under this clause to state the fair value of any property whose fair value is certified in an Independent Engineer's or Independent Appraiser's Certificate under paragraph C below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;If this Indenture is required to be qualified under the TIA, whether

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate of the fair value of the property to be released at the date of the Release Certificate and the fair value of all securities or other property released since the commencement of the then current calendar year (as previously certified to the Trustee in connection with releases) is 10% or more of the aggregate principal amount of all Obligations at the time Outstanding and whether the fair value of the property to be released is at least $25,000 and at least 0.1% of the aggregate principal amount of all Obligations at the time Outstanding, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the fair value of the property to be released at the date of the Release Certificate is more than 0.5% of the fair value of the Trust Estate,

and, if all the facts specified in either clause (a) or (b) above are present, that a certificate of an Independent Engineer's or Independent Appraiser's as to the fair value of the property to be released will be furnished under paragraph C below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;whether any purchase money obligations to be delivered to the Trustee or to be certified as delivered to the trustee, mortgagee or other holder of a Prior Lien under paragraph D(4) below are to be secured by a purchase money mortgage on less than all the property to be released; and, if so, the property to be covered by such purchase money mortgage shall be separately described.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;In case it shall be stated pursuant to paragraph B(6) above that the same will be furnished, a certificate of an Independent Engineer or Independent Appraiser, dated not more than thirty (30) days prior to the date of the Application for such release, stating the fair value, in the Independent Engineer's or Independent Appraiser's opinion, at the date of the Release Certificate of the property to be released, and stating separately the fair value of any such property separately described pursuant to paragraph B(7) above and stating also that, in the opinion of the Independent Engineer or Independent Appraiser, the proposed release will not impair the security under this Indenture in contravention of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Cash equal to the fair value, as certified pursuant to this Section, of the property to be released; **PROVIDED, HOWEVER,** that, no cash deposit will be

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required if the Officers' Certificate delivered pursuant to paragraph B above states that the value of each item of property to be released does not exceed 0.1% of the fair value of the Trust Estate and the value of all property released during the current calendar year under this proviso does not exceed 0.5% of the fair value of the Trust Estate and **PROVIDED FURTHER** that, in lieu of all or any part of such cash, the Company shall have the right to deposit and pledge with or deliver to the Trustee any of the items described in the following clauses of this paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;purchase money obligations secured by a mortgage or similar instrument (hereinafter in this paragraph called a "mortgage") on the property to be released or the portion thereof separately described pursuant to paragraph B(7) above, maturing not more than 10 years after the date of the deposit thereof and not exceeding in principal amount 80% (90% in the case of a Restructuring Transaction) of the fair value of the property covered by such purchase money mortgage, as certified pursuant to paragraph B(5) or C above, which purchase money obligations and the mortgage securing the same shall be duly assigned to and deposited and pledged with the Trustee, shall be accompanied by an Officers' Certificate stating that the aggregate unpaid principal amount of all purchase money obligations received by the Trustee under this clause and then deposited and pledged with it (including those then being deposited and pledged with the Trustee), together with all those then and theretofore delivered to and then held by any trustees, mortgagees or other holders of Prior Liens under clause (4) below, does not exceed 10% (25% in the case of a Restructuring Transaction) of the aggregate principal amount of all Obligations then Outstanding and shall be received by the Trustee at their principal amount in lieu of cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the relevant documents specified in paragraphs B through G, inclusive, of Section 4.2 for delivery whenever requesting the use of Bondable Additions as a basis, in whole or in part, for the release of any part of the Trust Estate under this Section, said documents to be received by the Trustee in lieu of cash up to the Bondable Additions thereby certified; **PROVIDED, HOWEVER**, that if all the property to be released was, immediately before such release Non-Bondable Property, subject to a Prior Lien, the Bondable Additions being used as a basis for such release may be subject to the same Prior Lien without any deduction for the Prior Lien Obligations thereby secured in computing such Bondable Additions and said documents may be modified accordingly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the relevant documents and Obligations specified in paragraphs B, C, D(1) and E of Section 4.3 (with such omissions and variations as are appropriate in view of the fact that the Obligations described therein as previously or concurrently retired or defeased or principal payments on Obligations are being used as the basis for the release of any part of the Trust Estate) for delivery whenever requesting the use of Obligations previously or concurrently retired or defeased or payments on Obligations as a basis, in whole or in part, for the release of any part of the Trust Estate under this Section, said documents to be received by the Trustee in lieu of cash up to an amount equal to the principal amount of Obligations previously or concurrently retired or defeased or

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payments on Obligations and in either case not previously used as a basis for the issuance of Additional Obligations or the withdrawal of cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the trustee, mortgagee or other holder of a Prior Lien on all or any part of the property to be released, stating that a specified amount of cash or a specified principal amount of purchase money obligations of the character described in clause (1) above and representing proceeds of the sale of such property have been deposited with such trustee, mortgagee or other holder pursuant to the requirements of such Prior Lien, such certificate to be received by the Trustee in lieu of cash equal to the cash and the principal amount of the purchase money obligations so certified to have been deposited with such trustee, mortgagee or other holder, **PROVIDED** there shall also be delivered to the Trustee an Officers' Certificate stating that such property to be released was subject to such Prior Lien, which shall be briefly described or otherwise identified, and that the aggregate principal amount of all purchase money obligations received by the Trustee under clause (1) of this paragraph and then deposited and pledged with it, together with all those then and theretofore delivered to and then held by any trustees, mortgagees or other holders of Prior Liens under this clause, does not exceed 10% of the aggregate principal amount of all Obligations then Outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate stating that the property to be released has been subject to a specified Prior Lien or Prior Liens existing thereon immediately before such release, briefly describing or otherwise identifying such Prior Lien or Prior Liens, stating the principal amount of the outstanding Prior Lien Obligations secured thereby and stating that such property constitutes all the property which, immediately before such release was subject to such Prior Lien or Prior Liens, said Certificate to be received by the Trustee in lieu of cash in an amount equal to the principal amount of outstanding Prior Lien Obligations so stated to be secured by such Prior Lien or Prior Liens; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;The relevant documents and Designated Qualifying Securities specified in paragraphs C, D, E, F and G of Section 4.4 (with such omissions and variations as are appropriate in view of the fact that the Designated Qualifying Securities described therein are being used as the basis for the release of any part of the Trust Estate and except that the maturity date or dates for such Designated Qualifying Securities may be as determined by the Company) for delivery whenever requesting the use of Designated Qualifying Securities as a basis, in whole or in part, for the release of any part of the Trust Estate under this Section, said documents to be received by the Trustee in lieu of cash up to an amount equal to the principal amount of such Designated Qualifying Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;stating that the certificates, opinions and other instruments and/or cash and/or obligations which have been or are therewith delivered to or deposited and pledged with the Trustee conform to the requirements of this Indenture, and that, upon the basis of the Application, all conditions precedent herein provided for or relating to the

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release from the lien of this Indenture of the property to be released have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;stating that the purchase money obligations, if any, being delivered to the Trustee or to the trustee, mortgagee or other holder of a Prior Lien are valid obligations and are duly secured by a valid purchase money mortgage constituting a lien upon all the property to be released, or upon the portion thereof separately described pursuant to paragraph B(7) above, free of any Prior Liens other than any existing on the property to be released immediately prior to such release, and that the assignment to the Trustee of such purchase money obligations and the mortgage securing the same is valid and in recordable form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;in case any cash or purchase money obligation shall be certified to have been deposited with the trustee, mortgagee or other holder of a Prior Lien, stating that the property to be released, or a specified portion thereof, is or immediately before such release was subject to such Prior Lien and that such deposit is required by such Prior Lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;in case any sale, exchange or other disposition of the property to be released shall have been certified, pursuant to paragraph B(2)(b) above, to be in lieu and reasonable anticipation of the taking of such property by eminent domain, stating that such property could lawfully have been taken by the grantee by eminent domain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;in case any sale, exchange or other disposition of the property to be released shall have been certified, pursuant to paragraph B(2)(c) above, to be in lieu and reasonable anticipation of the exercise of a right to purchase, or to designate a purchaser or order the sale of, such property, stating that the designated governmental authority had, at the time of such sale or disposition, a right to purchase or designate a purchaser of such property or to order its sale; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;in case an Officers' Certificate shall have been delivered to the Trustee in lieu of cash pursuant to paragraph D(4) or paragraph D(5) above, stating that the property to be released, or a specified portion thereof, is or immediately before such release was subject to the Prior Lien or Prior Liens described or otherwise identified in said Certificate.

If any property released from the lien of this Indenture as provided in this Section shall continue to be owned by the Company after such release, this Indenture shall not become or be, or be required to become or be, a lien on such property or any improvement, extension or addition to such property or renewals, replacements or substitutions of or for any part or parts of such property unless the Company shall execute and deliver to the Trustee a Supplemental Indenture, in recordable form, containing a grant, conveyance, transfer or mortgage thereof to the Trustee all in accordance with Section 13.5.

With respect to any property released from the lien of this Indenture as provided in this Section, the Trustee, upon Company Request, shall execute and deliver a release or other

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document to be recorded, registered or filed evidencing that such property is not subject to the lien of the Indenture.

Notwithstanding any provision above, unless this Indenture is qualified under the TIA, a Board Resolution shall not be required pursuant to paragraph A above if, taking into account the effect of the requested release, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Company's aggregate margins and equities (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter exceeds 14%, but does not exceed 20% of the Company's total long-term debt and equities (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter, and the Officers' Certificate delivered pursuant to paragraph B above states that (i) the value of such item of property to be released does not exceed 1% of the fair value of the Trust Estate and (ii) the value of all property released under this Section 5.2 during the current calendar year under this paragraph does not exceed 3% of the fair value of the Trust Estate, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Company's aggregate margins and equities (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter exceeds 20% of the Company's total long-term debt and equities (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter, and the Officers' Certificate delivered pursuant to paragraph B above states that (i) the value of such item of property to be released does not exceed 2% of the fair value of the Trust Estate and (ii) the value of all property released under this Section 5.2 during the current calendar year under this paragraph does not exceed 5% of the fair value of the Trust Estate.

**Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;Eminent Domain.**

If any or all of the Trust Estate shall be taken by eminent domain or purchased pursuant to the right of a governmental authority to purchase or designate a purchaser for such property or to order its sale, the Trustee may release the property so taken and shall be fully protected in so doing upon being furnished with

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate requesting such release, describing the property so to be released, the value thereof and stating that such property has been taken by eminent domain or purchased pursuant to the right of a governmental authority to purchase or designate a purchaser for such property or to order its sale and that all conditions precedent herein provided for relating to such release have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;an Opinion of Counsel to the effect that an order of a court of competent jurisdiction has been issued providing for the taking of such property by exercise of the right of eminent domain or purchased pursuant to the right of a governmental authority to purchase or designate a purchaser for such property or to order its sale, that such order or such sale of such property has become final or an appeal therefrom is not being pursued

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by the Company and that all conditions precedent herein provided for relating to such release have been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;subject to the requirements of any Prior Lien on the property so taken, cash equal to such award or sale price; **PROVIDED, HOWEVER,** that, no cash deposit will be required if the Officers' Certificate delivered pursuant to Subsection (A) of this Section states that the value of each item of property to be taken or purchased does not exceed $500,000 and the value of all property taken or released during the current calendar year under this Section does not exceed $5,000,000.

**Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;Written Disclaimer of Trustee.**

In case the Company proposes to sell, exchange or otherwise dispose of or has sold, exchanged or otherwise disposed any property not subject to the lien hereof and the recipient thereof requests the Company to furnish a written disclaimer or quitclaim by the Trustee of any interest in such property under this Indenture, the Trustee shall execute such an instrument without substitution of other property or cash upon receipt by the Trustee of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;a Company Request for the execution of such disclaimer or quitclaim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;an Officers' Certificate which shall identify the sale, exchange or other disposition or proposed sale, exchange or other disposition, describe the property sold or to be sold, exchanged or otherwise disposed of, state that such property is not subject to the lien hereof, and state that the recipient of such property has requested a written disclaimer or quitclaim by the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;an Opinion of Counsel which shall also state that such property is not subject to the lien hereof and not required to be subjected thereto by any of the provisions hereof.

Upon receipt of a Company Request, the Trustee shall execute and deliver a subordination, non-disturbance, attornment or similar agreement in favor of the beneficiary of any Permitted Exception whose identity is certified to the Trustee by the Company.

**Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;Powers Exercisable Notwithstanding Event of Default.**

While in possession of all or substantially all of the Trust Estate (other than any cash and securities constituting part of the Trust Estate and deposited with the Trustee), the Company may exercise the powers conferred upon it in this Article even though it would otherwise be prohibited from doing so while an Event of Default exists as provided therein, if the Trustee in its discretion (based upon such opinions and certifications as the Trustee deems necessary), or the Holders of not less than a majority in aggregate principal amount of the Obligations then Outstanding, by Act of such Holders, shall specifically consent to such action, in which event none of the instruments required to be furnished to the Trustee under this Article as a condition to the exercise of such powers need state that no Event of Default exists as provided therein.

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**Section 5.6&nbsp;&nbsp;&nbsp;&nbsp;Powers Exercisable by Trustee or Receiver.**

In case all or substantially all of the Trust Estate (other than any cash and securities constituting part of the Trust Estate and deposited with the Trustee) shall be in the possession of a trustee or receiver lawfully appointed, the powers hereinbefore in this Article conferred upon the Company with respect to the sale, exchange or other disposition and release of the Trust Estate may be exercised by such trustee or receiver (with the consent of the Trustee or Holders as specified in Section 5.5), in which case a written request signed by such receiver or trustee shall be deemed the equivalent of any Board Resolution or Company Request required by this Article and a certificate signed by such trustee or receiver shall be deemed the equivalent of any Officers' Certificate required by this Article and such certificate need not state that no Event of Default exists. If the Trustee shall be in possession of the Trust Estate under Section 8.3, such powers may be exercised by the Trustee in its discretion.

**Section 5.7&nbsp;&nbsp;&nbsp;&nbsp;Purchaser Protected.**

No purchaser or other recipient in good faith of property purporting to be released herefrom shall be bound to ascertain the authority of the Trustee to execute the release or to inquire as to the satisfaction of any conditions herein prescribed for the exercise of such authority; nor shall any purchaser or other recipient of any property or rights permitted by this Article to be sold, exchanged or otherwise disposed of by the Company be under any obligation to ascertain or inquire into the authority of the Company to make any such sale, exchange or other disposition. Any release executed by the Trustee under this Article shall be sufficient for the purpose of this Indenture and shall constitute a good and valid release of the property therein described from the lien hereof.

**Section 5.8&nbsp;&nbsp;&nbsp;&nbsp;Disposition of Collateral on Discharge of Prior Liens.**

Upon the cancellation and discharge of any Prior Lien, the Company will cause all cash and purchase money obligations then held by the trustee, mortgagee or other holder of such Prior Lien, which were received by such trustee, mortgagee or other holder in accordance with the provisions of this Article (including all proceeds of or substitutions for any thereof), to be paid to or deposited and pledged with the Trustee, such cash to be held and paid over or applied by the Trustee as provided in Article VI.

**Section 5.9&nbsp;&nbsp;&nbsp;&nbsp;Disposition of Obligations Received.**

All purchase money obligations received by the Trustee under this Article shall be held by the Trustee as a part of the Trust Estate. Upon payment to the Trustee of the entire unpaid principal amount of any such obligation, the Trustee shall release and transfer such obligation and any mortgage securing the same upon Company Request. Any cash received by the Trustee in respect of the principal of any such obligations shall be held by the Trustee as Trust Moneys under Article VI subject to application as therein provided. The Trustee shall not be responsible for the collection of the principal of or interest on any such obligations. All interest and other income on any such obligations, when received by the Trustee, shall, except to any extent otherwise provided in Section 15.4, be paid from time to time to the Company upon Company

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Request, unless an Event of Default shall exist. If an Event of Default shall exist, any interest and other income on any such obligations not theretofore paid upon Company Request, when collected by the Trustee, shall be applied by the Trustee in accordance with Section 8.7.

**Section 5.10&nbsp;&nbsp;&nbsp;&nbsp;Excludable Property.**

Upon receipt of an Officers' Certificate identifying the Excludable Property, the Trustee shall execute and deliver a release or other document to be recorded, registered or filed evidencing that such Excludable Property is not subject to the lien of this Indenture.

**ARTICLE VI**

**APPLICATION OF TRUST MONEYS**

**Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;"Trust Moneys" Defined.**

All moneys received by the Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;upon the release of property from the lien of this Indenture, including all moneys received in respect of the principal of all purchase money obligations, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;as compensation for, or proceeds of sale of, any part of the Trust Estate taken by eminent domain or purchased by, or sold pursuant to an order of, a governmental authority or otherwise disposed of, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;as proceeds of insurance upon any part of the Trust Estate required to be paid to the Trustee under Section 13.8, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;as excess principal paid on Designated Qualifying Securities pursuant to Section 16.2B, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;for application under this Article as elsewhere herein provided, or whose disposition is not elsewhere herein otherwise specifically provided for,

(all such moneys being herein sometimes called **"Trust Moneys"**) shall be held by the Trustee, except as otherwise provided in this Article, as a part of the Trust Estate and, upon any entry upon or sale of the Trust Estate or any part thereof under Article VIII, Trust Moneys shall be applied in accordance with Section 8.7; but, prior to any such entry or sale, all or any part of the Trust Moneys may be withdrawn, and shall be paid, released or applied by the Trustee, from time to time as provided in Sections 6.2 to 6.10, inclusive, and may be applied by the Trustee as provided in Sections 9.7, 13.11 and Section 15.14.

**Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal on Basis of Bondable Additions.**

Trust Moneys may be withdrawn by the Company and shall be paid by the Trustee under this Section upon Company Request, from time to time, equal to the Bondable Additions made

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the basis for such withdrawal pursuant to paragraph C below, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Company Request requesting the withdrawal and payment of a specified amount of Trust Moneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate dated not more than thirty (30) days prior to the date of the Application for the withdrawal and payment of such Trust Moneys, stating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that all conditions precedent herein provided for relating to such withdrawal and payment have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The additional relevant documents specified in Section 4.2 (other than an Available Margins Certificate) for delivery whenever requesting the use of Bondable Additions as a basis for the withdrawal of Trust Moneys under this Section.

**Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal on Basis of Retirement or Defeasance of Obligations or Payments on Obligations.**

Trust Moneys may be withdrawn by the Company and shall be paid by the Trustee under this Section upon Company Request, from time to time, equal to the principal amount of Obligations or payments on Obligations made the basis for such withdrawal pursuant to paragraph C below, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Company Request requesting the withdrawal and payment of Trust Moneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than thirty (30) days prior to the date of the Application for the withdrawal and payment of such Trust Moneys, stating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that all conditions precedent herein provided for relating to such withdrawal and payment have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The Obligations and documents which the Company would be required to furnish to the Trustee upon an Application for the authentication and delivery of Additional Obligations under Section 4.3, but without complying with the requirements of paragraphs A, E and F thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents and Obligations which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture, and that, upon the basis of the relevant Application, all conditions precedent herein provided for or relating to withdrawal and payment of the Trust Moneys whose withdrawal and payment is then requested have been complied with.

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**Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal on Basis of Designated Qualifying Securities.**

Trust Moneys may be withdrawn by the Company and shall be paid by the Trustee under this Section upon Company Request, from time to time, equal to the principal amount of Designated Qualifying Securities made the basis for such withdrawal pursuant to paragraph C below, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Company Request requesting withdrawal and payment of Trust Moneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than thirty (30) days prior to the date of the Application for the withdrawal and payment of such Trust Moneys, stating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that all conditions precedent herein provided for relating to such withdrawal and payment have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The Designated Qualifying Securities documents and opinions which the Company would be required to furnish to the Trustee upon an Application for the authentication and delivery of Additional Obligations under Section 4.4, but without complying with the requirements of paragraphs A, B and F(4) thereof (with such omissions and variations as are appropriate in view of the fact that the Designated Qualifying Securities described therein are being used as the basis for the release of Trust Moneys and except that the maturity date or dates for such Designated Qualifying Securities may be as determined by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents and the Designated Qualifying Securities which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture, and that, upon the basis of the relevant Application, all conditions precedent herein provided for or relating to the withdrawal and payment of the Trust Moneys whose withdrawal and payment is then requested have been complied with.

**Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;Retirement of Obligations or Payments on Obligations.**

Trust Moneys shall be applied by the Trustee from time to time to the redemption of Outstanding Secured Obligations of the several series and maturities that may be designated for the purpose by the Company, all in accordance with the provisions applicable to redemption at the option of the Company and with any premiums applicable thereto, or to the payment of the principal of any such Obligations at their Stated Maturity or to the purchase thereof upon tender or in the open market or at private sale or upon any exchange or in any one or more of said ways, or to the payment of the Obligations that may be designated by the Company, all in accordance with the rights of the Company to make such payments and with any penalties or premiums

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applicable thereto, as the Company shall request upon Company Request, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Board Resolution directing the application pursuant to this Section of Trust Moneys and, in case any such moneys are to be applied to redemption or payment, designating the Obligations so to be redeemed or paid and stating the applicable Redemption Price, if any, or authorizing such designation and statement to be made in an Officers' Certificate, and, in case such moneys are to be applied to the purchase of Obligations, prescribing the method of purchase, the price or prices to be paid and the maximum principal amount of Obligations to be purchased or authorizing the prescription of such method, price, and maximum principal amount to be made in an Officers' Certificate, and in the case such moneys are to be applied to the payment of principal on Obligations, designating the Obligations on which such payments are to be made, specifying the amount to be paid and stating the applicable penalties or premiums, if any, or authorizing such designation, specification and statement to be made in an Officers' Certificate..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalent to the maximum amount of the accrued interest and the premium or penalty, if any, required to be paid in connection with any such redemption, purchase or payment, which cash shall be held by the Trustee in trust for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than thirty (30) days prior to the date of the relevant Application, stating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that all conditions precedent herein provided for relating to such application of Trust Moneys have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that the documents and the cash, if any, which have been or are therewith delivered to and deposited with the Trustee conform to the requirements of this Indenture, and that, upon the basis of such Application, all conditions precedent herein provided for or relating to such application of Trust Moneys under this Section in accordance with such Board Resolution have been complied with.

Upon compliance with the foregoing provisions of this Section, the Trustee shall apply Trust Moneys as requested by a Company Request, up to, but not exceeding, the principal amount of the Obligations so redeemed, paid or purchased, or the principal amount of the Obligations so paid, using the cash deposited pursuant to paragraph B above, to the extent necessary, to pay any accrued interest, penalty and premium required in connection with such redemption, purchase or payment.

A Board Resolution expressed to be irrevocable directing the application of Trust Moneys under this Section to the payment of the principal of particular Obligations shall, for all purposes of this Indenture, be deemed the equivalent of the deposit of money with the Trustee in trust for such purpose. Such Trust Moneys and any cash deposited with the Trustee pursuant to

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paragraph B above for the payment of accrued interest, penalty and premium shall not, after compliance with the foregoing provisions of this Section, be deemed to be a part of the Trust Estate or Trust Moneys.

**Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal on Basis of Certified Progress Payments.**

Trust Moneys may be withdrawn by the Company and shall be paid by the Trustee under this Section to the Company or as otherwise specified in a Company Request, from time to time, equal to the Certified Progress Payments made the basis for such withdrawal pursuant to paragraph C below, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;A Company Request requesting the withdrawal and payment of Trust Moneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than 30 days prior to the date of the Application for the withdrawal and payment of such Trust Moneys, stating that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;no Event of Default exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the conditions precedent provided for in this Indenture relating to such withdrawal and payment have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than 30 days prior to the date of the Application for the withdrawal and payment of such Trust Moneys, stating that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Certified Progress Payments which are then being made the basis for the withdrawal and payment of such Trust Moneys, which shall equal 100% of the Trust Moneys the withdrawal and payment of which is then being applied for under this Section;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;that the aggregate principal amount of all Obligations then Outstanding that were authenticated and delivered on the basis of Certified Progress Payments (or any loan or advance made under a Conditional Obligation on the basis of Certified Progress Payments) to the extent such principal amount has not been converted under Section 4.12 does not exceed 40% of the aggregate principal amount of all Obligations then Outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;that the Certified Progress Payments then being made the basis for the authentication and delivery of Additional Obligations do not include any Certified Progress Payments which shall have theretofore been made, or are otherwise currently being made, the basis for (a) the withdrawal and payment of Trust Moneys to the Company or as otherwise specified in a Company Request under this Section, or (b) the authentication and delivery of Additional Obligations (or any loan or advance thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating that either (i) the applicable Qualified EPC Contract or (ii) if the property with respect to which the proceeds of the Certified

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Progress Payments have been paid is jointly or commonly owned, the contracts evidencing and governing such joint ownership, is or are part of the Trust Estate and that the actions taken by the Company under this Section with respect to the delivery of documents to the Trustee conform to the requirements of this Indenture and that, upon the basis of the Application, the conditions precedent provided for in this Indenture relating to the withdrawal and payment of Trust Moneys therein applied for have been complied with.

**Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal of Insurance Proceeds.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any Trust Moneys consist of proceeds of insurance upon any part of the Trust Estate, they may also be withdrawn by the Company and shall be paid by the Trustee upon Company Request to reimburse the Company for the Cost to the Company to repair, rebuild or replace the property destroyed or damaged, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than thirty (30) days prior to the date of the Application for the withdrawal and payment of such Trust Moneys and signed with respect to clauses (1) and (3) below, in addition to the two Officers signing the same, by a Person, who may be one of such Officers, signing as an Accountant, setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;that expenditures have been made, or costs incurred, by the Company in a specified amount for the purpose of making certain repairs, rebuildings and replacements, which shall be briefly described, and setting forth the amount of any such expenditures or costs for the acquisition of a major item of property, which shall be separately specified, in replacement of any destroyed or damaged property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;that no part of such expenditures or costs has been or is being made the basis for the authentication and delivery of Obligations or the withdrawal of any cash or the release of any property from the lien of this Indenture or has been paid out of the proceeds of insurance upon any part of the Trust Estate not required to be paid to the Trustee under Section 13.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;that there is no outstanding indebtedness, other than costs for which payment is being requested, known to the Company, after due inquiry, for the purchase price or construction of such repairs, rebuildings or replacements, or for labor, wages, materials or supplies in connection with the making thereof, which, if unpaid, might become the basis of a vendor's, mechanics', laborers', materialmen's, statutory or other similar lien upon any of such repairs, rebuildings or replacements, which lien might, in the opinion of the signers of such Certificate, materially impair the security afforded by such repairs, rebuildings or replacements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;that all conditions precedent herein provided for relating to such withdrawal and payment have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;An Engineer's or Appraiser's Certificate, dated not more than thirty (30) days prior to the date of the related Application, stating, in the opinion of the signer, the fair value to the Company of any major item of property specified in paragraph A(1) above; and the Engineer or Appraiser shall be an Independent Engineer or Appraiser if such property constitutes an Acquired Facility and if the fair value to the Company of such Acquired Facility is at least $25,000 and at least 1% of the aggregate principal amount of all Obligations at the time Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;An Opinion of Counsel stating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;that the documents which have been or are therewith delivered to the Trustee conform to the requirements of this Indenture, that, upon the basis of the related Application, all conditions precedent herein provided for relating to such withdrawal and payment of Trust Moneys then requested have been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;that the Company's right, title and interest in and to the repairs, rebuildings and replacements described in the Officers' Certificate delivered pursuant to paragraph A above are subject to the lien of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Title Evidence indicating that the Company has acquired, or upon payment of the costs to be paid as requested will acquire, title to the repairs, rebuildings or replacements described in the Officers' Certificate delivered pursuant to paragraph A above at least equivalent to its title to the property destroyed or damaged.

Upon compliance with the foregoing provisions of this paragraph, the Trustee shall pay on Company Request an amount of Trust Moneys of the character aforesaid equal to the amount of the expenditures or costs stated in such Officers' Certificate; **PROVIDED, HOWEVER,** that, in the case of expenditures or costs for the acquisition of a major item of property in replacement of any destroyed or damaged property, such expenditures or costs shall not exceed the fair value to the Company of such replacement as certified pursuant to the paragraph (2) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any Trust Moneys consist of proceeds of insurance upon, or payable in consequence of destruction of or damage to, that portion of the Trust Estate consisting of the property ("Leased Assets") subject to a lease (a "Capital Asset Lease") described in paragraph C of the definition of "Property Additions" or paragraph H of Section 5.1, they shall be paid by the Trustee upon Company Request to the lessor under a Capital Assets Lease or its designee, upon receipt by the Trustee of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;An Officers' Certificate, dated not more than 30 days prior to the date of the Application for the withdrawal and payment of such Trust Moneys and signed also in

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the case of the following clauses (b), (c) and (d) by an Engineer or Appraiser, setting forth in substance as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;an amount is, or with an election which shall be made by the Company, will be, due and payable to the lessor under the Capital Assets Lease in respect of such destruction of or damage to the Leased Assets and the amount of the request for withdrawal of Trust Moneys to which such Officers' Certificate relates does not exceed such amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the amount of Trust Moneys to be withdrawn pursuant to such Company Request is not more than the difference of (i) the amount of proceeds of insurance received in consequence of such destruction of or damage to the Leased Assets which has theretofore been deposited with the Trustee, minus either (ii) if the Leased Assets are not to be repaired or replaced, the difference between (A) the fair value in the opinion of said Engineer or Appraiser of the Leased Assets immediately prior to the destruction or damage giving rise to the receipt of the proceeds of insurance, minus (B) the fair value in the opinion of said Engineer or Appraiser of the Leased Assets at the date of such Officers' Certificate or (iii) if the Leased Assets are to be repaired or replaced, the cost of repair or replacement as estimated by such Engineer or Appraiser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;whether

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate of the amount of Trust Moneys to be withdrawn in accordance with such Application and the fair value of all Trust Moneys, withdrawn pursuant to this paragraph B of this Section 6.7 or securities or other property released pursuant to Section 5.2 since the commencement of the then current calendar year (as previously certified to the Trustee in connection with withdrawals or releases) is 10% or more of the aggregate principal amount of all Obligations at the time Outstanding, and whether said amount of Trust Moneys to be withdrawn is at least $25,000 and at least 1% of the aggregate principal amount of all Obligations at the time Outstanding, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the amount of the Trust Moneys to be withdrawn in accordance with such Application is more than $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;that, in the opinion of the signers, the proposed withdrawal will not impair the security under this Indenture in contravention of the provisions hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;that no Event of Default exists.

If the facts specified in either Subclause (i) or (ii) of clause (c) above are present, such Officers' Certificate shall be accompanied by a certificate of an Independent Engineer or Independent Appraiser, dated not more than 30 days prior to the date of the Application for withdrawal and payment of Trust Moneys, to the effect set forth in clauses (b) and (d) above. Upon compliance with the foregoing provisions of this Section, the Trustee shall pay on Company Request an amount of Trust Moneys of the character aforesaid equal in the amount stated in such Officers' Certificate.

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**Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;Amounts under $25,000.**

In case the amount of Trust Moneys at any one time received by the Trustee shall not exceed $25,000, the same shall (unless an Event of Default exists) be paid over upon Company Request; and the Company covenants and agrees that it will, within 12 months after such Trust Moneys shall have been so paid over, deposit and file with the Trustee the documents and Obligations, if any, which by the provisions of Sections 6.2, 6.3, 6.4, 6.6, 6.7 or 6.9 would have been delivered to the Trustee to entitle the Company to have the Trust Moneys paid over as in such Section provided, with such omissions and variations as are appropriate by reason of the fact that such Trust Moneys have theretofore been paid over by the Trustee without prior compliance with such Sections. In the event that the Company shall have failed to comply with the foregoing covenant, no further payment may be made under this Section until the Company shall have deposited and filed with the Trustee the required documents and Obligations, if any.

**Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;Powers Exercisable Notwithstanding Default.**

While in possession of all or substantially all of the Trust Estate (other than any cash and securities constituting part of the Trust Estate and deposited with the Trustee), the Company may do any of the things enumerated in Sections 6.2 to 6.8, inclusive, which it is prohibited from doing while an Event of Default exists as provided therein, if the Trustee in its discretion (based upon such opinions and certifications as the Trustee deems necessary), or the Holders of not less than a majority in aggregate principal amount of the Obligations then Outstanding, by Act of such Holders, shall specifically consent to such action, in which event any Certificate filed under any of said Sections shall omit any statement to the effect that no Event of Default exists as provided thereunder.

**Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;Powers Exercisable by Trustee or Receiver.**

In case all or substantially all of the Trust Estate (other than any cash and securities constituting part of the Trust Estate and deposited with the Trustee) shall be in the possession of a receiver or trustee lawfully appointed, the powers hereinbefore in this Article conferred upon the Company with respect to the withdrawal or application of Trust Moneys may be exercised by such receiver or trustee (with the consent of the Trustee or Holders specified in Section 6.8), in which case a written request signed by such receiver or trustees shall be deemed the equivalent of any Board Resolution or Company Request required by this Article and a certificate signed by such receiver or trustee shall be deemed the equivalent of any Officers' Certificate required by this Article and such certification need not state that no Event of Default exists. If the Trustee shall be in possession of the Trust Estate under Section 8.3, such powers may be exercised by the Trustee in its discretion.

**Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;Disposition of Obligations Retired.**

All Obligations received by the Trustee and on the basis of which Trust Moneys are paid over or for whose payment, redemption or purchase Trust Moneys are applied under this Article, if not previously canceled, shall be promptly canceled by the Trustee and thereafter the Trustee shall retain or destroy such Obligations and deliver a certificate of destruction to the Company.

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**ARTICLE VII**

**DEFEASANCE**

**Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;Termination of Company's Obligations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Company may terminate its obligations under the Obligations and this Indenture if all Obligations previously authenticated and delivered (other than destroyed, lost or stolen Obligations which have been replaced or paid or Obligations for whose payment money or securities has theretofore been held in trust and thereafter repaid to the Company, as provided in Section 7.3) have been delivered to the Trustee for cancellation and the Company has paid all sums payable by it hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in this Section, the Company may terminate its obligations under all Obligations constituting a series, or a maturity within a series, and all of its obligations under this Indenture to or for the benefit of the Holders of such Obligations, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Company has (i) in case any of such Obligations are to be redeemed on any date prior to their Stated Maturity, given to the Trustee irrevocable instructions to give as provided in Article XIV notice of redemption of such Obligations (other than Obligations which have been purchased by the Trustee at the direction of the Company as hereinafter provided prior to the giving of such notice of redemption), and (ii) irrevocably deposited or caused to be deposited with the Trustee or Paying Agent (if other than the Company), under the terms of an irrevocable trust agreement in form and substance satisfactory to the Trustee and any such Paying Agent, as trust funds in trust for the benefit of the Holders of such Obligations for that purpose, money or Defeasance Securities maturing as to principal and interest in such amounts and at such times as are sufficient (in the opinion of a nationally recognized firm of Independent public accountants expressed in a certificate signed by such firm and delivered to the Trustee), without consideration of any reinvestment of such interest, to pay principal or Redemption Price (if applicable) of, and interest due or to become due on such Obligations (other than destroyed, lost or stolen Obligations which have been replaced or paid or Obligations for whose payment money or securities has theretofore been held in trust and thereafter repaid to the Company as provided in the second sentence of Section 7.3) on or prior to the Redemption Date or Stated Maturity thereof, as the case may be, in accordance with the terms of this Indenture and such Obligations; **PROVIDED** that the Trustee or Paying Agent shall have been irrevocably instructed to apply such money or the proceeds of such Defeasance Securities to the payment of said principal, Redemption Price and interest with respect to such Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;no Event of Default shall exist on the date of such deposit or shall occur as a result of such deposit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;in the case of Obligations Outstanding on the date of this Amended and Restated Indenture, the Company shall have delivered to the Trustee either (i) a ruling from the Internal Revenue Service and directed to the Trustee to the effect that the

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Holders of such Obligations will not recognize income, gain or loss for Federal income tax purposes as a result of the Company's exercise of its option under this paragraph and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised, or (ii) an Opinion of Counsel from nationally recognized tax counsel not an employee of the Company to the same effect at the ruling described in clause (i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the Company has paid or caused to be paid all sums then due from the Company hereunder and under such Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;in the case of Obligations Outstanding on the date of this Amended and Restated Indenture, the Company has delivered an Opinion of Counsel stating that the deposit shall not result in the Company, the Trustee or the trust becoming or being deemed to be an "investment company" under the Investment Company Act of 1940;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;in the case of Obligations Outstanding on the date of this Amended and Restated Indenture, if and when a ruling from the Internal Revenue Service or Opinion of Counsel referred to in paragraph B(3) above is able to be provided specifically without regard to, and not in reliance upon, the continuance of the Company's obligations to such Holders under Section 13.1, then the Company's obligations to such Holders under such Section 13.1 shall cease upon delivery to the Trustee of such ruling or Opinion of Counsel and compliance with the other conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture with respect to such Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;the Company has delivered to the Trustee and any Paying Agent an Officers' Certificate, each stating that the conditions set forth in clauses (1), (2) and (4) or, in the case of Obligations Outstanding on the date of this Amended and Restated Indenture, clauses (1) through (6), above have been complied with.

After any such irrevocable deposit, the Trustee upon Company Request shall acknowledge in writing the discharge of the Company's obligations under such Obligations and of the Company's obligations to or for the benefit of the Holders of such Obligations or under this Indenture, except for those surviving obligations specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the satisfaction of the conditions set forth in paragraph B with respect to all Obligations constituting a series, or a maturity within a series, the Company's obligations to or for the Holders of such Obligations or to the Trustee under Sections 3.7, 3.8, 7.2, 7.3, 7.4, 9.7, 9.10, 10.2, 13.1, 13.2, 13.3 and 15.14 shall survive until such Obligations are no longer Outstanding. Thereafter, only the Company's obligations under Sections 7.3, 7.4, 9.7 and 15.14 shall survive with respect to such Holders or the Trustee. In the case of Obligations Outstanding on the date of this Amended and Restated Indenture, if and when a ruling from the Internal Revenue Service or Opinion of Counsel referred to in paragraph B(3) above is able to be provided specifically without regard to, and not in reliance upon, the continuance of the Company's obligations to such Holders under Section 13.1, then the Company's obligations to such Holders under such Section 13.1 shall cease upon delivery to the Trustee of such ruling or

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Opinion of Counsel and compliance with the other conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture with respect to such Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall, if so directed by the Company (i) prior to the Stated Maturity of Obligations in respect of which a deposit has been made under paragraph B(1) above which are not to be redeemed prior to their Stated Maturity or (ii) prior to the giving of the notice of redemption referred to in paragraph B(1) above with respect to any Obligations in respect of which a deposit has been made under paragraph B(1) which are to be redeemed on a date prior to their Stated Maturity, apply moneys deposited with the Trustee in respect of such Obligations and redeem or sell Defeasance Securities so deposited with the Trustee and apply the proceeds thereof to the purchase of such Obligations and the Trustee shall immediately thereafter cancel all such Obligations so purchased; **PROVIDED, HOWEVER**, that the moneys and Defeasance Securities remaining on deposit with the Trustee after the purchase and cancellation of such Obligations shall be sufficient to pay when due the principal or Redemption Price (if applicable) of, and interest due or to become due on, all Obligations in respect of which such moneys and Defeasance Securities are being held by the Trustee on or prior to the Redemption Date or Stated Maturity thereof, as the case may be. In the event that on any date as a result of any purchases and cancellations of Obligations as provided in this paragraph the total amount of moneys and Defeasance Securities remaining on deposit with the Trustee under this Section is in excess of the total amount that would have been required to be deposited with the Trustee on such date under paragraph B(1) in respect of the remaining Obligations for which such moneys and Defeasance Securities are being held, the Trustee shall, if requested by the Company and upon receipt by the Trustee of a certificate of an Independent Accountant setting forth the calculation of such excess, pay the amount of such excess to the Company free and clear of any trust, lien, security interest, pledge or assignment securing such Obligations or otherwise existing under this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;If the requirements of this Section have been satisfied with respect to all Obligations theretofore Outstanding, then, upon Company Request, the lien, rights and interest created hereby shall be canceled and surrendered (except as otherwise provided below) and the Trustee and each co-trustee and separate trustee, if any, then acting as such hereunder shall, at the expense of the Company, execute and deliver a termination statement and such instruments of satisfaction and discharge as may be necessary and pay, sign, transfer and deliver to the Company or upon Company Order all cash, securities and other personal property then held by it hereunder as part of the Trust Estate.

**Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;Application of Deposited Money and Money From Defeasance Securities.**

Money or Defeasance Securities deposited with the Trustee or the Paying Agent pursuant to Section 7.1 shall not be part of the Trust Estate and shall not be deemed to be Trust Moneys but shall constitute a separate trust fund for the benefit of persons entitled thereto. Subject to the provisions of Section 13.3, the Trustee or Paying Agent shall hold in trust money or Defeasance Securities deposited with it pursuant to Section 7.1, and shall apply the deposited money and the money from Defeasance Securities to the payment of the principal or Redemption Price (if applicable) of, and interest on, the Obligations in respect of which such money and Defeasance

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Securities are deposited. If money deposited with the Trustee under this Article VII, or money received from principal or interest payments on Defeasance Securities deposited with the Trustee under this Article VII, will be required at a later date for payment of the principal or Redemption Price (if applicable) of, and interest on, the Obligations in respect of which such money and Defeasance Securities are deposited, such money shall, at the written investment direction of the Company, to the extent practicable, be reinvested in Defeasance Securities maturing at times and in amounts that, together with other moneys so deposited or to be generated by other Defeasance Securities, will be sufficient to pay when due the principal or Redemption Price (if applicable) of, and interest to become due on, such Obligations, and the interest earned from such reinvestments shall be paid over to the Company, as received by the Trustee, free and clear of any trust, lien, security interest, pledge or assignment securing said Obligations or otherwise existing under this Indenture.

**Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;Repayment to Company.**

Subject to Section 7.1, to the extent any Defeasance Securities deposited with the Trustee under this Article, or cash received from principal or interest payments on such Defeasance Securities, will not be required for the payment of the principal or Redemption Price (if applicable) of, and interest on, the Obligations in respect of which such money and Defeasance Securities are deposited, the Trustee and the Paying Agent shall promptly pay and deliver to the Company upon Company Request any such Defeasance Securities and cash, and thereupon the Trustee shall be relieved from any liability with respect thereto. Without limiting the foregoing, the Trustee and the Paying Agent shall pay to the Company upon Company Request any money held by them for the payment of principal, Redemption Price or interest that remains unclaimed for two years after the date such payment was due; **PROVIDED** that the Trustee or such Paying Agent before being required to make any payment may at the expense of the Company cause to be published once in a newspaper of general circulation in Bismarck, North Dakota or mail by first-class mail, postage prepaid to each Holder entitled to such money, notice that such money remains unclaimed and that after a date specified therein (which shall be at least thirty (30) days from the date of publication or mailing) any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Holders entitled to such money must look to the Company for payment as general creditors unless an applicable law designates another person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease.

**Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;Reinstatement.**

If the Trustee or Paying Agent is unable to apply any money or Defeasance Securities in accordance with Section 7.1 and the second sentence of Section 7.2 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, (i) the Company's obligations under this Indenture to or for the benefit of the Holders of Obligations for whose benefit such money or Defeasance Securities were deposited (other than obligations arising under any provisions creating the lien hereof) and under such Obligations shall be revived and reinstated as though no deposit had occurred pursuant to Section 7.1 until such time as the Trustee or Paying

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Agent is permitted to apply all such money and Defeasance Securities in accordance with Section 7.1, and (ii) the lien of this Indenture shall be reinstated for the benefit of such Holders (and, if the lien of this Indenture shall previously have been fully released, then to the extent possible, the Company shall take all actions required to subject assets of the Company to a lien substantially similar, in amount and otherwise, to the Trust Estate subject to the lien of this Indenture as in effect on the date of the termination of the Company's obligations hereunder pursuant to Section 7.1, which lien shall be effective until such time as the Trustee or Paying Agent is permitted to apply all such money and Defeasance Securities in accordance with Section 7.1); **PROVIDED, HOWEVER,** that if the Company has made any payment of interest on or principal of any Obligations because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Obligations to receive such payment from the money or Defeasance Securities held therefor by the Trustee or Paying Agent.

**ARTICLE VIII**

**EVENTS OF DEFAULT AND REMEDIES**

**Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;Events of Default.**

**"Event of Default"** means, wherever used herein, any one of the following events (whatever the reason, for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;default in the payment of any interest upon any Obligation when such interest becomes due and payable, and continuance of such default for a period of five (5) days or such other period provided for in such Obligation or in the Supplemental Indenture under which such Obligation is issued; *provided*, *however*, that no payment by RUS pursuant to any guarantee by the United States of America, acting through the Administrator of RUS, or pursuant to any RUS insuring of, or, unless otherwise provided in the Obligation, by any other guarantor or insurer of, any Obligation shall be considered a payment under this paragraph for purposes of determining the existence of such a failure to pay; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;default in the payment of the principal of (or premium, if any, on) any Obligation at its Maturity and, if so provided for in such Obligation or the Supplemental Indenture under which such Obligation is issued, the continuance of such default for the period so provided; **PROVIDED, HOWEVER,** that no payment by RUS pursuant to any guarantee by the United States of America, acting through the Administrator of RUS, or pursuant to any RUS insuring of, or, unless otherwise provided in the Obligation, by any other guarantor or insurer of, any Obligation shall be considered a payment under this paragraph for purposes of determining the existence of such a failure to pay; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;default in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in the performance or breach of which is dealt with in paragraph A or B of this Section), and

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continuance of such default or breach for a period of forty-five (45) days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 10% in principal amount of the Obligations Outstanding, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;a failure to pay any portion of the principal when due and payable (other than amounts due and payable on acceleration) under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, whether such indebtedness now exists or shall hereafter be created, which failure shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable in an aggregate principal amount exceeding $25,000,000, without such indebtedness having been discharged or such acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;the rendering against the Company of a judgment for the payment of moneys in excess of the sum of $25,000,000 and the continuance of such judgment unsatisfied and without stay of execution thereon for a period of forty-five (45) days after the entry of such judgment, or the continuance of such judgment unsatisfied for a period of forty-five (45) days after the termination of any stay of execution thereon entered within such first mentioned forty-five (45) days; but only in either case if such judgment shall have been continued unstayed or unsatisfied for a period of ten (10) days after written notice of default hereunder shall have been given to the Company by the Trustee, or to the Company and the Trustee by the Holders of not less than 10% in principal amount of the Obligations Outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or state bankruptcy, insolvency, reorganization or other similar law or (ii) a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief of any such other decree or order unstayed and in effect for a period of sixty (60) consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;the commencement by the Company of a voluntary case or proceeding under any applicable Federal or state bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any

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bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or state law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action.

**Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;Acceleration of Maturity; Rescission and Annulment.**

If an Event of Default exists, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Obligations Outstanding may declare the principal (or, in the case of Obligations of any series constituting Original Issue Discount Obligations, such portion of the principal amount of such Original Issue Discount Obligations as may be specified in the terms of such series) of all the Obligations to be due and payable immediately, by a notice in writing to the Company (and to the Trustee, if given by Holders), and upon any such declaration such principal shall become immediately due and payable.

At any time after such a declaration of acceleration has been made, but before any sale of any of the Trust Estate has been made under this Article or any judgment or decree for payment of money due on any Obligations has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Obligations Outstanding (unless such declaration has been made under Section 8.23 only with respect to a particular series of Outstanding Obligations, in which event only a majority in principal amount of the Obligations of such series) may, by written notice to the Company and the Trustee, rescind and annul such declaration and its consequences if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the Company has paid or deposited with the Trustee a sum sufficient to pay

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;all overdue installments of interest on all Obligations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the principal of (and premium, if any, on) any Obligations which have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in such Obligations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;to the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates prescribed therefor in such Obligations, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;all Events of Default, other than the non-payment of the principal of Obligations which have become due solely by such declaration of acceleration, have been cured or have been waived as provided in Section 8.17.

No such rescission and annulment shall affect any subsequent default or impair any right consequent thereon.

**Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;Entry.**

The Company agrees that upon the occurrence of an Event of Default the Company, upon demand of the Trustee during the continuance thereof, shall forthwith surrender to the Trustee the actual possession of, and it shall be lawful for the Trustee by such officers or agents as it may appoint to enter and take possession of, the Trust Estate (and the books, papers and accounts of the Company), and to hold, operate, manage and control the Trust Estate (including the making of all needful repairs, and such alterations, additions and improvements which the Trustee shall determine in its discretion to make) and to receive the rents, issues, tolls, profits, revenues and other income thereof, and, after deducting the costs and expenses of entering, taking possession, holding, operating and managing the Trust Estate, as well as payments for taxes, insurance and other proper charges upon the Trust Estate and reasonable compensation to itself, its agents and counsel, to apply the same as provided in Section 8.7. Whenever all that is then due upon the Obligations and under any of the terms of this Indenture shall have been paid and all defaults hereunder shall have been made good, the Trustee shall surrender possession of such property to the Company.

**Section 8.4&nbsp;&nbsp;&nbsp;&nbsp;Power of Sale; Suits for Enforcement.**

In case an Event of Default shall exist, the Trustee, with or without entry, in its discretion may, subject to the provisions of Section 8.16:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;sell, subject to any mandatory requirements of applicable law, the Trust Estate as an entirety, or in such parcels as the Holders of a majority in principal amount of the Obligations then Outstanding shall in writing request, or in the absence of such request, as the Trustee may determine, to the highest bidder at public auction and upon such terms as the Trustee may (subject to applicable law) fix; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;proceed to protect and enforce its rights and the rights of the Holders under this Indenture by sale pursuant to judicial proceedings or by a suit, action or proceeding in equity or at law or otherwise, whether for the specific performance of any covenant or agreement contained in this Indenture or in aid of the execution of any power granted in this Indenture or for the foreclosure of this Indenture or for the enforcement of any other legal, equitable or other remedy, as the Trustee, being advised by counsel, shall deem most effectual to protect and enforce any of the rights of the Trustee or the Holders.

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**Section 8.5&nbsp;&nbsp;&nbsp;&nbsp;Incidents of Sale.**

Upon any sale of any of the Trust Estate, whether made under the power of sale hereby given or pursuant to judicial proceedings, to the extent permitted by law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the principal of and accrued interest on all Outstanding Secured Obligations, if not previously due, shall at once become and be immediately due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;any Holder or Holders or the Trustee may bid for and purchase the property offered for sale, and upon compliance with the terms of sale may hold, retain and possess and dispose of such property, without further accountability, and may, in paying the purchase price therefor, deliver any Outstanding Secured Obligations or claims for interest thereon in lieu of cash in the amount which shall, upon distribution of the net proceeds of such sale, be payable thereon, and (unless such sale is effected under power of sale) such Obligations, in case the amounts so payable thereon shall be less than the amount due thereon, shall be returned to the Holders thereof after being appropriately stamped to show partial payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may make and deliver to the purchaser or purchasers a good and sufficient deed, bill of sale and instrument of assignment and transfer of the property sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee is hereby irrevocably appointed the true and lawful attorney of the Company, in its name and stead, to make all necessary deeds, bills of sale and instruments of assignment and transfer of the property thus sold; and for that purpose it may execute all necessary deeds, bills of sale and instruments of assignment and transfer, and may substitute one or more persons, firms or corporations with like power, the Company hereby ratifying and confirming all that its said attorney or such substitute or substitutes shall lawfully do by virtue hereof; but if so requested by the Trustee or by any purchaser, the Company shall ratify and confirm any such sale or transfer by executing and delivering to the Trustee or to such purchaser or purchasers all proper deeds, bills of sale, instruments of assignment and transfer and releases as may be designated in any such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;all right, title, interest, claim and demand whatsoever, either at law or in equity or otherwise, of the Company of, in and to the property so sold shall be divested and such sale shall be a perpetual bar both at law and in equity against the Company, its successors and assigns, and against any and all persons claiming or who may claim the property sold or any part thereof from, through or under the Company, its successors and assigns; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;the receipt of the Trustee or of the officer making such sale shall be a sufficient discharge to the purchaser or purchasers at such sale for his or their purchase money and such purchaser or purchasers and his or their assigns or personal representatives shall not, after paying such purchase money and receiving such receipt, be

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obliged to see to the application of such purchase money, or be in anywise answerable for any loss, misapplication or non-application thereof.

Upon a sale of substantially all the Trust Estate, whether made under the power of sale hereby given or pursuant to judicial proceedings, the Company will permit, to the extent permitted by law, the purchaser thereof and its successors and its and their assigns to take and use the name of the Company and to carry on business under such name or any variant or variants thereof and to use and employ any and all other trade names, brands and trade marks of the Company; and in such event, upon written request of such purchaser or its successors, or its or their assigns, the Company will, at the expense of the purchaser, change its name in such manner as to eliminate any similarity.

**Section 8.6&nbsp;&nbsp;&nbsp;&nbsp;Covenant to Pay Trustee Amounts Due on Obligations and Right of Trustee to Judgment.**

The Company covenants that, if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;default is made in the payment of any interest on any Obligation when such interest becomes due and payable, and such default continues for the period prescribed in paragraph A of Section 8.1, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;default is made in the payment of the principal of (or premium, if any, on) any Obligation at its Maturity, and, if applicable, such default continues for the period prescribed in paragraph B of Section 8.1,

then upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Holders of such Obligations, the whole amount then due and payable on such Obligations for principal (and premium, if any) and interest, with interest at the respective rate or rates prescribed therefor in the Obligations on overdue principal (and premium, if any) and, to the extent that payment of such interest is legally enforceable, on overdue installments of interest; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled to sue for and recover judgment against the Company and any other obligor on the Obligations for the whole amount so due and unpaid.

The Trustee shall be entitled to sue and recover judgment as aforesaid either before, after or during the pendency of any proceedings for the enforcement of the lien of this Indenture, and in case of a sale of the Trust Estate and the application of the proceeds of sale as aforesaid, the Trustee, in its own name and as trustee of an express trust, shall be entitled to enforce payment of, and to receive, all amounts then remaining due and unpaid upon the Outstanding Secured Obligations, for the benefit of the Holders thereof, and shall be entitled to recover judgment for any portion of the same remaining unpaid, with interest as aforesaid. No recovery of any such judgment upon any property of the Company shall affect or impair the lien of this Indenture upon

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the Trust Estate or any rights, powers or remedies of the Trustee hereunder, or any rights, powers or remedies of the Holders of the Obligations.

**Section 8.7&nbsp;&nbsp;&nbsp;&nbsp;Application of Money Collected.**

Any money collected by the Trustee pursuant to this Article, including any rents, issues, tolls, profits, revenues and other income collected pursuant to Section 8.3 (after the deductions therein provided) and any proceeds of any sale (after deducting the costs and expenses of such sale, including a reasonable compensation to the Trustee, its agents and counsel, and any taxes, assessments or liens prior to the lien of this Indenture, except any thereof subject to which such sale shall have been made), whether made under any power of sale herein granted or pursuant to judicial proceedings, and any money collected by the Trustee under Sections 5.9 and 15.5 to be applied under this Section, together with, in the case of an entry or sale or as otherwise provided herein, any other sums then held by the Trustee as part of the Trust Estate, shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the Obligations and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**First**: To the payment of all undeducted amounts due the Trustee under Sections 9.7 and 15.14;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**Second**: To the payment of the interest and principal or Redemption Price then due on the Obligations, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;unless the principal of all of the Obligations shall have become due and payable,

**First: Interest** - To the payment to the persons entitled thereto of all installments of interest then due (and, to the extent that payment of such interest is legally enforceable, interest on overdue installments of interest) on Outstanding Secured Obligations in the order of the maturity of such installments, together with accrued and unpaid interest on the Obligations theretofore called for redemption or prepayment, and, if the amount available shall not be sufficient to pay in full any installment or installments maturing on the same date, then to the payment thereof ratably, according to the amounts due thereon, to the persons entitled thereto, without any discrimination or preference; and

**Second: Principal or Redemption Price** - To the payment to the persons entitled thereto of the unpaid principal or Redemption Price of any Outstanding Secured Obligations which shall have become due, whether at Maturity or by call for redemption, and, if the amount available shall not be sufficient to pay in full all the Obligations which shall have become due, then to the payment thereof ratably, according to the amounts of principal or Redemption Price due, to the persons entitled thereto, without any discrimination or preference.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the principal of all of the Obligations shall have become due and payable, to the payment of the principal or Redemption Price and interest then due and unpaid upon the Outstanding Secured Obligations without preference or priority of principal or Redemption Price over interest or of interest over principal or Redemption Price, or of any installment of interest over any other installment of interest, or of any Obligation over any other Obligation, ratably, according to the amounts due respectively for principal or Redemption Price and interest, to the persons entitled thereto without any discrimination or preference except as to any difference in the respective rates of interest specified in the Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**Third:** To the payment of all other amounts due and unpaid on or under the Outstanding Secured Obligations including, but not limited to, penalties, premiums, costs and expenses payable to the Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;**Fourth:** To the payment of any amounts due under Obligations to maintain the value of reserve funds established and maintained in connection with debt securities (i) secured by a pledge of certain Obligations, (ii) issued on behalf of the Company and (iii) with respect to which an opinion was delivered on the date of the issuance of such securities to the effect that the interest on such securities is excluded from the gross income of the holder of such securities pursuant to the Internal Revenue Code, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;**Fifth:** To the payment of the remainder, if any, to the Company or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

**Section 8.8&nbsp;&nbsp;&nbsp;&nbsp;Receiver.**

Upon the occurrence of an Event of Default and commencement of judicial proceedings by the Trustee to enforce any right under this Indenture, the Trustee shall be entitled, as against the Company, without notice or demand and without regard to the adequacy of the security for the Obligations or the solvency of the Company, to the appointment of a receiver of the Trust Estate, and of the rents, issues, profits, revenues and other income thereof, but, notwithstanding the appointment of any receiver, the Trustee shall be entitled to retain possession and control of, and to collect and receive the income from, cash, securities and other personal property held by, or required to be deposited or pledged with, the Trustee hereunder.

**Section 8.9&nbsp;&nbsp;&nbsp;&nbsp;Trustee May File Proofs of Claim.**

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Obligations or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Obligations shall then be due and payable, as therein expressed or by declaration or otherwise, and irrespective of whether the Trustee shall have made any demand on the Company for the

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payment of overdue principal, premium or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;to file and prove a claim for the whole amount of principal (and premium, if any) and interest owing and unpaid in respect of the Outstanding Secured Obligations and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Sections 9.7 and 15.14.

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

**Section 8.10&nbsp;&nbsp;&nbsp;&nbsp;Trustee May Enforce Claims Without Possession of Obligations.**

All rights of action and claims under this Indenture or the Obligations may be prosecuted and enforced by the Trustee without the possession of any of the Obligations or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust. Any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Obligations in respect of which such judgment has been recovered.

**Section 8.11&nbsp;&nbsp;&nbsp;&nbsp;Limitation on Suits.**

No Holder of any Obligation shall have any right to institute any proceeding, judicial or otherwise, under or with respect to this Indenture, or for the appointment of a receiver or trustee or for any other remedy hereunder, unless

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;such Holder has previously given written notice to the Trustee of a continuing Event of Default;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the Holders of not less than 25% in principal amount of the Outstanding Obligations shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;such Holder or Holders (other than the United States of America or its agencies or instrumentalities) have offered to the Trustee indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity, if any is required pursuant to paragraph C, has failed to institute any such proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;no direction inconsistent with such written request has been given to the Trustee during such sixty (60) day period by the Holders of a majority in principal amount of the Outstanding Obligations;

it being understood and intended that no one or more Holders of Obligations shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the lien of this Indenture or the rights of any other Holders of Obligations, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all Outstanding Secured Obligations.

**Section 8.12&nbsp;&nbsp;&nbsp;&nbsp;Unconditional Right of Holders to Receive Principal, Premium and Interest.**

Notwithstanding any other provision in this Indenture, the Holder of any Obligation shall have the absolute and unconditional right to receive payment of the principal of (and premium, if any) and interest on such Obligation on the respective Stated Maturities expressed in such Obligation (or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

**Section 8.13&nbsp;&nbsp;&nbsp;&nbsp;Restoration of Positions.**

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture by foreclosure, entry or otherwise and such proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, the Trustee and the Holders shall, subject to any determination in such proceeding, be restored to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

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**Section 8.14&nbsp;&nbsp;&nbsp;&nbsp;Rights and Remedies Cumulative.**

Except as otherwise provided in Sections 3.8, 7.3 and 13.3 with respect to the replacement or payment of mutilated, destroyed, lost or stolen Obligations or the payment of certain moneys, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

**Section 8.15&nbsp;&nbsp;&nbsp;&nbsp;Delay or Omission Not Waiver.**

No delay or omission of the Trustee or of any Holder of any Obligation to exercise any right or remedy accruing upon an Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

**Section 8.16 &nbsp;&nbsp;&nbsp;&nbsp;Control by Holders.**

The Holders of a majority in principal amount of the Outstanding Obligations shall have the right, during the continuance of an Event of Default,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;to require the Trustee to proceed to enforce this Indenture, either by judicial proceedings for the enforcement of the payment of the Obligations and the foreclosure of this Indenture, the sale of the Trust Estate or otherwise or, at the election of the Trustee, by the exercise of the power of entry and/or sale hereby conferred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee hereunder, **PROVIDED** that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;such direction shall not be in conflict with any rule of law or this Indenture,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not determine that the action so directed would be unjustly prejudicial to the Holders not taking part in such direction.

**Section 8.17&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Past Defaults.**

Before any sale of any of the Trust Estate has been made under this Article or any judgment or decree for payment of money due has been obtained by the Trustee as provided in

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this Article, the Holders of not less than a majority in principal amount of the Outstanding Obligations may, by Act of such Holders delivered to the Trustee and the Company, on behalf of the Holders of all the Obligations waive any past default hereunder and its consequences, except a default

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;in the payment of the principal of (or premium, if any) or interest on any Obligation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;in respect of a covenant or provision hereof which under Article XII cannot be modified or amended without the consent of the Holder of each Outstanding Obligation affected.

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

**Section 8.18&nbsp;&nbsp;&nbsp;&nbsp;Undertaking for Costs.**

All parties to this Indenture agree, and each Holder of any Obligation by acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party in such suit, having due regard to the merits and good faith of the claims or defenses made by such party; but the provisions of this Section shall not apply to any suit instituted by the Trustee, by the United States of America (or its agencies or instrumentalities) or by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Obligations, or to any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Obligation on or after the respective Stated Maturities expressed in such Obligation (or, in the case of redemption, on or after the Redemption Date).

**Section 8.19&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Appraisement and Other Laws.**

To the full extent that it may lawfully so agree, the Company will not at any time insist upon, plead, claim or take the benefit or advantage of, any appraisement, valuation, stay, extension or redemption law now or hereafter in force, in order to prevent or hinder the enforcement of this Indenture or the absolute sale of the Trust Estate, or any part thereof, or the possession thereof by any purchaser at any sale under this Article; and the Company, for itself and all who may claim under it, so far as it or they now or hereafter may lawfully do so, hereby waives the benefit of all such laws. The Company, for itself and all who may claim under it, waives, to the extent that it may lawfully do so, all right to have the property in the Trust Estate marshaled upon any foreclosure hereof, and agrees that any court having jurisdiction to foreclose this Indenture may order the sale of the Trust Estate as an entirety.

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If any law in this Section referred to and now in force, of which the Company or its successor or successors might take advantage despite this Section, shall hereafter be repealed or cease to be in force, such law shall not thereafter be deemed to constitute any part of the contract herein contained or to preclude the application of this Section.

**Section 8.20&nbsp;&nbsp;&nbsp;&nbsp;Suits to Protect the Trust Estate.**

The Trustee shall have power to institute and to maintain such proceedings as it may deem expedient to prevent any impairment of the Trust Estate by any acts which may be unlawful or in violation of this Indenture and to protect its interests and the interests of the Holders in the Trust Estate and in the rents, issues, profits, revenues, proceeds, products and other income arising therefrom, including power to institute and maintain proceedings to restrain the enforcement of or compliance with any governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement of or compliance with such enactment, rule or order would impair the security hereunder or be prejudicial to the interests of the Holders or the Trustee.

**Section 8.21&nbsp;&nbsp;&nbsp;&nbsp;Remedies Subject to Applicable Law.**

All rights, remedies and powers provided by this Article may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Article are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Indenture invalid, unenforceable or not entitled to be recorded, registered, or filed under the provisions of any applicable law.

**Section 8.22&nbsp;&nbsp;&nbsp;&nbsp;Principal Amount of Original Issue Discount Obligation.**

The principal amount of an Original Issue Discount Obligation shall, for purposes of voting, directing the time, place or manner or exercising any remedy, applying moneys, authenticating and delivering Additional Obligations, release of any part of the Trust Estate and for all other purposes hereunder, be determined in the manner specified in the Supplemental Indenture establishing the series to which such Original Issue Discount Obligation belongs.

**Section 8.23&nbsp;&nbsp;&nbsp;&nbsp;Default Not Affecting All Series of Obligations.**

In case an Event of Default affecting the rights of the Holders of Obligations of any one or more series which does not similarly affect the rights of Holders of all other series of Obligations at the time Outstanding (including, without limitation, an Event of Default specified in a Supplemental Indenture creating a series of Obligations) shall have occurred and be continuing, then whatever action (including, without limitation, the acceleration of Obligations under Section 8.2, the giving of any request or direction to the Trustee under Section 8.11 or 8.16 or the waiver of any default under Section 8.17) may or shall be taken under this Article upon the occurrence of such Event of Default by or upon the request of the Holders of a specified percentage in principal amount of the Obligations then Outstanding, may or shall be taken in respect of the Obligations then Outstanding of the series as to which such Event of Default shall

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have been made, by or upon the request of the Holders of the same percentage in principal amount of such series then Outstanding.

**Section 8.24&nbsp;&nbsp;&nbsp;&nbsp;Defaults Under Qualifying Securities Indentures.**

In addition to every other right and remedy provided herein, the Trustee may exercise any right or remedy available to the Trustee in its capacity as owner and holder of Qualifying Securities which arises as a result of a default or a matured event of default under any Qualifying Securities Indenture, whether or not an Event of Default shall then have occurred and be continuing.

**ARTICLE IX**

**THE TRUSTEE**

**Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;Certain Duties and Responsibilities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Except during the continuance of an Event of Default,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;In case an Event of Default exists, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;this paragraph shall not be construed to limit the effect of paragraph A above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the Outstanding Obligations relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

**Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;Notice of Defaults.**

Within ninety (90) days after the occurrence of any default hereunder, the Trustee shall transmit by mail to all Holders entitled to receive reports pursuant to Section 10.3C, if operative, and if Section 10.3C is not operative, to all Holders of Obligations as their names and addresses appear in the Obligation Register, notice of such default hereunder known to the Trustee, unless such default shall have been cured or waived; **PROVIDED, HOWEVER,** that, except in the case of a default in the payment, repayment or prepayment of the principal of (or premium, if any) or interest on any Obligation or in the payment of any sinking or purchase fund installment, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of the Holders; and **PROVIDED FURTHER** that, in the case of any default of the character specified in Section 8.1C or 8.1D, no such notice to Holders shall be given until at least sixty (60) days after the occurrence thereof. For the purpose of this Section, the term **"default"** means any event which is, or after notice or lapse of time or both would become, an Event of Default.

**Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;Certain Rights of Trustee.**

Except as otherwise provided in Section 9.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers' Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by the Trustee hereunder in good faith and in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders (other than the United States of America or its agencies or instrumentalities) shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, or, except as specifically provided herein, compliance by the Company with its agreements or covenants in this Indenture, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be personally liable, in case of entry by it upon the Trust Estate, for debts contracted or liabilities or damages incurred in the management or operation of the Trust Estate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be required to take notice or be deemed to have notice of any default hereunder unless the Trustee shall be specifically notified in writing in accordance with the provisions of Section 1.3 of such default by the Company or by the Holder of any Obligation as to the Events of Default described in paragraph A or B of Section 8.1, or by the Holders of not less than ten percent (10%) of the Holders of Obligations as to any other Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by applicable law, in no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the

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Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;the permissive rights of the Trustee shall not be construed as a duty.

**Section 9.4&nbsp;&nbsp;&nbsp;&nbsp;Not Responsible for Recitals or Issuance of Obligations or Application of Proceeds.**

The recitals contained herein and in the Obligations, except the Trustee's certificate of authentication on the Obligations, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the value or condition of the Trust Estate or any part thereof, or as to the title of the Company thereto or as to the security afforded thereby or hereby, or as to the validity or genuineness of any securities at any time, pledged and deposited with the Trustee hereunder, or as to the validity or sufficiency of this Indenture or of the Obligations. The Trustee shall not be accountable for the use or application by the Company of Obligations or the proceeds thereof or of any money paid to the Company or upon Company Order under any provision hereof.

**Section 9.5&nbsp;&nbsp;&nbsp;&nbsp;May Hold Obligations.**

The Trustee, any Paying Agent, Obligation Registrar, Authenticating Agent or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Obligations and, subject to Sections 9.8 and 9.13, if operative, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Obligation Registrar, Authenticating Agent or such other agent.

**Section 9.6&nbsp;&nbsp;&nbsp;&nbsp;Money Held in Trust.**

Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company.

**Section 9.7&nbsp;&nbsp;&nbsp;&nbsp;Compensation and Reimbursement.**

The Company agrees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;to pay to the Trustee from time to time such compensation as may be specifically agreed upon with the Trustee and, absent specific agreement, reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to the Trustee's negligence or bad faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

All such payments and reimbursements shall be made with interest at the rate of 10% per annum.

As security for the performance of the obligations of the Company under this Section, the Trustee shall be secured under this Indenture by a lien prior to the Obligations, and for the payment of such compensation, expenses, reimbursements and indemnity the Trustee shall have the right to use and apply any Trust Moneys held by it under Article VI.

**Section 9.8&nbsp;&nbsp;&nbsp;&nbsp;Disqualification; Conflicting Interests.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;If the Trustee has or shall acquire any conflicting interest, as defined in this Section (certain terms being defined and percentages calculated as hereinafter stated in this Section), if the default to which such conflicting interest relates has not been cured or duly waived or otherwise eliminated within the ninety (90) day period immediately following the date on which the Trustee ascertains that it has such conflicting interest, it shall, within such ninety (90) day period, either eliminate such conflicting interest or resign in the manner and with the effect hereinafter specified in this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Trustee shall fail to comply with the provisions of paragraph A above the Trustee shall, within ten (10) days after the expiration of such ninety (90) day period, transmit notice of such failure to the Holders in the manner and to the extent provided in Section 10.3C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section, the Trustee shall be deemed to have a conflicting interest if there is an Event of Default and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee is trustee under another indenture under which any other securities, or certificates of interest or participation in any other securities, of the Company are outstanding, or is trustee for more than one outstanding series of securities, as hereafter defined, under a single indenture of the Company, unless such other indenture is a collateral trust indenture under which the only collateral consists of Obligations issued under or secured by this Indenture, **PROVIDED** that there shall be excluded from the operation of this clause other series under this Indenture and any indenture or indentures under which other securities, or certificates of interest or

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participation in other securities, of the Company are outstanding, if the Company shall have sustained the burden of proving, on application to the Commission and after opportunity for hearing thereon, that trusteeship under this Indenture and such other indenture or indentures or under more than one outstanding series under a single indenture is not so likely to involve a material conflict of interest as to make it necessary in the public interest or for the protection of investors to disqualify the Trustee from acting as such under one of such indentures or with respect to such series; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee or any of its directors or executive officers is an underwriter for the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee directly or indirectly controls or is directly or indirectly controlled by or is under direct or indirect common control with the Company or an underwriter for the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee or any of its directors or executive officers is a director, officer, partner, employee, appointee or representative of the Company, or of an underwriter (other than the Trustee itself) for the Company who is currently engaged in the business of underwriting, except that (i) one individual may be a director or an executive officer, or both, of the Trustee and a director or an executive officer, or both, of the Company but may not be at the same time an executive officer of both the Trustee and the Company; (ii) if and so long as the number of directors of the Trustee in office is more than nine, one additional individual may be a director or an executive officer, or both, of the Trustee and a director of the Company; and (iii) the Trustee may be designated by the Company or by any underwriter for the Company to act in the capacity of transfer agent, registrar, custodian, paying agent, fiscal agent, escrow agent, or depositary, or in any other similar capacity, or, subject to the provisions of clause (1) above, to act as trustee, whether under an indenture or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;10% or more of the voting securities of the Trustee is beneficially owned either by the Company or by any director, partner, or executive officer thereof, or 20% or more of such voting securities is beneficially owned, collectively, by any two or more of such persons; or 10% or more of the voting securities of the Trustee is beneficially owned either by an underwriter for the Company or by any director, partner or executive officer thereof, or is beneficially owned, collectively, by any two or more such persons; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee is the beneficial owner of, or holds as collateral security for an obligation which is in default (as hereinafter in this paragraph defined), (i) 5% or more of the voting securities, or 10% or more of any other class of security, of the Company not including the Obligations issued under or secured by this Indenture and securities issued under any other indenture under which the Trustee is also trustee, or (ii) 10% or more of any class of security of an underwriter for the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee is the beneficial owner of, or holds as collateral security for an obligation which is in default (as hereinafter in this paragraph defined), 5% or more of the voting securities of any person who, to the knowledge of the Trustee, owns 10% or

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more of the voting securities of, or controls directly or indirectly or is under direct or indirect common control with, the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee is the beneficial owner of, or holds as collateral security for an obligation which is in default (as hereinafter in this paragraph defined), 10% or more of any class of security of any person who, to the knowledge of the Trustee, owns 50% or more of the voting securities of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee owns, upon the occurrence of an Event of Default (or any occurrence that would constitute an Event of Default upon the lapse of time or giving of notice) or any anniversary of such date while such Event of Default or occurrence remains outstanding, in the capacity of executor, administrator, testamentary or inter vivos trustee, guardian, committee or conservator, or in any other similar capacity, an aggregate of 25% or more of the voting securities, or of any class of security, of any person, the beneficial ownership of a specified percentage of which would have constituted a conflicting interest under clauses (6), (7) or (8) above. As to any such securities of which the Trustee acquired ownership through becoming executor, administrator, or testamentary trustee of an estate which included them, the provisions of the preceding sentence shall not apply, for a period of two (2) years from the date of such acquisition, to the extent that such securities included in such estate do not exceed 25% of such voting securities or 25% of any such class of security. Promptly after any Event of Default (or other occurrence that would constitute an Event of Default upon the lapse of time or giving of notice) and annually in each succeeding year that any Event of Default or other occurrence remains outstanding, the Trustee shall make a check of its holdings of such securities in any of the above-mentioned capacities as of such dates. If the Company fails to make payment in full of the principal of, or the premium, if any, or interest on, any of the Obligations when and as the same becomes due and payable, and such failure continues for thirty (30) days thereafter, the Trustee shall make a prompt check of its holdings of such securities in any of the above-mentioned capacities as of the date of the expiration of such thirty (30) day period, and after such date, notwithstanding the foregoing provisions of this clause, all such securities so held by the Trustee, with sole or joint control over such securities vested in it, shall, but only so long as such failure shall continue, be considered as though beneficially owned by the Trustee for the purposes of clauses (6), (7) and (8) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;except under the circumstances described in clauses (1), (3), (4), (5) or (6) of Section 9.13B, the Trustee shall become a creditor of the Company.

For purposes of clause (1) above, the term **"series of securities"** or **"series"** means a series, class or group of securities issuable under an indenture pursuant to whose terms holders of one such series may vote to direct the Trustee, or otherwise take action pursuant to a vote of such Holders, separately from Holders of another such series; **PROVIDED** that **"series of securities"** or **"series"** shall not include any series of securities issuable under an indenture if all such series rank equally and are wholly unsecured.

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The specification of percentages in clauses (5) to (9) inclusive, above, shall not be construed as indicating that the ownership of such percentages of the securities of a person is or is not necessary or sufficient to constitute direct or indirect control for the purposes of clause (3) or (7) above.

For the purposes of clauses (6), (7), (8) and (9) above only, (a) the terms **"security"** and **"securities"** shall include only such securities as are generally known as corporate securities, but shall not include any note or other evidence of indebtedness issued to evidence an obligation to repay moneys lent to a person by one or more banks, trust companies or banking firms, or any certificate of interest or participation in any such note or evidence of indebtedness; (b) an obligation shall be deemed to be **"in default**" when a default in payment of principal shall have continued for thirty (30) days or more and shall not have been cured; and (c) the Trustee shall not be deemed to be the owner or holder of (i) any security which it holds as collateral security, as trustee or otherwise, for an obligation which is not in default as defined above, or (ii) any security which it holds as collateral security under this Indenture, irrespective of any default hereunder, or (iii) any security which it holds as agent for collection, or as custodian, escrow agent, or depositary, or in any similar representative capacity.

Except in the case of the failure to pay, repay or prepay the principal of or interest on any Obligation, or to pay any sinking or purchase fund installment, on the date on which it becomes due, the Trustee shall not be required to resign as provided by this paragraph if such Trustee shall have sustained the burden of proving, on application to the Commission and after opportunity for hearing thereon, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Event of Default (or other event that would constitute an Event of Default upon the passage of time or giving of notice) otherwise giving rise to an obligation by the Trustee to resign may be cured or waived during a reasonable period and under the procedures described in such application, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a stay of the Trustee's duty to resign will not be inconsistent with the interests of Holders of the Obligations. The filing of such an application shall automatically stay the performance of the duty to resign until the Commission orders otherwise.

Any resignation of the Trustee shall become effective only upon the appointment of a successor trustee and such successor's acceptance of such an appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The term **"underwriter"** when used with reference to the Company means every person who, within one year prior to the time as of which the determination is made, has purchased from the Company with a view to, or has offered or sold for the Company in connection with, the distribution of any security of the Company outstanding at such time, or has participated or has had a direct or indirect participation in any such undertaking, or has participated or has had a participation in the direct or indirect underwriting of any such undertaking, but such term shall not include a person whose

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interest was limited to a commission from an underwriter or dealer not in excess of the usual and customary distributors' or sellers' commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The term **"director"** means any director of a corporation, or any individual performing similar functions with respect to any organization whether incorporated or unincorporated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The term **"person"** means an individual, a corporation, a partnership, an association, a joint-stock company, a trust, an unincorporated organization, or a government or political subdivision thereof. As used in this clause, the term "trust" shall include only a trust where the interest or interests of the beneficiary or beneficiaries are evidenced by a security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The term **"voting security**" means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a person, or any security issued under or pursuant to any trust, agreement or arrangement whereby a trustee or trustees or agent or agents for the owner or holder of such security are presently entitled to vote in the direction or management of the affairs of a person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;The term **"Company"** means any obligor upon the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;The term **"Trustee"** includes any separate or co-trustee appointed under Section 9.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;The term **"executive officer"** means the president, every vice president, every trust officer, the cashier, the secretary, and the treasurer of a corporation, and any individual customarily performing similar functions with respect to any organization whether incorporated or unincorporated, but shall not include the chairman of the board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;The percentages of voting securities and other securities specified in this Section shall be calculated in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;A specified percentage of the voting securities of the Trustee, the Company or any other person referred to in this Section (each of whom is referred to as a **"person"** in this clause) means such amount of the outstanding voting securities of such person as entitles the holder or holders thereof to cast such specified percentage of the aggregate votes which the holders of all the outstanding voting securities of such person are entitled to cast in the direction or management of the affairs of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;A specified percentage of a class of securities of a person means such percentage of the aggregate amount of securities of the class outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The term **"amount"** means, when used in regard to securities, the principal amount if relating to evidences of indebtedness, the number of shares if relating to capital shares, and the number of units if relating to any other kind of security.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The term **"outstanding"** means issued and not held by or for the account of the issuer. The following securities shall not be deemed outstanding within the meaning of this definition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;securities of an issuer held in a sinking fund relating to securities of the issuer of the same class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;securities of an issuer held in a sinking fund relating to another class of securities of the issuer, if the obligation evidenced by such other class of securities is not in default as to principal or interest or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;securities pledged by the issuer thereof as security for an obligation of the issuer not in default as to principal or interest or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;securities held in escrow if placed in escrow by the issuer thereof;

**PROVIDED, HOWEVER**, that any voting securities of an issuer shall be deemed outstanding if any person other than the issuer is entitled to exercise the voting rights thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;A security shall be deemed to be of the same class as another security if both securities confer upon the holder or holders thereof substantially the same rights and privileges; **PROVIDED, HOWEVER**, that, in the case of secured evidences of indebtedness, all of which are issued under a single indenture, differences in the interest rates or maturity dates of various series thereof shall not be deemed sufficient to constitute such series as different classes, and **PROVIDED FURTHER** that, in the case of unsecured evidences of indebtedness, differences in the interest rates or maturity dates thereof shall not be deemed sufficient to constitute them securities of different classes, whether or not they are issued under a single indenture.

**Section 9.9&nbsp;&nbsp;&nbsp;&nbsp;Corporate Trustee Required; Eligibility.**

There shall at all times be a Trustee hereunder which (i) shall be a corporation organized and doing business under the laws of the United States of America, any State or Territory thereof or the District of Columbia, which is authorized under such laws to exercise corporate trust powers, and subject to supervision or examination by Federal, state, territorial or District of Columbia authority, and (ii) shall have a combined capital and surplus of at least $50,000,000. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of such supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. Neither the Company nor any Person directly or indirectly controlling, controlled by or under common control with the Company shall serve as Trustee hereunder. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

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**Section 9.10&nbsp;&nbsp;&nbsp;&nbsp;Resignation and Removal; Appointment of Successor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee under Section 9.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may resign at any time by giving written notice thereof to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within thirty (30) days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Unless an Event of Default (or an occurrence that would constitute an Event of Default upon the passage of time or the giving of notice) exists, the Company may remove the Trustee with or without cause, by delivery to the Trustee of a Board Resolution effecting such removal. The Trustee may be removed with or without cause at any time by Act of the Holders of a majority in principal amount of the Outstanding Obligations, delivered to the Trustee and to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;If at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall fail to comply with Section 9.8A after written request therefor by the Company or by any Holder who has been a bona fide Holder of an Obligation for at least six (6) months, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall cease to be eligible under Section 9.9 and shall fail to resign after written request therefor by the Company or by any such Holder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee, or (ii) subject to Section 8.18, any Holder who has been a bona fide Holder of an Obligation for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall promptly appoint a successor Trustee. In case all or substantially all of the Trust Estate shall be in the possession of a receiver or trustee lawfully appointed, such receiver or trustee, by written instrument, may similarly appoint a successor to fill such vacancy until a new Trustee shall be so appointed by the Holders. If, within one (1) year after such resignation, removal or incapability or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Obligations delivered to the

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Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee and supersede the successor Trustee appointed by the Company or by such receiver or trustee. If no successor Trustee shall have been so appointed by the Company or the Holders and accepted appointment in the manner hereinafter provided, subject to Section 8.18, any Holder who has been a bona fide Holder of an Obligation for at least six (6) months may, on behalf of himself and all other similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;The Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Obligations as their names and addresses appear in the Obligation Register and to the Holders of Notes as their addresses have been previously provided to the Trustee in writing. Each notice shall include the name of the successor Trustee and the address of its principal corporate trust office.

**Section 9.11&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of Appointment by Successor.**

Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the estates, properties, rights, powers, trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument conveying and transferring to such successor Trustee upon the trusts herein expressed all the estates, properties, rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject nevertheless to its lien, if any, provided for in Sections 9.7 and 15.14. Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such estates, properties, rights, powers and trusts.

No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article, to the extent operative.

**Section 9.12&nbsp;&nbsp;&nbsp;&nbsp;Merger, Conversion, Consolidation or Succession to Business.**

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, to the extent operative, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Obligations shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Obligations so

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authenticated with the same effect as if such successor Trustee had itself authenticated such Obligations.

**Section 9.13&nbsp;&nbsp;&nbsp;&nbsp;Preferential Collection of Claims against Company.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Subject to paragraph B below, if the Trustee shall be or shall become a creditor, directly or indirectly, secured or unsecured, of the Company within three (3) months prior to a default (as defined in paragraph C below), or subsequent to such a default, then, unless and until such default shall be cured, the Trustee shall set apart and hold in a special account for the benefit of the Trustee individually, the Holders of the Obligations and the holders of other indenture securities (as defined in paragraph C below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;an amount equal to any and all reductions in the amount due and owing upon any claim as such creditor in respect of principal or interest, effected after the beginning of such three (3) month period and valid as against the Company and its other creditors, except any such reduction resulting from the receipt or disposition of any property described in clause (2) below, or from the exercise of any right of set-off which the Trustee could have exercised if a petition in bankruptcy had been filed by or against the Company upon the date of such default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;all property received by the Trustee in respect of any claim as such creditor, either as security therefor, or in satisfaction or composition thereof, or otherwise, after the beginning of such three (3) month period, or an amount equal to the proceeds of any such property, if disposed of, **SUBJECT, HOWEVER,** to the rights, if any, of the Company and its other creditors in such property or such proceeds.

Nothing herein contained, however, shall affect the right of the Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to retain for its own account (i) payments made on account of any such claim by any Person (other than the Company) who is liable thereon, and (ii) the proceeds of the bona fide sale of any such claim by the Trustee to a third person, and (iii) distributions made in cash, securities or other property in respect of claims filed against the Company in bankruptcy or receivership or in proceeding for reorganization pursuant to the Federal Bankruptcy Code or applicable state law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to realize, for its own account, upon any property held by it as security for any such claim, if such property was so held prior to the beginning of such three (3) month period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;to realize, for its own account, but only to the extent of the claim hereinafter mentioned, upon any property held by it as security for any such claim, if such claim was created after the beginning of such three (3) month period and such property was received as security therefor simultaneously with the creation thereof, and if the Trustee shall sustain the burden of proving that at the time such property was so received the Trustee had no reasonable cause to believe that a default would occur within three (3) months; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;to receive payment on any claim referred to in Subclause (b) or (c) above, against the release of any property held as security for such claim as provided in Subclause (b) or (c) above, as the case may be, to the extent of the fair value of such property.

For the purposes of Subclauses (b), (c) and (d) above, property substituted after the beginning of such three (3) month period for property held as security at the time of such substitution shall, to the extent of the fair value of the property released, have the same status as the property released, and, to the extent that any claim referred to in any of said Subclauses is created in renewal of or in substitution for or for the purpose of repaying or refunding any pre-existing claim of the Trustee as such creditor, such claim shall have the same status as such pre-existing claim.

If the Trustee shall be required to account, the funds and property held in such special account and the proceeds thereof shall be apportioned among the Trustee, the Holders and the holders of other indenture securities in such manner that the Trustee, the Holders and the holders of other indenture securities realize, as a result of payments from such special account and payments of dividends on claims filed against the Company in bankruptcy or receivership or in proceedings for liquidation or reorganization pursuant to the Federal Bankruptcy Code or applicable state law, the same percentage of their respective claims, figured before crediting to the claim of the Trustee anything on account of the receipt by it from the Company of the funds and property in such special account and before crediting to the respective claims of the Trustee and the Holders and the holders of other indenture securities dividends on claims filed against the Company in bankruptcy or receivership or in proceedings for liquidation or reorganization pursuant to the Federal Bankruptcy Code or applicable state law, but after crediting thereon receipts on account of the indebtedness represented by their respective claims from all sources other than from such dividends and from the funds and property so held in such special account. As used in this paragraph, with respect to any claim, the term **"dividends"** shall include any distribution with respect to such claim, in bankruptcy or receivership or proceedings for reorganization pursuant to the Federal Bankruptcy Code or applicable state law, whether such distribution is made in cash, securities, or other property, but shall not include any such distribution with respect to the secured portion, if any, of such claim. The court in which such bankruptcy, receivership or proceeding for reorganization is pending shall have jurisdiction (i) to apportion among the Trustee, the Holders and the holders of other indenture securities, in accordance with the provisions of this paragraph, the funds and property held in such special account and proceeds thereof, or (ii) in lieu of such apportionment, in whole or in part, to give to the provisions of this paragraph due consideration in determining the fairness of the distributions to be made to the Trustee and the Holders and the holders of other indenture securities with respect to their respective claims, in which event it shall not be necessary to liquidate or to appraise the value of any securities or other property held in such special account or as security for any such claim, or to make a specific allocation of such distributions as between the secured and unsecured portions of such claims, or otherwise to apply the provisions of this paragraph as a mathematical formula.

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Any Trustee which has resigned or been removed after the beginning of such three (3) month period shall be subject to the provisions of this Subsection as though such resignation or removal had not occurred. If any Trustee has resigned or been removed prior to the beginning of such three (3) month period, it shall be subject to the provisions of this Subsection if and only if the following conditions exist:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;the receipt of property or reduction of claim, which would have given rise to the obligation to account, if such Trustee had continued as Trustee, occurred after the beginning of such three (3) month period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;such receipt of property or reduction of claim occurred within three (3) months after such resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;There shall be excluded from the operation of paragraph A above a creditor relationship arising from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the ownership or acquisition of securities issued under any indenture or any security or securities having a maturity of one year or more at the time of acquisition by the Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;advances authorized by a receivership or bankruptcy court of competent jurisdiction, or by this Indenture, for the purpose of preserving any property which shall at any time be subject to the lien of this Indenture or of discharging tax liens or other prior liens or encumbrances thereon, if notice of such advances and of the circumstances surrounding the making thereof is given to the Holders at the time and in the manner provided in this Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;disbursements made in the ordinary course of business in the capacity of trustee under an indenture, transfer agent, registrar, custodian, paying agent, fiscal agent or depositary, or other similar capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;an indebtedness created as a result of services rendered or premises rented; or an indebtedness created as a result of goods or securities sold in a cash transaction (as defined in paragraph C below); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;the ownership of stock or of other securities of a corporation organized under the provisions of Section 25(a) of the Federal Reserve Act, as amended, which is directly or indirectly a creditor of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;the acquisition, ownership, acceptance or negotiation of any drafts, bills of exchange, acceptances or obligations which fall within the classification of self-liquidating paper (as defined in paragraph C above).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The term **"default"** means any failure to make payment in full of the principal of or interest on any of the Obligations or upon the other indenture securities when and as such principal or interest become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The term **"other indenture securities"** means securities upon which the Company is an obligor outstanding under any other indenture (i) under which the Trustee is also trustee, (ii) which contains provisions substantially similar to the provisions of this Section, and (iii) under which a default exists at the time of the apportionment of the funds and property held in such special account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The term **"cash transaction"** means any transaction in which full payment for goods or securities sold is made within seven days after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The term **"self-liquidating paper"** means any draft, bill of exchange, acceptance or obligation which is made, drawn, negotiated or incurred by the Company for the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title to, possession of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security, provided the security is received by the Trustee simultaneously with the creation of the creditor relationship with the Company arising from the making, drawing, negotiating or incurring of the draft, bill of exchange, acceptance or obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;The term **"Company"** means any obligor upon the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;The term **"Federal Bankruptcy Code"** means Title 11 of the United States Code, as it may be amended from time to time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;The term **"Trustee"** includes any separate or co-trustee appointed under Section 9.14.

**Section 9.14&nbsp;&nbsp;&nbsp;&nbsp;Co-trustees and Separate Trustees.**

At any time or times, for the purpose of meeting the legal requirements of any jurisdiction in which any of the Trust Estate may at the time be located, the Company and the Trustee shall have power to appoint, and, upon the written request of the Trustee or of the Holders of at least 25% in principal amount of the Obligations Outstanding, the Company shall for such purpose join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to appoint, one or more Persons approved by the Trustee either to act as co-trustee, jointly with the Trustee, of all or any part of the Trust Estate, or to act as separate trustee of any such property, in either case with such powers as may be provided in the instrument of appointment, and to vest in such Person or Persons in the capacity

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aforesaid, any property, title, right or power deemed necessary or desirable, subject to the other provisions of this Section. If the Company does not join in such appointment within fifteen (15) days after the receipt by it of a request so to do, or in case an Event of Default exists, the Trustee alone shall have power to make such appointment.

Should any written instrument from the Company be required by any co-trustee or separate trustee so appointed for more fully confirming to such co-trustee or separate trustee such property, title, right or power, any and all such instruments shall, on request, be executed, acknowledged and delivered by the Company.

Every co-trustee or separate trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following terms, namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the Obligations shall be authenticated and delivered, and all rights, powers, duties and obligations hereunder in respect of the custody of securities, cash and other personal property held by, or required to be deposited or pledged with, the Trustee hereunder, shall be exercised solely, by the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the rights, powers, duties and obligations hereby conferred or imposed upon the Trustee in respect of any property covered by such appointment shall be conferred or imposed upon and exercised or performed by the Trustee or by the Trustee and such co-trustee or separate trustee jointly, as shall be provided in the instrument appointing such co-trustee or separate trustee, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Trustee shall be incompetent or unqualified to perform such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such co-trustee or separate trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;the Trustee at any time, by an instrument in writing executed by it, with the concurrence of the Company evidenced by a Board Resolution, may accept the resignation of or remove any co-trustee or separate trustee appointed under this Section, and, in case an Event of Default has occurred and is continuing, the Trustee shall have power to accept the resignation of, or remove, any such co-trustee or separate trustee without the concurrence of the Company. Upon the written request of the Trustee, the Company shall join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to effectuate such resignation or removal. A successor to any co-trustee or separate trustee so resigned or removed may be appointed in the manner provided in this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;no co-trustee or separate trustee hereunder shall be personally liable by reason of any act or omission of the Trustee, or any other such trustee hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;any Act of Holders delivered to the Trustee shall be deemed to have been delivered to each such co-trustee and separate trustee.

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**Section 9.15&nbsp;&nbsp;&nbsp;&nbsp;Authenticating Agent.**

The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on behalf of the Trustee to authenticate Obligations issued upon original issue and upon exchange, registration of transfer or partial redemption or pursuant to Sections 3.6, 3.7, 3.8 or 14.7, and Obligations so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Such Authenticating Agent shall at all times be a bank or trust company, and shall at all times be a corporation organized and doing business under the laws of the United States or of any state, territory or the District of Columbia, with a combined capital and surplus of at least $50,000,000 and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by Federal, state, territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually pursuant to law or the requirements of such supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

Any corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate trust business of any Authenticating Agent, shall continue to be the Authenticating Agent hereunder, provided such corporation shall otherwise be eligible under this Section, without the execution or filing of any further act on the part of the parties hereto or the Authenticating Agent or such successor corporation.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and the Company. The Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any Authenticating Agent shall cease to be eligible under this Section, the Trustee shall promptly appoint a successor Authenticating Agent, shall give written notice of such appointment to the Company and shall mail notice of such appointment by first-class mail, postage prepaid, to all Holders of Obligations of the applicable series as the names and addresses of such Holders appear on the Obligation Register.

If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.

The Trustee agrees to pay to the Authenticating Agent from time to time reasonable compensation for its services under this Section and the Trustee shall be entitled to be reimbursed by the Company for such payments, subject to Sections 9.7 and 15.14. The provisions of Sections 3.10, 9.4 and 9.5 shall be applicable to any Authenticating Agent.

Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect

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as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

The Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section, and the Trustee shall be entitled to be reimbursed for such payments, subject to the provisions of Sections 9.7 and 15.14.

If an appointment is made pursuant to this Section, the Obligations may have endorsed thereon, in lieu of the Trustee's certificate of authentication, an alternative certificate of authentication in the following form:

This is one of the Obligations described in the within-mentioned Indenture.

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| |
|:---|
| As Trustee |
| By: |
| As Authenticating Agent |
| By: |
| Authorized Officer |

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**ARTICLE X**

**HOLDERS' LISTS AND REPORTS**

**BY TRUSTEE AND COMPANY**

**Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;Company to Furnish Trustee Semi-Annual Lists of Holders.**

The Company will furnish or cause to be furnished to the Trustee semiannually, not less than forty-five (45) days nor more than sixty (60) days after June 1 and December 1 of each year, and at such other times as the Trustee may request in writing, within thirty (30) days after receipt by the Company of any such request, a list in such form as the Trustee may reasonably require containing all the information in the possession or control of the Company, or any of its Paying Agents other than the Trustee, as to the names and addresses of the Holders of Obligations, obtained since the date as of which the next previous list, if any, was furnished, **EXCLUDING** from any such list the names and addresses received by the Trustee in its capacity as Obligation Registrar. Any such list may be dated as of a date not more than fifteen (15) days prior to the time such information is furnished and need not include information received after such date.

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**Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;Preservation of Information; Communications to Holders.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders of Obligations (i) contained in the most recent list furnished to the Trustee as provided in Section 10.1, (ii) received by the Trustee in the capacity of Paying Agent (if so acting) hereunder, (iii) filed with the Trustee by Holders of Obligations within the two (2) preceding years as provided for in Section 10.3C(2), or (iv) received by the Trustee in its capacity as Obligation Registrar.

The Trustee may (1) destroy any list furnished to it under Section 10.1 upon receipt of a new list so furnished, (2) destroy any information received by it as Paying Agent (if so acting) hereunder upon delivering to itself as Trustee, not earlier than forty-five (45) days after each June 1 and December 1 of each year, a list containing the names and addresses of the Holders of Obligations obtained from such information since the delivery of the next previous list, if any, (3) destroy any list delivered to itself as Trustee which was compiled from information received by it as Paying Agent (if so acting) hereunder upon the receipt of a new list so delivered, and (4) destroy, not earlier than two (2) years after filing, any information as to their names and addresses filed with the Trustee by Holders of Obligations as provided for in Section 10.3C(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;If RUS, to the extent it is a Holder, or three or more Holders of Obligations (hereinafter referred to as **"applicants"**) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned an Obligation for a period of at least six (6) months preceding the date of such application, and such application states that the applicants desire to communicate with other Holders of Obligations with respect to their rights under this Indenture or under the Obligations and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within five (5) business days after the receipt of such application, at its election, either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;afford such applicants access to the information preserved at the time by the Trustee in accordance with Section 10.2A, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;inform such applicants as to the approximate number of Holders of Obligations whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 10.2A, and as to the approximate cost of mailing to such Holders the form of proxy or other communication, if any, specified in such application.

If the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Holder whose name and address appear in the information preserved at the time by the Trustee in accordance with Section 10.2A, a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of such mailing, unless within five (5) days after such tender, the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the

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Holders of Obligations or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all such Holders with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Every Holder of Obligations, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any Paying Agent shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Obligations in accordance with Section 10.2B, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 10.2B.

**Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;Reports by Trustee.**

*This Section shall be operative only while this Indenture is required to be qualified under the TIA.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The term **"reporting date"** means, as used in this Section, January 1 in each year, beginning with the year 1999. Within sixty (60) days after the reporting date in each year, the Trustee shall transmit to the Holders, as provided in paragraph C below, a brief report dated as of such reporting date with respect to any of the following events which may have occurred within the previous twelve (12) months (but if no such event has occurred within such period no such report need be transmitted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;any change to its eligibility under Section 9.9 and its qualifications under Section 9.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the creation of or any material change to a relationship specified in clauses (1) through (10) of Section 9.8(C);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) which remain unpaid on the date of such report, and for the reimbursement of which it claims or may claim a lien or charge, prior to that of the Obligations, on the Trust Estate or on any property or funds held or collected by it as Trustee, except that the Trustee shall not be required (but may elect) to report such advances if such advances so remaining unpaid aggregate not more than 1/2 of 1% of the principal amount of the Obligations Outstanding on the date of such report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the amount, interest rate and maturity date of all other indebtedness owing by the Company (or by any other obligor on the Obligations) to the Trustee in its

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individual capacity, on the date of such report, with a brief description of any property held as collateral security therefor, except an indebtedness based upon a creditor relationship arising in any manner described in Section 9.13B(2), (3), (4) or (6);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;any change to the property and funds, if any, physically in the possession of the Trustee as such on the date of such report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;any release, or release and substitution, of property subject to the lien of this Indenture (and the consideration therefor, if any) which the Trustee has not previously reported; **PROVIDED, HOWEVER**, that to the extent that the aggregate value as shown by the release papers of any or all of such released properties does not exceed an amount equal to 1% of the principal amount of Obligations then Outstanding, the report need only indicate the number of such releases, the total value of property released as shown by the release papers, the aggregate amount of cash received and the aggregate value of property received in substitution therefor as shown by the release papers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;any additional issue of Obligations which the Trustee has not previously reported; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;any action taken by the Trustee in the performance of its duties hereunder which it has not previously reported and which in its opinion materially affects the Obligations or the Trust Estate, except action in respect of a default, notice of which has been or is to be withheld by the Trustee in accordance with Section 9.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall transmit to the Holders, as provided in paragraph C below, a brief report with respect to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the release, or release and substitution, of property subject to the lien of this Indenture (and the consideration therefor, if any) unless the fair value of such property, as set forth in the Officers' Certificate or certificate of an Engineer or Appraiser under Section 5.2, is less than 10% of the principal amount of Obligations Outstanding at the time of such release, or such release and substitution, such report to be so transmitted within ninety (90) days after such time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) since the date of the last report transmitted pursuant to paragraph A above (or if no such report has yet been so transmitted, since the date of execution of this instrument) for the reimbursement of which it claims or may claim a lien or charge, prior to that of the Obligations, on the Trust Estate or on any property or funds held or collected by it as Trustee, and which it has not previously reported pursuant to this Subsection, except that the Trustee shall not be required (but may elect) to report such advances if such advances remaining unpaid at any time aggregate 10% or less of the principal amount of the Obligations Outstanding at such time, such report to be transmitted within ninety (90) days after such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Reports pursuant to this Section shall be transmitted by mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;to all Holders of Obligations, as the names and addresses of such Holders appear in the Obligation Register;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;to such Holders as have, within the two (2) years preceding such transmission, filed their names and addresses with the Trustee for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;except in the case of reports pursuant to paragraph B above, to all Holders whose names and addresses have been furnished to or received by the Trustee pursuant to Section 10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any of the Obligations are listed and also with the Commission. The Company will notify the Trustee when the Obligations are listed on any stock exchange.

**Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;Reports by Company.**

*This Section shall be operative only while this Indenture is required to be qualified under the TIA.*

The Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;file with the Trustee, within fifteen (15) days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it will file with the Trustee and the Commission, in accordance with rules and regulations prescribed by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a security listed and registered on a national securities exchange as may be prescribed in such rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;file with the Trustee and the Commission, in accordance with rules and regulations prescribed by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required by such rules and regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;transmit to the Holders of Obligations, within thirty (30) days after the filing thereof with the Trustee, in the manner and to the extent provided in Section 10.3C with respect to reports pursuant to Section 10.3A, such summaries of any information,

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documents and reports required to be filed by the Company pursuant to paragraphs A and B above as may be required by rules and regulations prescribed by the Commission.

**ARTICLE XI**

**CONSOLIDATION, MERGER, CONVEYANCE OR**

**TRANSFER**

**Section 11.1&nbsp;&nbsp;&nbsp;&nbsp;Consolidation, Merger, Conveyance or Transfer only on Certain Terms.**

Except as otherwise provided in Section 11.3 hereof, the Company shall not consolidate with or merge into any other Person or convey or transfer the Trust Estate substantially as an entirety to any Person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;such consolidation, merger, conveyance or transfer shall be on such terms as shall fully preserve the lien and security hereof as provided for in this Article and the rights and powers of the Trustee and the Holders of the Obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the Person formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer the Trust Estate substantially as an entirety shall be a Person organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia and shall execute and deliver to the Trustee a Supplemental Indenture in recordable form, meeting the requirements of Section 11.2 and containing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;an assumption by such successor Person of the due and punctual payment of the principal of (and premium, if any) and interest on all the Obligations and, subject to Section 11.2B, the performance and observance of every covenant and condition of this Indenture to be performed or observed by the Company, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a grant, conveyance, transfer and mortgage complying with Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;immediately after giving effect to such transaction, no Event of Default hereunder shall exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;the Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each of which shall state that such consolidation, merger, conveyance or transfer and such Supplemental Indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with.

**Section 11.2&nbsp;&nbsp;&nbsp;&nbsp;Successor Person Substituted.**

Upon any consolidation or merger or any conveyance or transfer of the Trust Estate substantially as an entirety in accordance with Section 11.1, the successor Person formed by such

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consolidation or into which the Company is merged or to which such conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; **SUBJECT, HOWEVER**, to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;If the Supplemental Indenture required by Section 11.1 shall contain a grant, conveyance, transfer and mortgage in terms sufficient to include and subject to the lien of this Indenture, subject only to Permitted Exceptions and any Prior Liens permitted by Section 13.6, all property, rights, privileges and franchises owned by the successor Person on the date of the consolidation, merger, transfer or conveyance and which may be thereafter acquired by such successor Person (other than Excepted Property and Excludable Property), then such successor Person may cause to be executed, in its own name or in the name of the Company prior to such succession, and delivered to the Trustee for authentication, any Obligations issuable hereunder; and upon request of such successor Person, and subject to all the terms of this Indenture, the Trustee shall authenticate and deliver any Obligations which shall have been previously executed and delivered by the Company to the Trustee for authentication, and any Obligations which such successor Person shall thereafter, in accordance with this Indenture, cause to be executed and delivered to the Trustee for such purpose. Such changes in language and form (but not in substance) may be made in such Obligations as may be appropriate in view of such consolidation, merger, conveyance or transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;If the Supplemental Indenture required by Section 11.1 shall not contain the grant, conveyance, transfer and mortgage described in paragraph A above, then such successor Person shall not be entitled to procure the authentication and delivery of any Obligations issuable hereunder (except for Obligations issued under Sections 3.6, 3.7, 3.8 and 14.7), and this Indenture shall not, by virtue of such consolidation, merger, conveyance or transfer, or by virtue of such Supplemental Indenture, or by virtue of the Granting Clauses, become a lien upon, and the term Trust Estate shall not be deemed to include, any of the property, rights, privileges and franchises of such successor Person owned by the successor Person at the time of such consolidation, merger, conveyance or transfer (unless such successor Person, in its discretion shall subject the same to the lien hereof), but this Indenture shall become and be a lien, subject to only Permitted Exceptions and any Prior Liens permitted by Section 13.6, upon only the following property, rights, privileges and franchises acquired by such successor Person after the date of such consolidation, merger, conveyance or transfer, to wit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;all betterments, extensions, improvements, additions, repairs, renewals, replacements, substitutions and alterations to, upon, for and of the property, rights, privileges and franchises subject to the lien hereof, and all property constituting appurtenances of the Trust Estate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;all property made the basis of the withdrawal of cash from the Trustee or the release of property from the lien of this Indenture;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;all property acquired or constructed with the proceeds of (i) any insurance on any part of the Trust Estate, including with the proceeds of insurance on the Trust Estate not required to be paid to the Trustee under Section 13.8, or (ii) any part of the Trust Estate released from the lien of this Indenture or disposed of free from any such lien or taken by eminent domain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;all property acquired pursuant to Section 13.7 to maintain and preserve and keep the Trust Estate in good condition, repair and working order and all property acquired or constructed with Trust Moneys paid over upon Company Request under Section 6.7; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;all property, leases, rights-of-way, franchises, licenses, permits or easements acquired in alteration, substitution, surrender or modification of any property, leases, rights-of-way, franchises, licenses, permits or easements disposed of, altered or modified pursuant to Section 5.1 and all monies deposited in connection therewith pursuant to Section 5.1;

and said Supplemental Indenture shall contain a grant, conveyance, transfer or mortgage subjecting the property referred to in the preceding clauses of this paragraph to the lien of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;No such conveyance or transfer of the Trust Estate substantially as an entirety shall have the effect of releasing the Person named as "the Company" in the first paragraph of this instrument or any successor Person which shall have become such in the manner prescribed in this Article from its liability as obligor and maker on any of the Obligations, unless such conveyance or transfer is followed by the complete liquidation of such Person or successor Person and substantially all its assets immediately following such conveyance or transfer are the securities of such successor Person received in such conveyance or transfer.

**Section 11.3&nbsp;&nbsp;&nbsp;&nbsp;Merger of a Subsidiary into the Company.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, a Subsidiary who has issued Qualifying Securities pursuant to a Qualifying Securities Indenture may merge with the Company upon the following terms (other than with respect to a merger of Dakota Coal Company with the Company, which shall be governed by the other sections of this Article XI):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;all property, rights, privileges or franchises that are subject to the lien of the Qualifying Securities Indenture shall be transferred to the Company free and clear of the lien of the Qualifying Securities Indenture and shall be subjected to the lien of this Indenture by a Supplemental Indenture executed and delivered by the Company to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall furnish to the Trustee written evidence from at least two (2) nationally recognized statistical rating organizations then rating the Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that their

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respective ratings of the Outstanding Secured Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that are not subject to Credit Enhancement will not be withdrawn or reduced as a result of any such merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;immediately after giving effect to such merger, no Event of Default hereunder shall exist;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall have delivered to the Trustee Title Evidence indicating that the Company has or, contemporaneously with the merger, will have or, in the case of property of the type described in paragraph C of the definition of "Property Additions," at the time the lien of the Indenture attached thereto, had title to the Property Additions described in the Certificate (except Property Additions that have been Retired), dated within five (5) days prior to the date of filing thereof (except Property Additions that have been Retired, in which case the Title Evidence may be dated as of a date immediately prior to the Retirement), and, to the extent not otherwise covered by such Title Evidence, an Opinion of Counsel (which may be based on opinions of other counsel believed by such counsel to be reliable), dated within five (5) days prior to the date of filing thereof, to the effect that the Indenture is or, upon delivery of the instruments of conveyance, transfer or assignment, if any, specified therein, will be (i) a valid lien upon the Property Additions acquired by the Company pursuant to the merger (except Property Additions that have been Retired), and (ii) with respect to Property Additions described in paragraph C or paragraph (4) of the definition of "Property Additions," a valid lien upon the Company's leasehold interest, in each case subject to no Prior Liens other than Prior Liens permitted by the proviso to Section 5.2D(2); PROVIDED, that such opinion may be limited, with respect to personal property, to such Property Additions in which a lien may be perfected by filing a financing statement under the Uniform Commercial Code.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;the Company shall have delivered to the Trustee an Officer's Certificate and an Opinion of Counsel, each of which shall state that such merger complies with this paragraph A of Section 11.3 and all conditions precedent herein provided for relating to such transaction have been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;to the extent applicable, the requirements of Section 4.10 of this Indenture shall have been satisfied as evidenced by the delivery of the Opinion of Counsel required by Paragraph D of Section 4.10; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;the Subsidiary shall have delivered to the Trustee (i) a certificate as to bondable additions (and summary of certificate as to bondable additions) under the Qualifying Securities Indenture both dated not more than thirty (30) days prior to the effective date of such merger, and (ii) any deposited cash and trust moneys held under the Qualifying Securities Indenture and such deposited cash and trust moneys shall be held by the Trustee as Deposited Cash and/or Trust Moneys under this Indenture, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Upon completion of any such merger pursuant to clauses (1) through (7) of paragraph A above, the Company shall deliver to the Trustee, to the extent applicable, an

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Officer's Certificate specifying (i) the Obligations issued by the Company upon the basis of Designated Qualifying Securities issued by the Subsidiary and (ii) the basis upon which the Designated Qualifying Securities were issued under the Qualifying Securities Indenture and, in the case of Designated Qualifying Securities issued on the basis of certified progress payments, if any of such Securities have been converted to principal amounts under additional obligations deemed to have been authenticated and delivered upon the basis of bondable additions pursuant to the provisions of the Qualifying Securities Indenture. The Obligations previously issued hereunder upon the basis of such Designated Qualifying Securities shall thereafter be deemed for all purposes under this Indenture, to have been issued on the basis upon which the Designated Qualifying Securities related thereto were issued under the Qualifying Securities Indenture and, in the case of Designated Qualifying Securities issued on the basis of certified progress payments that have been converted to principal amounts outstanding under additional obligations deemed to have been authenticated and delivered upon the basis of bondable additions pursuant to the provisions of the Qualifying Securities Indenture, thereafter upon the basis of Bondable Additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Upon the delivery of the items referred to in paragraphs A and B hereof, notwithstanding the other provisions and definitions in this Indenture and without any further action or requirement under this Indenture (i) the balance of bondable additions included in the summary of certificate as to bondable additions delivered to the Trustee pursuant to item A(7) above, shall be added to the balance of Bondable Additions included as item 9 in the Company's most recent Summary of Certificate as to Bondable Additions delivered pursuant to this Indenture and (ii) any property additions of such Subsidiary that had been certified as bondable additions pursuant to the provisions of the Qualifying Securities Indenture shall be deemed for all purposes of this Indenture to be Property Additions and the Cost to the Company of such Property Additions shall be deemed to be the cost to the company under the Qualifying Securities Indenture at the time that such property was certified as a bondable addition.

**ARTICLE XII**

**SUPPLEMENTAL INDENTURES**

**Section 12.1&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indentures Without Consent of Holders.**

Without the consent of the Holders of any Obligations, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more Supplemental Indentures, in form satisfactory to the Trustee, for any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey and confirm unto the Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject additional property to the lien of this Indenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;to add to the conditions, limitations and restrictions on the authorized amount, terms or purposes of issue, authentication and delivery of Obligations or of any

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series of Obligations, as herein set forth, additional conditions, limitations and restrictions thereafter to be observed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;to create any series of Obligations and make such other provisions as provided in Section 3.3; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;to modify or eliminate any of the terms of this Indenture; **PROVIDED, HOWEVER**, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;in the event any such modification or elimination made in such Supplemental Indenture would adversely affect or diminish the rights of the Holders of any Obligations then Outstanding against the Company or its property, it shall expressly be stated in such Supplemental Indenture that any such modifications or eliminations shall become effective only when such Obligations are no longer Outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Trustee may, in its discretion, decline to enter into any such Supplemental Indenture which, in its opinion, may not afford adequate protection to the Trustee when the same becomes operative; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;to evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants of the Company herein and in the Obligations contained; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;to evidence the appointment of any successor trustee or separate trustee or trustees or co-trustee or co-trustees hereunder, and to define the rights, powers, duties and obligations conferred upon any such separate trustee or trustees or co-trustee or co-trustees; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;to add to the covenants of the Company or the Events of Default for the benefit of the Holders of all or any series of Obligations or to surrender any right or power herein conferred upon the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or to make any other provisions, with respect to matters or questions arising under this Indenture, which shall not be inconsistent with the provisions of this Indenture, **PROVIDED** such action shall not adversely affect the interests of the Holders of the Obligations in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted, and to add to this Indenture such other provisions as may be expressly permitted by the TIA, **EXCLUDING, HOWEVER,** the provisions referred to in Section 316(a)(2) of the TIA as in effect at the date as of which

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this instrument was executed or any corresponding provision in any similar Federal statute hereafter enacted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;to add or change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Obligations (i) in bearer form, registrable or not registrable as to principal and with or without interest coupons or (ii) in book-entry form; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;to provide for the assumption by the Company of Qualifying Securities issued and Outstanding under any Qualifying Securities Indenture in accordance with Section 4.10; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;to make any change in the Indenture that, in the reasonable judgment of the Trustee, will not materially and adversely affect the rights of Holders. For purposes of this paragraph of this Section, any Supplemental Indenture will be presumed not to materially and adversely affect the rights of the Holders if (1) this Indenture, as supplemented and amended by such Supplemental Indenture, secures equally and ratably the payment of principal of (and premium, if any) and interest on the Outstanding Secured Obligations which are to remain Outstanding and (2) subject to the last sentence of this paragraph, the Company shall furnish to the Trustee written evidence from at least two (2) nationally recognized statistical rating organizations then rating the Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that their respective ratings of the Outstanding Secured Obligations (or other obligations primarily secured by Outstanding Secured Obligations) that are not subject to Credit Enhancement will not be withdrawn or reduced as a result of the changes in the Indenture effected by such Supplemental Indenture; **PROVIDED, HOWEVER**, that the failure to qualify for the presumption set forth in this sentence shall not create any presumption to the contrary or be used to question the judgment of the Trustee and **PROVIDED, FURTHER,** that the provisions of this paragraph may not be used to amend or modify the items listed in paragraphs A through F of Section 12.2 hereof in any way that is inconsistent with the provisions of such Section 12.2. The Trustee may rely on the written evidence of the nationally recognized statistical rating organizations then rating the Obligations (or other obligations primarily secured by Outstanding Secured Obligations) with respect to credit matters relating to the Company to the extent that it deems such reliance to be appropriate.

**Section 12.2&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indentures With Consent of Holders.**

With the consent of the Holders of not less than a majority in principal amount of the Obligations of all series then Outstanding affected by such Supplemental Indenture, by Act of such Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into a Supplemental Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of the Obligations under this Indenture; **PROVIDED, HOWEVER,** that no such Supplemental Indenture shall, without the consent of the Holder of each Outstanding Obligation affected thereby,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;change the Stated Maturity of the principal of, or any installment of interest on, any Obligation, or reduce the principal amount thereof or the interest thereon or any premium payable upon the redemption thereof, or change any Place of Payment where, or the coin or currency in which, any Obligation, or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;reduce the percentage in principal amount of the Outstanding Obligations, the consent of whose Holders is required for any such Supplemental Indenture, or the consent of whose Holders is required for any waiver provided for in this Indenture of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;modify or alter the provisions of the proviso to the definition of the term "Outstanding" or "Outstanding Secured Obligations"; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;modify any of the provisions of this Section, Section 8.12 or Section 8.17, except to increase any percentage provided thereby or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Obligation affected thereby; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any of the Trust Estate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;modify, in the case of Obligations of any series for which a mandatory sinking fund is provided, any of the provisions of this Indenture in such manner as to affect the rights of the Holders of such Obligations to the benefits of such sinking fund.

The Trustee may in its discretion determine whether or not any Obligation would be affected by any Supplemental Indenture and any such determination shall be conclusive upon the Holder of all Obligations, whether theretofore or thereafter authenticated and delivered hereunder, and the Trustee shall have no liability to any Holder of any Obligation for any such determination made in good faith.

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed Supplemental Indenture, but it shall be sufficient if such Act shall approve the substance thereof.

**Section 12.3&nbsp;&nbsp;&nbsp;&nbsp;Execution of Supplemental Indentures.**

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required in the case of a Supplemental Indenture entered into under Section 12.11, be obligated to, enter into any such Supplemental Indenture which adversely affects the Trustee's own rights, duties or immunities under this Indenture.

**Section 12.4&nbsp;&nbsp;&nbsp;&nbsp;Effect of Supplemental Indentures.**

Upon the execution of any Supplemental Indenture under this Article, this Indenture shall be modified in accordance therewith and such Supplemental Indenture shall form a part of this Indenture for all purposes; and every Holder of Obligations theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

**Section 12.5&nbsp;&nbsp;&nbsp;&nbsp;Conformity with Trust Indenture Act.**

After qualification of this Indenture under the TIA, every Supplemental Indenture executed pursuant to this Article thereafter shall conform to the requirements of the TIA as then in effect.

**Section 12.6&nbsp;&nbsp;&nbsp;&nbsp;Reference in Obligations to Supplemental Indentures.**

Obligations authenticated and delivered after the execution of any Supplemental Indenture pursuant to this Article may, and if required by the Trustee or the Company shall, bear a notation in form approved by the Trustee as to any matter provided for in such Supplemental Indenture. If the Company shall so determine, new Obligations so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such Supplemental Indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Obligations.

**ARTICLE XIII**

**COVENANTS**

**Section 13.1&nbsp;&nbsp;&nbsp;&nbsp;Payment of Principal, Premium and Interest.**

The Company will duly and punctually pay the principal of (and premium, if any) and interest on the Obligations in accordance with the terms of the Obligations and this Indenture.

**Section 13.2&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Office or Agency.**

The Company will maintain an office or agency in each Place of Payment where Obligations may be presented or surrendered for payment, where Obligations entitled to be registered, transferred, exchanged or converted may be presented or surrendered for registration, transfer, exchange or conversion and where notices and demands to or upon the Company in respect of the Obligations and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and of any change in the location, of any such office or agency. If at any time the Company shall fail to maintain such an office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the principal corporate trust office of the Trustee, and the

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Company hereby appoints the Trustee its agent to receive all such presentations, surrenders, notices and demands.

**Section 13.3&nbsp;&nbsp;&nbsp;&nbsp;Money for Obligation Payments to be Held in Trust; Repayment of Unclaimed Money.**

If the Company shall at any time act as its own Paying Agent, it will, on or before each due date of the principal of (and premium, if any) or interest on any of the Obligations, segregate and hold in trust for the benefit of the Holders of such Obligations a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Holders or otherwise disposed of as herein provided, and the Company will promptly notify the Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of the principal of (and premium, if any) or interest on any Obligations, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Holders of such Obligations entitled to such principal (and premium, if any) or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

Moneys so segregated or deposited and held in trust shall not be a part of the Trust Estate and shall not be deemed Trust Moneys but shall constitute a separate trust fund for the benefit of the Persons entitled to such principal, premium or interest. Except in the case of moneys so segregated by the Company when acting as its own Paying Agent, moneys held in trust by the Trustee or any other Paying Agent for the payment of the principal (or premium, if any) or interest on the Obligations need not be segregated from other funds, except to the extent required by law.

The Company will cause each Paying Agent other than the Company and Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;hold all sums held by it for the payment of principal of (and premium, if any) or interest on Obligations in trust for the benefit of the Holders of such Obligations until such sums shall be paid to the Holders or otherwise disposed of as herein provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;give the Trustee notice of any default by the Company (or any other obligor upon the Obligations) in the making of any payment of principal (and premium, if any) or interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any

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Paying Agent to pay, to the Trustee all money held in trust by the Company or such Paying Agent, such money to be held by the Trustee upon the same trusts as those upon which such money was held by the Company or such Paying Agent; and, upon such payment by the Company, the Company shall be discharged from such trust, and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

Any money deposited with the Trustee or any Paying Agent or held by the Company in trust for the payment of the principal of (and premium, if any) or interest on any Obligation and remaining unclaimed for two (2) years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Obligation shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; **PROVIDED, HOWEVER,** that the Trustee or such Paying Agent, before being required to make any such payment to the Company, shall at the expense of the Company cause to be published once, in a newspaper of general circulation in each Place of Payment of such Obligation, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining will be paid to the Company.

**Section 13.4&nbsp;&nbsp;&nbsp;&nbsp;Ownership of Property.**

At the time of the execution and delivery of this instrument, the Company owns and holds the real property specifically described in Subdivision A of Granting Clause First in fee (or such other estate as may be specified therein) and owns and holds the other interests in real property specifically described in Granting Clause First, subject to Permitted Exceptions, and such property is subject to no Prior Liens (other than Prior Liens permitted by Section 13.6), and the Company has full power and lawful authority to grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm such real property and interests in real property in the manner and form aforesaid.

The Company lawfully owns and is possessed of the personal property described in Granting Clauses First and Second (other than property of the Company acquired after the time of the execution and delivery of this instrument), subject to Permitted Exceptions and subject to no Prior Liens (other than Prior Liens permitted by Section 13.6), and has full power and lawful authority to grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over, and confirm (and create a security interest in) such personal property in the manner and form aforesaid.

The Company hereby does and will forever warrant and defend its ownership, as set forth above, of the property and interests in property described in Granting Clauses First and Second against all claims and demands of all persons whomsoever that are inconsistent with or otherwise contest such ownership.

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**Section 13.5&nbsp;&nbsp;&nbsp;&nbsp;After-Acquired Property; Further Assurances; Recording.**

All property of every kind, other than Excepted Property and Excludable Property, acquired by the Company after January 1, 1998, shall, immediately upon the acquisition thereof by the Company, and without any further mortgage, conveyance or assignment, become subject to the lien of this Indenture; **SUBJECT, HOWEVER,** to the exceptions permitted by Section 11.2 B. Nevertheless, the Company will do, execute, acknowledge and deliver all and every such further acts, conveyances, mortgages, financing statements and assurances as the Trustee shall require for accomplishing the purposes of this Indenture.

The Company will cause this Indenture and all Supplemental Indentures and other instruments of further assurance, including all financing statements and continuation statements covering security interests in personal property, and all mortgages securing purchase money obligations delivered to the Trustee or to the trustee, mortgagee or other holder of a Prior Lien under Section 5.2 to be promptly recorded, registered and filed, and at all times to be kept recorded, registered and filed, and will execute and file such financing statements or cause to be issued and filed such continuation statements, all in such manner and in such places as may be required by law fully to preserve and protect the rights of the Holders and the Trustee hereunder to all property comprising the Trust Estate. Furthermore, the Company will use its best efforts to cause all contracts and contract rights of the type and duration set forth in Subdivision C of Granting Clause First and acquired by the Company after January 1, 1998 to become subject to the lien of this Indenture. The Company will furnish to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;within thirty (30) days after January 1 in each year beginning with the year 1999, an Opinion of Counsel, dated as of such date, either stating that, in the opinion of such Counsel, such action has been taken with respect to the recording, registering, filing, re-recording, re-registering and re-filing of this instrument and of all Supplemental Indentures, financing statements, continuation statements or other instruments of further assurance as is necessary to maintain the lien of this Indenture (including the lien on any property acquired by the Company after the execution and delivery of this instrument and owned by the Company at the end of the preceding calendar year) and stating that all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the rights of the Holders and the Trustee

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hereunder, or stating that, in the opinion of such Counsel, no such action is necessary to maintain such lien.

Upon the cancellation and discharge of any Prior Lien, the Company will cause all cash, obligations and securities then held by the trustee, mortgagor or other holder of such Prior Lien, which were received by such trustee, mortgagee or other holder on account of the release or the taking by eminent domain or the purchase by a public authority or the sale by virtue of a designation or order of a public authority or any other disposition of, or insurance on, the Trust Estate, or any part thereof (including all proceeds of or substitutions for any thereof), to be paid to or deposited and pledged with the Trustee, such cash to be held and paid over or applied by the Trustee as provided in Article VI.

**Section 13.6&nbsp;&nbsp;&nbsp;&nbsp;Limitations on Liens; Payment of Taxes.**

The Company will not create or incur or suffer or permit to be created or incurred or to exist any mortgage, lien, charge or encumbrance on or pledge of any of the Trust Estate, prior to or upon a parity with the lien of this Indenture except Permitted Exceptions and except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Company may create, incur or suffer to exist purchase money mortgages or other purchase money liens upon any real property purchased by the Company or acquire real property subject to mortgages and liens existing thereon at the date of acquisition, or acquire or agree to acquire and own personal property subject to or upon chattel mortgages, conditional sales agreements or other title retention agreements; **PROVIDED** that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the principal amount of the indebtedness secured by each such mortgage, lien or agreement shall not exceed 80% of the Cost or Fair Value to the Company at the time of the acquisition thereof by the Company, whichever is less, as evidenced by an Officers' Certificate, of the property subject thereto, **PROVIDED** that if the property subject to such mortgage, lien or agreement is not necessary to the operations of the remaining portion of the System, the principal amount thereby secured may not exceed 100% of such Cost or Fair Value to the Company, whichever is less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal amount of all indebtedness of the Company at the time outstanding secured by such mortgages, liens and agreements (including extensions, renewals and replacements thereof, as provided by the paragraph B below, and also the indebtedness then being incurred) shall not exceed 15% of the aggregate principal amount of all Obligations then Outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;each such mortgage, lien or agreement shall apply only to the property originally subject thereto, fixed improvements erected on any such real property or affixed to such personal property or equipment used in connection with such real or personal property, any contracts, licenses, permits and other property related solely to such real or personal property, and the proceeds thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;The Company may modify, extend, renew or replace any mortgage, lien or agreement permitted by paragraph A above upon the same property theretofore subject thereto, or modify, replace, renew or extend the indebtedness secured thereby, **PROVIDED** that in any such case the principal amount of such indebtedness so modified, replaced, extended or renewed shall not be increased above the limits described in paragraph A above.

The Company will pay or cause to be paid as they become due and payable all taxes, assessments and other governmental charges lawfully levied or assessed or imposed upon the Trust Estate or any part thereof or upon any income therefrom, and also (to the extent that such payment will not be contrary to any applicable laws) all taxes, assessments and other governmental charges lawfully levied, assessed or imposed upon the lien or interest of the Trustee or of the Holders in the Trust Estate, so that (to the extent aforesaid) the lien of this Indenture shall at all times be wholly preserved at the cost of the Company and without expense to the Trustee or the Holders; **PROVIDED, HOWEVER**, that the Company shall not be required to pay and discharge or cause to be paid and discharged any such tax, assessment or governmental charge to the extent that the amount, applicability or validity thereof shall currently be contested in good faith by appropriate proceedings and the Company shall have established and shall maintain adequate reserves on its books for the payment of the same.

**Section 13.7&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Properties.**

The Company will cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; **PROVIDED, HOWEVER,** that nothing in this Section shall prevent the Company from discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business and not disadvantageous in any material respect to the Holders.

The Company will promptly classify, and record on its books, as retired, all property that has permanently ceased to be used or useful in the business of the Company.

**Section 13.8&nbsp;&nbsp;&nbsp;&nbsp;To Insure.**

The Company will at all times keep all its property of an insurable nature and of the character usually insured by companies operating similar properties, insured in amounts customarily carried, and against loss or damage from such causes as are customarily insured against, by similar companies.

All such insurance shall be effected with responsible insurance carriers. All policies or other contracts for such insurance upon any part of the Trust Estate shall provide that the proceeds of such insurance (except in the case of any particular casualty resulting in damage or destruction not exceeding $2,000,000 in the aggregate) shall be payable, subject to the

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requirements of any Prior Lien, to the Trustee as its interest may appear (by means of a standard mortgagee clause or other similar clause acceptable to the Trustee, without contribution). Each policy or other contract for such insurance, or such mortgagee clause, shall contain, to the extent commercially reasonable, an agreement by the insurer that, notwithstanding any right of cancellation reserved to such insurer, such policy or contract shall continue in force for the benefit of the Trustee for at least thirty (30) days after written notice to the Trustee of cancellation. As soon as practicable after the execution of this Indenture, and within ninety (90) days after the close of each calendar year thereafter, and at any time upon the request of the Trustee, the Company will file with the Trustee an Officers' Certificate containing a detailed list of the insurance in force upon the Trust Estate on a date therein specified (which date shall be within thirty (30) days of the filing of such Certificate), including the names of the insurers with which the policies and other contracts of insurance on the Trust Estate are carried, the numbers, amounts and expiration dates of such policies and other contracts and the property and hazards covered thereby, and stating that the insurance so listed complies with this Section, and the Trustee may conclusively rely on such Certificate.

Any appraisement or adjustment or any loss or damage of or to any part of the Trust Estate and any settlement in respect thereof which may be agreed upon between the Company and any insurer, as evidenced by an Officers' Certificate, shall be accepted by the Trustee.

All proceeds of insurance received by the Trustee shall be held and paid over or applied by the Trustee as provided in Article VI.

All proceeds of any insurance on any part of the Trust Estate not payable to the Trustee or the trustee, mortgagee or other holder of a Prior Lien shall be applied by the Company to the repair, rebuilding or replacement of the property destroyed or damaged or shall be deposited with the Trustee to be held and paid over or applied by it as provided in Article VI.

**Section 13.9&nbsp;&nbsp;&nbsp;&nbsp;Corporate Existence.**

Subject to Article XI, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; **PROVIDED, HOWEVER,** that the Company shall not be required to preserve any right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders.

**Section 13.10&nbsp;&nbsp;&nbsp;&nbsp;To Keep Books; Inspection by Trustee.**

The Company will keep proper books of record and account, in which full and correct entries shall be made of all dealings or transactions of or in relation to the Obligations and the plant, properties, business and affairs of the Company in accordance with Accounting Requirements. The Company will, upon reasonable written notice by the Trustee to the Company and at the expense of the Company, permit the Trustee by its representatives to inspect the plants and properties, books of account, records, reports and other papers of the Company, and to take copies and extracts therefrom, and will afford and procure a reasonable opportunity

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to make any such inspection, and the Company will furnish to the Trustee any and all information as the Trustee may reasonably request, with respect to the performance by the Company of its covenants in this Indenture; **PROVIDED, HOWEVER,** the Company shall not be required to make available any information supplied to it by a third party which is subject to a confidentiality agreement with such third party except to the extent allowed by, and subject to the terms of such confidentiality agreement.

**Section 13.11&nbsp;&nbsp;&nbsp;&nbsp;Use of Trust Moneys and Advances by Trustee.**

If the Company shall fail to perform any of its covenants in this Indenture, the Trustee may, at any time and from time to time after notice to the Company, use and apply any Trust Moneys held by it under Article VI, or make advances, to effect performance of any such covenant on behalf of the Company; and all moneys so used or advanced by the Trustee, together with interest at the rate of 10% per annum, shall be repaid by the Company upon demand and such advances shall be secured under this Indenture prior to the Obligations. For the repayment of all such advances the Trustee shall have the right to use and apply any Trust Moneys at any time held by it under Article VI but no such use of Trust Moneys or advance shall relieve the Company from any default hereunder. Nothing contained herein shall be deemed to obligate the Trustee to advance its own monies for any purpose.

**Section 13.12&nbsp;&nbsp;&nbsp;&nbsp;Statement as to Compliance.**

The Company will deliver to the Trustee, within one hundred and twenty (120) days after the end of each calendar year, a written statement signed by the principal executive officer and by the principal financial officer or principal accounting officer of the Company stating that a review of the Company's activities has been made under their supervision and that the Company has fulfilled its obligations hereunder in all material respects.

Promptly after any Officer of the Company may reasonably be deemed to have knowledge of a default hereunder, the Company will deliver to the Trustee a written notice specifying the nature and period of existence thereof and the action the Company is taking and proposes to take with respect thereto.

**Section 13.13&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Certain Covenants.**

The Company may omit in any particular instance to comply with any covenant or condition set forth in this Article except Sections 13.1, 13.2, 13.3, 13.4, 13.5, 13.9, 13.10, 13.11 and the first sentence of Section 13.14 if before or after the time for such compliance the Holders of at least a majority in principal amount of all Obligations then Outstanding, shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect.

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**Section 13.14&nbsp;&nbsp;&nbsp;&nbsp;Rate Covenant.**

The Company shall establish and collect rates, rents, charges, fees and other compensation (collectively, "Rates") for the use or the sale of the output, capacity or service of the System that, together with other moneys available to the Company, produce moneys sufficient to enable the Company to comply with all its covenants under this Indenture. Subject to any necessary regulatory approval or determination, including the approval or determination of RUS, if required, the Company also shall establish and collect Rates for the use or the sale of output, capacity or service of the System that, together with other revenues available to the Company, are reasonably expected to yield Margins for Interest for each fiscal year of the Company equal to at least 1.10 times Interest Charges for such period. Promptly upon any material change in the circumstances which were contemplated at the time such Rates were most recently reviewed, but not less frequently than once every twelve (12) months, the Company shall review the Rates so established and shall promptly establish or revise such Rates as necessary to comply with the foregoing requirements, subject in the case of the foregoing Margins for Interest requirement to any necessary regulatory approval or determination, including that of RUS, if required. The Company will not furnish or supply or cause to be furnished or supplied any use, output, capacity or service of the System with respect to which a charge is regularly or customarily made, free of charge to any Person, and the Company will use commercially reasonable efforts to enforce the payment of any and all accounts owing to the Company with respect to the use, output, capacity or service of the System.

**Section 13.15&nbsp;&nbsp;&nbsp;&nbsp;Distributions to Members.**

The Company shall not directly or indirectly declare or pay any dividend or make any payments of, distributions of, or retirements of patronage capital to its members (each a **"Distribution"**) if, at the time thereof or after giving effect thereto, (i) an Event of Default shall exist, or (ii) the Company's aggregate margins and equities (determined in accordance with Accounting Requirements) as of the end of the Company's most recent fiscal quarter would be less than 20% of the Company's total long-term debt and equities (determined in accordance with Accounting Requirements) at such time. For purposes of this Section, determination of aggregate margins and equities and total long-term debt and equities shall not include any amount on account of earnings retained in any Subsidiary or Affiliate of the Company and any such determination of total long-term debt and equities shall exclude the debt of any Subsidiary or Affiliate.

**ARTICLE XIV**

**REDEMPTION OF OBLIGATIONS; SINKING FUNDS**

**Section 14.1&nbsp;&nbsp;&nbsp;&nbsp;Applicability of Sections 14.1 Through 14.7.**

Obligations which by their express terms are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise provided with respect to the Obligations of any particular series by the provisions of a Supplemental Indenture creating such series) in accordance with Sections 14.1 through 14.7, inclusive.

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**Section 14.2&nbsp;&nbsp;&nbsp;&nbsp;Election to Redeem; Notice to Trustee.**

The election of the Company to redeem any Obligations shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of less than all the Outstanding Obligations of any series, the Company shall, at least sixty (60) days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee) notify the Trustee of such Redemption Date and of the principal amount of Obligations of such series to be redeemed and of the numbers of any Outstanding Obligations of such series then owned by the Company.

With respect to Additional Obligations issued after the date of this Amended and Restated Indenture, except as otherwise provided in a Supplemental Indenture authorizing a particular series of Obligations, if at the time the Company provides notice of redemption to the Trustee pursuant to this Section, the Trustee or a Paying Agent does not have on deposit (which, if the Company is the Paying Agent, shall be segregated and held in trust as provided in Section 13.3) sufficient available funds to pay the Redemption Price for the Obligations so called for redemption, then the notice of redemption shall be conditional and revocable; that is, the Company is under no obligation to deposit or provide, or cause to be deposited or provided, to the Trustee funds to effect such redemption and, if it does not elect to do so by 2:00 p.m., New York City time, on the Redemption Date, then the Obligations called for redemption shall not be redeemed pursuant to the above-mentioned notice of redemption or the notice of redemption given to the Holders pursuant to Section 14.4.

**Section 14.3&nbsp;&nbsp;&nbsp;&nbsp;Selection by Trustee of Obligations to be Redeemed.**

Unless otherwise provided in a Supplemental Indenture authorizing a particular series of Obligations, if less than all the Outstanding Obligations of any series or maturity within a series are to be redeemed, the particular Obligations to be redeemed shall be selected not more than sixty (60) days prior to the Redemption Date by the Trustee from the Outstanding Obligations of such series or maturity within a series which have not previously been called for redemption by prorating, as nearly as may be, the principal amount of Obligations of such series or maturity within a series to be redeemed among the Holders of such Obligations in proportion to the aggregate principal amount of such Obligations registered in their respective names; **EXCEPT** that, if there shall have been previously filed with the Trustee an Act of all the Holders of such Obligations satisfactory to the Trustee specifying the method of selecting the Obligations to be redeemed, such selection shall be made by the Trustee in accordance with the terms of such Act.

In any proration pursuant to this Section, the Trustee shall make such adjustments, reallocations and eliminations as it shall deem proper to the end that the principal amount of Obligations of such series or maturity within a series so prorated shall be equal to the greater of $1,000 and the smallest authorized denomination of the Obligations of such series, or a multiple thereof, by increasing or decreasing or eliminating the amount which would be allocable to any Holder on the basis of exact proportion by an amount not exceeding such prorated minimum. The Trustee in its discretion may determine the particular Obligations (if there is more than one) registered in the name of any Holder which are to be redeemed, in whole or in part.

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The Trustee shall promptly notify the Company in writing of the Obligations selected for redemption and, in the case of any Obligation selected for partial redemption, the principal amount thereof to be redeemed.

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Obligations shall relate, in the case of any Obligation redeemed or to be redeemed only in part, to the portion of the principal of such Obligation which has been or is to be redeemed.

**Section 14.4&nbsp;&nbsp;&nbsp;&nbsp;Notice of Redemption.**

Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date, to each Holder of Obligations of such series to be redeemed, at his address appearing in the Obligation Register.

All notices of redemption-shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the CUSIP number (if any) of all Obligations to be redeemed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the Redemption Date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;the Redemption Price,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;the principal amount of Obligations of each series to be redeemed, and, if less than all Outstanding Obligations of a series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Obligations of such series to be redeemed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;that on the Redemption Date the Redemption Price of each of the Obligations to be redeemed will become due and payable and that the interest thereon shall cease to accrue from and after said Redemption Date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;the place or places where the Obligations of each series to be redeemed are to be surrendered for payment of the Redemption Price, which shall be the office or agency of the Company in each Place of Payment for such series,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;if it be the case, that such Obligations are to be redeemed by the application of certain specified Trust Moneys, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;if it be the case, that such redemption is to satisfy sinking fund requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;if it be the case that the notice of redemption for such Obligations is conditional and revocable, (i) that the redemption of such Obligations is conditional upon the Company depositing or providing, or causing to be deposited or provided, to the Trustee or the Paying Agent, by 2:00 p.m. New York City time on the redemption date, funds (which, if the Company is the Paying Agent, shall be segregated and held in trust

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pursuant to Section 13.3) sufficient to effect such redemption, (ii) that if such funds are not so provided, such Obligations will not be redeemed on such date and the notice of the redemption of such Obligations will be of no force or effect, (iii) that the Company is under no obligation to deposit or provide, or cause to be deposited or provided, such funds, and (iv) that neither the Company nor the Trustee shall be liable to any Holder if the Company does not deposit or provide, or cause to be deposited or provided, funds sufficient to effect such redemption with the result that such Obligations are not redeemed on the Redemption Date specified in such notice, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;if it be the case that the notice of redemption is unconditional and irrevocable, (i) that the Trustee or the Paying Agent has on deposit sufficient funds to effect such redemption (which, if the Company is acting as its own Paying Agent, shall be segregated and held in trust as provided in Section 13.3), and (ii) that such Obligations shall become due and payable at the Redemption Price on the Redemption Date specified in the notice.

Notice of redemption of Obligations to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense of the Company.

**Section 14.5&nbsp;&nbsp;&nbsp;&nbsp;Deposit of Redemption Price.**

Neither the Company nor the Trustee shall be liable to any Holder if the Company does not deposit or provide, or cause to be deposited or provided, funds sufficient to effect redemption of any Obligations with the result that such Obligations are not redeemed on the Redemption Date specified in such notices. If such funds shall not have been so received, the Trustee shall give notice to the Holders, in the manner in which the notice of redemption was given to the Holders, that such funds were not so received.

If, at the time notice of redemption is delivered to the Holders, the Trustee or Paying Agent has on deposit (which, if the Company is acting as its own Paying Agent, is segregated and held in trust as provided in Section 13.3) an amount of money sufficient to pay the Redemption Price of all the Obligations which are to be redeemed on the Redemption Date, then the notice of redemption is unconditional and irrevocable and the Obligations specified in the notice of redemption shall become due and payable at the specified Redemption Price on the specified Redemption Date. Such money shall be held in trust for the benefit of the Persons entitled to such Redemption Price and shall not be deemed to be part of the Trust Estate or Trust Moneys.

Subject to the requirements of any Supplemental Indenture, the Company may determine what sinking fund requirements (if any) to apply redeemed Obligations against.

**Section 14.6&nbsp;&nbsp;&nbsp;&nbsp;Obligations Payable on Redemption Date.**

Notice of redemption having been given as aforesaid, and, in the case of a conditional and revocable notice, upon the deposit of sufficient funds with the Trustee or the Paying Agent, the Obligations so to be redeemed shall, on the Redemption Date, become due and payable at the

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Redemption Price therein specified and from and after such date (unless the Company shall default in the payment of the Redemption Price) such Obligations shall cease to bear interest. Upon surrender of any such Obligation for redemption in accordance with said notice, such Obligation shall be paid by the Company at the Redemption Price. Installments of interest with a Stated Maturity on or prior to the Redemption Date shall be payable to the Holders of the Obligations registered as such on the relevant Record Dates according to the terms of such Obligations and the provisions of Section 3.9.

If any Obligation irrevocably and unconditionally called for redemption shall not be so paid upon surrender thereof for redemption or as otherwise provided under Section 14.7 in lieu of surrender, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Obligation.

**Section 14.7&nbsp;&nbsp;&nbsp;&nbsp;Obligations Redeemed in Part.**

Unless otherwise provided in any Supplemental Indenture, any Obligation which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Obligation, without service charge, a new Obligation or Obligations of the same series and maturity of any authorized denomination or denominations as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Obligation so surrendered.

In lieu of surrender under the preceding paragraph, payment of the Redemption Price of a portion of any Obligation held in the Book-Entry System may be made directly to the Holder thereof without surrender thereof if there shall have been filed with the Trustee either (i) a written agreement between the Company and such Holder and, if such Holder is a nominee, the Person for whom such Holder is a nominee, that payment shall be so made and that such Holder will not sell, transfer or otherwise dispose of such Obligation unless prior to delivery thereof such Holder shall present such Obligation to the Trustee for notation thereon of the portion of the principal thereof redeemed or shall surrender such Obligation in exchange for a new Obligation or Obligations for the unredeemed balance of the principal of the surrendered Obligation or (ii) a certificate of the Company that such an agreement has been entered into and remains in force.

**Section 14.8&nbsp;&nbsp;&nbsp;&nbsp;Applicability of Sections 14.8 Through 14.9.**

The provisions of Sections 14.8 through 14.9, inclusive, shall be applicable to any sinking fund for the retirement of Obligations except as otherwise specified as contemplated by Section 3.3 for Obligations of such series.

The minimum amount of any sinking fund payment provided for by the terms of Obligations of any series is herein referred to as a **"mandatory sinking fund payment,"** and any payment in excess of such minimum amount provided for by the terms of Obligations of any series is herein referred to as an **"optional sinking fund payment."** If provided for by the terms

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of Obligations of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 14.9. Each sinking fund payment shall be applied to the redemption of Obligations of any series as provided for by the terms of Obligations of such series.

**Section 14.9&nbsp;&nbsp;&nbsp;&nbsp;Satisfaction of Sinking Fund Payments with Obligations.**

The Company (1) may deliver Outstanding Obligations of a series (other than any previously called for redemption) and (2) may apply, as a credit, Obligations of a series which have been redeemed either at the election of the Company pursuant to the terms of such Obligations or through the application of permitted optional sinking fund payments pursuant to the terms of such Obligations, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Obligations of such series required to be made pursuant to the terms of such Obligations as provided for by the terms of such series; **PROVIDED** that such Obligations have not been previously so credited. Such Obligations shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Obligations for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

**Section 14.10&nbsp;&nbsp;&nbsp;&nbsp;Redemption of Obligations for Sinking Fund.**

Not less than sixty (60) days prior to each sinking fund payment date for any series of Obligations, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Obligations of that series pursuant to Section 14.9 and will also deliver to the Trustee any Obligations to be so delivered. Not less than thirty (30) days before each such sinking fund payment date the Trustee shall select the Obligations to be redeemed upon such sinking fund payment date in the manner specified in Section 14.3 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 14.4. Such notice having been duly given, the redemption of such Obligations shall be made upon the terms and in the manner stated in Sections 14.6 and 14.7.

**ARTICLE XV**

**CONTROL OF PLEDGED SECURITIES**

**Section 15.1&nbsp;&nbsp;&nbsp;&nbsp;Pledged Securities Deposited with Trustee.**

Any Stock and certificates representing the same and any obligations and indebtedness and evidences thereof and any other securities which are at the time deposited with the Trustee or required to be deposited and pledged with the Trustee, except Undesignated Qualifying Securities and Designated Qualifying Securities, are herein sometimes collectively called the **"Pledged Securities."**

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As and when any Pledged Securities shall come into the possession of the Company or under its control, the Company shall forthwith deposit and pledge the same with the Trustee, together with such proper instruments of assignment and transfer as the Trustee may reasonably require, which shall include express authority to the Trustee to vote any Stock included therein to the extent herein provided or permitted and to cause such authority to be recorded in the entry of transfer of such Stock on the books of the entity issuing the same.

The Trustee shall not be obliged at any time to accept any Pledged Securities or to cause or to permit a transfer thereof to be made to it, if, in the opinion of the Trustee, such action would subject it to the risk of any liability or expense, unless the Trustee shall be indemnified to its satisfaction for so doing.

The Trustee shall not be under any duty to examine into or pass upon the validity or genuineness of any of the Pledged Securities. The Trustee shall be entitled to assume that any Pledged Securities are genuine and valid and what they purport to be and that any endorsements or assignments thereof are genuine and valid.

**Section 15.2&nbsp;&nbsp;&nbsp;&nbsp;Form of Holding.**

The Trustee may hold any Pledged Securities in bearer form or in the name of the Trustee or any nominee or nominees of the Trustee or (unless an Event of Default exists or the Holders of a majority in principal amount of the Obligations then Outstanding otherwise direct) in the name of the Company or any nominee or nominees of the Company, endorsed or assigned in blank or in favor of the Trustee. The Trustee may deliver any of the Pledged Securities to the Company for a period of not more than twenty-one (21) days or to the issuer thereof for the purpose of making exchanges or registrations of transfers or for such other purposes in furtherance of this trust as the Trustee may deem advisable.

**Section 15.3&nbsp;&nbsp;&nbsp;&nbsp;Right of Trustee to Preserve Issuers; Directors' Qualifying Shares.**

The Trustee may do whatever in its judgment may be necessary for the purpose of preserving or extending the legal existence of any entity whose Stock is included in the Pledged Securities, but (subject to Section 9.1) it shall be under no duty to take any action in respect thereof. Upon Company Request stating that the Company has no shares for the purpose under its control other than shares held hereunder, the Trustee shall transfer or permit the Company to transfer as many shares of stock as may be necessary to qualify the requisite number of persons to act as directors of or in any other official relation to the corporation issuing such shares; **PROVIDED, HOWEVER,** that no such transfer of the stock of any Pledged Subsidiary shall be made which would change the status of the issuing corporation as a Pledged Subsidiary. In every such case the Trustee may make such arrangements as it shall deem necessary for the protection of the trust hereunder in respect of the shares so transferred. While such shares remain so transferred they shall not be deemed to be Pledged Securities, but when such shares are no longer needed for such qualification purposes they shall immediately be redeposited and repledged and thereupon again become Pledged Securities.

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**Section 15.4&nbsp;&nbsp;&nbsp;&nbsp;Income Before Event of Default.**

Unless an Event of Default exists, the Company from time to time shall be entitled to receive and collect for its own use all interest paid on any Pledged Security (other than any such interest which shall have been collected or paid out of the proceeds of any sale or condemnation or expropriation of any property covered by a mortgage or other lien securing such Pledged Security) and all dividends on any Pledged Security which are paid in cash out of the net profits or earned surplus of the issuing corporation accrued since the date of deposit and pledge of such Pledged Security with the Trustee hereunder. The Trustee from time to time shall execute and deliver upon Company Request suitable orders in favor of the Company or its nominee for the payment of such interest and cash dividends and shall deliver upon Company Request any and all coupons held by the Trustee representing such interest as the date of the maturity thereof approaches. The Trustee shall likewise pay over all sums which are received or collected by it as such interest or cash dividends. Until actually paid, all rights to such interest or cash dividends shall remain subject to the lien hereof.

The Trustee shall be entitled (subject to Section 9.1) to assume that any cash dividend received by it on any Pledged Security is paid out of the net profits or earned surplus of the issuing corporation accrued since the date of deposit and pledge of such Pledged Security with the Trustee hereunder and that any interest has not been collected or paid out of the proceeds of any such sale or condemnation or expropriation, unless and until notified in writing to the contrary by any Holder or the Company or the person making such payment, in which event the Trustee may (subject to Section 9.1) accept an Officers' Certificate stating any pertinent facts in connection with any such dividend or interest as conclusive evidence of such facts.

**Section 15.5&nbsp;&nbsp;&nbsp;&nbsp;Income After Event of Default.**

If an Event of Default exists, in addition to the other remedies herein provided, the Trustee shall collect and receive all interest and dividends on Pledged Securities and shall cancel and revoke all interest and dividend orders in favor of the Company or its nominee. All money so received by the Trustee which, in the absence of an Event of Default, would be receivable by the Company under Section 15.4, shall be applied in accordance with Section 8.7.

In every such case, after all Events of Default have been cured, the right of the Company to receive and collect interest and dividends, and the duty of the Trustee with respect thereto, under Section 15.4, shall revive and continue; and the Trustee shall pay over upon Company Request any such interest or dividends received by it which, in the absence of an Event of Default, would be receivable by the Company under Section 15.4 and then remain unexpended in its hands.

**Section 15.6&nbsp;&nbsp;&nbsp;&nbsp;Principal and Other Payments.**

In case any sum shall be paid on account of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the principal of (or premium, if any, on) any Pledged Security, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;any dividend upon any Pledged Security other than a cash dividend paid out of the net profits or earned surplus of the issuing corporation accrued since the date of deposit and pledge of such Pledged Security with the Trustee hereunder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;the liquidation or dissolution or reduction of capital of the corporation issuing any Pledged Security, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;interest on any Pledged Security which shall have been collected or paid out of the proceeds of any sale or condemnation or expropriation of any property covered by a mortgage or other lien securing such Pledged Security,

or in case any other distribution (including stock dividends but excluding any dividend excluded by Subsection B) shall be made in respect of any Pledged Security, such sum or other distribution shall be paid or delivered to the Trustee to be held as a part of the Trust Estate.

In case the Company or the Trustee shall receive rights to subscribe to additional securities in respect of any Pledged Securities, the Company may exercise or (subject to Section 15.8) sell such rights in its discretion, **PROVIDED, HOWEVER,** that (i) all securities acquired by exercise of such rights shall forthwith be deposited and pledged with the Trustee hereunder, (ii) all net proceeds from the sale of any such rights shall forthwith be paid to the Trustee, (iii) if the Company shall not have elected to exercise or sell such rights by the fifth (5th) business day prior to the expiration thereof, it shall give the Trustee notice thereof and the Trustee shall forthwith sell or, in the event that Section 15.8 is applicable, may exercise such rights in such manner as in its uncontrolled discretion it may deem advisable and (iv) if an Event of Default exists, the Trustee shall be entitled at any time in its discretion to exercise or sell such rights.

**Section 15.7&nbsp;&nbsp;&nbsp;&nbsp;Voting.**

Unless an Event of Default exists, the Company shall have the right to vote and give consents with respect to all Pledged Securities and from time to time, in case any Pledged Securities have been transferred into the name of the Trustee or its nominee or nominees, the Trustee, upon Company Request, shall execute and deliver or cause to be executed and delivered to the Company or its nominee appropriate powers of attorney or proxies to vote such Pledged Securities or to execute a waiver or consent with respect thereto, for such purpose or purposes as may be specified in such request; **PROVIDED, HOWEVER,** that such right of the Company shall not include (and every such power of attorney or proxy shall be limited, either generally or specifically, to provide in effect that the powers thereby conferred do not include) any power to vote for or to authorize or consent to any act or thing inconsistent with or in avoidance of the Company's obligations under this Indenture.

If an Event of Default exists, the Trustee may in its discretion, and if requested by the Holders of a majority in principal amount of the Obligations then Outstanding shall, revoke all such powers of attorney and proxies and the Trustee may in its discretion vote and exercise, or cause the nominee or nominees of the Trustee to vote and exercise, all the powers of an owner with respect to any Pledged Securities. In so voting and exercising the powers of an owner with respect to any Pledged Securities, the Trustee shall not be required to attend any meeting of

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security holders, but the Trustee may vote or act by power of attorney or proxy and such power of attorney or proxy may be granted to any person selected by the Trustee, including an Officer of the Company. The Trustee may so vote and exercise the powers of an owner with respect to any Pledged Securities for any purpose or purposes which the Trustee, in its discretion, shall deem advisable and in the interest of the Holders, whether or not such action may involve a change in the character of any Pledged Security or in the corporate identity or business of the issuer thereof or in the proportionate interest or voting power represented by such security. In every such case, after all Events of Default have been cured, the right of the Company to vote and give consents with respect to the Pledged Securities, and the duty of the Trustee to execute powers of attorney and proxies as hereinabove provided, shall revive and continue.

**Section 15.8&nbsp;&nbsp;&nbsp;&nbsp;Limitations on Issue of Voting Stock or Grant of Membership Interests of Pledged Subsidiaries.**

The Company will not permit any Pledged Subsidiary to issue any additional shares of Voting Stock, other than stock dividends, unless simultaneously there shall be made effective provision that certificates for all such additional Voting Stock, forthwith upon the issue thereof, will be deposited and pledged with the Trustee; **PROVIDED, HOWEVER,** that, if the, holders of any stock of such Pledged Subsidiary not then included in the Pledged Securities shall have a preemptive right to subscribe for and purchase their pro rata share of such additional shares of Voting Stock, then such part of such additional shares as shall be actually subscribed for and purchased by such stockholders pursuant to such preemptive right may be issued to them and need not be deposited and pledged with the Trustee. The Company will not permit any Pledged Subsidiary to grant any additional membership interests, unless simultaneously there shall be made effective provision that certificates evidencing all such additional membership interests, forthwith upon the granting thereof, will be deposited and pledged with the Trustee.

**Section 15.9&nbsp;&nbsp;&nbsp;&nbsp;Increase, Reduction or Reclassification of Stock; Dissolution; Consolidation, etc.**

Except as otherwise provided in Article XIII or this Article, the capital stock of any corporation whose shares are included in the Pledged Securities may be increased (subject to Section 15.8) or reduced or reclassified (other than a reclassification resulting in the creation of a preferred stock of any Pledged Subsidiary or a reclassification reducing the proportionate voting power of any Pledged Securities in any corporation) and any such corporation may be dissolved; **PROVIDED, HOWEVER,** that effective provision shall (to the extent the Company has any control of such matters) be made that, in the case of any such increase, whether by stock dividend or otherwise (subject to Section 15.8), certificates for such part of each class of additional stock as shall be proportionate to the part of the entire issued and outstanding capital stock of such class of such corporation previously deposited and pledged with the Trustee and, in the case of any such reclassification, any distribution in connection therewith shall be deposited and pledged with the Trustee and that, in the case of any such reduction, there shall continue to be deposited and pledged with the Trustee certificates for not less than the same proportion of such class of capital stock deposited and pledged with the Trustee before such reduction. The Trustee may make any exchange, substitution, cancellation or surrender of certificates of stock

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held by it for the purpose of such increase, reduction, reclassification or dissolution. Prior to any such cancellation or surrender of stock certificates for the purpose of dissolution, the share, if any, of all the assets of the corporation so dissolved which is distributable in respect of the Pledged Securities (excluding Excepted Property) shall be subjected to the lien of this Indenture. The Trustee shall be entitled to receive and shall (subject to Section 9.1) be fully protected in relying upon an Officers' Certificate as to the amount of the share of the assets of any corporation dissolved as aforesaid which is so distributable to the holder of such Pledged Securities.

The deposit and pledge with the Trustee at any time of any shares of stock of any corporation shall not prevent any one or more of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;subject to the provisions of Articles XI and XII, the merger or consolidation of any Pledged Subsidiary into or with the Company or the conveyance or transfer of all or any of the assets of any Pledged Subsidiary to the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the merger or consolidation of any corporation, any of whose shares may be Pledged Securities, into or with any other corporation other than the Company, or the conveyance or transfer of all or any of the assets of any corporation, any of whose shares may be Pledged Securities, to any other corporation other than the Company; **PROVIDED, HOWEVER**, that no such action involving a Pledged Subsidiary shall be taken unless the corporation resulting from such consolidation, or into which such merger shall be made, or which shall have acquired the assets of a Pledged Subsidiary, shall thereupon be a Pledged Wholly-Owned Subsidiary.

**Section 15.10&nbsp;&nbsp;&nbsp;&nbsp;Enforcement.**

In case default shall be made in the payment of the principal of or interest on any Pledged Security or in the due performance of any covenant contained in any Pledged Security or the instrument securing the same, then and in any such case (without prejudice, however, to any right to claim a default under this Indenture or to assert any right consequent upon such default) the Trustee, upon Company Request, may, in its discretion and upon receipt of indemnity to its satisfaction, cause, or join with other owners of like securities in causing, such proceedings as may be approved by the Trustee to be instituted and prosecuted to collect such principal and interest or enforce the performance of such covenant. If an Event of Default exists, the Trustee may, and upon the written request of the Holders of a majority in principal amount of the Obligations then Outstanding shall, upon receipt of indemnity to its satisfaction, institute such proceedings without Company Request.

**Section 15.11&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Property of Issuers of Pledged Securities.**

In case, at any time, all or any of the property of any corporation, any of whose securities are at the time Pledged Securities, shall be sold upon insolvency or foreclosure or otherwise, then and in such event, if the property of such corporation or the property sold can be acquired by crediting on any of the Pledged Securities any sum accruing or to be received thereon out of the proceeds of such property, the Trustee in its discretion may, and if requested by Company

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Request or by the Holders of a majority in principal amount of the Obligations then Outstanding and provided by the Company or such Holders with the amount of any cash necessary therefor shall, purchase such property or cause the same to be purchased, either in the name of the Trustee or the Company or a purchasing trustee or trustees as the Trustee may determine, and shall use or permit the Company or such purchasing trustees to use such Pledged Securities so far as necessary to make payment for such property. In case of any such purchase the Trustee shall take such steps as it may deem proper to cause the property so purchased to be vested in the Company subject to the lien of this Indenture, or in some other corporation organized or to be organized with power to acquire and manage such property, or partly in the Company and partly in such other corporation, as the Company may deem advisable, **PROVIDED** that all debt of such corporation with a maturity more than one year from date of issuance (except such, if any, as shall represent a lien existing upon the property at the time it was acquired) and certificates for "all the capital stock (except directors' qualifying shares) of such corporation shall be deposited and pledged with the Trustee. In case the property so sold shall not be purchased in the manner hereinabove in this Section provided, the Trustee shall receive the proceeds of sale accruing on and apportioned to such Pledged Securities and such proceeds shall be held and paid over or applied by the Trustee as provided in Article VI.

**Section 15.12&nbsp;&nbsp;&nbsp;&nbsp;Reorganization.**

With Company Consent, the Trustee may join in any plan of voluntary or involuntary reorganization or readjustment or rearrangement in respect of any Pledged Securities and may accept or authorize the acceptance of new securities issued in exchange therefor under any such plan. If an Event of Default exists, the Trustee shall be entitled to take such steps without Company Consent.

Any new securities so issued shall be deposited and pledged with the Trustee under this Indenture. If the Trustee does not join in such plan or reorganization or readjustment or rearrangement, the Trustee shall receive any moneys accruing on or apportioned to such Pledged Securities and such moneys shall be held and paid over or applied by the Trustee as provided in Article VI.

**Section 15.13&nbsp;&nbsp;&nbsp;&nbsp;Renewal and Refunding.**

Nothing contained in this Article shall prevent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;the renewal or extension, without impairment of lien or security, at the same or at a lower or higher rate of interest, of any of the obligations or indebtedness of any corporation included in the Pledged Securities, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;the issue in substitution for any such obligations or indebtedness of other obligations or indebtedness of such corporation for equivalent amounts and of substantially equal or superior rank as to security, if any;

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**PROVIDED, HOWEVER,** that every such obligation or indebtedness as so renewed or extended shall continue to be subject to the lien hereof and every substituted obligation or indebtedness and the evidence thereof shall be deposited and pledged with the Trustee.

Except as otherwise provided in Article XIII, unless an Event of Default exists, the Trustee upon receipt of a Company Request shall, and if an Event of Default exists the Trustee may without such Company Request, consent to any such renewal, extension or substitution.

**Section 15.14&nbsp;&nbsp;&nbsp;&nbsp;Expenses.**

On demand of the Trustee, the Company forthwith will pay or satisfactorily provide for all expenses incurred by the Trustee under this Article, including all expenditures (except as otherwise provided in Section 15.11) made to acquire the ownership and title to any property which the Trustee shall purchase or shall cause or authorize to be purchased under this Article. Without impairment of or prejudice to any of its rights hereunder by reason of any default of the Company, the Trustee in its discretion may advance all such expenses and other sums required or may procure such advances to be made by others. The Company will repay all such advances, with interest thereon at the rate of 10% per annum, and for all such advances the Trustee shall be secured by a lien on the Trust Estate prior to the Obligations. For the repayment of all such advances the Trustee shall have the right to use and apply any Trust Moneys held by it under Article VI as part of the Trust Estate.

**Section 15.15&nbsp;&nbsp;&nbsp;&nbsp;Opinion of Counsel.**

The Trustee shall be entitled, before taking any action under this Article, to receive an Opinion of Counsel stating the legal effect of any transaction relating to the Pledged Securities and the steps necessary to be taken to consummate the same and stating also that such action is in compliance with the provisions hereof and will not impair the security of the Holders hereunder in contravention of the provisions hereof. Such Opinion of Counsel shall (subject to Section 9.1) be full protection to the Trustee for any action taken or omitted to be taken by it in reliance thereon.

**ARTICLE XVI**

**QUALIFYING SECURITIES; QUALIFYING SECURITIES INDENTURES**

**Section 16.1&nbsp;&nbsp;&nbsp;&nbsp;Registration and Ownership of Designated Qualifying Securities.**

Designated Qualifying Securities delivered to the Trustee pursuant to Sections 4.4, 4.6, 4.8, 5.2, 6.4 and 16.3 shall be registered in the name of the Trustee or its nominee and shall be owned and held by the Trustee, subject to the provisions of this Indenture, for the benefit of the Holders of all Obligations from time to time Outstanding, and the Company shall have no interest therein. Any shares of stock or membership interests in any certificates representing the same held by the Company in a Subsidiary issuing Designated Qualifying Securities shall be deposited and pledged with the Trustee. The Trustee shall be entitled to exercise all rights of

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security holders under each Qualifying Securities Indenture in its discretion except as otherwise provided in this Article or in Article VIII.

**Section 16.2&nbsp;&nbsp;&nbsp;&nbsp;Payments on Qualifying Securities.**

Unless an Event of Default shall have occurred and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Any payment of principal of Designated Qualifying Securities shall be applied by the Trustee to the payment of the principal of the Obligations which were authenticated and delivered on the basis of such Qualifying Securities which is then due, and, to the extent of such application, the obligation of the Company to make such payment in respect of such Obligations shall be deemed to have been satisfied and discharged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of any such payment of principal of Designated Qualifying Securities, the principal then due in respect of the Obligations which were authenticated and delivered on the basis of such Qualifying Securities, if any, shall be less than such payment, the excess of such payment shall constitute Trust Moneys and shall be held by the Trustee as part of the Trust Estate, to be withdrawn, used or applied in the manner, to the extent and for the purposes, and subject to the conditions, provided in Article VI. Any Outstanding Obligations, which were authenticated and delivered on the basis of Designated Qualifying Securities which have been paid, shall be thereafter deemed not to have been authenticated and delivered on the basis of Designated Qualifying Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Any payment of premium or interest on Designated Qualifying Securities shall be applied by the Trustee to the payment of premium or interest, as the case may be, on the Obligations which were authenticated and delivered on the basis of such Designated Qualifying Securities, if any, which is then due, and, to the extent of such application, the obligation of the Company to make such payment in respect of such Obligations shall be deemed to have been satisfied and discharged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;If, at the time of any such payment of premium or interest on Designated Qualifying Securities, the premium or interest, as the case may be, then due in respect of the Obligations which were authenticated and delivered on the basis of such Designated Qualifying Securities, if any, shall be less than such payment, the excess of such payment shall be remitted to the Company upon receipt by the Trustee of a Company Request requesting the same; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;Any payment to the Trustee of principal of, or premium or interest on, any Undesignated Qualifying Securities shall be remitted to the Company upon receipt by the Trustee of a Company Request requesting the same.

**Section 16.3&nbsp;&nbsp;&nbsp;&nbsp;Surrender or Redesignation of Designated Qualifying Securities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;At the time any Obligations of any series, which shall have been authenticated and delivered upon the basis of the issuance and delivery to the Trustee of Designated Qualifying

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Securities, shall cease to be Outstanding (other than as a result of the application of the proceeds of the payment or redemption of such Designated Qualifying Securities), the Company, by notice to the Trustee, may designate an equal principal amount of such Designated Qualifying Securities as Undesignated Qualifying Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Upon Company Request, the Trustee shall surrender for cancellation any Undesignated Qualifying Securities. Upon Company Request and receipt of the opinions required by paragraphs E and F of Section 4.4, the Trustee shall surrender for cancellation any Designated Qualifying Securities specified in such request in exchange for an equal principal amount of substitute Qualifying Securities, which substitute Qualifying Securities shall comply with Section 4.4C (except that, if the Designated Qualifying Securities to be surrendered were delivered other than as the basis for the authentication and delivery of Additional Obligations, the maturity date or dates for such substitute Qualifying Securities may be as determined by the Company) and which the Company shall designate as the basis for such surrender. Upon receipt of a notice of an event of default under a Qualifying Securities Indenture, the Trustee shall surrender for cancellation all Undesignated Qualifying Securities issued under such Qualifying Securities Indenture. Upon receipt of a notice of a meeting of bondholders under a Qualifying Securities Indenture, the Trustee shall surrender for cancellation all Undesignated Qualifying Securities issued under such Qualifying Securities Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Upon delivery to the Trustee of (i) the relevant documents as specified in paragraphs B through G, inclusive, of Section 4.2 for delivery whenever requesting the use of Bondable Additions as the basis for the surrender or redesignation of Designated Qualifying Securities, or (ii) the relevant documents and Obligations specified in Paragraph B, D(l) and E of Section 4.3 for the delivery to the Trustee whenever requesting the use of retired or defeased Obligations or payments on Obligations as the basis for the surrender or redesignation of Designated Qualifying Securities, in each case with such omissions and variations as are appropriate in view of the fact that the Application involves the surrender or redesignation of Designated Qualifying Securities and not the authentication and delivery of any Additional Obligations, and in each case together with an Opinion of Counsel stating that all conditions precedent provided for in this Indenture relating to such surrender or redesignation of Qualifying Securities have been complied with, the Trustee shall, upon Company Request surrender to the Company or redesignate Designated Qualifying Securities as Undesignated Qualifying Securities in a principal amount equal to the principal amount of the Obligations that could have been issued on the basis thereof. Upon receipt by the Trustee of the documents specified in this Section, all Obligations then Outstanding which were authenticated and delivered on the basis of such surrendered or redesignated Qualifying Securities shall thereafter be deemed not to have been authenticated and delivered on the basis of Designated Qualifying Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Upon delivery to the Trustee of the relevant documents specified in paragraphs A and B of Section 11.3, the Trustee shall surrender for cancellation and extinguishment all Designated Qualifying Securities issued by the Subsidiary merging with the Company pursuant to Section 11.3 hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Upon delivery to the Trustee of the relevant documents specified in paragraphs A through E of Section 4.10 hereof and upon Company Request, the Trustee shall authenticate the Assumed Qualifying Securities as Obligations that are entitled to the benefits and security of this Indenture. Such authentication shall be in substantially the form set forth in clause (ii) below, and may be either on the Assumed Qualifying Securities or on an allonge to be affixed to such Assumed Qualifying Securities. For purposes of this Indenture all Assumed Qualifying Securities issued by the same Subsidiary shall be treated as a single series of Obligations and shall be in the forms of such instruments as are delivered to the Trustee for authentication. The terms and conditions of the Assumed Qualifying Securities, including the principal amounts, maturity dates, interest rates and payment and redemption provisions, shall be as provided for therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee's certification of authentication for Assumed Qualifying Securities shall be in substantially the following form:

This is one of the Assumed Qualifying Securities referred to in and secured by the Indenture, dated as of May 5, 2015 by Basin Electric Power Cooperative and U.S. Bank National Association.

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| |
|:---|
| as Trustee |
| By: |
| Authorized Signatory |

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**Section 16.4&nbsp;&nbsp;&nbsp;&nbsp;No Transfer of Qualifying Securities.**

Except as provided in Section 16.3 or if an Event of Default exists, the Trustee shall not sell, assign or otherwise transfer any Qualifying Securities issued and delivered to it except to a successor trustee under this Indenture.

**Section 16.5&nbsp;&nbsp;&nbsp;&nbsp;Voting of Qualifying Securities.**

The Trustee shall, as a holder of Qualifying Securities Outstanding under each Qualifying Securities Indenture, attend such meeting or meetings of bondholders under such Qualifying Securities Indenture, or, at its option, deliver its proxy in connection therewith, as relate to matters with respect to which it is entitled to vote or consent and otherwise act as a holder of Qualifying Securities Outstanding under each Qualifying Securities Indenture. So long as no Event of Default shall have occurred and be continuing, either at any such meeting or meetings, or otherwise when the consent of the holders of the Qualifying Securities Outstanding under any Qualifying Securities Indenture is sought without a meeting, the Trustee shall vote as holder of such Qualifying Securities, or shall consent with respect thereto. The Trustee shall vote all Qualifying Securities Outstanding under such Qualifying Securities Indenture then held by it, or consent with respect thereto, as the Trustee reasonably believes will be in the best interests of the Holders; **PROVIDED, HOWEVER,** that the Trustee shall not so vote in favor of, or so consent

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to, any amendment or modification of a Qualifying Securities Indenture which, if it were an amendment or modification of this Indenture, would require the consent of Holders, without the prior consent, obtained in the manner prescribed in Section 12.2, of Holders of Securities which would be required under Section 12.2 for such an amendment or modification of this Indenture. The prior consent of the Holders of Securities referred to in the foregoing proviso shall not be required in connection with any amendment or modification of a Qualifying Securities Indenture or of the Qualifying Securities issued thereunder in order to facilitate a merger meeting the requirements of paragraph A of Section 11.3 hereof.

**Section 16.6&nbsp;&nbsp;&nbsp;&nbsp;Reorganization.**

With Company Consent, the Trustee may join in any plan of voluntary or involuntary reorganization or readjustment or rearrangement in respect of any Qualifying Securities and may accept or authorize the acceptance of new securities issued in exchange therefor under any such plan. If an Event of Default exists, the Trustee shall be entitled to take such steps without Company Consent.

Any new securities so issued shall be deposited and pledged with the Trustee under this Indenture. If the Trustee does not join in such plan or reorganization or readjustment or rearrangement, the Trustee shall receive any moneys accruing on or apportioned to such Qualifying Securities and such moneys shall be held and paid over or applied by the Trustee as provided in Article VI.

\* \* \* \* \* \* \*

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

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**IN WITNESS WHEREOF**, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COOPERATIVE** | **BASIN ELECTRIC POWER <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COOPERATIVE** |
| By: | /s/ Paul M. Sukut |
|  | Name: Paul M. Sukut |
|  | Title: Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; & General Manager |

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(SEAL)

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| | | |
|:---|:---|:---|
| Attest: | Attest: | /s/ Mark D. Foss |
| | Name: Mark D. Foss | Name: Mark D. Foss |
| | Title: Secretary | Title: Secretary |

---

---

| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 30th day of April, 2015, by Paul M. Sukut, Chief Executive Officer & General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| | |
|:---|:---|
| /s/ Darlene Steffan | /s/ Darlene Steffan |
| | Name: Darlene Steffan |
| | Notary Public, Burleigh County, ND |
| | My commission expires: April 15, 2020 |

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(Notarial Seal)

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION** | **U.S. BANK NATIONAL ASSOCIATION** |
| By: | /s/ R. Jason Fry |
|  | Name: R. Jason Fry |
|  | Title: Vice President |

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(SEAL)

Executed by U.S. Bank National

Association, as Trustee,

in the presence of:

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| |
|:---|
| /s/ [Illegible Signature] |
| /s/ [Illegible Signature] |
| Witnesses |

---

---

| | |
|:---|:---|
| STATE OF MICHIGAN |) |
| |) SS |
| COUNTY OF KENT |) |

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THE FOREGOING instrument was acknowledged before me 5th day of May, 2015, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| | |
|:---|:---|
| /s/ Marylyn Putschko | /s/ Marylyn Putschko |
| | Name: Marylyn Putschko |
| | My commission expires: September 12, 2016 |

---

(Notarial Seal)

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**EXHIBIT A**

**SCHEDULE OF MORTGAGED PROPERTIES**

EXH A-1

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**EXHIBIT B**

**SCHEDULE OF EXISTING OBLIGATIONS**

EXH B-1

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**EXHIBIT C**

**SCHEDULE OF CERTAIN PLEDGED CONTRACTS**

EXH C-1

## Exhibit 4.1

**Exhibit 4.1(a)**

TWELFTH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of December 1, 2005

Relating to the Basin Electric Power Cooperative First Mortgage Obligations

2005 CoBank Notes

Dated as of December 1, 2005

Authorized by this Twelfth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS TWELFTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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THIS TWELFTH SUPPLEMENTAL INDENTURE, dated as of December 1, 2005 (this "*Twelfth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously supplemented and as supplemented hereby (hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established one new series of Additional Obligations to be designated the Basin Electric Power Cooperative First Mortgage Obligations, 2005 CoBank Notes, to be dated their date of authentication (the "*2005 CoBank Notes*") with the first note of such series being in the amount of $45,000,000 and having a final maturity date of March 31, 2040, and with the second note of such series being in the amount of $45,000,000 and having a final maturity date of December 31, 2040; such 2005 CoBank Notes being issued to CoBank, ACB (the "*Lender*") to secure the Company's obligations under the Loan Agreement dated as of December 1, 2005 between the Company and the Lender in the principal amount of Ninety Million Dollars ($90,000,000), and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Twelfth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2005 CoBank Notes as Additional Obligations and specifying the form and provisions of the 2005 CoBank Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1; and

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WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2005 CoBank Notes, to make the 2005 CoBank Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2005 CoBank Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Twelfth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS TWELFTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2005 CoBank Notes, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2005 CoBank Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Original Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the

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same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall

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become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2005 CoBank Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*.

All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Twelfth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise.

**ARTICLE II**

**THE 2005 COBANK NOTES AND**

**CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2005 CoBank Notes*.

There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2005 CoBank Notes" (hereinafter referred to as the "*2005 CoBank Notes*").

The aggregate principal amount of the 2005 CoBank Notes which may be authenticated and delivered and Outstanding at any one time is limited to Ninety Million Dollars ($90,000,000). The 2005 CoBank Notes shall be registered in the name of Lender, and shall be dated the date of authentication.

Principal on the 2005 CoBank Notes shall be due and payable as provided in the payment schedules attached to the form of the 2005 CoBank Notes attached hereto as Exhibit C.

The 2005 CoBank Notes shall bear interest as provided in the form of 2005 CoBank Notes attached hereto as Exhibit C.

The principal of, premium, if any, and interest on the 2005 CoBank Notes shall be payable to Lender in immediately available funds as described in such notes. In the event that any day on which a payment of principal of, premium, if any, and interest on the 2005 CoBank Notes is not a Business Day (as defined below), then such payment shall be made on the next Business Day and interest shall accrue during such period on

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the principal amount of the 2005 CoBank Notes. "*Business Day*" shall mean any day other than a Saturday or Sunday, or other day on which Lender is, or the Federal Reserve Banks are, closed for Business.

In the event the Company fails to make any payment with respect to the 2005 CoBank Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the default rate specified in the 2005 CoBank Notes.

The Company may, on three Business Day's prior written notice to Lender, prepay the 2005 CoBank Notes as provided in the form of the 2005 CoBank Notes attached hereto as Exhibit C, in whole or in part, together with (i) accrued interest on the amount prepaid to the day of payment, and (ii) a prepayment premium, if any, computed in accordance with the terms of the 2005 CoBank Notes.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2005 CoBank Notes*.

The 2005 CoBank Notes shall each be a promissory note substantially in the form of Exhibit C hereto, and the Trustee's authentication certificate to be executed on the 2005 CoBank Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*.

The Company shall use the proceeds of the loan evidenced by the 2005 CoBank Notes for capital expenditures in relation to the construction of the Dry Fork Station and for general corporate purposes.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;*The Twelfth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Twelfth Supplemental Indenture and the 2005 CoBank Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2005 CoBank Notes to the same extent as if specifically set forth herein.

*Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;*All recitals in this Twelfth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

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*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;*Whenever in this Twelfth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Twelfth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;*Nothing in this Twelfth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Twelfth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Twelfth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.&nbsp;&nbsp;&nbsp;&nbsp;*This Twelfth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.&nbsp;&nbsp;&nbsp;&nbsp;*To the extent permitted by applicable law, this Twelfth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

Additionally, this Twelfth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments

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under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Twelfth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper |
|  | Name: Ronald R. Harper |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer and General Manager |

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| | |
|:---|:---|
| (SEAL) | |
| Attest: | /s/ Claire M. Olson |
| Name: | Claire M. Olson |
| Title: | Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;))

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 16th day of December, 2005, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public, Burleigh County, North Dakota |
| My commission expires: March 1, 2009 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Richard Prokosch |
|  | Name: Richard Prokosch |
|  | Title: Vice President |

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STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;))

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 16th day of December, 2005, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mary R. McCarthy |
| Name: Mary R. McCarthy |
| Notary Public |
| My commission expires: January 31, 2010 |

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(Notarial Seal)

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**EXHIBIT A**

**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

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**EXHIBIT B**

**[PROPERTY ADDITIONS]**

**EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION**

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**EXHIBIT C-1**

[Form of Note]

**Note No. 1**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2005 COBANK NOTE**

$45,000,000&nbsp;&nbsp;&nbsp;&nbsp;____________________, 2005

FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a North Dakota electric cooperative corporation (the "*Company*"), hereby promises to pay to the order of CoBANK, ACB ("*CoBank*"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of FORTY FIVE MILLION DOLLARS ($45,000,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay a loan (the "*First Loan*") made by CoBank, ACB to the Company pursuant to the terms of that certain Loan Agreement dated as of December 1, 2005, between the Company and CoBank (as amended or restated from time to time, the "*Loan Agreement*"); and (2) is secured under that certain Indenture dated as of January 1, 1998 between the Company and U.S. Bank National Association, as Trustee (as amended or restated from time to time, the "*Indenture*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal**. The principal balance of this First Mortgage Note shall be paid in accordance with the Schedule attached hereto as Exhibit 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options**. The Company agrees to pay interest on the unpaid principal balance of this First Mortgage Note at 5.85% per annum until December 31, 2028, and on and after such date, in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Weekly Quoted Variable Rate**. At a rate per annum equal at all times to the rate of interest established by CoBank on the first Business Day of each week (the "*Variable Rate Option*"). The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Fixed Rate Option**. At a fixed rate per annum to be quoted by CoBank in its sole discretion in each instance (the "*Fixed Rate Option*"). 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, provided that: (1) the minimum fixed period shall be 180 days; (2) the minimum amount that may be fixed at any one time

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shall be $500,000.00; and (3) the maximum number of fixes in place at any one time shall be ten (10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections, Conversions and Continuations**. Subject to the limitations set forth above, the Company: (1) shall select the applicable rate option(s) on the date the initial fixed rate for the First Loan expires; and (2) may, on any Business Day, elect to convert balances bearing interest at the Variable Rate Option to the Fixed Rate Option. Upon the expiration of any fixed rate period, the Company may, subject to the terms hereof, elect to fix the rate for an additional period or convert the rate to the Variable Rate Option. In the absence of any such election, interest shall automatically accrue on such balance at (and the Company shall be deemed to have elected to accrue interest at) the Variable Rate Option. All elections provided for herein shall be made telephonically or in writing and must be received by 1:45 P.M. Mountain time on the applicable Business Day; provided, however, that telephonic requests shall be promptly confirmed in writing if requested by CoBank. The Company agrees to give CoBank one (1) Business Day's prior notice of its intent to request a fixed rate quote hereunder. Such notice may be given by telephone or by electronic mail in accordance with instructions to be furnished to the Company provided, however, that telephonic requests shall be promptly confirmed in writing if requested by CoBank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment**. Interest shall be calculated on the actual number of days the principal balance is outstanding on the basis of a year consisting of 360 days. Interest shall be calculated and paid quarterly in arrears as of the last day of each March, June, September and December,. In calculating the exact number of days, the date the First Loan is made shall be included and the date each installment is repaid shall be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate**. Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Variable Rate Option. In addition, upon the occurrence and during the continuance of any "Event of Default" (as defined in the Loan Agreement), CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the First Loan. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment**. The Company shall have the right to prepay this First Mortgage Note in whole or in part. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless

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CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount equal to the greater of: (a) the present value of any funding losses imputed by CoBank to have been incurred as a result of such payment; or (b) $300. Such surcharge shall be determined and calculated in accordance with methodology established by CoBank, a copy of which will be made available upon request. All partial prepayments shall be applied to principal installments in the inverse order of their maturity and to such fixed and variable rate balances outstanding on this First Mortgage Note as shall be designated by CoBank. Unless otherwise agreed by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment**. The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to Subsection (A) hereof, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments**. All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal or interest required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, CoBank is required to present this First Mortgage Note to the Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a "Business Day" (as defined in the Loan Agreement), such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance**. Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default**. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference**. This First Mortgage Note is the "First Note" contemplated by the Loan Agreement and one of the "2005 CoBank Notes" contemplated by that certain

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Twelfth Supplemental Indenture dated as of December 1, 2005 between the Company and the Trustee. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous**. Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Twelfth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law**. This First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

IN WITNESS WHEREOF, Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE |
| | By: |
| | Its: |
| Attest: |  |
| By: |  |
| Title: |  |

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**EXHIBIT 1**

**To Note No. 1**

**REPAYMENT SCHEDULE**

**FIRST LOAN**

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| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **PRINCIPAL BALANCE** | **AMOUNT DUE** |
| 1 | 3/31/2029 | 44353125.00 | 646875.00 |
| 2 | 6/30/2029 | 43696546.00 | 656579.00 |
| 3 | 9/30/2029 | 43030119.00 | 666427.00 |
| 4 | 12/31/2029 | 42353695.00 | 676424.00 |
| 5 | 3/31/2030 | 41667125.00 | 686570.00 |
| 6 | 6/30/2030 | 40970256.00 | 696869.00 |
| 7 | 9/30/2030 | 40262934.00 | 707322.00 |
| 8 | 12/31/2030 | 39545003.00 | 717931.00 |
| 9 | 3/31/2031 | 38816303.00 | 728700.00 |
| 10 | 6/30/2031 | 38076672.00 | 739631.00 |
| 11 | 9/30/2031 | 37325947.00 | 750725.00 |
| 12 | 12/31/2031 | 36563961.00 | 761986.00 |
| 13 | 3/31/2032 | 35790545.00 | 773416.00 |
| 14 | 6/30/2032 | 35005528.00 | 785017.00 |
| 15 | 9/30/2032 | 34208736.00 | 796792.00 |
| 16 | 12/31/2032 | 33399992.00 | 808744.00 |
| 17 | 3/31/2033 | 32579117.00 | 820875.00 |
| 18 | 6/30/2033 | 31745928.00 | 833189.00 |
| 19 | 9/30/2033 | 30900242.00 | 845686.00 |
| 20 | 12/31/2033 | 30041870.00 | 858372.00 |
| 21 | 3/31/2034 | 29170623.00 | 871247.00 |
| 22 | 6/30/2034 | 28286307.00 | 884316.00 |
| 23 | 9/30/2034 | 27388726.00 | 897581.00 |
| 24 | 12/31/2034 | 26477682.00 | 911044.00 |
| 25 | 3/31/2035 | 25552972.00 | 924710.00 |
| 26 | 6/30/2035 | 24614391.00 | 938581.00 |
| 27 | 9/30/2035 | 23661732.00 | 952659.00 |
| 28 | 12/31/2035 | 22694783.00 | 966949.00 |
| 29 | 3/31/2036 | 21713329.00 | 981454.00 |
| 30 | 6/30/2036 | 20717154.00 | 996175.00 |
| 31 | 9/30/2036 | 19706036.00 | 1011118.00 |
| 32 | 12/31/2036 | 18679751.00 | 1026285.00 |
| 33 | 3/31/2037 | 17638072.00 | 1041679.00 |
| 34 | 6/30/2037 | 16580768.00 | 1057304.00 |

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| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **PRINCIPAL BALANCE** | **AMOUNT DUE** |
| 35 | 9/30/2037 | 15507604.00 | 1073164.00 |
| 36 | 12/31/2037 | 14418343.00 | 1089261.00 |
| 37 | 3/31/2038 | 13312743.00 | 1105600.00 |
| 38 | 6/30/2038 | 12190559.00 | 1122184.00 |
| 39 | 9/30/2038 | 11051542.00 | 1139017.00 |
| 40 | 12/31/2038 | 9895440.00 | 1156102.00 |
| 41 | 3/31/2039 | 8721996.00 | 1173444.00 |
| 42 | 6/30/2039 | 7530951.00 | 1191045.00 |
| 43 | 9/30/2039 | 6322040.00 | 1208911.00 |
| 44 | 12/31/2039 | 5094995.00 | 1227045.00 |
| 45 | 3/31/2040 | 3849545.00 | 1245450.00 |
| 46 | 6/30/2040 | 2585413.00 | 1264132.00 |
| 47 | 9/30/2040 | 1302319.00 | 1283094.00 |
| 48 | 12/31/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 1302319.00 |

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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**EXHIBIT C-2**

[Form of Note]

**Note No. 2**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2005 COBANK NOTE**

$45,000,000&nbsp;&nbsp;&nbsp;&nbsp;____________________, 2005

FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a North Dakota electric cooperative corporation (the "*Company*"), hereby promises to pay to the order of CoBANK, ACB ("*CoBank*"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of FORTY FIVE MILLION DOLLARS ($45,000,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay a loan (the "*Second Loan*") made by CoBank, ACB to the Company pursuant to the terms of that certain Loan Agreement dated as of December 1, 2005, between the Company and CoBank (as amended or restated from time to time, the "*Loan Agreement*"); and (2) is secured under that certain Indenture dated as of January 1, 1998 between the Company and U.S. Bank National Association, as Trustee (as amended or restated from time to time, the "*Indenture*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal**. The principal balance of this First Mortgage Note shall be paid in accordance with the Schedule attached hereto as Exhibit 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options**. The Company agrees to pay interest on the unpaid principal balance of this First Mortgage Note at 5.85% per annum until May 31, 2030, and on and after such date, in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Weekly Quoted Variable Rate**. At a rate per annum equal at all times to the rate of interest established by CoBank on the first Business Day of each week (the "*Variable Rate Option*"). The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Fixed Rate Option**. At a fixed rate per annum to be quoted by CoBank in its sole discretion in each instance (the "*Fixed Rate Option*"). 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, provided that: (1) the minimum fixed period shall be 180 days; (2) the minimum amount that may be fixed at any one time

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shall be $500,000.00; and (3) the maximum number of fixes in place at any one time shall be ten (10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections, Conversions and Continuations**. Subject to the limitations set forth above, the Company: (1) shall select the applicable rate option(s) on the date the initial fixed rate for the Second Loan expires; and (2) may, on any Business Day, elect to convert balances bearing interest at the Variable Rate Option to the Fixed Rate Option. Upon the expiration of any fixed rate period, the Company may, subject to the terms hereof, elect to fix the rate for an additional period or convert the rate to the Variable Rate Option. In the absence of any such election, interest shall automatically accrue on such balance at (and the Company shall be deemed to have elected to accrue interest at) the Variable Rate Option. All elections provided for herein shall be made telephonically or in writing and must be received by 1:45 P.M. Mountain time on the applicable Business Day; provided, however, that telephonic requests shall be promptly confirmed in writing if requested by CoBank. The Company agrees to give CoBank one (1) Business Day's prior notice of its intent to request a fixed rate quote hereunder. Such notice may be given by telephone or by electronic mail in accordance with instructions to be furnished to the Company provided, however, that telephonic requests shall be promptly confirmed in writing if requested by CoBank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment**. Interest shall be calculated on the actual number of days the principal balance is outstanding on the basis of a year consisting of 360 days. Interest shall be calculated and paid quarterly in arrears as of the last day of each March, June, September and December. In calculating the exact number of days, the date the Second Loan is made shall be included and the date each installment is repaid shall be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate**. Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Variable Rate Option. In addition, upon the occurrence and during the continuance of any "Event of Default" (as defined in the Loan Agreement), CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Second Loan. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment**. The Company shall have the right to prepay this First Mortgage Note in whole or in part. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless

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CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount equal to the greater of: (a) the present value of any funding losses imputed by CoBank to have been incurred as a result of such payment; or (b) $300. Such surcharge shall be determined and calculated in accordance with methodology established by CoBank, a copy of which will be made available upon request. All partial prepayments shall be applied to principal installments in the inverse order of their maturity and to such fixed and variable rate balances outstanding on this First Mortgage Note as shall be designated by CoBank. Unless otherwise agreed by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment**. The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to Subsection (A) hereof, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments**. All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal or interest required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, CoBank is required to present this First Mortgage Note to the Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a "Business Day" (as defined in the Loan Agreement), such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance**. Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default**. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference**. This First Mortgage Note is the "Second Note" contemplated by the Loan Agreement and one of the "2005 CoBank Notes" contemplated by that

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certain Twelfth Supplemental Indenture dated as of December 1, 2005, between the Company and the Trustee. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous**. Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Twelfth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law**. This First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

IN WITNESS WHEREOF, Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE |
| | By: |
| | Its: |
| Attest: |  |
| By: |  |
| Title: |  |

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**EXHIBIT 1**

**To Note No. 2**

**REPAYMENT SCHEDULE**

**SECOND LOAN**

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| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **PRINCIPAL BALANCE** | **AMOUNT DUE** |
| 1 | 6/30/2030 | 44170780.00 | 829220.00 |
| 2 | 9/30/2030 | 43329122.00 | 841658.00 |
| 3 | 12/31/2030 | 42474839.00 | 854283.00 |
| 4 | 3/31/2031 | 41607742.00 | 867097.00 |
| 5 | 6/30/2031 | 40727638.00 | 880104.00 |
| 6 | 9/30/2031 | 39834333.00 | 893305.00 |
| 7 | 12/31/2031 | 38927628.00 | 906705.00 |
| 8 | 3/31/2032 | 38007322.00 | 920306.00 |
| 9 | 6/30/2032 | 37073212.00 | 934110.00 |
| 10 | 9/30/2032 | 36125090.00 | 948122.00 |
| 11 | 12/31/2032 | 35162746.00 | 962344.00 |
| 12 | 3/31/2033 | 34185967.00 | 976779.00 |
| 13 | 6/30/2033 | 33194537.00 | 991430.00 |
| 14 | 9/30/2033 | 32188235.00 | 1006302.00 |
| 15 | 12/31/2033 | 31166839.00 | 1021396.00 |
| 16 | 3/31/2034 | 30130122.00 | 1036717.00 |
| 17 | 6/30/2034 | 29077854.00 | 1052268.00 |
| 18 | 9/30/2034 | 28009802.00 | 1068052.00 |
| 19 | 12/31/2034 | 26925729.00 | 1084073.00 |
| 20 | 3/31/2035 | 25825395.00 | 1100334.00 |
| 21 | 6/30/2035 | 24708556.00 | 1116839.00 |
| 22 | 9/30/2035 | 23574964.00 | 1133592.00 |
| 23 | 12/31/2035 | 22424369.00 | 1150595.00 |
| 24 | 3/31/2036 | 21256515.00 | 1167854.00 |
| 25 | 6/30/2036 | 20071143.00 | 1185372.00 |
| 26 | 9/30/2036 | 18867990.00 | 1203153.00 |
| 27 | 12/31/2036 | 17646790.00 | 1221200.00 |
| 28 | 3/31/2037 | 16407272.00 | 1239518.00 |
| 29 | 6/30/2037 | 15149161.00 | 1258111.00 |
| 30 | 9/30/2037 | 13872179.00 | 1276982.00 |
| 31 | 12/31/2037 | 12576042.00 | 1296137.00 |
| 32 | 3/31/2038 | 11260463.00 | 1315579.00 |
| 33 | 6/30/2038 | 9925150.00 | 1335313.00 |
| 34 | 9/30/2038 | 8569807.00 | 1355343.00 |

---

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---

| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **PRINCIPAL BALANCE** | **AMOUNT DUE** |
| 35 | 12/31/2038 | 7194134.00 | 1375673.00 |
| 36 | 3/31/2039 | 5797826.00 | 1396308.00 |
| 37 | 6/30/2039 | 4380574.00 | 1417252.00 |
| 38 | 9/30/2039 | 2942063.00 | 1438511.00 |
| 39 | 12/31/2039 | 1481974.00 | 1460089.00 |
| 40 | 3/31/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 1481974.00 |

---

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

------

**EXHIBIT D**

FORM OF ____________________ NOTE

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

## Exhibit 4.1

**Exhibit 4.1(b)**

**THIRTEENTH SUPPLEMENTAL INDENTURE**

**(to that certain Indenture dated as of January 1, 1998)**

**Dated as of April 1, 2006**

**Relating to the Basin Electric Power Cooperative First Mortgage Bonds** 

**2006 Series A** 

**Authorized by this Thirteenth Supplemental Indenture**

**BASIN ELECTRIC POWER COOPERATIVE**

**(TAXPAYER IDENTIFICATION NO. 45-0277395)**

**to**

**U.S. BANK NATIONAL ASSOCIATION, TRUSTEE**

**FIRST MORTGAGE OBLIGATIONS**

*THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.*

------

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| | | |
|:---|:---|:---|
| ARTICLE I | ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS | DEFINITIONS |
| Section 1.1 | Definitions | 4 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| THE 2006 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO | THE 2006 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO | THE 2006 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO |
| Section 2.1 | Terms of the 2006 Series A Bonds | 4 |
| Section 2.2 | Sinking Fund Redemption | 5 |
| Section 2.3 | Make Whole Redemption | 6 |
| Section 2.4 | Form Of The 2006 Series A Bonds | 7 |
| Section 2.5 | Use Of Proceeds | 7 |
| Section 2.6 | Ambac Assurance Designated Credit Enhancer | 7 |
| Section 2.7 | Consent Of Ambac Assurance To Amendments To the Indenture | 7 |
| Section 2.8 | Ambac Assurance To Be Subrogated To Rights Of Holders | 8 |
| Section 2.9 | Trustee Notification Of Ambac Assurance Of Failure To Deliver Notices By the Company; Other Actions by Trustee | 8 |
| Section 2.10. | Trustee To Notify Ambac Assurance Of Events Of Default | 8 |
| Section 2.11. | Payment Procedure Pursuant To The Financial Guaranty Insurance Policy | 8 |
| Section 2.12 | Ambac Assurance As Third Party Beneficiary | 10 |
| Section 2.13 | Covenants of the Company | 10 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
| Section 3.1 | Supplemental Indenture | 12 |
| Section 3.2 | Recitals | 12 |
| Section 3.3 | Successors and Assigns | 12 |
| Section 3.4 | No Rights, Remedies, Etc | 12 |
| Section 3.5 | Counterparts | 12 |
| Section 3.6 | Security Agreement; Mailing Address | 12 |

---

-i-

------

**THIS THIRTEENTH SUPPLEMENTAL INDENTURE**, dated as of April 1, 2006 (this "Thirteenth Supplemental Indenture"), is between **BASIN ELECTRIC POWER COOPERATIVE**, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "Company"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503, and **U.S. BANK NATIONAL ASSOCIATION f/k/a FIRST BANK NATIONAL ASSOCIATION**, a national banking association, as trustee (in such capacity, the "Trustee"), whose address is Mail Stop EP-MN-WS3C, 60 Livingstone Avenue, St. Paul, MN 55107 and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

**WHEREAS**, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously supplemented and as supplemented hereby (hereinafter called the "Original Indenture"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

**WHEREAS,** the Board of Directors of the Company has established a new series of Additional Obligations to be designated the First Mortgage Bonds, 2006 Series A, due June 1, 2041 in the principal amount of Two Hundred Million Dollars ($200,000,000) (the "2006 Series A Bonds") and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

**WHEREAS**, the Company desires to execute and deliver this Thirteenth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2006 Series A Bonds as Additional Obligations and specifying the form and provisions of the 2006 Series A Bonds;

**WHEREAS**, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1; and

**WHEREAS**, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2006 Series A Bonds, to make the 2006 Series A Bonds to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2006 Series A Bonds, in accordance with its terms, have been done and taken; and the

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execution and delivery of this Thirteenth Supplemental Indenture has been in all respects duly authorized;

**NOW, THEREFORE, THIS THIRTEENTH SUPPLEMENTAL INDENTURE WITNESSES**, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2006 Series A Bonds, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2006 Series A Bonds are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2 B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

**PROVIDED, HOWEVER**, that if, upon the occurrence of an Event of Default under the Original Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

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The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

**TO HAVE AND TO HOLD** all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

**BUT IN TRUST, NEVERTHELESS**, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

**UPON CONDITION** that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

**AND IT IS HEREBY COVENANTED AND DECLARED** that the 2006 Series A Bonds are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to

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and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

**Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.**

All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Thirteenth Supplemental Indenture, except as otherwise appears herein, in this Article I or unless the context clearly requires otherwise. In addition, the following terms have the following meaning in this Thirteenth Supplemental Indenture unless the context clearly requires otherwise.

"**Closing Date**" means May 4, 2006.

"**Interest Payment Date**" means June 1 and December 1 of each year, commencing on December 1, 2006.

"**Record Date**" means the 15th day (whether or not a Business Day) of the calendar month immediately preceding an Interest Payment Date.

"**Securities Depository**" means The Depository Trust Company and its successors and assigns or any other securities depository selected by the Company which agrees to follow the procedures required to be followed by such securities depository in connection with the 2006 Series A Bonds.

**ARTICLE II**

**THE 2006 SERIES A BONDS AND**

**CERTAIN PROVISIONS RELATING THERETO**

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms of the 2006 Series A Bonds</u>**.

There shall be established a series of Additional Obligations known as and entitled the "First Mortgage Bonds, 2006 Series A" (hereinafter referred to as the "2006 Series A Bonds" or the "Bonds").

The aggregate principal amount of the 2006 Series A Bonds which may be authenticated and delivered and Outstanding at any one time is limited to Two Hundred Million Dollars ($200,000,000). The 2006 Series A Bonds shall consist of $200,000,000 principal amount of Bonds due June 1, 2041.

The 2006 Series A Bonds shall bear interest from their date of issuance, payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2006, at the rate of 6.127%. The principal and the Redemption Price of, and interest on,

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the 2006 Series A Bonds shall be paid to the Person in whose name that Obligation (or one or more Predecessor Obligations) is registered at the close of business on the Record Date applicable to such Interest Payment Date or Redemption Date. Interest on the 2006 Series A Bonds shall be computed on the basis of a 360-day year of twelve 30-day months for the actual number of days elapsed. The 2006 Series A Bonds shall be dated the date of authentication.

The 2006 Series A Bonds shall be issued as fully registered bonds without coupons and in denominations of $100,000 or any integral multiple thereof. The 2006 Series A Bonds shall be registered in the name of Cede & Co., as nominee of the Securities Depository, pursuant to the Securities Depository's Book-Entry System. Purchases of beneficial interests in the 2006 Series A Bonds shall be made in book-entry form, without certificates. If at any time the Book-Entry System is discontinued for the 2006 Series A Bonds, the 2006 Series A Bonds shall be exchangeable for other fully registered certificated 2006 Series A Bonds of the same series in any authorized denominations, maturity and interest rate. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a 2006 Series A Bond. The cost, if any, of preparing each new 2006 Series A Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by the person requesting such exchange or transfer.

Interest on the 2006 Series A Bonds shall be payable by check mailed to the registered owners thereof. However, interest on the 2006 Series A Bonds shall be paid to any owner of $1,000,000 or more in aggregate principal amount of the 2006 Series A Bonds by wire transfer to a wire transfer address within the continental United States upon the written request of such owner received by the Trustee not less than five days prior to the Record Date. As long as the 2006 Series A Bonds are registered in the name of Cede & Co., as nominee of the Securities Depository, such payments shall be made directly to the Securities Depository.

**Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Sinking Fund Redemption</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The 2006 Series A Bonds will be redeemed, on a pro rata basis in multiples of $100,000, through the operation of a mandatory sinking fund, commencing on June 1, 2033, and continuing on June 1 in each year afterwards through June 1, 2037 and on June 1, 2039 upon not less than 30 nor more than 60 days' notice mailed to each Holder of Bonds being redeemed at the Holder's registered address, except as otherwise required by the procedures of the Securities Depository. The sinking fund Redemption Price will be equal to 100% of the principal amount of the 2006 Series A Bonds being redeemed plus accrued interest to the Redemption Date, including interest due on an interest payment date that is on, or prior to, the Redemption Date. The

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principal amount of the Bonds being redeemed and the Redemption Dates, as well as the principal amount payable on the maturity date, are set forth below.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Date</u> | <u>Amount</u> |
| June 1, 2033 | $26000000 |
| June 1, 2034 | 29000000 |
| June 1, 2035 | 29000000 |
| June 1, 2036 | 32000000 |
| June 1, 2037 | 34000000 |
| June 1, 2039 | 20000000 |
| June 1, 2041<sup>(1)</sup> | 30000000 |

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__________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The final maturity date of the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The 2006 Series A Bonds that the Company acquires and surrenders for cancellation or redeems (other than by means of sinking fund redemptions) will be credited against future sinking fund payments for such Bonds and the principal payment to be made on the maturity date of such Bonds, in proportion to the respective amounts of those sinking fund and principal payments, subject to authorized denominations.

**Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Make Whole Redemption</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company may redeem the 2006 Series A Bonds, in whole or in part, on any date prior to their stated maturity, at its option. The Company must give at least 30 days, but not more than 60 days, prior notice of redemption mailed to the registered address of each Holder of Bonds being redeemed except as otherwise required by the procedures of the Securities Depository. The Redemption Price for the Bonds will be equal to the greater of:

• 100% of the principal amount of the 2006 Series A Bonds being redeemed plus interest accrued through the Redemption Date but not yet due and payable; and

• the sum of the present values of the remaining principal and interest payments on the Bonds being redeemed, discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of (1) the yield to maturity of the U.S. Treasury security having a life equal to the remaining average life of the maturity of Bonds being redeemed and trading in the secondary market at the price closest to par, and (2) 12.5 basis points;

plus, in either case, interest due and payable but unpaid on the 2006 Series A Bonds being redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If there is no U.S. Treasury security having a life equal to the remaining average life of the Bonds being redeemed, the discount rate will be calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity of two U.S. Treasury securities

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having lives most closely corresponding to the remaining average life of the Bonds being redeemed and trading in the secondary market at the price closest to par.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If less than all of the Outstanding Bonds are to be redeemed, the Bonds to be redeemed will be selected by the Trustee in any method it deems fair and appropriate and the portion of the Bonds not so redeemed will be in multiples of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If the Company gives notice of the optional redemption of the 2006 Series A Bonds but the Trustee does not have enough funds on deposit to pay the full Redemption Price of the Bonds to be redeemed, those Bonds will remain Outstanding as though no redemption notice had been given. The failure of the Trustee to have sufficient funds to effect the redemption will not constitute a payment or other default by us under the Indenture and the Company will not be liable to any Holder of those Bonds as a result of the failed redemption. If the Trustee has enough designated funds on deposit to effect a redemption at the time the Company gives notice of the redemption, then the Company is obligated to redeem the Bonds as provided in that notice.

**Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Form Of The 2006 Series A Bonds</u>.** The 2006 Series A Bonds and the Trustee's authentication certificate to be executed on the 2006 Series A Bonds shall be substantially in the form of Exhibit C attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

**Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Use Of Proceeds</u>.** The Company expects the proceeds of this offering of the Bonds, net of underwriting discounts and offering expenses, including the premium to Ambac Assurance (as defined below), to be approximately $196,129,052.88. The Company will use the net proceeds of this offering to finance a portion of the costs of construction or acquisition of electric generating and transmission facilities and to enhance certain of its existing facilities and for other general purposes.

**Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Ambac Assurance Designated Credit Enhancer</u>.** Ambac Assurance Corporation, a Wisconsin-domiciled stock insurance company, ("Ambac Assurance"), is hereby designated the Credit Enhancer with respect to the 2006 Series A Bonds.

**Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Consent Of Ambac Assurance To Amendments To the Indenture</u>.** If the financial guaranty insurance policy issued by Ambac Assurance insuring the payment when due of the principal of, and interest on, the 2006 Series A Bonds as provided therein (the "Financial Guaranty Insurance Policy") is in effect and Ambac Assurance is not in breach of any of the provisions thereof, any provision of the Indenture expressly recognizing or granting rights in, or to, Ambac Assurance may not be amended in any manner which affects the rights of Ambac Assurance hereunder without the prior written consent of Ambac Assurance.

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**Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Ambac Assurance To Be Subrogated To Rights Of Holders</u>**. Notwithstanding anything herein to the contrary, in the event that the principal or interest due on the 2006 Series A Bonds shall be paid by Ambac Assurance pursuant to the Financial Guaranty Insurance Policy, the 2006 Series A Bonds shall remain Outstanding for all purposes of the Indenture, not be defeased or otherwise satisfied and not be considered paid by the Company, and the obligations of the Company to the Holders shall continue to exist and shall run to the benefit of Ambac Assurance, and Ambac Assurance shall be subrogated to the rights of such Holders.

**Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Trustee Notification Of Ambac Assurance Of Failure To Deliver Notices By the Company; Other Actions by Trustee</u>**. The Trustee shall notify Ambac Assurance of any failure of the Company to provide any notices, certificates or other documents required to be provided to the Trustee pursuant to the terms of the Indenture. The Trustee shall also (i) permit Ambac Assurance to have access to, and to make copies of, all books and records relating to the 2006 Series A Bonds at any reasonable time and upon reasonable notice, (ii) provide to Ambac Assurance a copy of any notice to be given to the registered Holders, including, without limitation, notice of any redemption of or defeasance of the 2006 Series A Bonds and any certificate rendered pursuant to the Indenture relating to the security for the 2006 Series A Bonds, and (iii) provide to Ambac Assurance such additional information it may reasonably request from time to time. Notwithstanding any other provision of the Indenture, in determining whether the rights of the Holders will be adversely affected by any action taken pursuant to the terms and provisions of the Indenture, the Trustee shall consider the effect on the Holders as if there were no Financial Guaranty Insurance Policy.

**Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Trustee To Notify Ambac Assurance Of Events Of Default</u>**. The Trustee shall immediately notify Ambac Assurance upon the occurrence of any Event of Default of which it has notice.

**Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Procedure Pursuant To The Financial Guaranty Insurance Policy</u>**. If the Financial Guaranty Insurance Policy shall be in full force and effect, the Trustee and the co-paying agent agree to comply with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On the Interest Payment Dates the Trustee or co-paying agent, if any, will determine whether there will be sufficient funds to pay the principal of or interest on the applicable 2006 Series A Bonds on such Interest Payment Date. If the Trustee or co-paying agent, if any, determines that there will be insufficient funds, the Trustee or co-paying agent, if any, shall so notify Ambac Assurance. Such notice shall specify the amount of the anticipated deficiency, the 2006 Series A Bonds to which such deficiency is applicable and whether such 2006 Series A Bonds will be deficient as to principal or interest, or both. If there is such a deficiency but the Trustee or co-paying agent, if any, has not so notified Ambac Assurance on an Interest Payment Date (but does do so on a later date), Ambac Assurance will make payments of principal or interest due on the 2006 Series A

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Bonds on or before the first Business Day next following the date on which Ambac Assurance shall have received notice of nonpayment from the Trustee or co-paying agent, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee or co-paying agent, if any, shall, after giving notice to Ambac Assurance as provided in (i) above, make available to Ambac Assurance and, at Ambac Assurance's direction, to The Bank of New York in New York, New York, as insurance trustee for Ambac Assurance or any successor insurance trustee (the "Insurance Trustee"), the registration books of the Company maintained by the Obligation Registrar and all records relating to payments on the 2006 Series A Bonds maintained under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee or co-paying agent, if any, shall provide Ambac Assurance and the Insurance Trustee with a list of registered Holders entitled to receive principal or interest payments from Ambac Assurance under the terms of the Financial Guaranty Insurance Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the registered Holders entitled to receive full or partial interest payments from Ambac Assurance and (ii) to pay principal upon 2006 Series A Bonds surrendered to the Insurance Trustee by the registered Holders entitled to receive full or partial principal payments from Ambac Assurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The Trustee or co-paying agent, if any, shall, at the time it provides notice to Ambac Assurance pursuant to (i) above, notify registered Holders entitled to receive the payment of principal or interest thereon from Ambac Assurance (w) as to the fact of such entitlement, (x) that Ambac Assurance will remit to them all or a part of the interest payments next coming due upon proof of Holder entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the registered Holder's right to payment, (y) that should they be entitled to receive full payment of principal from Ambac Assurance, they must surrender their 2006 Series A Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such 2006 Series A Bonds to be registered in the name of Ambac Assurance) for payment to the Insurance Trustee, and not the Trustee or co-paying agent, if any, and (z) that should they be entitled to receive partial payment of principal from Ambac Assurance, they must surrender their 2006 Series A Bonds for payment thereon first to the Trustee or co-paying agent, if any, who shall note on such 2006 Series A Bonds the portion of the principal paid by the Trustee or co-paying agent, if any, and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Trustee or co-paying agent, if any, has notice that any payment of principal of or interest on any 2006 Series A Bond which has

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become due for payment and which is made to a Holder by or on behalf of the Company has been deemed a preferential transfer and theretofore recovered from its Holder pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having jurisdiction, the Trustee or co-paying agent, if any, shall, at the time Ambac Assurance is notified pursuant to (i) above, notify all Holders that in the event that any Holder's payment is so recovered, such Holder will be entitled to payment from Ambac Assurance to the extent of such recovery if sufficient funds are not otherwise available, and the Trustee or co-paying agent, if any, shall furnish to Ambac Assurance its records evidencing the payments of principal of and interest on the 2006 Series A Bonds which have been made by the Trustee or co-paying agent, if any, and subsequently recovered from Holders and the dates on which such payments were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;In addition to those rights granted Ambac Assurance under this Thirteenth Supplemental Indenture, Ambac Assurance shall, to the extent it makes payment of principal of or interest on 2006 Series A Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Financial Guaranty Insurance Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Trustee or co-paying agent, if any, shall note Ambac Assurance's rights as subrogee on the registration books of the Company maintained by the Obligation Registrar upon receipt from Ambac Assurance of proof of the payment of interest thereon to the registered Holders of the 2006 Series A Bonds, and (ii) in the case of subrogation as to claims for past due principal, the Trustee or co-paying agent, if any, shall note Ambac Assurance's rights as subrogee on the registration books of the Company maintained by the Obligation Registrar upon surrender of the 2006 Series A Bonds by the registered Holders thereof with proof of the payment of principal thereof.

**Section 2.12**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Ambac Assurance As Third Party Beneficiary</u>**. To the extent that this Thirteenth Supplemental Indenture confers upon or gives or grants to Ambac Assurance any right, remedy or claim under or by reason of this Thirteenth Supplemental Indenture, Ambac Assurance is hereby explicitly recognized as being a third-party beneficiary hereunder and may enforce any such right, remedy or claim conferred, given or granted hereunder.

**Section 2.13**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Covenants of the Company</u>**. The Company will deliver to Ambac Assurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;As soon as reasonably available and in any event within 120 days after the end of each fiscal year, a copy of its annual financial statements prepared in accordance with generally accepted accounting principles consistently applied and audited by independent certified public accountants, including a balance sheet of the Company as of the end of such fiscal year and

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related statements of operations, changes in equity and cash flows for the fiscal year then ended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;As soon as reasonably available and in any event within 60 days after the end of each quarterly period of each fiscal year, a copy of its balance sheet as of the end of such quarterly period and related statements of operations, changes in equity and cash flows for the quarterly period then ended, which balance sheet and related statements may be internal statements and need not be audited by independent certified public accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Forthwith after having knowledge of any Event of Default, a certificate of an authorized officer setting forth the details thereof and the action the Company is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the delivery of the financial reports set out in subsection (i) above, a written description of any actions, suits, and proceedings before any court or governmental department, commission, board, bureau, agency or instrumentality against the Company, which, if determined against the Company, would have a material adverse effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Promptly upon distribution thereof, copies of each revision to the final offering circular dated April 26, 2006; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Upon written request of Ambac Assurance, any other financial information reasonably requested.

In addition, the Company will furnish to Ambac Assurance such information regarding its financial condition, results of operations, or business as Ambac Assurance may reasonably request; and will, upon reasonable notice during business hours, permit any officers, employees, or agents of Ambac Assurance to visit and inspect any of the properties of the Company and to discuss matters reasonably pertinent to an evaluation of the credit of the Company, all at such reasonable times as Ambac Assurance may reasonably request and all without hindrance of the normal operations of the Company. The Company's chief financial officer shall, at the reasonable request of Ambac Assurance, discuss the Company's financial matters with Ambac Assurance (or its designee) and provide Ambac Assurance with copies of any documents that are reasonably requested by Ambac Assurance (or such designee) and materially related to the financial condition of the Company. To the extent requested by the Company, Ambac Assurance will treat as confidential all such documents and information received or reviewed by it pursuant to this Thirteenth Supplemental Indenture and will not disclose or disseminate any such information or documents to any third parties (other than as may be necessary to federal or other regulators or rating agencies) without prior notice to, and written consent by the Company.

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**ARTICLE III**

**MISCELLANEOUS**

**Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Supplemental Indenture</u>**. The Thirteenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirteenth Supplemental Indenture and the 2006 Series A Bonds, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2006 Series A Bonds to the same extent as if specifically set forth herein.

**Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Recitals</u>.** All recitals in this Thirteenth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

**Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>**. Whenever in this Thirteenth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirteenth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

**Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Rights, Remedies, Etc</u>.** Nothing in this Thirteenth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirteenth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirteenth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

**Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>.** This Thirteenth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

**Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Security Agreement; Mailing Address</u>**. To the extent permitted by applicable law, this Thirteenth Supplemental Indenture shall be deemed to be a

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security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code.

The mailing address of the Company, as debtor is:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503

and the mailing address of the Trustee, as secured party is:

U.S. Bank Trust Center

Mail Stop EP-MN-WS3C,

60 Livingstone Avenue

St. Paul, MN 55107

Additionally, this Thirteenth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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**IN WITNESS WHEREOF**, the parties hereto have caused this Thirteenth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: | <u>/s/ Ronald R. Harper</u> |
|  | Name: Ronald R. Harper |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer & General Manager |

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| |
|:---|
| ATTEST: |
| /s/ Claire M. Olson |
| Claire M. Olson |
| Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;))

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 21st day of April, 2006, by Ronald R. Harper, Chief Executive Office & General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public, Burleigh County, North Dakota |
| My commission expires: March 1, 2009 |

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION**, as Trustee | **U.S. BANK NATIONAL ASSOCIATION**, as Trustee |
| By: | <u>/s/ Richard Prokosch</u> |
|  | Name: Richard Prokosch |
|  | Title: Vice President |

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Executed by U.S. Bank National

Association, as Trustee, in the presence of:

______________________

______________________

Witnesses

STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;))

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 24th day of April, 2006, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Mollie Yetter</u> |
| Name:&nbsp;&nbsp;&nbsp;&nbsp; Mollie Yetter |
| Notary Public |
| My commission expires: <u>January 31, 2007</u> |

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(Notarial Seal)

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ARTICLE I

**EXHIBIT A**

[Indenture Filing Information]

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ARTICLE I

**EXHIBIT B**

[Descriptions of Real Property included in Trust Estate]

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**EXHIBIT C**

**FORM OF BOND**

**AND**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

**THIS 2006 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS 2006 SERIES A BOND IS HEREBY NOTIFIED THAT THE SELLER OF THIS 2006 SERIES A BOND MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.**

**THIS 2006 SERIES A BOND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE), OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES.**

**THIS 2006 SERIES A BOND AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS 2006 SERIES A BOND TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS 2006 SERIES A BOND SHALL BE DEEMED BY THE ACCEPTANCE OF THIS 2006 SERIES BOND TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.**

**UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT FOR REGISTRATION OF** 

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**TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.**

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| | |
|:---|:---|
| **No. _____** | **$200000000**  |

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**BASIN ELECTRIC POWER COOPERATIVE, FIRST MORTGAGE BOND, 2006 SERIES A, DUE 2041**

**REGISTERED OWNER: CEDE & CO.**

**PRINCIPAL AMOUNT: TWO HUNDRED MILLION DOLLARS**

**ISSUANCE DATE: MAY 4, 2006**

**CUSIP NO.: _______**

Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the State of North Dakota (together with any successors and assigns, "Basin Electric"), for value received hereby promises to pay to the registered owner named above or registered assigns, on June 1, 2041 upon the presentation and surrender of this First Mortgage Bond, 6.127% 2006 Series A due June 1, 2041, (this "2006 Series A Bond") the principal amount (upon original issuance) of $200,000,000, issued under the Indenture dated as of January 1, 1998, as supplemented (the "Indenture") between Basin Electric and U.S. Bank National Association, as trustee (the "Trustee").

Basin Electric shall pay the principal sum set forth above and pay interest on said principal sum from the date hereof until payment of said principal sum has been made or duly provided for, semi-annually at the interest rate of 6.127%. The principal of, and interest on, this 2006 Series A Bond are payable at the principal corporate trust office of the Trustee, or of its successor as Trustee, or, at the option of the owner of this 2006 Series A Bond, at the principal office of any co-paying agent appointed in accordance with the Indenture; provided, however, that, subject to the next succeeding paragraph, interest may be payable, at the option of the Trustee, by check or draft drawn upon the Trustee and mailed to the registered address of the registered owner of this 2006 Series A Bond as of the close of business on the applicable Record Date (as defined below), or, at the written request of the registered owner of 2006 Series A Bonds in an aggregate principal amount greater than or equal to $1,000,000 delivered to the Trustee at least five days prior to the Record Date next preceding such payment date, by wire transfer to a wire transfer address in the United States as set forth in such request. Payment of the principal of and interest on this 2006 Series A Bond shall be in any coin or currency of the United States of America as, at the respective times of payment, shall be legal tender for the payment of public and private debts.

Notwithstanding any other provision of this 2006 Series A Bond to the contrary, so long as this 2006 Series A Bond shall be registered on books of Basin Electric kept by the Obligation Registrar (as defined in the Indenture) in the name of The Depository Trust Company, a New York Corporation ("DTC"), its nominee, the provisions of the Indenture governing the Book-Entry System (as defined in the Indenture) shall govern the manner of payment of the principal of, and interest on, this 2006 Series A Bond.

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The 2006 Series A Bonds are equally and ratably secured, to the extent provided in the Indenture, by the Trust Estate, except and excluding the Excepted Property and the Excludable Property.

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of Basin Electric, the Trustee and the owner of this 2006 Series A Bond, the terms upon which this 2006 Series A Bond is issued and secured, and the modification or amendment of the Indenture, to all of which the registered owner of this Series 2006 A Bond assents by the acceptance of this 2006 Series A Bond.

This 2006 Series A Bond is transferable, as provided in the Indenture, only upon the registration books of Basin Electric maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this 2006 Series A Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney. The Obligation Registrar shall not be obliged to (i) make any exchange or transfer of this 2006 Series A Bond during the period beginning at the opening of business fifteen days next preceding the date of the mailing of the notice of redemption of the 2006 Series A Bonds or (ii) register the transfer of or exchange of any 2006 Series A Bond so selected for redemption in whole or in part, except the unredeemed portion of a 2006 Series A Bond being redeemed in part.

The 2006 Series A Bonds are issuable in the form of fully registered 2006 Series A Bonds without coupons in the denomination of $100,000 each or any integral multiple thereof. Upon payment of any required tax or other governmental charge and, subject to such conditions, the 2006 Series A Bonds, upon the surrender thereof at the principal office of the Obligation Registrar, with a written instrument of transfer satisfactory to the Obligation Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of 2006 Series A Bonds of the same interest rate and in any other authorized denominations.

This 2006 Series A Bond shall bear interest at 6.127% from, and including, the date hereof to, but excluding, June 1, 2041. Interest shall be payable on June 1 and December 1 of each year prior to the maturity date of the Series A Bonds, commencing on December 1, 2006.

**<u>Sinking Fund Redemption</u>:** The 2006 Series A Bonds will be redeemed, on a pro rata basis in $100,000 denominations, through the operation of a mandatory sinking fund, commencing on June 1, 2033 and continuing on June 1 in each year thereafter through June 1, 2037 and on June 1, 2039 at a Redemption Price (as defined in the Indenture) equal to 100% of the principal amount of the 2006 Series A Bonds redeemed plus accrued interest to the Redemption Date (as defined in the Indenture), including interest due on an interest payment date that is on or prior to the Redemption Date.

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**<u>Make-Whole Redemption</u>**: Basin Electric may redeem the 2006 Series A Bonds, in whole or in part, on any date prior to their maturity, at its option. The Redemption Price for the 2006 Series A Bonds will be equal to the greater of:

• 100% of the principal amount of the 2006 Series A Bonds being redeemed plus interest accrued through the Redemption Date but not yet due and payable; and

• the sum of the present values of the remaining principal and interest payments on the bonds being redeemed, discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of (1) the yield to maturity of the U.S. Treasury security having a life equal to the remaining average life of the maturity of bonds being redeemed and trading in the secondary market at the price closest to par, and (2) 12.5 basis points;

plus, in either case, interest due and payable but unpaid on the 2006 Series A Bonds being redeemed.

If there is no U.S. Treasury security having a life equal to the remaining average life of the bonds being redeemed, the discount rate will be calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity of two U.S. Treasury securities having lives most closely corresponding to the remaining average life of the bonds being redeemed and trading in the secondary market at the price closest to par.

The registered owner of this 2006 Series A Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture.

All acts, conditions and things required by the Constitution and statutes of the State of North Dakota, the governing rules and procedures of Basin Electric and the Indenture to exist, to have happened and to have been performed precedent to and in the issuance of this 2006 Series A Bond, do exist, have happened and have been performed.

No covenant or agreement contained in this 2006 Series A Bond, the Indenture or the Thirteenth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of Basin Electric in his individual capacity, and no officer of Basin Electric executing this 2006 Series A Bond shall be liable personally on this 2006 Series A Bond or be subject to any personal liability or accountability by reason of the issuance of this 2006 Series A Bond.

Ambac Assurance Corporation, a Wisconsin-domiciled stock insurance company, has been designated the Credit Enhancer with respect to the 2006 Series A Bonds.

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This 2006 Series A Bond shall not be entitled to any benefit under the Indenture or be valid until this 2006 Series A Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

[Remainder of page intentionally left blank.]

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**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this 2006 Series A Bond to be executed by a duly authorized officer of Basin Electric Power Cooperative by his signature, and has caused the corporate seal of Basin Electric Power Cooperative to be affixed, impressed or reproduced hereon and attested to by a duly authorized officer of Basin Electric Power Cooperative.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By___________________ | By___________________ |
| | Name: |
| | Title: |

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| | |
|:---|:---|
| [Seal] | [Seal] |
| Attest: | Attest: |
| By______________ | By______________ |
| | Name: |
| | Title: |

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This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | | |
|:---|:---|:---|
| | **U.S. BANK NATIONAL ASSOCIATION**, as Trustee | **U.S. BANK NATIONAL ASSOCIATION**, as Trustee |
| | By: | |
| | | Authorized Signatory |
| Date of Authentication: |  |  |

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**FINANCIAL GUARANTY INSURANCE POLICY NO. _______ (THE "POLICY") WITH RESPECT TO PAYMENTS DUE FOR PRINCIPAL OF AND INTEREST ON THIS BOND HAS BEEN ISSUED BY AMBAC ASSURANCE CORPORATION ("AMBAC ASSURANCE"). THE POLICY HAS BEEN DELIVERED TO THE BANK OF NEW YORK, NEW YORK, NEW YORK, AS THE INSURANCE TRUSTEE UNDER SAID POLICY AND WILL BE HELD BY SUCH INSURANCE TRUSTEE OR ANY SUCCESSOR INSURANCE TRUSTEE. THE POLICY IS ON FILE AND AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE INSURANCE TRUSTEE AND A COPY THEREOF MAY BE SECURED FROM AMBAC ASSURANCE OR THE INSURANCE TRUSTEE. ALL PAYMENTS REQUIRED TO BE MADE UNDER THE POLICY SHALL BE MADE IN ACCORDANCE WITH THE PROVISIONS THEREOF. THE OWNER OF THIS BOND ACKNOWLEDGES AND CONSENTS TO THE SUBROGATION RIGHTS OF AMBAC ASSURANCE AS MORE FULLY SET FORTH IN THE POLICY.**

## Exhibit 4.1

**Exhibit 4.1(c)**

FOURTEENTH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

dated as of March 1, 2007

Relating to the Basin Electric Power Cooperative:

First Mortgage Note, Wells Fargo Note No. 1

Authorized by this Fourteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS FOURTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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THIS FOURTEENTH SUPPLEMENTAL INDENTURE, dated as of March 1, 2007 (this "*Fourteenth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Corporate Trust Services, EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107-1419 and shall supplement that certain Original Indenture (as hereinafter defined) dated as of January 1, 1998;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously supplemented and as supplemented hereby (hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Company proposes to borrow from Wells Fargo Bank, National Association {hereinafter called '*Wells Fargo*") twenty-five million dollars ($25,000,000.00) (the "*Wells Fargo" Loan*") to finance the construction of certain electric transmission facilities located within the State of North Dakota (the "*Project*");

WHEREAS, one of the conditions established by Wells Fargo to make the Wells Fargo Loan is the issuance by the Company to Wells Fargo of an Additional Obligation under the Original Indenture in the aggregate principal amount of twenty-five million dollars ($25,000,000.00);

WHEREAS, the Board of Directors of the Company has established a new Obligation to be designated as the Company's First Mortgage Note, Wells Fargo Note No. 1 in the form of Exhibit C hereto (the "*Note*"), to be dated as of the date of authentication and to be due at such time as shall be agreed to between the Company and Wells Fargo, and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Fourteenth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the Note as an Additional Obligation and specifying the form and provisions of the Note;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1; and

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WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the Note, to make the Note to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligation of the Company, and to constitute the Indenture a valid and binding lien for the security of the Note, in accordance with its terms, have been done and taken; and the execution and delivery of this Fourteenth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS FOURTEENTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the Note, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the Note is secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2 B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" (other than the property described in Exhibit B to the Original Indenture) in the Original Indenture (excluding the property described on Exhibit B in the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or

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substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

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AND IT IS HEREBY COVENANTED AND DECLARED that the Note is to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

**ARTICLE I**

**THE NOTE AND CERTAIN PROVISIONS RELATING THERETO**

*Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions*.

All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Fourteenth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise.

*Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the Note*.

There shall be established an Additional Obligation known as the First Mortgage Note, Wells Fargo Note No. 1 (the "*Note*"), the forms, terms and conditions of which shall be substantially as set forth in this Section and Section 1.3.

The aggregate principal amount of the Note which may be authenticated and delivered and outstanding at any one time is limited to twenty-five million dollars ($25,000,000.00).

The Note shall be dated the date of authentication and shall bear interest at the rate determined as set forth therein. The Note is subject to optional prepayment as more fully set forth in the Note.

All payments on the Note shall be made to the Holder thereof in lawful money of the United States which shall be immediately available on the date payment is due.

*Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;Form of the Note*.

The Note shall be a promissory note substantially in the form of Exhibit C hereto and the Trustee's authentication certificate to be executed on the Note (or an allonge thereto) shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 1.4&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*.

The Company shall use the proceeds of the loan evidenced by the Note to finance the costs of construction of the Project.

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**ARTICLE II**

**MISCELLANEOUS**

*Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;*This Fourteenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Fourteenth Supplemental Indenture and the Note, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the Note to the same extent as if specifically set forth herein.

*Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;*All recitals in this Fourteenth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;*Whenever in this Fourteenth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Fourteenth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;*Nothing in this Fourteenth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Fourteenth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Fourteenth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;*This Fourteenth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;*To the extent permitted by applicable law, this Fourteenth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the

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Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107-1419

Additionally, this Fourteenth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Fourteenth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R, Harper |
|  | Name: Ronald R. Harper |
|  | Title: CEO and General Manager |

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| | |
|:---|:---|
| Attest: | /s/ Claire M. Olson |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Claire M. Olson | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Claire M. Olson |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Assistant Secretary |

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Exhibit A:&nbsp;&nbsp;&nbsp;&nbsp;Filing Information for Original Indenture

Exhibit B:&nbsp;&nbsp;&nbsp;&nbsp;Real Property Descriptions

Exhibit C&nbsp;&nbsp;&nbsp;&nbsp;Form of the Note

Exhibit D:&nbsp;&nbsp;&nbsp;&nbsp;Form of Authentication

STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;))

SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 15th day of May, 2007, by Ronald R. Harper, CEO and General Manager of Basin Electric Power Cooperative, a North Dakota electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public, State of North Dakota |
| My commission expires: March 1, 2009 |

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, <br>as Trustee | U.S. BANK NATIONAL ASSOCIATION, <br>as Trustee |
| By: | /s/ Richard Prokosch |
|  | Name: Richard Prokosch |
|  | Title: Vice President |

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STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;))

SS

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 15th day of May, 2007, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Denise R. Landeen |
| Name: Denise R. Landeen |
| &nbsp;&nbsp;Notary Public |
| &nbsp;&nbsp;My commission expires: January 31, 2012 |

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**EXHIBIT A**

**[FILING INFORMATION FOR ORIGINAL INDENTURE]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

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**EXHIBIT B**

**[REAL PROPERTY DESCRIPTIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

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**Exhibit CEXHIBIT C**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE NOTE, WELLS FARGO NOTE NO. 1**

$25,000,000&nbsp;&nbsp;&nbsp;&nbsp;May ___, 2007

FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a North Dakota cooperative corporation (the "*Company*"), hereby promises to pay to the order of Wells Fargo Bank, National Association, ("*Wells Fargo*"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of TWENTY FIVE MILLION DOLLARS ($25,000,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay a loan (the '*Wells Fargo Loan*") made by Wells Fargo to the Company pursuant to the terms of that certain Loan Agreement dated as of _______ 1, 2007, between the Company and Wells Fargo (as amended, supplemented, or restated from time to time, the "*Loan Agreement*"); and (2) is secured under that certain Indenture dated as of January 1, 1998 (as amended, supplemented or restated from time to time, the "*Indenture*"), between the Company and U.S. Bank National Association, as trustee (the "*Indenture Trustee*").

1.&nbsp;&nbsp;&nbsp;&nbsp;*Repayment of Principal*. The principal balance of this First Mortgage Note shall be paid in equal annual installments of $1,250,000, payable on each __________, commencing on ___________, with the last installment due on __________, provided, however, that if any installment due date is not a Business Day, such installment shall be due and payable on the next Business Day.

2.&nbsp;&nbsp;&nbsp;&nbsp;*Interest*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;*Rate*. Subject to adjustment as provided in subparagraph B below, the Company agrees to pay interest on the unpaid principal balance of this First Mortgage Note at a rate equal to ___ [*US Treasury rate plus .325%, fixed; to be set prior to closing.*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;*Rate Adjustment*. If the Credit Rating assigned to the Company by any Rating Agency is reduced to a level below the lowest "A" level rating issued by such Rating Agency, the interest rate on the unpaid principal balance of this First Mortgage Note shall increase by the difference, as reported by Bloomberg, between the interest rate associated with the lowest "A" level rated senior secured obligation with a term approximately equal to the remaining term hereof, and the interest rate associated with a comparable obligation with the same rating as the Company's new Credit Rating. In the event such information is no longer so reported, the Holder may select a similar source of such information. Such interest rate change shall be effective on the 1st day of the month following such reduction of the Company's Credit Rating and shall be evidenced by written notice thereof to be given by the Holder to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;*Calculation and Payment*. Interest shall be calculated on the outstanding principal balance based on the actual days elapsed in a year of 365 days, and shall be payable semi-annually in arrears each __________ and __________ commencing on __________. In calculating the exact number of days, the date the Loan is made shall be included and the date each installment is repaid shall be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;*Default Rate*. Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at the Holder's option in each instance, bear interest from the date when due to the date paid at the Default Rate. In addition, upon the occurrence and during the continuance of any Event of Default the Holder may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at the Default Rate. All such Default Rate interest shall be payable upon demand.

3.&nbsp;&nbsp;&nbsp;&nbsp;*Optional Prepayment*. From and after _____________, the Company shall have the right to prepay this First Mortgage Note in whole, but not in part. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof (which notice shall be irrevocable) to the Holder not less than thirty (30) days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid. On such date, unless the Holder otherwise agrees, the entire unpaid principal balance hereof shall become due and payable together with accrued interest on the amount prepaid to the date of payment and the prepayment premium in effect on such date calculated in accordance with the prepayment schedule set forth in Attachment 1 to this First Mortgage Note. Unless otherwise agreed by the Holder, the Company may not otherwise prepay this First Mortgage Note.

4.&nbsp;&nbsp;&nbsp;&nbsp;*Payments*. All payments made hereunder shall be made in lawful money of the United States of America by electronic transfer of immediately available funds. Electronic transfers shall be made to such account or accounts as shall be designated by the Holder in accordance with the terms of the Loan Agreement. The Holder shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal, interest or prepayment premium required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, the Holder is required to present this First Mortgage Note to the Indenture Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, the Holder will mark this First Mortgage Note as cancelled and return it as directed by the Company. The obligation of the Company to make the payments required hereunder shall be absolute and unconditional and the Company shall make such payments without abatement, diminution or deduction regardless of any

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cause or circumstances whatsoever including, without limitation, any defense, set-off, recoupment or counterclaim which the Company may have or assert against the Holder or any other person. The Company hereby waives presentment for payment, demand, protest, notice of protest, notice of dishonor and all defenses on the grounds of extension of time of payment for the payment hereof which may be given (other than in writing) by the Holder hereof.

5.&nbsp;&nbsp;&nbsp;&nbsp;*Events of Default*. For purposes of the Indenture and without limiting any other provision of the Indenture or the Loan Agreement, an Event of Default shall arise in the event the Company fails to make any payment of principal or interest on this First Mortgage Note when due and payable.

6.&nbsp;&nbsp;&nbsp;&nbsp;*Reference*. This First Mortgage Note is the "Note" contemplated by the Loan Agreement and the "First Mortgage Note, Wells Fargo Note No. 1" contemplated by that certain Fourteenth Supplemental Indenture dated as of March 1, 2007, between the Company and the Indenture Trustee. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note.

7.&nbsp;&nbsp;&nbsp;&nbsp;*Miscellaneous*. Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Indenture Trustee and the Holder of this First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the Holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The Holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Fourteenth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be personally liable on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Indenture Trustee, or its successor as Indenture Trustee, of the Certificate of Authentication inscribed hereon or in an allonge hereto.

8.&nbsp;&nbsp;&nbsp;&nbsp;*Defined Terms*. All capitalized terms not otherwise defined in this First Mortgage Note shall have the meanings assigned to them in the Loan Agreement.

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9.&nbsp;&nbsp;&nbsp;&nbsp;*Governing Law*. This First Mortgage Note shall be governed by and construed in accordance with the laws of the State of North Dakota.

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IN WITNESS WHEREOF, Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: |
| ____________________________________ |
| Name Ronald R, Harper |
| Title: CEO & General Manager |

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| |
|:---|
| ATTEST:  |
| By: |
| ____________________________________ |
| Name: Claire M. Olson |
| Title: Assistant Secretary |

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Attachment 1: Prepayment Premium Schedule

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**ATTACHMENT 1**

**PREPAYMENT PREMIUM SCHEDULE**

The prepayment premium shall be an amount equal to the difference between (i) the principal amount of the Note to be prepaid, and (ii) the present value of all scheduled payments of principal and interest which are avoided by any such prepayment, determined by discounting such payments of principal and interest from the scheduled payment date to the date of prepayment at a rate equal to the Market Rate (as hereinafter defined), calculated as of the date of prepayment. In no event shall the amount of such prepayment premium be less than zero. For the purposes hereof, "Market Rate" shall mean, as of the date of prepayment, the daily average yield to maturity, as published in *The Wall Street Journal*, for the most recent week (Monday Friday) prior to such date for Treasury Note issues which have been recently issued having (i) a remaining maturity equal to the tenor of the Note rounded to the nearest full year, or (ii) if there is no Treasury Note issue with a remaining maturity so equal to the tenor of the Note, a remaining maturity closest to the tenor of the Note rounded to the nearest full year.

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**EXHIBIT D**

**TRUSTEE**'**S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within mentioned Indenture.

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| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION,<br>AS TRUSTEE |
| BY: |
| ____________________________________ |
| AUTHORIZED SIGNATORY |

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## Exhibit 4.1

**Exhibit 4.1(d)**

SIXTEENTH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of November 1, 2007

Relating to the Basin Electric Power Cooperative First Mortgage Obligations 2007 CoBank Notes

Authorized by this Sixteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE;

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION,

TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS SIXTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER: SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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THIS SIXTEENTH SUPPLEMENTAL INDENTURE, dated as of November 1, 2007 (this "*Sixteenth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously supplemented and as supplemented hereby (hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established one new series of Additional Obligations to be designated the Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Notes, to be dated their date of authentication (the "*2007 CoBank Notes*") with the first note of such series being in the amount of Two Hundred Seventy-Five Million Dollars ($275,000,000) and having a final maturity date of September 30, 2042, and with the second note of such series being in the amount of One Hundred Forty Million Dollars ($140,000,000) and having a final maturity date of September 30, 2042; such 2007 CoBank Notes being issued to CoBank, ACB (the "*Lender*") to secure the Company's obligations under the Loan Agreement dated as of November 1, 2007 between the Company and the Lender in the principal amount of Four Hundred Fifteen Million Dollars ($415,000,000), and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Sixteenth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2007 CoBank Notes as Additional Obligations and specifying the form and provisions of the 2007 CoBank Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1; and

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WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2007 CoBank Notes, to make the 2007 CoBank Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2007 CoBank Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Sixteenth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS SIXTEENTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2007 CoBank Notes, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2007 CoBank Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Original Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the

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same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall

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become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2007 CoBank Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions*.

All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Sixteenth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise.

**ARTICLE II**

**THE 2007 COBANK NOTES AND**

**CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2007 CoBank Notes*.

There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Notes" (hereinafter referred to as the "*2007 CoBank Notes*").

The aggregate principal amount of the 2007 CoBank Notes which may be authenticated and delivered and Outstanding at any one time is limited to Four Hundred Fifteen Million Dollars ($415,000,000). The 2007 CoBank Notes shall be registered in the name of Lender, and shall be dated the date of authentication. Principal on the 2007 CoBank Notes shall be due and payable as provided in the payment schedules attached to the form of the 2007 CoBank Notes attached hereto as Exhibit C.

The 2007 CoBank Notes shall bear interest as provided in the form of 2007 CoBank Notes attached hereto as Exhibit C.

The principal of, premium, if any, and interest on the 2007 CoBank Notes shall be payable to Lender in immediately available funds as described in such notes. In the event that any day on which a payment of principal of, premium, if any, and interest on the 2007 CoBank Notes is not a Business Day (as defined below), then such payment shall be made on the next Business Day and interest shall accrue during such period on the principal amount of the 2007 CoBank Notes. "*Business Day*" shall mean any day

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other than a Saturday or Sunday, or other day on which Lender is, or the Federal Reserve Banks are, closed for Business.

In the event the Company fails to make any payment with respect to the 2007 CoBank Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the default rate specified in the 2007 CoBank Notes.

The Company may, on three Business Day's prior written notice to Lender, prepay the 2007 CoBank Notes as provided in the form of the 2007 CoBank Notes attached hereto as Exhibit C, in whole or in part, together with (i) accrued interest on the amount prepaid to the day of payment, and (ii) a prepayment premium, if any, computed in accordance with the terms of the 2007 CoBank Notes.

*Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2007 CoBank Notes*.

The 2007 CoBank Notes shall each be a promissory note substantially in the form of Exhibit C hereto, and the Trustee's authentication certificate to be executed on the 2007 CoBank Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*.

The Company shall use the proceeds of the loan evidenced by the 2007 CoBank Notes for capital expenditures in relation to the construction of the Dry Fork Station and for general corporate purposes.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1*&nbsp;&nbsp;&nbsp;&nbsp;The Sixteenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Sixteenth Supplemental Indenture and the 2007 CoBank Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2007 CoBank Notes to the same extent as if specifically set forth herein.

*Section 3.2*&nbsp;&nbsp;&nbsp;&nbsp;All recitals in this Sixteenth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 3.3*&nbsp;&nbsp;&nbsp;&nbsp;Whenever in this Sixteenth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX

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and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Sixteenth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4*&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this Sixteenth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Sixteenth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Sixteenth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5*&nbsp;&nbsp;&nbsp;&nbsp;This Sixteenth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6*&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted by applicable law, this Sixteenth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

Additionally, this Sixteenth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Sixteenth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Ronald R. Harper |
|  | Title: Chief Executive Officer & General Manager |

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(SEAL)

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| | | |
|:---|:---|:---|
| Attest: | | /s/ Claire M. Olson |
| | Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claire M. Olson | Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claire M. Olson |
| | Title: Assistant Secretary | Title: Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 3rd day of January, 2008, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public, Burleigh County, North Dakota |
| My commission expires: March 1, 2009 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Richard Prokosch |
|  | Name: Richard Prokosch |
|  | Title: Vice President |

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(SEAL)

STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

The FOREGOING instrument was acknowledged before me this 3rd day of January, 2008, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Denise Landeen |
| Name: Denise Landeen |
| Notary Public |
| My commission expires: January 31, 2012 |

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(Notarial Seal)

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**EXHIBIT A**

**[FILING INFORMATION FOR ORIGINAL INDENTURE]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

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**EXHIBIT B**

**[REAL PROPERTY DESCRIPTIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

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**EXHIBIT C-1**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2007 COBANK NOTE** 

**NOTE NO. 1**

$275,000,000&nbsp;&nbsp;&nbsp;&nbsp;___________, 2007

FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a North Dakota cooperative corporation (the "*Company*"), hereby promises to pay to the order of CoBank, ACB ("*CoBank*"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of TWO HUNDRED SEVENTY FIVE MILLION DOLLARS ($275,000,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "*Facility A Loans*") made by CoBank, ACB to the Company pursuant to Section 2.01(A)(l) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "*Loan Agreement*"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended or restated from time to time, the "*Indenture*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;*Repayment of Principal*. The principal balance of this First Mortgage Note shall be repaid in accordance with the schedule attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;*Interest*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;*Interest Rate Options*. The Company agrees to pay interest on the unpaid principal balance of the Facility A Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;*Weekly Quoted Variable Rate Option*. At a rate per annum equal to the rate of interest established by CoBank in its sole discretion in each instance on the first Business Day of each week (the "*Weekly Variable Rate Option*"). The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;*LIBOR Option*. At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the "*LIBOR Option*"). Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest

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Periods expiring after the fifth anniversary of the date hereof (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;*Quoted Fixed Rate Option*. At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the "*Quoted Fixed Rate Option*"). Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a "*Quoted Fixed Rate Period*") ranging from one (1) year to the final maturity date of the Loans; and (b) the maximum number of balances outstanding under this Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;*Elections*. Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;*Calculation and Payment*. Interest shall be calculated on the actual number of days each Facility A Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility A Loan is made shall be included and the date each Facility A Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;*Default Rate*. Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Weekly Variable Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility A Loans. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;*Prepayment*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;*Optional Prepayment*. The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be

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$5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied to principal installments in the inverse order of their maturity and to such fixed and variable rate balances outstanding on this First Mortgage Note as shall be designated by CoBank. Unless otherwise agreed by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;*Mandatory Prepayment*. The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;*Payments*. All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal or interest required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, CoBank is required to present this First Mortgage Note to the Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;*Defeasance*. Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;*Events of Default*. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;*Reference*. This First Mortgage Note is the "First Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;*Miscellaneous*. Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;*Governing Law*. This First Mortgage Note shall be governed by and construed m accordance with the laws of the State of Colorado.

**IN WITNESS WHEREOF**, Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: |
| Its: |

---

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| |
|:---|
| ATTEST: |
| By: |
| Title: |

---

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**EXHIBIT A**

**REPAYMENT SCHEDULE**

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| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY A LOANS |
| 12/31/2012 | $685621.00 |
| 3/31/2013 | $697619.00 |
| 6/30/2013 | $709827.00 |
| 9/30/2013 | $722249.00 |
| 12/31/2013 | $734889.00 |
| 3/31/2014 | $747749.00 |
| 6/30/2014 | $760835.00 |
| 9/30/2014 | $774149.00 |
| 12/31/2014 | $787697.00 |
| 3/31/2015 | $801482.00 |
| 6/30/2015 | $815508.00 |
| 9/30/2015 | $829779.00 |
| 12/31/2015 | $844300.00 |
| 3/31/2016 | $859075.00 |
| 6/30/2016 | $874109.00 |
| 9/30/2016 | $889406.00 |
| 12/31/2016 | $904971.00 |
| 3/31/2017 | $920808.00 |
| 6/30/2017 | $936922.00 |
| 9/30/2017 | $953318.00 |
| 12/31/2017 | $970001.00 |
| 3/31/2018 | $986976.00 |
| 6/30/2018 | $1004248.00 |
| 9/30/2018 | $1021823.00 |
| 12/31/2018 | $1039705.00 |
| 3/31/2019 | $1057899.00 |
| 6/30/2019 | $1076413.00 |
| 9/30/2019 | $1095250.00 |
| 12/31/2019 | $1114417.00 |
| 3/31/2020 | $1133919.00 |
| 6/30/2020 | $1153763.00 |
| 9/30/2020 | $1173954.00 |
| 12/31/2020 | $1194498.00 |
| 3/31/2021 | $1215401.00 |
| 6/30/2021 | $1236671.00 |
| 9/30/2021 | $1258313.00 |
| 12/31/2021 | $1280333.00 |
| 3/31/2022 | $1302739.00 |
| 6/30/2022 | $1325537.00 |

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| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY A LOANS |
| 9/30/2022 | $1348734.00 |
| 12/31/2022 | $1372337.00 |
| 3/31/2023 | $1396353.00 |
| 6/30/2023 | $1420789.00 |
| 9/30/2023 | $1445653.00 |
| 12/31/2023 | $1470952.00 |
| 3/31/2024 | $1496693.00 |
| 6/30/2024 | $1522885.00 |
| 9/30/2024 | $1549536.00 |
| 12/31/2024 | $1576653.00 |
| 3/31/2025 | $1604244.00 |
| 6/30/2025 | $1632319.00 |
| 9/30/2025 | $1660884.00 |
| 12/31/2025 | $1689950.00 |
| 3/31/2026 | $1719524.00 |
| 6/30/2026 | $1749615.00 |
| 9/30/2026 | $1780234.00 |
| 12/31/2026 | $1811388.00 |
| 3/31/2027 | $1843087.00 |
| 6/30/2027 | $1875341.00 |
| 9/30/2027 | $1908160.00 |
| 12/31/2027 | $1941552.00 |
| 3/31/2028 | $1975530.00 |
| 6/30/2028 | $2010101.00 |
| 9/30/2028 | $2045278.00 |
| 12/31/2028 | $2081070.00 |
| 3/31/2029 | $2117489.00 |
| 6/30/2029 | $2154545.00 |
| 9/30/2029 | $2192250.00 |
| 12/31/2029 | $2230614.00 |
| 3/31/2030 | $2269650.00 |
| 6/30/2030 | $2309369.00 |
| 9/30/2030 | $2349783.00 |
| 12/31/2030 | $2390904.00 |
| 3/31/2031 | $2432745.00 |
| 6/30/2031 | $2475318.00 |
| 9/30/2031 | $2518636.00 |
| 12/31/2031 | $2562712.00 |
| 3/31/2032 | $2607560.00 |
| 6/30/2032 | $2653192.00 |
| 9/30/2032 | $2699623.00 |
| 12/31/2032 | $2746866.00 |
| 3/31/2033 | $2794936.00 |

---

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| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY A LOANS |
| 6/30/2033 | $2843848.00 |
| 9/30/2033 | $2893615.00 |
| 12/31/2033 | $2944253.00 |
| 3/31/2034 | $2995778.00 |
| 6/30/2034 | $3048204.00 |
| 9/30/2034 | $3101548.00 |
| 12/31/2034 | $3155825.00 |
| 3/31/2035 | $3211052.00 |
| 6/30/2035 | $3267245.00 |
| 9/30/2035 | $3324422.00 |
| 12/31/2035 | $3382599.00 |
| 3/31/2036 | $3441795.00 |
| 6/30/2036 | $3502026.00 |
| 9/30/2036 | $3563312.00 |
| 12/31/2036 | $3625669.00 |
| 3/31/2037 | $3689119.00 |
| 6/30/2037 | $3753678.00 |
| 9/30/2037 | $3819368.00 |
| 12/31/2037 | $3886207.00 |
| 3/31/2038 | $3954215.00 |
| 6/30/2038 | $4023414.00 |
| 9/30/2038 | $4093824.00 |
| 12/31/2038 | $4165466.00 |
| 3/31/2039 | $4238361.00 |
| 6/30/2039 | $4312533.00 |
| 9/30/2039 | $4388002.00 |
| 12/31/2039 | $4464792.00 |
| 3/31/2040 | $4542926.00 |
| 6/30/2040 | $4622427.00 |
| 9/30/2040 | $4703320.00 |
| 12/31/2040 | $4785628.00 |
| 3/31/2041 | $4869376.00 |
| 6/30/2041 | $4954590.00 |
| 9/30/2041 | $5041296.00 |
| 12/31/2041 | $5129518.00 |
| 3/31/2042 | $5219285.00 |
| 6/30/2042 | $5310622.00 |
| 9/30/2042 | $5403615.00 |
|  | $275000000.00 |

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |
| Authorized Signatory |

---

------

**EXHIBIT C-2**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2007 COBANK NOTE** 

**NOTE NO. 2**

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| | |
|:---|:---|
| $140000000.00 | ____________, 2007 |

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FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a North Dakota cooperative corporation (the "*Company*"), hereby promises to pay to the order of CoBANK, ACB ("*CoBank*"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of ONE HUNDRED FORTY MILLION DOLLARS ($140,000,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "*Facility B Loans*") made by CoBank, ACB to the Company pursuant to Section 2.01(A)(2) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "*Loan Agreement*"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended or restated from time to time, the "*Indenture*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;*Repayment of Principal*. The principal balance of this First Mortgage Note shall be repaid in accordance with the schedule attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;*Interest*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;*Interest Rate Options*. The Company agrees to pay interest on the unpaid principal balance of the Facility B Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;*Weekly Quoted Variable Rate Option*. At a rate per annum equal to the rate of interest established by CoBank in its sole discretion in each instance on the first Business Day of each week (the "*Weekly Variable Rate Option*"). The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;*LIBOR Option*. At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the "*LIBOR Option*"). Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after the fifth anniversary of the date hereof (when this option shall terminate and cease to be in effect).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;*Quoted Fixed Rate Option*. At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the "*Quoted Fixed Rate Option*"). Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a "*Quoted Fixed Rate Period*") ranging from one (1) year to the final maturity date of the Loans; and (b) the maximum number of balances outstanding under this Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;*Elections*. Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;*Calculation and Payment*. Interest shall be calculated on the actual number of days each Facility B Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility B Loan is made shall be included and the date each Facility B Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;*Default Rate*. Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Weekly Variable Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility B Loans. All such interest shall be payable upon demand.

3&nbsp;&nbsp;&nbsp;&nbsp;*Prepayment*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;*Optional Prepayment*. The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof,

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specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied to principal installments in the inverse order of their maturity and to such fixed and variable rate balances outstanding on this First Mortgage Note as shall be designated by CoBank. Unless otherwise agreed by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;*Mandatory Prepayment*. The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;*Payments*. All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal or interest required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, CoBank is required to present this First Mortgage Note to the Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;*Defeasance*. Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;*Events of Default*. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;*Reference*. This First Mortgage Note is the "First Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee. Reference to the Loan Agreement and the Indenture (as

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supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;*Miscellaneous*. Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;*Governing Law*. This First Mortgage Note shall be governed by and construed m accordance with the laws of the State of Colorado.

**IN WITNESS WHEREOF**, Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: |
| Its: |

---

------

---

| |
|:---|
| ATTEST: |
| By: |
| Title: |

---

------

**EXHIBIT A**

**REPAYMENT SCHEDULE**

---

| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY B LOANS |
| 12/31/2012 | $349043.00 |
| 3/31/2013 | $355151.00 |
| 6/30/2013 | $361366.00 |
| 9/30/2013 | $367690.00 |
| 12/31/2013 | $374125.00 |
| 3/31/2014 | $380672.00 |
| 6/30/2014 | $387334.00 |
| 9/30/2014 | $394112.00 |
| 12/31/2014 | $401009.00 |
| 3/31/2015 | $408027.00 |
| 6/30/2015 | $415167.00 |
| 9/30/2015 | $422433.00 |
| 12/31/2015 | $429825.00 |
| 3/31/2016 | $437347.00 |
| 6/30/2016 | $445001.00 |
| 9/30/2016 | $452788.00 |
| 12/31/2016 | $460712.00 |
| 3/31/2017 | $468775.00 |
| 6/30/2017 | $476978.00 |
| 9/30/2017 | $485325.00 |
| 12/31/2017 | $493819.00 |
| 3/31/2018 | $502460.00 |
| 6/30/2018 | $511253.00 |
| 9/30/2018 | $520200.00 |
| 12/31/2018 | $529304.00 |
| 3/31/2019 | $538567.00 |
| 6/30/2019 | $547992.00 |
| 9/30/2019 | $557582.00 |
| 12/31/2019 | $567339.00 |
| 3/31/2020 | $577268.00 |
| 6/30/2020 | $587370.00 |
| 9/30/2020 | $597649.00 |
| 12/31/2020 | $608108.00 |
| 3/31/2021 | $618750.00 |
| 6/30/2021 | $629578.00 |
| 9/30/2021 | $640595.00 |
| 12/31/2021 | $651806.00 |
| 3/31/2022 | $663212.00 |
| 6/30/2022 | $674819.00 |

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| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY B LOANS |
| 9/30/2022 | $686628.00 |
| 12/31/2022 | $698644.00 |
| 3/31/2023 | $710870.00 |
| 6/30/2023 | $723310.00 |
| 9/30/2023 | $735968.00 |
| 12/31/2023 | $748848.00 |
| 3/31/2024 | $761953.00 |
| 6/30/2024 | $775287.00 |
| 9/30/2024 | $788854.00 |
| 12/31/2024 | $802659.00 |
| 3/31/2025 | $816706.00 |
| 6/30/2025 | $830998.00 |
| 9/30/2025 | $845541.00 |
| 12/31/2025 | $860338.00 |
| 3/31/2026 | $875394.00 |
| 6/30/2026 | $890713.00 |
| 9/30/2026 | $906301.00 |
| 12/31/2026 | $922161.00 |
| 3/31/2027 | $938299.00 |
| 6/30/2027 | $954719.00 |
| 9/30/2027 | $971426.00 |
| 12/31/2027 | $988426.00 |
| 3/31/2028 | $1005724.00 |
| 6/30/2028 | $1023324.00 |
| 9/30/2028 | $1041232.00 |
| 12/31/2028 | $1059454.00 |
| 3/31/2029 | $1077994.00 |
| 6/30/2029 | $1096859.00 |
| 9/30/2029 | $1116054.00 |
| 12/31/2029 | $1135585.00 |
| 3/31/2030 | $1155458.00 |
| 6/30/2030 | $1175678.00 |
| 9/30/2030 | $1196253.00 |
| 12/31/2030 | $1217187.00 |
| 3/31/2031 | $1238488.00 |
| 6/30/2031 | $1260162.00 |
| 9/30/2031 | $1282214.00 |
| 12/31/2031 | $1304653.00 |
| 3/31/2032 | $1327485.00 |
| 6/30/2032 | $1350716.00 |
| 9/30/2032 | $1374353.00 |
| 12/31/2032 | $1398404.00 |
| 3/31/2033 | $1422876.00 |

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| | |
|:---|:---|
| PAYMENT DUE DATE | AMOUNT DUE AND PAYABLE ON<br>FACILITY B LOANS |
| 6/30/2033 | $1447777.00 |
| 9/30/2033 | $1473113.00 |
| 12/31/2033 | $1498892.00 |
| 3/31/2034 | $1525123.00 |
| 6/30/2034 | $1551813.00 |
| 9/30/2034 | $1578969.00 |
| 12/31/2034 | $1606601.00 |
| 3/31/2035 | $1634717.00 |
| 6/30/2035 | $1663324.00 |
| 9/30/2035 | $1692433.00 |
| 12/31/2035 | $1722050.00 |
| 3/31/2036 | $1752186.00 |
| 6/30/2036 | $1782849.00 |
| 9/30/2036 | $1814049.00 |
| 12/31/2036 | $1845795.00 |
| 3/31/2037 | $1878097.00 |
| 6/30/2037 | $1910963.00 |
| 9/30/2037 | $1944405.00 |
| 12/31/2037 | $1978432.00 |
| 3/31/2038 | $2013055.00 |
| 6/30/2038 | $2048283.00 |
| 9/30/2038 | $2084128.00 |
| 12/31/2038 | $2120600.00 |
| 3/31/2039 | $2157711.00 |
| 6/30/2039 | $2195471.00 |
| 9/30/2039 | $2233892.00 |
| 12/31/2039 | $2272985.00 |
| 3/31/2040 | $2312762.00 |
| 6/30/2040 | $2353235.00 |
| 9/30/2040 | $2394417.00 |
| 12/31/2040 | $2436319.00 |
| 3/31/2041 | $2478955.00 |
| 6/30/2041 | $2522337.00 |
| 9/30/2041 | $2566478.00 |
| 12/31/2041 | $2611391.00 |
| 3/31/2042 | $2657090.00 |
| 6/30/2042 | $2703589.00 |
| 9/30/2042 | $2750967.00 |
|  | $140000000.00 |

---

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |
| Authorized Signatory |

---

------

**Exhibit D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |
| Authorized Signatory |

---

## Exhibit 4.1

**Exhibit 4.1(d)(1)**

**FIRST AMENDMENT TO SIXTEENTH SUPPLEMENTAL INDENTURE**

**Dated as of February 15, 2010**

**Relating to the Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Notes**

**As authorized by the Sixteenth Supplemental Indenture Dated as of November 1, 2007**

**BASIN ELECTRIC POWER COOPERATIVE**

**to**

**U.S. BANK NATIONAL ASSOCIATION, TRUSTEE**

**FIRST MORTGAGE OBLIGATIONS**

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THE SIXTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS **A** SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

------

**<u>FIRST</u> <u>AMENDMENT</u> <u>TO</u> <u>SIXTEENTH</u> <u>SUPPLEMENTAL</u> <u>INDENTURE</u>**

This First Amendment to Sixteenth Supplemental Indenture, dated as of February 15, 2010 (this "First Amendment"), is by and between Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the state of North Dakota, as Grantor (hereinafter referred to as the "Company''), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. Bank National Association, a national banking association, as trustee (in such capacity, the ''Trustee"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107.

**WHEREAS,** the Company has previously executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously amended and supplemented (hereinafter called the "Original Indenture"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A-1 hereto;

**WHEREAS,** the Company has previously executed and delivered to the Trustee the Sixteenth Supplemental Indenture dated as of November 1, 2007 (the "Sixteenth Supplemental Indenture") which Sixteenth Supplemental Indenture is filed of record as shown on Exhibit A-2 hereto;

**WHEREAS,** pursuant to the Sixteenth Supplemental Indenture, the Company established a new series of Additional Obligations designated the Basin Electric Power Cooperative First Mortgages Obligations, 2007 CoBank Notes (the "2007 CoBank Notes") in an aggregate principal amount of Four Hundred Fifteen Million Dollars {$415,000,000.00). The first note of such series was issued in the principal amount of Two Hundred Seventy-Five Million Dollars ($275,000,000.00) and has a final maturity date of September 30, 2042, and the second note of such series was issued in the principal amount of One Hundred Forty Million Dollars ($140,000,000.00) and has a final maturity date of September 30, 2042 (said two promissory notes being referred to herein as the "Existing 2007 CoBank Notes");

**WHEREAS,** the Existing 2007 CoBank Notes were issued to CoBank, ACB (the "Lender'') in order to secure the Company's obligations under the Loan Agreement dated as of November 1, 2007 (the "Loan Agreement") between the Company and the Lender, pursuant to which Lender agreed to lend the Company the aggregate principal amount of Four Hundred Fifteen Million Dollars ($415,000,000.00);

**WHEREAS,** as of the date hereof, the Company has borrowed and the Lender has advanced Two Hundred Million Dollars ($200,000,000.00) under the Loan Agreement and the Existing 2007 CoBank Notes;

**WHEREAS,** the Company and the Lender have entered into the First Amendment to the Loan Agreement dated as of February 15, 2010 (the "Loan Amendment'') so as to: (1) modify the amortization of the Two Hundred Million Dollars ($200,000,000.00) that has been drawn down under the Existing 2007 CoBank Notes; (2) extend the period during which advances of the remaining Two Hundred Fifteen Million Dollars ($215,000,000.00) can be made; and (3) change the amortization of principal to be repaid and modify the method of calculating interest on the principal outstanding on loans made by Lender to the Company under the Loan Agreement from and after the date of this First Amendment.

**WHEREAS,** the Company wishes to amend the Sixteenth Supplemental Indenture for the purpose, among other things, of amending and restating, in their entirety, the two Existing 2007 CoBank Notes to the form of the four 2007 CoBank Notes attached as Exhibit C to this Amendment, two 2007

------

CoBank Notes issued to secure the Two Hundred Million Dollars ($200,000,000.00) Lender has lent the Company under the Loan Agreement prior to the date of this First Amendment and two additional 2007 CoBank Notes to secure borrowings by the Company of the remaining Two Hundred Fifteen Million Dollars from and after the date of this First Amendment (collectively, said four promissory notes being referred to herein as the "New 2007 CoBank Notes");

**WHEREAS,** all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to amend the Sixteenth Supplemental Indenture by execution of this First Amendment have been done and taken and the execution and delivery of this First Amendment has been in all respects duly authorized.

**NOW THEREFORE,** the Company and the Trustee agree as follows:

**1.**Section 2.1 of the Sixteenth Supplemental Indenture is amended by deleting said section in its entirety and inserting, in lieu thereof, the following:

**"Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2007 CoBank Notes.**

There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Notes" (hereinafter referred to as the "2007 CoBank Notes").

The aggregate principal amount of the 2007 CoBank Notes which may be authenticated and delivered and Outstanding at any one time is limited to Four Hundred Fifteen Million Dollars ($415,000,000.00). The 2007 CoBank Notes shall be registered in the name of Lender, and shall be dated the date of authentication.

Principal on the 2007 CoBank Notes shall be due and payable as provided in the forms of the 2007 CoBank Notes attached hereto as Exhibit C.

The 2007 CoBank Notes shall bear interest as provided in the forms of 2007 CoBank Notes attached hereto as Exhibit C.

The principal of, premium, if any, and interest on the 2007 CoBank Notes shall be payable to Lender in immediately available funds as described in such notes. In the event that any day on which a payment of principle of, premium, if any, and interest on the 2007 CoBank Notes is not a Business Day (as defined below), then such payment shall be made on the next Business Day and interest shall accrue during such period on the principal amount of the 2007 CoBank Notes. "Business Day" shall mean any day other than a Saturday or Sunday, or other day on which Lender is, or the Federal Reserve Banks are, closed for Business.

In the event the Company fails to make any payment with respect to the 2007 CoBank Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the default rate specified in the 2007 CoBank Notes.

The Company may, on three Business Day's prior written notice to Lender, prepay the 2007 CoBank Notes as provided in the forms of the 2007 CoBank Notes attached hereto as Exhibit C, in whole or in part, together with (i) accrued interest on the amount prepaid to the day of payment, and (ii) a prepayment premium, if any, computed in accordance with the terms of the 2007 CoBank Notes."

------

**2.**Section 2.2 of the Sixteenth Supplemental Indenture is amended by deleting said section in its entirety and inserting, in lieu thereof, the following:

**"Section 2.2 Forms of the 2007 CoBank Notes.**

The 2007 CoBank Notes shall be promissory notes substantially in the forms set forth in Exhibit C hereto and the Trustee's authentication certificate to be executed on the 2007 CoBank Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions and variations as are required or permitted under the Original Indenture."

**3.**Exhibit C-1 and Exhibit C-2 to the Sixteenth Supplemental Indenture are amended by deleting Exhibit C-1 and Exhibit C-2 in their entirety and inserting, in lieu thereof, Exhibit C-1, Exhibit C-2, Exhibit C-3 and Exhibit C-4, respectively, in the forms attached to this First Amendment.

**4.**Following the Company's execution and delivery of the New 2007 CoBank Notes to the Trustee, the Trustee is authorized, upon receipt from CoBank of the Existing 2007 CoBank Notes, to authenticate and release the New 2007 CoBank Notes to CoBank.

**5.**Except as amended by this First Amendment, all of the terms and conditions of the Sixteenth Supplemental Indenture shall remain in full force and effect.

[This space left intentionally blank.]

------

**IN WITNESS WHEREOF**, the Company and Trustee have caused this Second Amendment to the Sixteenth Supplemental Indenture to be executed by their duly authorized representatives as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| | **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(S E A L) | By: | /s/ Ronald R. Harper |
|  |  | Ronald R. Harper |
|  |  | Chief Executive Officer & General Manager |

---

Attest:

---

| |
|:---|
| /s/ Claire M. Olson |
| Claire M. Olson |
| Assistant Secretary |

---

STATE OF NORTH DAKOTA &nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) ss

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 11<sup>th</sup> day of February, 2010, by Ronald R. Harper, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, on behalf of said corporation.

WITNESS my hand and official seal.

---

| | |
|:---|:---|
| | /s/ Mark Foss |
| | Mark Foss |
| | Notary Public, Burleigh County, North Dakota |
| (Notarial Seal) | My commission expires: March 1, 2015 |

---

------

**U.S. BANK NATIONAL ASSOCIATION, As Trustee**

---

| | |
|:---|:---|
| By: | <u>/s/</u> <u>Richard Prokosch</u> |
|  | Richard Prokosch |
|  | Vice President |

---

STATE OF MINNESOTA &nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) ss

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 11th day of February, 2010, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

---

| | |
|:---|:---|
| | <u>/s/ Denise R. Landeen</u> |
| | Name: Denise R. Landeen |
| | Notary Public - Minnesota |
| (Notarial Seal) | My commission expires: January 31, 2012 |

---

------

---

| | |
|:---|:---|
| Exhibit A-1: | Indenture Filing Information |
| Exhibit A-2: | 16<sup>th</sup> Supplemental Indenture Filing Information  |
| Exhibit B: | Property Description |
| Exhibit C-1: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 1 |
| Exhibit C-2: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 2 |
| Exhibit C-3: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 3 |
| Exhibit C-4: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 4 |
| Exhibit D: | Form of Trustee's Certificate of Authentication |

---

------

**EXHIBIT A-1**

**<u>Indenture</u> <u>Filin</u><u>g</u> <u>Information</u>**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

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**EXHIBIT A-2**

**<u>16</u>**<sup>th</sup> **<u>Su</u><u>pp</u><u>lemental</u> <u>Indenture</u> <u>Filin</u><u>g</u> <u>Information</u>**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

------

**Exhibit C-1**

Note No.1

**BASIN ELECTRIC POWER COOPERATIVE FIRST MORTGAGE OBLIGATIONS,** 

**2007 COBANK NOTE, NOTE NO.** 1

**$132,540,000&nbsp;&nbsp;&nbsp;&nbsp;February 15, 2010**

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE, a** North Dakota cooperative corporation (the "Company"), hereby promises to pay to the order of **CoBANK, ACB** ("CoBank"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **ONE HUNDRED THIRTY-TWO MILLION, FIVE HUNDRED FORTY THOUSAND DOLLARS** ($132,540,000).This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "Facility A Loans") made by CoBank, ACB to the Company prior to February 15, 2010, pursuant to Section 2.0l(A)(l) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "Indenture").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in accordance with the schedule attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility A Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the <u>"Base Rate</u> <u>Option")</u>. The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option.** At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the <u>"LIBOR</u> <u>Option").</u> Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of l, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this

------

**Exhibit C-1**

option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option.** At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the <u>"Quoted Fixed</u> <u>Rate</u> <u>Option")</u>. Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a <u>"Quoted</u> <u>Fixed</u> <u>Rate</u> <u>Period")</u> ranging from one (1) year to thirty (30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections.** Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment.** Interest shall be calculated on the actual number of days each Facility A Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility A Loan is made shall be included and the date each Facility A Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility A Loans. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A) Optional Prepayment.** The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First

------

**Exhibit C-1**

Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the Loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B) Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.018(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default.** For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference.** This First Mortgage Note is the "First Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and

------

**Exhibit C-1**

restates in part the First Mortgage Obligations, 2007 CoBank Note, Note No. 1 dated as of January 18, 2008, in the original principal amount of $275,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Reference is hereby also made to the Indenture for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

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**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | | |
|:---|:---|:---|
| | | **BASIN ELECTRIC POWER COOPERATIVE** |
| | **By:** | |
| | **Its:** | |
| **Attest:** |  |  |
| **By:** |  |  |
| **Title:** |  |  |

---

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**Exhibit C-1**

**EXHIBIT A**

**PAYMENT SCHEDULES**

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| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2012 | $330444.40 |
| 3/31/2013 | $336227.00 |
| 6/30/2013 | $342110.80 |
| 9/30/2013 | $348097.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2013 | $354189.78 |
| 3/31/2014 | $360387.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2014 | $366694.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2014 | $373111.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2014 | $379641.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2015 | $386285.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2015 | $393045.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2015 | $399923.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2015 | $406921.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2016 | $414042.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2016 | $421288.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2016 | $428661.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2016 | $436163.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2017 | $443795.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2017 | $451562.34 |

---

------

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2017 | $459464.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2017 | $467505.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2018 | $475686.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2018 | $484011.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2018 | $492481.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2018 | $501100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2019 | $509868.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2019 | $518791.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2019 | $527870.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2019 | $537108.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2020 | $546507.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2020 | $556071.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2020 | $565803.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2020 | $575704.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2021 | $585779.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2021 | $596030.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2021 | $606461.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2021 | $617073.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2022 | $627872.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2022 | $638860.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2022 | $650040.74 |
| 12/31/2022 | $661416.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2023 | $672991.36 |

---

------

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| 6/30/2023 | $684768.64 |
| 9/30/2023 | $696752.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2023 | $708945.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2024 | $721351.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2024 | $733975.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2024 | $746820.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2024 | $759889.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2025 | $773187.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2025 | $786718.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2025 | $800485.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2025 | $814494.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2026 | $828748.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2026 | $843250.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2026 | $858008.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2026 | $873023.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2027 | $888300.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2027 | $903846.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2027 | $919663.74 |
| 12/31/2027 | $935757.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2028 | $952133.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2028 | $968795.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2028 | $985749.62 |
| 12/31/2028 | $1003000.06 |

---

------

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| 3/31/2029 | $1020552.70 |
| 6/30/2029 | $1038412.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2029 | $1056584.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2029 | $1075074.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2030 | $1093888.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2030 | $1113031.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2030 | $1132509.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2030 | $1152328.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2031 | $1172494.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2031 | $1193013.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2031 | $1213890.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2031 | $1235134.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2032 | $1256749.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2032 | $1278742.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2032 | $1301120.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2032 | $1323889.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2033 | $1347057.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2033 | $1370631.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2033 | $1394617.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2033 | $1419022.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2034 | $1443856.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2034 | $1469123.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2034 | $1494833.36 |

---

------

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2034 | $1520992.90 |
| 3/31/2035 | $1547610.30 |
| 6/30/2035 | $1574693.28 |
| 9/30/2035 | $1602250.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2035 | $1630289.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2036 | $1658820.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2036 | $1687849.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2036 | $1717386.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2036 | $1747440.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2037 | $1778021.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2037 | $1809136.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2037 | $1840796.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2037 | $1873010.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2038 | $1905787.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2038 | $1939139.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2038 | $1973074.30 |
| 12/31/2038 | $2007603.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2039 | $2042735.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2039 | $2078484.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2039 | $2114857.40 |
| 12/31/2039 | $2151867.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2040 | $2189525.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2040 | $2227841.72 |

---

------

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE ON FACILITY A LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2040 | $2266829.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2040 | $2306498.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2041 | $2346862.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2041 | $2387932.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2041 | $2429721.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2041 | $2472241.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2042 | $2515505.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2042 | $2559526.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2042 | $2604345.96 |
|  | $132540000.00 |

---

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,** | **U.S. BANK NATIONAL ASSOCIATION,** |
| as Trustee | as Trustee |
| **By:** |  |
|  | Authorized Signatory |

---

------

**Exhibit C-2**

**Note No. 2**

**BASIN ELECTRIC POWER COOPERATIVE FIRST MORTGAGE OBLIGATIONS,** 

**2007 COBANK NOTE, NOTE NO. 2**

**$142,460,000&nbsp;&nbsp;&nbsp;&nbsp;February 15, 2010**

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "Company"), hereby promises to pay to the order of **CoBANK, ACB** ("CoBank"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **ONE HUNDRED FORTY-TWO MILLION, FOUR HUNDRED SIXTY THOUSAND DOLLARS** ($142,460,000).This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "Facility A Loans") made by CoBank, ACB to the Company on or after February 15, 2010, pursuant to Section 2.0l(A)(l) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "Indenture").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in 112 consecutive quarterly installments, each due on the last day of each March, June, September and December, with the first installment due on December 31, 2014, and the last installment due on September 30, 2042. The amount of each installment shall be the same principal amount that would be due and payable if the Loans were scheduled to be repaid in level installments of principal and interest and such schedule was calculating utilizing 7% as the rate of interest on the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility A Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the <u>"Base</u> <u>Rate Option").</u> The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

------

**Exhibit C-2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option.** At a fixed rate per annum equal to LIBOR plus .the Applicable Margin (the <u>"LIBOR</u> <u>Option").</u> Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option.** At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the <u>"Quoted Fixed Rate</u> <u>Option").</u> Under this option: {a) balances of $10,000,000 or more may be fixed for periods (each, a <u>"Quoted</u> <u>Fixed</u> <u>Rate</u> <u>Period")</u> ranging from one (1) year to thirty (30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections.** Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**calculation and Payment.** Interest shall be calculated on the actual number of days each Facility A Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility A Loan is made shall be included and the date each Facility A Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility A Loans. All such interest shall be payable upon demand.

------

**Exhibit C-2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment.** The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the Loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B} hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default.** For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference.** This First Mortgage Note is the "Second Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental

------

**Exhibit C-2**

Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and restates in part the First Mortgage Obligations, 2007 CoBank Note, Note No. 1 dated as of January 18, 2008, in the original principal amount of $275,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Reference is hereby also made to the Indenture for the prov1s1ons, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

------

**Exhibit C-2**

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

---

| | | |
|:---|:---|:---|
| | | **BASIN ELECTRIC POWER COOPERATIVE** |
| | **By:** | |
| | **Its:** | |
| **Attest:** |  |  |
| **By:** |  |  |
| **Title:** |  |  |

---

------

**Exhibit C-2**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,** | **U.S. BANK NATIONAL ASSOCIATION,** |
| as Trustee | as Trustee |
| **By:** |  |
|  | Authorized Signatory |

---

------

**Exhibit C-3**

**Note No. 3**

**BASIN ELECTRIC POWER COOPERATIVE FIRST MORTGAGE OBLIGATIONS,** 

**2007 COBANK NOTE, NOTE NO. 3**

**$67,460,000&nbsp;&nbsp;&nbsp;&nbsp;February 15, 2010**

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "Company"), hereby promises to pay to the order of **CoBANK, ACS** ("CoBank"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **SIXTY SEVEN MILLION, FOUR HUNDRED SIXTY THOUSAND DOLLARS** ($67,460,000). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "Facility B Loans") made by CoBank, ACB to the Company prior to February 15, 2010, pursuant to Section 2.0l(A)(2) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "Indenture").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in accordance with the schedule attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility B Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the <u>"Base</u> <u>Rate</u> <u>Option"}.</u> The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option.** At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the <u>"LIBOR</u> <u>O</u><u>p</u><u>tion")</u>. Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this

------

**Exhibit C-3**

option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option.** At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the <u>"</u><u>Q</u><u>uoted Fixed Rate</u> <u>Option").</u> Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a <u>"Quoted</u> <u>Fixed</u> <u>Rate</u> <u>Period")</u> ranging from one (1) year to thirty {30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections.** Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment.** Interest shall be calculated on the actual number of days each Facility B Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility B Loan is made shall be included and the date each Facility B Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility B Loans. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment.** The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First

------

**Exhibit C-3**

Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph {B) of the definition of Defeasance Securities; and {B) unless the opinion referred to in Section 7.01B(G) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default.** For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference.** This First Mortgage Note is the "Third Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and

------

**Exhibit C-3**

restates in part the First Mortgage Obligations, 2007 CoBank Note, Note No. 2 dated as of January 18, 2008, in the original principal amount of $140,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Reference is hereby also made to the Indenture for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

------

**Exhibit C-3**

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

---

| | | |
|:---|:---|:---|
| | | **BASIN ELECTRIC POWER COOPERATIVE** |
| | **By:** | |
| | **Its:** | |
| **Attest:** |  |  |
| **By:** |  |  |
| **Title:** |  |  |

---

------

**Exhibit C-3**

**EXHIBIT A**

**PAYMENT SCHEDULES**

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | &nbsp;&nbsp;&nbsp;**AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2012 | $168188.86 |
| 3/31/2013 | $171132.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2013 | $174126.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2013 | $177174.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2013 | $180274.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2014 | $183429.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2014 | $186639.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2014 | $189905.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2014 | $193229.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2015 | $196610.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2015 | $200051.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2015 | $203552.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2015 | $207114.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2016 | $210738.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2016 | $214426.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2016 | $218179.14 |
| 12/31/2016 | $221997.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2017 | $225882.58 |

---

------

**Exhibit C-3**

---

| | |
|:---|:---|
| | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| 6/30/2017 | $229835.26 |
| 9/30/2017 | $233857.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2017 | $237950.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2018 | $242113.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2018 | $246350.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2018 | $250662.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2018 | $255048.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2019 | $259512.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2019 | $264053.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2019 | $268674.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2019 | $273376.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2020 | $278160.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2020 | $283028.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2020 | $287981.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2020 | $293021.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2021 | $298149.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2021 | $303366.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2021 | $308675.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2021 | $314077.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2022 | $319573.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2022 | $325166.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2022 | $330856.60 |

---

------

**Exhibit C-3**

---

| | |
|:---|:---|
| | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2022 | $336646.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2023 | $342537.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2023 | $348532.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2023 | $354631.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2023 | $360837.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2024 | $367152.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2024 | $373577.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2024 | $380114.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2024 | $386766.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2025 | $393535.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2025 | $400422.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2025 | $407429.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2025 | $414560.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2026 | $421814.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2026 | $429196.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2026 | $436707.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2026 | $444349.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2027 | $452126.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2027 | $460038.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2027 | $468088.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2027 | $476280.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2028 | $484615.30 |

---

------

**Exhibit C-3**

---

| | |
|:---|:---|
| | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| 6/30/2028 | $493095.98 |
| 9/30/2028 | $501725.08 |
| 12/31/2028 | $510505.48 |
| 3/31/2029 | $519439.10 |
| 6/30/2029 | $528529.34 |
| 9/30/2029 | $537778.60 |
| 12/31/2029 | $547189.74 |
| 3/31/2030 | $556765.70 |
| 6/30/2030 | $566508.84 |
| 9/30/2030 | $576423.06 |
| 12/31/2030 | $586510.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2031 | $596774.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2031 | $607218.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2031 | $617843.98 |
| 12/31/2031 | $628656.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2032 | $639658.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2032 | $650852.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2032 | $662241.80 |
| 12/31/2032 | $673830.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2033 | $685622.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2033 | $697621.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2033 | $709830.02 |

---

------

**Exhibit C-3**

---

| | |
|:---|:---|
| | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | **AMOUNT DUE AND PAYABLE<br>ON FACILITY B LOANS MADE<br>PRIOR TO FEBRUARY 15, 2010** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2033 | $722251.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2034 | $734891.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2034 | $747752.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2034 | $760837.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2034 | $774152.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2035 | $787700.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2035 | $801484.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2035 | $815510.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2035 | $829782.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2036 | $844303.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2036 | $859078.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2036 | $874112.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2036 | $889409.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2037 | $904974.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2037 | $920811.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2037 | $936925.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2037 | $953321.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2038 | $970004.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/30/2038 | $986979.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/30/2038 | $1004251.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/31/2038 | $1021826.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/31/2039 | $1039708.46 |

---

------

**Exhibit C-3**

---

| | |
|:---|:---|
| | **AMOUNT DUE AND PAYABLE ON FACILITY B LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| **PAYMENT DUE DATE** | **AMOUNT DUE AND PAYABLE ON FACILITY B LOANS MADE PRIOR TO FEBRUARY 15, 2010** |
| 6/30/2039 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1057903.38 |
| 9/30/2039 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1076416.82 |
| 12/31/2039 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1095254.06 |
| 3/31/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1114420.88 |
| 6/30/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1133923.10 |
| 9/30/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1153766.94 |
| 12/31/2040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1173957.72 |
| 3/31/2041 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1194502.18 |
| 6/30/2041 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1215406.10 |
| 9/30/2041 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1236675.76 |
| 12/31/2041 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1258317.40 |
| 3/31/2042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1280337.80 |
| 6/30/2042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1302743.68 |
| 9/30/2042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1325573.02 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$67460000.00 |

---

------

**Exhibit C-3**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,** | **U.S. BANK NATIONAL ASSOCIATION,** |
| as Trustee | as Trustee |
| **By:** |  |
|  | Authorized Signatory |

---

------

**Exhibit C-4**

**Note No. 4**

**BASIN ELECTRIC POWER COOPERATIVE FIRST MORTGAGE OBLIGATIONS,** 

**2007 COBANK NOTE, NOTE NO. 4**

**$72,540,000&nbsp;&nbsp;&nbsp;&nbsp;February 15, 2010**

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "Company"), hereby promises to pay to the order of **CoBANK, ACB** ("CoBank"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **SEVENTY-TWO MILLION, FIVE HUNDRED FORTY THOUSAND DOLLARS** ($72,540,000). This First

Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "Facility B Loans") made by CoBank, ACB to the Company on or after February 15, 2010, pursuant to Section 2.0l{A){2) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "Indenture").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in 112 consecutive quarterly installments, each due on the last day of each March, June, September and December, with the first installment due on December 31, 2014, and the last installment due on September 30, 2042. The amount of each installment shall be the same principal amount that would be due and payable if the Loans were scheduled to be repaid in level installments of principal and interest and such schedule was calculating utilizing 7% as the rate of interest on the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility B Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the <u>"Base Rate</u> <u>Option")</u>. The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

------

**Exhibit C-4**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option.** At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the <u>"LIBOR</u> <u>Option").</u> Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option.** At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the <u>"Quoted</u> <u>Fixed</u> <u>Rate</u> <u>Option").</u> Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a <u>"Quoted Fixed Rate Period")</u> ranging from one (1) year to thirty (30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B) Elections.** Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment.** Interest shall be calculated on the actual number of days each Facility B Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility B Loan is made shall be included and the date each Facility B Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility B Loans. All such interest shall be payable upon demand.

------

**Exhibit C-4**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment.** The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the Loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B{G) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events** of **Default.** For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference.** This First Mortgage Note is the "Fourth Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the

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**Exhibit C-4**

First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and restates in part the First Mortgage Obligations, 2007 CoBank Note, Note No. 2 dated as of January 18, 2008, in the original principal amount of $140,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Reference is hereby also made to the Indenture for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

---

| | | |
|:---|:---|:---|
| | | **BASIN ELECTRIC POWER COOPERATIVE** |
| | **By:** | |
| | **Its:** | |
| **Attest:** |  |  |
| **By:** |  |  |
| **Title:** |  |  |

---

------

**Exhibit D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,** | **U.S. BANK NATIONAL ASSOCIATION,** |
| as Trustee | as Trustee |
| By: |  |
|  | Authorized Signatory |

---

## Exhibit 4.1

**Exhibit 4.1(d)(2)**

<u><br></u>

**SECOND AMENDMENT TO SIXTEENTH SUPPLEMENTAL INDENTURE**

**Dated as of October 1, 2012**

**Relating to the Basin Electric Power Cooperative**

**First Mortgage Obligations, 2007 CoBank Notes**

**As authorized by the Sixteenth Supplemental Indenture**

**Dated as of November 1, 2007**

**BASIN ELECTRIC POWER COOPERATIVE**

**to**

**U.S. BANK NATIONAL ASSOCIATION, TRUSTEE**

**FIRST MORTGAGE OBLIGATIONS**

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THE SIXTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

------

**<u>SECOND AMENDMENT TO SIXTEENTH SUPPLEMENTAL INDENTURE</u>**

This Second Amendment to Sixteenth Supplemental Indenture, dated as of October 1, 2012 (this "Second Amendment"), is by and between Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the state of North Dakota, as Grantor (hereinafter referred to as the "Company"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. Bank National Association, a national banking association, as trustee (in such capacity, the "Trustee"), whose post office address is Corporate Trust Services, 40 Pearl Street N.W., Suite 838, Grand Rapids, Michigan 49503.

**WHEREAS**, the Company has previously executed and delivered to the Trustee an Indenture, dated as of January 1, 1998, as previously amended and supplemented (hereinafter called the "Original Indenture"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A-1 hereto;

**WHEREAS**, the Company has previously executed and delivered to the Trustee the Sixteenth Supplemental Indenture dated as of November 1, 2007 (the "Sixteenth Supplemental Indenture") which Sixteenth Supplemental Indenture is filed of record as shown on Exhibit A-2 hereto;

**WHEREAS**, the Company has previously executed and delivered to the Trustee the First Amendment to the Sixteenth Supplemental Indenture dated as of February 15, 2010, (the "First Supplemental Indenture Amendment") which First Supplemental Indenture Amendment is filed on record as shown on Exhibit A-3 hereto;

**WHEREAS**, pursuant to the Sixteenth Supplemental Indenture, the Company established a new series of Additional Obligations designated the Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Notes (the "2007 CoBank Notes") in an aggregate principal amount of Four Hundred Fifteen Million Dollars ($415,000,000.00). The first note of such series was issued in the principal amount of Two Hundred Seventy-Five Million Dollars ($275,000,000.00) and had a final maturity date of September 30, 2042, and the second note of such series was issued in the principal amount of One Hundred Forty Million Dollars ($140,000,000.00) and had a final maturity date of September 30, 2042 (said two promissory notes being referred to herein as the "Original 2007 CoBank Notes");

**WHEREAS**, the two Original 2007 CoBank Notes were issued to CoBank, ACB (the "Lender") in order to secure the Company's obligations under the Loan Agreement dated as of November 1, 2007 (the "Loan Agreement") between the Company and the Lender, pursuant to which the Lender agreed to lend the Company the aggregate principal amount of Four Hundred Fifteen Million Dollars ($415,000,000.00);

**WHEREAS**, as of February 15, 2010, the Company had borrowed and the Lender had advanced Two Hundred Million Dollars ($200,000,000.00) under the Loan Agreement and the Original 2007 CoBank Notes;

**WHEREAS**, the Company and the Lender entered into the First Amendment to the Loan Agreement dated as of February 15, 2010 (the "First Loan Amendment") so as to: (1) modify

------

the amortization of the Two Hundred Million Dollars ($200,000,000.00) that had been drawn down under the Original 2007 CoBank Notes; (2) extend the period during which advances of the remaining Two Hundred Fifteen Million Dollars ($215,000,000.00) could be made; and (3) change the amortization of principal to be repaid and modify the method of calculating interest on the principal outstanding on loans made by Lender to the Company under the Loan Agreement from and after February 15, 2010;

**WHEREAS**, the Company and the Trustee executed the First Supplemental Indenture Amendment in order to amend and restate, in their entirety, the two Original 2007 CoBank Notes to the form of the four 2007 CoBank Notes, attached as Exhibit C to the First Supplemental Indenture Amendment with (the "Restated 2007 CoBank Notes"), two Restated 2007 CoBank Notes (Restated 2007 CoBank Notes No. 1 and No. 3) issued to secure the Two Hundred Million Dollars ($200,000,000.00) Lender had lent the Company under the Loan Agreement prior to February 15, 2010, and two additional Restated 2007 CoBank Notes ("Restated 2007 CoBank Notes No. 2 and No. 4") to secure borrowings by the Company of the remaining Two Hundred Fifteen Million Dollars ($215,000,000.00) from and after February 15, 2010;

**WHEREAS**, the Company and the Lender have entered into the Second Amendment to the Loan Agreement dated as of October 1, 2012 (the "Second Loan Amendment") to reduce the aggregate principal amount that Lender will lend the Company from Four Hundred Fifteen Million Dollars ($415,000,000.00) to Three Hundred Million Dollars ($300,000,000.00) and to restate the Restated 2007 CoBank Note No. 2 so as to reduce the principal amount of the Restated 2007 CoBank Note No. 2 from One Hundred Forty Two Million Four Hundred Sixty Thousand Dollars ($142,460,000.00) to Sixty Six Million Two Hundred Seventy Thousand Dollars ($66,270,000.00) and to restate the Restated CoBank Note No. 4 so as to reduce the principal amount of the Restated 2007 CoBank Note No. 4 from Seventy-Two Million Five Hundred Forty Thousand Dollars ($72,540,000.00) to Thirty-Three Million Seven Hundred Thirty Thousand Dollars ($33,730,000.00);

**WHEREAS**, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to amend the Sixteenth Supplemental Indenture by execution of this Second Amendment have been done and taken and the execution and delivery of this Second Amendment has been in all respects duly authorized.

**NOW THEREFORE**, the Company and the Trustee agree as follows:

1. The second paragraph of Section 2.1 of the Sixteenth Supplemental Indenture is amended by deleting the words and dollar amount "Four Hundred Fifteen Million Dollars ($415,000,000.00)" in their entirety and inserting, in lieu thereof the words and dollar amount "Three Hundred Million Dollars ($300,000,000.00)".

2. Exhibit C-2 and Exhibit C-4 to the Sixteenth Supplemental Indenture are amended by deleting Exhibit C-2 and Exhibit C-4 in their entirety and inserting, in lieu thereof, Exhibit C-2 and Exhibit C-4, respectively, in the forms attached to this Second Amendment.

3. Following the Company's execution and delivery to the Trustee of the new 2007 CoBank Notes in the form of Exhibit C-2 and Exhibit C-4, the Trustee is authorized, upon receipt from CoBank of the Restated 2007 CoBank Note No. 2 and Restated 2007 CoBank Note No. 4, to authenticate and release these new 2007 CoBank Notes to CoBank.

------

4. Except as amended by this Second Amendment, all of the terms and conditions of the Sixteenth Supplemental Indenture shall remain in full force and effect.

[This space left intentionally blank.]

------

**IN WITNESS WHEREOF**, the Company and Trustee have caused this Second Amendment to the Sixteenth Supplemental Indenture to be executed by their duly authorized representatives as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| | **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(S E A L) | By: | /s/ Andrew M. Serri |
|  |  | Andrew M. Serri |
|  |  | Chief Executive Officer & General Manager |

---

Attest:

---

| |
|:---|
| /s/ Claire M. Olson |
| Claire M. Olson |
| Assistant Secretary |

---

STATE OF NORTH DAKOTA &nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) ss

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 28<sup>th</sup> day of September, 2012, by Andrew M. Serri, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, on behalf of said corporation.

WITNESS my hand and official seal.

---

| | |
|:---|:---|
| | /s/ Darlene Steffan |
| | Darlene Steffan |
| | Notary Public, Burleigh County, North Dakota |
| (Notarial Seal) | My commission expires: April 15, 2014 |

---

------

---

| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,** | **U.S. BANK NATIONAL ASSOCIATION,** |
| **&nbsp;&nbsp;&nbsp;&nbsp; As Trustee** | **&nbsp;&nbsp;&nbsp;&nbsp; As Trustee** |
| By: | /s/ R. Jason Fry |
|  | R. Jason Fry |
|  | Vice President |

---

STATE OF MICHIGAN&nbsp;&nbsp;&nbsp;&nbsp;)) ss

COUNTY OF KENT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 1st day of October, 2012, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

---

| | |
|:---|:---|
| | /s/ Marylyn Putschko |
| | Name: Marylyn Putschko |
| | Notary Public - Michigan |
| | My commission expires: September 12, 2016 |
| | Acting in the County of Kent |
| (Notarial Seal) | |

---

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---

| | |
|:---|:---|
| Exhibit A-1: | Indenture Filing Information |
| Exhibit A-2: | 16<sup>th</sup> Supplemental Indenture Filing Information |
| Exhibit A-3: | 1<sup>st</sup> Amendment to 16<sup>th</sup> Supplemental Indenture Filing Information |
| Exhibit B: | Property Description |
| Exhibit C-1: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 2 |
| Exhibit C-2: | Form of: Basin Electric Power Cooperative First Mortgage Obligations, 2007 CoBank Note, Note No. 4 |

---

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**EXHIBIT A-1**

**<u>Indenture Filing Information</u>**

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**EXHIBIT A-2**

**<u>16</u>**<sup>th</sup> **<u>Supplemental Indenture Filing Information</u>**

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**EXHIBIT A-3**

**<u>1</u>**<sup>st</sup> **<u>Amendment to 16</u>**<sup>th</sup> **<u>Supplemental Indenture Filing Information</u>**

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**EXHIBIT C-1**

**Note No. 2**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, AMENDED AND RESTATED 2007 COBANK NOTE, NOTE NO. 2**

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| | |
|:---|:---|
| **$66270000** | **October ____, 2012** |

---

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "<u>Company</u>"), hereby promises to pay to the order of **CoBANK, ACB** ("<u>CoBank</u>"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **SIXTY SIX MILLION, TWO HUNDRED SEVENTY THOUSAND DOLLARS** ($66,270,000) . This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "<u>Facility A Loans</u>") made by CoBank, ACB to the Company on or after February 15, 2010, pursuant to Section 2.01(A)(1) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "<u>Loan Agreement</u>"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "<u>Indenture</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in 112 equal consecutive quarterly installments, each due on the last day of each March, June, September and December, with the first installment due on December 31, 2014, and the last installment due on September 30, 2042.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility A Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the "<u>Base Rate Option</u>"). The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option**. At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the "<u>LIBOR Option</u>"). Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option**. At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the "<u>Quoted Fixed Rate Option</u>"). Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a "<u>Quoted Fixed Rate Period</u>") ranging from one (1) year to thirty (30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections**. Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment**. Interest shall be calculated on the actual number of days each Facility A Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility A Loan is made shall be included and the date each Facility A Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility A Loans. All such interest shall be payable upon demand.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Prepayment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment**. The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the Loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Events of Default**. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Reference**. This First Mortgage Note is the "Second Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth

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Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010, and the Second Amendment to Sixteenth Supplemental Indenture dated as of October 1, 2012. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and restates the First Mortgage Obligations, 2007 CoBank Note, Note No. 2 dated as of February 15, 2010, in the original principal amount of $142,460,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Miscellaneous.** Reference is hereby also made to the Indenture for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

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**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| | **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** |  |
|  | **Andrew M. Serri** |
| **Its:** |  |

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| |
|:---|
| **Attest:** |
| **By:** |
| **Title:** |

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION,**<br>as Trustee | **U.S. BANK NATIONAL ASSOCIATION,**<br>as Trustee |
| By: |  |
|  | Authorized Signatory |

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**EXHIBIT C-2**

**Note No. 4**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, AMENDED AND RESTATED 2007 COBANK NOTE, NOTE NO. 4**

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| | |
|:---|:---|
| **$33730000** | **October ____, 2012** |

---

**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "<u>Company</u>"), hereby promises to pay to the order of **CoBANK, ACB** ("<u>CoBank</u>"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **THIRTY THREE MILLION, SEVEN HUNDRED AND THIRTY THOUSAND DOLLARS** ($**33,730,000**). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay loans (the "<u>Facility B Loans</u>") made by CoBank, ACB to the Company on or after February 15, 2010, pursuant to Section 2.01(A)(2) of that certain Loan Agreement dated as of November 1, 2007, between the Company and CoBank (as amended or restated from time to time, the "<u>Loan Agreement</u>"); and (2) is secured under that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee (as amended and restated from time to time, the "<u>Indenture</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in 112 consecutive quarterly installments, each due on the last day of each March, June, September and December, with the first installment due on December 31, 2014, and the last installment due on September 30, 2042. The amount of each installment shall be the same principal amount that would be due and payable if the Loans were scheduled to be repaid in level installments of principal and interest and such schedule was calculating utilizing 7% as the rate of interest on the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A) &nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Facility B Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Option.** At a rate per annum equal to the Base Rate on the first Business Day of each week plus the Applicable Margin (the "<u>Base Rate Option</u>").

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The Base Rate shall change on the first Business Day of each week without the necessity of notice being provided to the Company. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option**. At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the "<u>LIBOR Option</u>"). Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10); and (ii) in no event may rates be fixed for Interest Periods expiring after November 30, 2014 (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option**. At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the "<u>Quoted Fixed Rate Option</u>"). Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a "<u>Quoted Fixed Rate Period</u>") ranging from one (1) year to thirty (30) years (or, if earlier, the final maturity date of the Loans); and (b) the maximum number of balances outstanding under this First Mortgage Note that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections**. Subject to the limitations set forth above, the Company shall select the applicable rate option(s) at the times and in the manner contemplated in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment**. Interest shall be calculated on the actual number of days each Facility B Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Facility B Loan is made shall be included and the date each Facility B Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D) &nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, in the event the Company fails to make any payment of principal or interest hereunder when due and payable, then without limiting any other rights and remedies, such payment shall, at CoBank's option in each instance, bear interest from the date when due to the date paid at 2% per annum in excess of the rate in effect under the Base Rate Option. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of this First Mortgage Note at 2% per annum in excess of the rate or rates that would otherwise be in effect on the Facility B Loans. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Prepayment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A) &nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment**. The Company shall have the right to prepay this First Mortgage Note in whole or in part provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied as provided in the Loan Agreement. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B) &nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition to obtaining any payment of principal or interest required to be made hereunder. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Events of Default**. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Reference**. This First Mortgage Note is the "Fourth Note" contemplated by the Loan Agreement and one of the "2007 CoBank Notes" contemplated by that certain Sixteenth Supplemental Indenture dated as of November 1, 2007, between the Company and the Trustee, as amended by the First Amendment to Sixteenth Supplemental Indenture dated as of February 15, 2010, and the Second Amendment to Sixteenth Supplemental Indenture dated as of October 1, 2012. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture. In addition, this First Mortgage Note amends and restates the First Mortgage Obligations, 2007 CoBank Note, Note No. 4 dated as of February 15, 2010, in the original principal amount of $72,540,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Miscellaneous.** Reference is hereby also made to the Indenture for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture, as amended, shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.Governing Law.** Except to the extent governed by federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of Colorado.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** |  |
|  | **Andrew M. Serri** |
| **Its:** |  |

---

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| |
|:---|
| **Attest:** |
| **By:** |
| **Title:** |

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Page 5 of 6

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION**, <br>as Trustee | **U.S. BANK NATIONAL ASSOCIATION**, <br>as Trustee |
| By: |  |
|  | Authorized Signatory |

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Page 6 of 6

## Exhibit 4.1

**Exhibit 4.1(e)**

SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of February 1, 2008

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series A Note No. 1, due June 10, 2030

First Mortgage Obligations, 2008 Series A Note No. 2, due May 1, 2032

First Mortgage Obligations, 2008 Series A Note No. 3, due May 1, 2032

and

First Mortgage Obligations, 2008 Series A Note No. 4, due May 1, 2032

Authorized by this Seventeenth Supplemental and Amendatory Indenture

BASIN ELECTRIC POWER COOPERATIVE

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

SECTION HEADING PAGE

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|:---|:---|:---|
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 4 |
| Section 1.1. | Definitions | 4 |
| ARTICLE II THE 2008 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO | ARTICLE II THE 2008 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO | 5 |
| Section 2.1. | Authorization and Terms of the 2008 Series A Notes | 5 |
| Section 2.2. | Form of the 2008 Series A Notes | 6 |
| Section 2.3. | Maturity | 6 |
| Section 2.4. | Optional Prepayments | 7 |
| Section 2.5. | Allocation of Partial Prepayments | 7 |
| Section 2.6. | Maturity; Surrender, Etc | 7 |
| Section 2.7. | Purchase of 2008 Series A Notes | 7 |
| Section 2.8. | Use of Proceeds | 8 |
| Section 2.9. | Acceleration | 8 |
| ARTICLE III AMENDMENT OF SECTION 8.1 A OF THE ORIGINAL INDENTURE | ARTICLE III AMENDMENT OF SECTION 8.1 A OF THE ORIGINAL INDENTURE | 8 |
| Section 3.1. | Amendment to Section 8.1 A | 8 |
| ARTICLE IV MISCELLANEOUS | ARTICLE IV MISCELLANEOUS | 8 |
| Section 4.1. | Supplemental Indenture | 8 |
| Section 4.2. | Recitals | 8 |
| Section 4.3. | Successors and Assigns | 9 |
| Section 4.4. | No Rights, Remedies, Etc | 9 |
| Section 4.5. | Counterparts | 9 |
| Section 4.6. | Security Agreement; Mailing Address | 9 |

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| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C-1 | Form of 2008 Series A1 Notes |
| EXHIBIT C-2 | Form of 2008 Series A2 Notes |
| EXHIBIT C-3 | Form of 2008 Series A3 Notes |
| EXHIBIT C-4 | Form of 2008 Series A4 Notes |

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 <br> EXHIBIT D — Form of Trustee's Authentication

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THIS SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE, dated as of February 1, 2008 (this "*Seventeenth Supplemental and Amendatory Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 (as previously supplemented and as supplemented hereby hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established new series of Additional Obligations to be designated as the Basin Electric Power Cooperative (i) First Mortgage Obligations, 2008 Series A Notes No. 1, due June 10, 2030 (the "*2008 Series A1 Notes*") in the original principal amount of $50,000,000, (ii) First Mortgage Obligations, 2008 Series A Notes No. 2, due May 1, 2032 (the "*2008 Series A2 Notes*") in the original principal amount of $50,000,000, (iii) First Mortgage Obligations, 2008 Series A Notes No. 3, due May 1, 2032 (the "*2008 Series A3 Notes*") in the original principal amount of $50,000,000 and (iv) First Mortgage Obligations, 2008 Series A Notes No. 4, due May 1, 2032 (the "*2008 Series A4 Notes*," and together with the 2008 Series A1 Notes, the 2008 Series A2 Notes and the 2008 Series A3 Notes are collectively, the "*2008 Series A Notes*") in the original principal amount of $50,000,000; such 2008 Series A Notes being issued to the parties set forth in Schedule A of the 2008 Series A Note Purchase Agreement described below (and their successor or assigns of the 2008 Series A Notes, each individually, the "*Lender*" or collectively, the "*Lenders*") to secure the Company's obligations under the 2008 Series A Note Purchase Agreement dated as of March 12, 2008 between the Company and the Lenders in the aggregate principal amount of Two Hundred Million Dollars ($200,000,000), and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company to amend Section 8.1 A of the Original Indenture to shorten the grace period for a default in the payment of interest on any Obligation from forty-five (45) days to five (5) days;

WHEREAS, the Company desires to execute and deliver this Seventeenth Supplemental and Amendatory Indenture, in accordance with the provisions of the Original Indenture, for the purpose of (i) providing for the creation and designation of the 2008 Series A Notes as

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Additional Obligations and specifying the form and provisions of the 2008 Series A Notes and (ii) adding to the Events of Default for the benefit of holders of Obligations by amending Section 8.1 A of the Original Indenture to shorten the grace period for default in the payment of interest on any Obligation;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Seventeenth Supplemental and Amendatory Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2008 Series A Notes, to make the 2008 Series A Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2008 Series A Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Seventeenth Supplemental and Amendatory Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2008 Series A Notes, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2008 Series A Notes are secured, to amend the provisions of Section 8.1A of the Original Indenture and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Original Indenture, as amended by this Seventeenth Supplemental and Amendatory Indenture,

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the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Original Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Original Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Original Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Seventeenth Supplemental and Amendatory Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original

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Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Original Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Original Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that Section 8.1A of the Original Indenture is to be amended and the 2008 Series A Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;*Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Seventeenth Supplemental and Amendatory Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, the following terms have the following meaning in this Seventeenth Supplemental and Amendatory Indenture unless the context clearly requires otherwise.

"*Adjusted LIBOR Rate*" shall mean, for any Interest Period, LIBOR *plus* 160 basis points.

"*Business Day*" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

"*Closing Date*" means March 12, 2008.

"*Default Rate*" means with respect to the 2008 Series A Notes, that rate of interest that is 2.00% per annum plus the Adjusted LIBOR Rate.

"*Interest Payment Date*" means (i) every fourth Wednesday commencing on April 9, 2008, for the 2008 Series A1 Notes,) (ii) every fourth Monday commencing on March 24, 2008, for the 2008 Series A2 Notes, (iii) every fourth Friday commencing on March 28, 2008, for the 2008 Series A3 Notes, and (iv) every fourth Friday commencing on April 4, 2008, for the 2008 Series A4 Notes.

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"*Interest Period*" shall mean each period commencing on the Closing Date and, thereafter, commencing on an Interest Payment Date and continuing up to, but not including, the next Interest Payment Date.

"*Lender*" or "*Lenders*" are defined in the Recitals.

"*LIBOR*" shall mean, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one month period which appears on the Bloomberg "BBAM Screen" published by the British Bankers Association or any successor page or source thereto, effective as of 11:00 a.m. (London, England time) one (1) Business Day prior to the beginning of such Interest Period and as determined by the Company's swap counterparty so long as existing swap agreements are in existence and as determined by the Lenders thereafter, absent manifest error.

"*LIBOR Breakage Amount*" shall mean any loss, cost or expense reasonably incurred by any Holder of a 2008 Series A Notes as a result of any payment or prepayment of any 2008 Series A Notes on a day other than a regularly scheduled Interest Payment Date for such 2008 Series A Notes or at the scheduled maturity (whether voluntary, mandatory, automatic, by reason of acceleration or otherwise), and any loss or expense arising from the liquidation or reemployment of funds obtained by it or from fees payable to terminate the deposits from which such funds were obtained. Each Holder shall determine the LIBOR Breakage Amount with respect to the principal amount of its 2008 Series A Notes then being paid or prepaid (or required to be paid or prepaid) by written notice to the Company setting forth such determination in reasonable detail not less than two (2) Business Days prior to the date of such prepayment, such determination to be based on the assumption that each Holder has borrowed U.S. dollars in the London interbank market in an amount equal to the principal amount of such Holder's Notes for a one month period ending on the next Interest Payment Date immediately following the prepayment. Each such determination shall be conclusive absent manifest error.

"*Seventeenth Supplemental and Amendatory Indenture*" means, the Seventeenth Supplemental and Amendatory Indenture dated as of February 1, 2008.

"*2008 Series A1 Notes*" are defined in the Recitals.

"*2008 Series A2 Notes*" are defined in the Recitals.

"*2008 Series A3 Notes*" are defined in the Recitals.

"*2008 Series A4 Notes*" are defined in the Recitals.

"*2008 Series A Notes*" are defined in the Recitals.

**ARTICLE II**

**THE 2008 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO**

Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;*Authorization and Terms of the 2008 Series A Notes*. There shall be established (i) a series of Additional Obligations known as and entitled the "Basin Electric Power

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Cooperative First Mortgage Obligations, 2008 Series A Notes No. 1," (ii) a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series A Notes No. 2," (iii) a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series A Notes No. 3" and (iv) a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series A Notes No. 4."

The aggregate principal amount of the 2008 Series A1 Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000); the aggregate principal amount of the 2008 Series A2 Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000); the aggregate principal amount of the 2008 Series A3 Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000); and the aggregate principal amount of the 2008 Series A4 Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000). The 2008 Series A Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2008 Series A1 Notes, the 2008 Series A2 Notes, the 2008 Series A3 Notes and the 2008 Series A4 Notes shall bear interest as provided in the form of Notes attached hereto as Exhibits C-1, C-2, C-3 and C-4 respectively.

The principal of, premium, if any, and interest on the 2008 Series A Notes shall be payable to Lender in immediately available funds as described in such notes. Any payment of principal of or premium or interest on any 2008 Series A Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2008 Series A Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

In the event the Company fails to make any payment with respect to the 2008 Series A Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;*Form of the 2008 Series A Notes*. The 2008 Series A1 Notes, the 2008 Series A2 Notes, the 2008 Series A3 Notes and the 2008 Series A4 Notes shall each be a promissory note substantially in the form of Exhibits C-1, C-2, C-3 and C-4 hereto, and the Trustee's authentication certificate to be executed on the 2008 Series A1 Notes, the 2008 Series A2 Notes, the 2008 Series A3 Notes and the 2008 Series A4 Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;*Maturity*. As provided therein, the entire unpaid principal balance of the 2008 Series A Notes shall be due and payable on the stated maturity date thereof.

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Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;*Optional Prepayments*. The Company may, at any time on or after March 12, 2018, at its option, upon notice as provided below, prepay all, or any part of, the 2008 Series A Notes, in an amount not less than 10% of the aggregate principal amount of the 2008 Series A Notes then outstanding in the case of a partial prepayment, at 101% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment and LIBOR Breakage Amount, if applicable (it being acknowledged that no LIBOR Breakage Amount shall be payable in the case of any prepayment of the 2008 Series A Notes on any Interest Payment Date occurring on or after March 12, 2018). The Company will give each Holder of 2008 Series A Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the 2008 Series A Notes to be prepaid on such date, the principal amount of each 2008 Series A Note held by such Holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid.

Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;*Allocation of Partial Prepayments*. In the case of each partial prepayment of the 2008 Series A Notes pursuant to Section 2.4, the principal amount of the 2008 Series A Notes to be prepaid shall be allocated among all of the 2008 Series A Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;*Maturity; Surrender, Etc*. In the case of each prepayment of 2008 Series A Notes pursuant to this Section 2, the principal amount of each 2008 Series A Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable LIBOR Breakage Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and LIBOR Breakage Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2008 Series A Notes paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2008 Series A Notes shall be issued in lieu of any prepaid principal amount of any 2008 Series A Notes.

Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;*Purchase of 2008 Series A Notes*. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2008 Series A Notes except (a) upon the payment or prepayment of the 2008 Series A Notes in accordance with the terms of this Original Indenture and the 2008 Series A Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the Holders of all 2008 Series A Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the Holders of more than 51% of the principal amount of the 2008 Series A Notes then outstanding accept such offer, the Company shall promptly notify the remaining Holders of such fact and the expiration date for the acceptance by Holders of 2008 Series A Notes of such offer shall be extended by the number of days necessary to give each such remaining Holder at least 10 Business Days from its receipt of such notice to accept such offer. The Company will

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promptly cancel all 2008 Series A Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2008 Series A Notes pursuant to any provision of the Original Indenture and no 2008 Series A Notes may be issued in substitution or exchange for any such 2008 Series A Notes.

Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;*Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2008 Series A Notes for general corporate purposes.

Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;*Acceleration*. Upon any 2008 Series A Notes becoming due and payable as the result of an Event of Default (as defined in the Indenture) under the Indenture, whether automatically or by declaration, such 2008 Series A Notes will forthwith mature and the entire unpaid principal amount of such 2008 Series A Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the LIBOR Breakage Amount, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**ARTICLE III**

**AMENDMENT OF SECTION 8.1 A** 

**OF THE ORIGINAL INDENTURE**

Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;*Amendment to Section 8.1 A*. Section 8.1 A of the Original Indenture is hereby amended to read as follows:

"A. default in the payment of any interest upon any Obligation when such interest becomes due and payable, and continuance of such default for a period of five (5) days or such other period provided for in such Obligation or in the Supplemental and Amendatory Indenture under which such Obligation is issued; *provided*, *however*, that no payment by RUS pursuant to any guarantee by the United States of America, acting through the Administrator of RUS, or pursuant to any RUS insuring of, or by any other guarantor or insurer of, any Obligation shall be considered a payment under this paragraph for purposes of determining the existence of such a failure to pay; or"

**ARTICLE IV**

**MISCELLANEOUS**

Section 4.1.&nbsp;&nbsp;&nbsp;&nbsp;*Supplemental and Amendatory Indenture*. The Seventeenth Supplemental and Amendatory Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Seventeenth Supplemental and Amendatory Indenture and the 2008 Series A Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2008 Series A Notes to the same extent as if specifically set forth herein.

Section 4.2.&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Seventeenth Supplemental and Amendatory Indenture are made by the Company only and not by the Trustee; and all of the provisions

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contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

Section 4.3.&nbsp;&nbsp;&nbsp;&nbsp;*Successors and Assigns*. Whenever in this Seventeenth Supplemental and Amendatory Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Seventeenth Supplemental and Amendatory Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

Section 4.4.&nbsp;&nbsp;&nbsp;&nbsp;*No Rights, Remedies, Etc*. Nothing in this Seventeenth Supplemental and Amendatory Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Seventeenth Supplemental and Amendatory Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Seventeenth Supplemental and Amendatory Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

Section 4.5.&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Seventeenth Supplemental and Amendatory Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

Section 4.6.&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address*. To the extent permitted by applicable law, this Seventeenth Supplemental and Amendatory Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

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Additionally, this Seventeenth Supplemental and Amendatory Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Seventeenth Supplemental and Amendatory Indenture to be duly executed as of the day and year first above written.

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| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | <u>/s/ Ronald R, Harper</u> | <u>/s/ Ronald R, Harper</u> |
|  | Name: | Ronald R. Harper |
|  | Title: | Chief Executive Officer & General Manager |

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(SEAL)

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| Attest: | | <u>/s/ Claire M. Olson</u> |
| | Name: Claire M. Olson | Name: Claire M. Olson |
| | Title: Assistant Secretary | Title: Assistant Secretary |

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| STATE OF BURLEIGH |) |
| |) SS |
| COUNTY OF NORTH DAKOTA |) |

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THE FOREGOING instrument was acknowledged before me, a notary public for the above-referenced county and state, this 6th day of March, 2008, by Ronald R. Harper, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| <u>/s/ Mark D. Foss</u> |
| Name: Mark D. Foss |
| Notary Public |
| My commission expires: March 1, 2009 |

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(Notarial Seal)

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|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | <u>/s/ Richard Prokosch</u> | <u>/s/ Richard Prokosch</u> |
|  | Name: | Richard Prokosch |
|  | Title: | Vice President |

---

---

| | |
|:---|:---|
| STATE OF MINNESOTA |) |
| |) SS |
| COUNTY OF RAMSEY |) |

---

THE FOREGOING instrument was acknowledged before me this 7th day of March, 2008, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

---

| | |
|:---|:---|
| | <u>/s/</u> Denise R. Landeen |
| Name: Denise Landeen | Name: Denise Landeen |
| Notary Public | Notary Public |
| My commission expires: January 31, 2012 | My commission expires: January 31, 2012 |

---

(Notarial Seal)

------

**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT A

(to Seventeenth Supplemental Indenture)

------

**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT B

(to Seventeenth Supplemental Indenture)

------

**[FORM OF 2008 SERIES A1 NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTE NO. 1 HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTES NO. 1 DUE JUNE 10, 2030

No. R1-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN [__________]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 10, 2030, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate, are defined in the Seventeenth Supplement referred to below) from the date hereof, payable on every fourth Wednesday in each year, commencing April 9, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any LIBOR Breakage Amount (as defined in the Seventeenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on and any LIBOR Breakage Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2008 Series A Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Seventeenth Supplemental and Amendatory Indenture dated as of February 1, 2008 (as from time to time amended, the "*Seventeenth Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series A Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series A Note* 

EXHIBIT C-1

(to Seventeenth Supplemental Indenture)

------

*Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series A Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series A Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Seventeenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Seventeenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable LIBOR Breakage Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

C-1-2

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

---

| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

C-1-3

------

**[FORM OF 2008 SERIES A2 NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTE NO. 2 HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTES NO. 2 DUE MAY 1, 2032

No. R2-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN [__________]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on May 1, 2032, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate are defined in the Seventeenth Supplement referred to below) from the date hereof, payable on every fourth Monday in each year, commencing March 24, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any LIBOR Breakage Amount (as defined in the Seventeenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on and any LIBOR Breakage Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2008 Series A Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Seventeenth Supplemental and Amendatory Indenture dated as of February 1, 2008 (as from time to time amended, the "*Seventeenth, Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series A Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series A Note* 

EXHIBIT C-2

(to Seventeenth Supplemental Indenture)

------

*Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series A Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series A Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Seventeenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Seventeenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable LIBOR Breakage Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

C-2-2

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

---

| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

C-2-3

------

**[FORM OF 2008 SERIES A3 NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTE NO. 3 HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTES NO. 3 DUE MAY 1, 2032

No. R3-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN [__________]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on May 1, 2032, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate are defined in the Seventeenth Supplement referred to below) from the date hereof, payable on every fourth Friday in each year, commencing March 28, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any LIBOR Breakage Amount (as defined in the Seventeenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on and any LIBOR Breakage Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2008 Series A Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Seventeenth Supplemental and Amendatory Indenture dated as of February 1, 2008 (as from time to time amended, the "*Seventeenth Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series A Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series A Note Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to

EXHIBIT C-3

(to Seventeenth Supplemental Indenture)

------

have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series A Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series A Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Seventeenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Seventeenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable LIBOR Breakage Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

C-3-2

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

---

| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

C-3-3

------

**[FORM OF 2008 SERIES A4 NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTE NO. 4 HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES A NOTES NO. 4 DUE MAY 1, 2032

No. R4-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN [__________]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on May 1, 2032 with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate are defined in the Seventeenth Supplement referred to below) from the date hereof, payable on every fourth Friday in each year, commencing April 4, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any LIBOR Breakage Amount (as defined in the Seventeenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on and any LIBOR Breakage Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this. Note as provided in the 2008 Series A Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Seventeenth Supplemental and Amendatory Indenture dated as of February 1, 2008 (as from time to time amended, the "*Seventeenth Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series A Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series A Note Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to

EXHIBIT C-4

(to Seventeenth Supplemental Indenture)

------

have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series A Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series A Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Seventeenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Seventeenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable LIBOR Breakage Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

C-4-2

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

---

| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

C-4-3

------

**FORM OF ______________ NOTE** 

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

---

| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

EXHIBIT D

(to Seventeenth Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(e)(1)**

AMENDMENT NO. 1 TO

SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of June 1, 2023

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series A Notes No. 1, due June 10, 2030

First Mortgage Obligations, 2008 Series A Notes No. 2, due May 1, 2032

First Mortgage Obligations, 2008 Series A Notes No. 3, due May 1, 2032

and

First Mortgage Obligations, 2008 Series A Notes No. 4, due May 1, 2032

Authorized by the Seventeenth Supplemental and Amendatory Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THE SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE AMENDED HEREBY GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THE SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THE SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE. FUTURE OBLIGATIONS ARE SECURED BY THE SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE. NOTICE - THE SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE, AS AMENDED HEREBY, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| Article I Definitions | Article I Definitions | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 | Definitions | 2 |
| Article II Amendments | Article II Amendments | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.1 | Amendment of Section 1.1 (Definitions) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.2 | New Section 2.12 (Benchmark Replacement) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.3 | Amendment to 2008 Series A Notes and Appendix C (Forms of 2008 Series A Notes) | 7 |
| Article III Miscellaneous | Article III Miscellaneous | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 | Amendment | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.2 | Recitals | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.3 | Successors and Assigns | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.4 | No Rights, Remedies, Etc | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.5 | Counterparts | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.6 | Mailing Address | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.7 | Effectiveness | 9 |

---

EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

-i-

------

THIS AMENDMENT NO. 1 TO SEVENTEENTH SUPPLEMENTAL AND AMENDATORY INDENTURE, dated as of June 1, 2023 (this "*Amendment*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 425 Walnut Street, 6<sup>th</sup> Floor, Cincinnati, Ohio 45202, and shall amend that certain Seventeenth Supplemental and Amendatory Indenture, dated February 1, 2008 (the "*Seventeenth Supplemental Indenture*"), between the Company and the Trustee;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture), and as further supplemented and amended, including as supplemented by the Seventeenth Supplemental Indenture and amended hereby (collectively, the "*Indenture*"), which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, pursuant to the Seventeenth Supplemental Indenture, the Company issued the Basin Electric Power Cooperative (i) First Mortgage Obligations, 2008 Series A Notes No. 1, due June 10, 2030, in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00), (ii) First Mortgage Obligations, 2008 Series A Notes No. 2, due May 1, 2032, in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00), (iii) First Mortgage Obligations, 2008 Series A Notes No. 3, due May 1, 2032, in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00), and (iv) First Mortgage Obligations, 2008 Series A Notes No. 4, due May 1, 2032, in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00) (collectively, the "*2008 Series A Notes*" and each, individually, a "*2008 Series A Note*");

WHEREAS, the Company desires to execute and deliver this Amendment, in accordance with the provisions of the Indenture, for the purpose of amending provisions relating to the transition from a London Inter-Bank Offering Rate benchmark for the calculation of interest charges on the 2008 Series A Notes to a new benchmark as provided herein;

WHEREAS, Section 12.2 of the Indenture provides *inter alia* that, with the consent of the Holders of all Obligations affected by the change any installment of interest on the 2008 Series A Notes, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes of and subject to the conditions set forth in said Section 12.2(A) and such other conditions set forth in the Indenture; and

WHEREAS, as the Holders of all of the Obligations affected by this Amendment have consented thereto, this Amendment is permitted pursuant to the provisions of Section 12.2 of the Indenture; and the execution and delivery of this Amendment has been in all respects duly authorized;

------

NOW, THEREFORE, THIS AMENDMENT WITNESSES, that, in consideration of the premises and the covenants, conditions and agreements hereinafter set forth, the parties hereto agree as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture and the Seventeenth Supplemental Indenture shall have the same meaning in this Amendment, including any exhibit hereto, except as otherwise appears herein or as amended hereby, unless the context clearly requires otherwise.

**ARTICLE II**

**AMENDMENTS**

*Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Amendment of Section 1.1 (Definitions)*. Section 1.1 of the Seventeenth Supplemental Indenture shall be amended by deleting the definition of "Default Rate" therein and adding and substituting the following in lieu thereof:

"*Adjusted Daily Compounded SOFR*" means, for purposes of any calculation, the rate per annum equal to the sum of (i) Daily Compounded SOFR for such calculation and (ii) the SOFR Adjustment; *provided* that if Adjusted Daily Compounded SOFR as so determined shall ever be less than the Floor, then Adjusted Daily Compounded SOFR shall be deemed to be the Floor.

"*Available Tenor*" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (i) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to the terms hereof or (ii) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date.

"*Benchmark*" shall mean, for any Interest Period beginning after June 30, 2023, Adjusted Daily Compounded SOFR; *provided* that if a Benchmark Transition Event has occurred with respect to Daily Compounded SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.12 hereof.

"*Benchmark Breakage Amount*" shall mean any loss, cost or expense reasonably incurred by any Holder of a 2008 Series A Note as a result of any payment or prepayment of any 2008 Series A Note on a day other than a regularly scheduled Interest Payment Date for such 2008 Series A Note or at the scheduled maturity (whether voluntary, mandatory, automatic, by reason of acceleration or otherwise), and any loss or expense arising from the liquidation or reemployment of funds obtained by it or from fees payable to terminate the deposits from which such funds were obtained. Each Holder shall determine the Benchmark Breakage Amount with

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respect to the principal amount of its 2008 Series A Note then being paid or prepaid (or required to be paid or prepaid) by written notice to the Company setting forth such determination in reasonable detail not less than two (2) Business Days prior to the date of such prepayment. Each such determination shall be conclusive absent manifest error.

"*Benchmark Replacement*" means, with respect to any Benchmark Transition Event, the first alternative set forth in the order below that can be determined by the Holders of the 2008 Series A Notes for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the sum of (i) Daily Simple SOFR and (ii) the related SOFR Adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate benchmark rate that has been selected by the Holders of the 2008 Series A Notes and the Company giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Seventeenth Supplemental Indenture.

"*Benchmark Replacement Adjustment*" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Holders of the 2008 Series A Notes and the Company giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"*Benchmark Replacement Date*" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "*Benchmark Replacement Date*" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"*Benchmark Transition Event*" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "*Benchmark Transition Event*" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

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"*Conforming Changes*" means, with respect to either the use or administration of Daily Compounded SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition, timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that the Holders of the 2008 Series A Notes and the Company decide may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Holders of the 2008 Series A Notes and the Company in a manner substantially consistent with market practice (or, if the Holders of the 2008 Series A Notes and the Company decide that adoption of any portion of such market practice is not administratively feasible or if the Holders of the 2008 Series A Notes and the Company determine that no market practice for the administration of any such rate exists, in such other manner of administration as the Holders of the 2008 Series A Notes and the Company decide is reasonably necessary in connection with the administration of this Seventeenth Supplemental Indenture).

"*Daily Compounded SOFR*" means, for any day, SOFR for the corresponding day during the SOFR Observation Period, with interest accruing on a compounded daily basis, with the conventions for this rate (which will include compounding in arrears with a lookback) being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Compounded SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series A Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series A Notes and the Company may establish another convention.

"*Daily Simple SOFR*" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series A Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series A Notes and the Company may establish another convention.

"*Default Rate*" means with respect to the 2008 Series A Notes, that rate of interest that is 2.00% per annum plus the rate of interest otherwise in effect.

"*Floor*" means a rate of interest equal to 0%.

"*Relevant Governmental Body*" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

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"*SOFR*" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"*SOFR Adjustment*" means a percentage equal to 0.11448% per annum.

"*SOFR Administrator*" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"*SOFR Observation Period*" means, in respect of an Interest Period referencing Daily Compounded SOFR, the period commencing from, and including, the date which is two U.S. Government Securities Business Days immediately preceding the first date of such Interest Period to, but excluding, the date which is two U.S. Government Securities Business Day immediately preceding the Interest Payment Date on which such Interest Period ends (but which is not included in such Interest Period).

"*Unadjusted Benchmark Replacement*" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"*U.S. Government Securities Business Day*" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

*Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;New Section 2.12 (Benchmark Replacement)*. The Seventeenth Supplemental Indenture is hereby amended by including the following as a new Section 2.12:

*Section 2.12.*&nbsp;&nbsp;&nbsp;&nbsp;*Benchmark Replacement*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (i) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Seventeenth Supplemental Indenture and (ii) if a Benchmark Replacement is determined in accordance with clause (b) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is issued to the public without any amendment to, or further action or consent of any other party to, this Seventeenth Supplemental Indenture. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a monthly basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of Daily Compounded SOFR or a Benchmark Replacement, the Holders of the 2008 Series A Notes and the Company will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Seventeenth Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Holders of the 2008 Series A Notes will promptly notify the Company of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Any determination, decision or election that may be made by the Holders of the 2008 Series A Notes pursuant to this Section 2.12, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Seventeenth Supplemental Indenture, except, in each case, as expressly required pursuant to this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transition from LIBOR not a Benchmark Transition Event.</u> The transition from LIBOR to Adjusted Daily Compounded SOFR as contemplated by this Amendment is not a Benchmark Transition Event for purposes of this Section 2.12.

*Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;Amendment to 2008 Series A Notes and Appendix C (Forms of 2008 Series A Notes)*. Commencing on the first Interest Period beginning after June 30, 2023, (a) each outstanding 2008 Series A Note issued, authenticated and delivered pursuant to the Seventeenth Supplemental Indenture and (b) the form of 2008 Series A1 Notes in Exhibit C-1, the form of 2008 Series A2 Notes in Exhibit C-2, the form of 2008 Series A3 Notes in Exhibit C-3 and the form of 2008 Series A4 Notes in Exhibit C-4 to the Seventeenth Supplemental Indenture are hereby amended by (a) deleting each reference to "Adjusted LIBOR Rate" therein and inserting "Benchmark plus 160 basis points" in lieu thereof and (b) deleting each reference to "LIBOR Breakage Amount" and inserting "Benchmark Breakage Amount" in lieu thereof.

Each outstanding, certificated 2008 Series A Note shall automatically incorporate the amended interest rates and terms and conditions set forth in this Amendment and no additional execution, authentication or delivery of an amended or replacement Series 2008 A Note shall be required to implement the amendments set forth herein.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;Amendment.* This Amendment is executed and shall be construed as an indenture amendatory to the Indenture, and shall form a part thereof, and the Indenture, as

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heretofore supplemented and amended, and as hereby amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Amendment, all of the provisions, terms, covenants and conditions of the Indenture, including the Seventeenth Supplemental Indenture, shall be applicable to the 2008 Series A Notes to the same extent as if specifically set forth herein.

*Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;Recitals*. All recitals in this Amendment are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full. The Company hereby reaffirms its obligations under the Indenture to indemnify and hold harmless the Trustee as required under Article IX of the Indenture, including under Section 9.7 of the Indenture, and in particular (but not limited to) against losses, liabilities, claims, or expenses (including the fees and expenses of its counsel) arising out of or in connection with its execution and performance of this Amendment. This indemnity shall survive the final payment in full of the 2008 Series A Notes and the resignation or removal of the Trustee to the extent provided in Section 7.1 and Article IX of the Indenture.

*Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Amendment any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Amendment contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Amendment, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Amendment or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Amendment contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;Counterparts*. This Amendment may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;Mailing Address.* The mailing address of the Company, as debtor, is:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

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and the mailing address of the Trustee, as secured party, is:

U.S. Bank Trust Company, National Association

425 Walnut Street, 6<sup>th</sup> Floor

Cincinnati, OH 45202

Additionally, this Amendment shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.* This Amendment shall be effective upon the execution and delivery hereof by the Company and the Trustee.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Todd E. Telesz |
| &nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz | &nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer &<br>General Manager | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer &<br>General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | /s/ Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 23rd day of June, 2023, by Todd E. Telesz, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, an electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Lisa J. Carney |
| Name: Lisa J. Carney |
| Notary Public |
| My commission expires: Oct. 19, 2026 |

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(Notarial Seal)

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| |
|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as Trustee |
| /s/ William Sicking |
| Name: William Sicking |
| Title: Vice President |

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STATE OF OHIO&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF HAMILTON&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 21st day of June, 2023, by William Sicking, Vice President of U.S. Bank Trust Company, National Association, a national banking association, as Trustee, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Monica Slater |
| Name: Monica Slater |
| Notary Public |
| My commission expires: 05-17-2026 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

to Amendment No. 1 to Seventeenth Supplemental and Amendatory Indenture

## Exhibit 4.1

**Exhibit 4.1(f)**

EIGHTEENTH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of February 15, 2008

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series B Notes, due June 11, 2029

Authorized by this Eighteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE;

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS EIGHTEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE

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TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | | **Page** |
| ARTICLE I DEFINTIONS | ARTICLE I DEFINTIONS |  |
| Section 1.1 | Definitions | 4 |
| ARTICLE II THE 2008 SERIES B NOTES AND CERTAIN PROVISIONS RELATING THERETO | ARTICLE II THE 2008 SERIES B NOTES AND CERTAIN PROVISIONS RELATING THERETO | 5 |
| Section 2.1 | Authorization and Terms of the 2008 Series B Notes | 5 |
| Section 2.2 | Form of the 2008 Series B Notes | 5 |
| Section 2.3 | Maturity | 5 |
| Section 2.4 | Optional Prepayments with Make-Whole Amount | 5 |
| Section 2.5 | Allocation of Partial Prepayments | 6 |
| Section 2.6 | Maturity; Surrender, Etc. | 6 |
| Section 2.7 | Purchase of 2008 Series B Notes | 6 |
| Section 2.8 | Make-Whole Amount | 7 |
| Section 2.9 | Swap Breakage | 8 |
| Section 2.10 | Use of Proceeds | 8 |
| Section 2.11 | Acceleration | 8 |
| ARTICLE III MISCELLANEOUS | ARTICLE III MISCELLANEOUS | 9 |
| Section 3.1 | Supplemental Indenture | 9 |
| Section 3.2 | Recitals | 9 |
| Section 3.3 | Successors and Assigns | 9 |
| Section 3.4 | No Rights, Remedies, Etc | 9 |
| Section 3.5 | Counterparts | 9 |
| Section 3.6 | Security Agreement; Mailing Address | 9 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;–&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;–&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C&nbsp;&nbsp;&nbsp;&nbsp;–&nbsp;&nbsp;&nbsp;&nbsp;Form of 2008 Series B Notes

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;–&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Authentication

-i-

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THIS EIGHTEENTH SUPPLEMENTAL INDENTURE, dated as of February 15, 2008 (this "*Eighteenth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 (as previously supplemented and as supplemented hereby hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series B Notes, due June 11, 2029 (the "*2008 Series B Notes*") in the original principal amount of $50,000,000; such 2008 Series B Notes being issued to the parties set forth in Schedule A of the 2008 Series B Note Purchase Agreement described below (and their successor or assigns of the 2008 Series B Notes, each individually, the "*Lender*" or collectively, the "*Lenders*") to secure the Company's obligations under the 2008 Series B Note Purchase Agreement dated as of March 12, 2008 between the Company and the Lenders in the aggregate principal amount of Fifty Million Dollars ($50,000,000), and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Eighteenth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2008 Series B Notes as Additional Obligations and specifying the form and provisions of the 2008 Series B Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Eighteenth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2008 Series B Notes, to make the 2008 Series B Notes to be issued hereunder,

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when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2008 Series B Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Eighteenth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS EIGHTEENTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2008 Series B Notes, to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2008 Series B Notes are secured and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Original Indenture, as amended by the Seventeenth Supplemental Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Original Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Original Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

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The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Original Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Eighteenth Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Original Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Original Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2008 Series B Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

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**ARTICLE I**

**DEFINTIONS**

*Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Eighteenth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, the following terms have the following meaning in this Eighteenth Supplemental Indenture unless the context clearly requires otherwise.

"*Adjusted LIBOR Rate*" shall mean, for any Interest Period, LIBOR *plus* 160 basis points.

"*Business Day*" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

"*Closing Date*" means March 12, 2008.

"*Default Rate*" means with respect to the 2008 Series B Notes, that rate of interest that is 2.00% per annum plus the Adjusted LIBOR Rate.

"*Eighteenth Supplemental Indenture*" means the Eighteenth Supplemental Indenture dated as of February 15, 2008.

"*Interest Payment Date*" means the 11th of every calendar month, commencing on April 11, 2008.

"*Interest Period*" shall mean each period commencing on the Closing Date and, thereafter, commencing on an Interest Payment Date and continuing up to, but not including, the next Interest Payment Date.

"*Lender*" or "*Lenders*" are defined in the Recitals.

"*LIBOR*" shall mean, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one month period which appears on the Bloomberg "BBAM Screen" published by the British Bankers Association or any successor page or source thereto, effective as of 11:00 a.m. (London, England time) two (2) Business Days prior to the beginning of such Interest Period.

"*Swap Agreement*" means (i) the swap agreement entered into between New York Life Company and UBS AG as evidenced by the confirmation dated as of February 21, 2008 and (ii) the swap agreement entered into between New York Life Insurance and Annuity Corporation and UBS AG as evidenced by the confirmation dated as of February 22, 2008, including, in each case, any modification or replacement thereof.

"*2008 Series B Notes*" are defined in the Recitals.

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**ARTICLE II**

**THE 2008 SERIES B NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Authorization and Terms of the 2008 Series B Notes*. There shall be established (i) a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series Notes."

The aggregate principal amount of the 2008 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000). The 2008 Series B Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2008 Series B Notes shall bear interest as provided in the form of Note attached hereto as Exhibit C.

The principal of, premium, if any, and interest on the 2008 Series B Notes shall be payable to Lender in immediately available funds as described in such notes. Any payment of principal of or premium or interest on any 2008 Series B Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2008 Series B Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

In the event the Company fails to make any payment with respect to the 2008 Series B Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Form of the 2008 Series B Notes*. The 2008 Series B Notes shall each be a promissory note substantially in the form of Exhibit C hereto, and the Trustee's authentication certificate to be executed on the 2008 Series B Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Maturity*. As provided therein, the entire unpaid principal balance of the 2008 Series B Notes shall be due and payable on the stated maturity date thereof.

*Optional Prepayments with Make-Whole Amount*. The Company may, at its option, upon notice as provided below, prepay on an Interest Payment Date all, or from time to time any part of, the 2008 Series B Notes, in an amount not less than 10% of the aggregate principal amount of the 2008 Series B Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of 2008 Series B Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall

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specify such date (which shall be a Business Day), the aggregate principal amount of the 2008 Series B Notes to be prepaid on such date, the principal amount of each 2008 Series B Note held by such holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of 2008 Series B Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

*Allocation of Partial Prepayments*. In the case of each partial prepayment of the 2008 Series B Notes, the principal amount of the 2008 Series B Notes to be prepaid shall be allocated among all of the 2008 Series B Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Maturity; Surrender, Etc.*. In the case of each prepayment of 2008 Series B Notes pursuant to this Article 2, the principal amount of each 2008 Series B Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2008 Series B Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2008 Series B Note shall be issued in lieu of any prepaid principal amount of any 2008 Series B Note.

*Purchase of 2008 Series B Notes*. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2008 Series B Notes except (a) upon the payment or prepayment of the 2008 Series B Notes in accordance with the terms of the Original Indenture and the 2008 Series B Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all 2008 Series B Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the holders of more than 51% of the principal amount of the 2008 Series B Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of 2008 Series B Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all 2008 Series B Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2008 Series B Notes pursuant to any provision of this Agreement and no 2008 Series B Notes may be issued in substitution or exchange for any such 2008 Series B Notes.

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*Make-Whole Amount*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount*. The term "*Make-Whole Amount*" means, with respect to any 2008 Series B Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2008 Series B Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2008 Series B Note, the following terms have the following meanings:

"*Called Principal*" means, with respect to any 2008 Series B Note, the principal of such Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

"*Discounted Value*" means, with respect to the Called Principal of such 2008 Series B Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on a monthly basis) equal to the Reinvestment Yield with respect to such Called Principal.

"*Reinvestment Yield*" means, with respect to the Called Principal of such 2008 Series B Note, the sum of .50% plus the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1",(or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life.

"*Remaining Average Life*" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years

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(calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

"*Remaining Scheduled Payments*" means, with respect to the Called Principal of any 2008 Series B Note, all payments of such Called Principal and interest thereon calculated at 6.724% (as if such payments of interest were made on a semi-annual basis on June 11th and December 11th of each year) that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date.

"*Settlement Date*" means, with respect to the Called Principal of any 2008 Series B Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Swap Breakage*.

If any 2008 Series B Note is prepaid pursuant to Section 2.4 or has become or is declared to be due and payable pursuant to the Indenture (either such event being referred to as an "*Unanticipated Payment*"), then the Company shall reimburse to the holder of such 2008 Series B Note upon any such Unanticipated Payment of such 2008 Series B Note, any loss, cost and expense under the Swap Agreement actually incurred by such Holder and attributable to such Unanticipated Payment (the "*Swap Breakage Amount*"). Each holder of a 2008 Series B Note shall furnish to the Company a description in reasonable detail of its own Swap Breakage Amount upon such Unanticipated Payment of all or any portion of such 2008 Series B Note, and such description reported to the Company shall be binding on the Company absent demonstrable error.

To the extent the holder of a 2008 Series B Note receives an actual gain under the Swap Agreement as a result of the early termination of the Swap Agreement in connection with an Unanticipated Payment, the holder shall furnish to the Company a description in reasonable detail of such gain and such determination by such holder shall be binding on the Company absent demonstrable error. In such event, such holder agrees to (i) credit the amount of such gain against the amount otherwise payable by the Company in connection with the Unanticipated Payment or, (ii) in the event such gain is greater than the aggregate amount then owed by the Company hereunder in connection with such Unanticipated Payment, to pay over to the Company the amount of such gain reduced by the aggregate amount owed by the Company hereunder in connection with an Unanticipated Payment.

*Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2008 Series B Notes for general corporate purposes.

*Acceleration*. Upon any 2008 Series B Notes becoming due and payable as the result of an Event of Default (as defined in the Indenture) under the Indenture, whether automatically or by declaration, such 2008 Series B Notes will forthwith mature and the entire unpaid principal amount of such 2008 Series B Notes, plus (x) all accrued and unpaid interest thereon (including,

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but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**ARTICLE III**

**MISCELLANEOUS**

*Supplemental Indenture*. The Eighteenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended, is hereby confirmed. Except to the extent inconsistent with the express terms of this Eighteenth Supplemental Indenture and the 2008 Series B Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2008 Series B Notes to the same extent as if specifically set forth herein.

*Recitals*. All recitals in this Eighteenth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Successors and Assigns*. Whenever in this Eighteenth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Eighteenth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*No Rights, Remedies, Etc*. Nothing in this Eighteenth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Eighteenth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Eighteenth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Counterparts*. This Eighteenth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Security Agreement; Mailing Address*. To the extent permitted by applicable law, this Eighteenth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is

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personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

Additionally, this Eighteenth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Eighteenth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | */s/ Ronald Harper* | */s/ Ronald Harper* |
|  | Name: | Ronald R. Harper |
|  | Title: | Chief Executive Officer &<br>General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | */s/ Claire Olsen* |
| | Name: Claire M. Olson |
| | Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 6th day of March, 2008, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| */s/ Mark Foss* |
| Name: Mark D. Foss |
| Notary Public |
| My commission expires: March 1, 2009 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | */s/ Richard Prokosch* | */s/ Richard Prokosch* |
|  | Name: | &nbsp;&nbsp;&nbsp;&nbsp;Richard Prokosch |
|  | Title: | Vice President |

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| | |
|:---|:---|
| STATE OF MINNESOTA |) |
| |) SS |
| COUNTY OF RAMSEY |) |

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THE FOREGOING instrument was acknowledged before me this 7th day of March, 2008, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| */s/ Denise Landeen* |
| Name: Denise Landeen |
| Notary Public |
| My commission expires: January 31, 2012 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

Exhibit A

(to Eighteenth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

Exhibit B

(to Eighteenth Supplemental Indenture)

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**[FORM OF 2008 SERIES B NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES B NOTES DUE JUNE 11, 2029

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| | |
|:---|:---|
| No. RB-[_______] | **[Date]** |
| $[________] | **PPN[__________________]** |

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FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [___________], or registered assigns, the principal sum of [___________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 11, 2029, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate, are defined in the Eighteenth Supplement referred to below) from the date hereof, payable monthly, on every 11th of each calendar month in each year, commencing April 11, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Eighteenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2008 Series B Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Eighteenth Supplemental Indenture dated as of February 15, 2008 (as from time to time amended, the "*Eighteenth Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series B Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series B Note Purchase* 

Exhibit C

(to Eighteenth Supplemental Indenture)

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*Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series B Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series B Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Eighteenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Eighteenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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C-1-2

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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C-1-3

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**FORM OF _________________ NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Exhibit D

(to Eighteenth Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(f)(1)**

AMENDMENT NO. 1 TO

EIGHTEENTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of June 1, 2023

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series B Notes, due June 11, 2029

Authorized by the Eighteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THE EIGHTEENTH SUPPLEMENTAL INDENTURE AMENDED HEREBY GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THE EIGHTEENTH SUPPLEMENTAL INDENTURE CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THE EIGHTEENTH SUPPLEMENTAL INDENTURE. FUTURE OBLIGATIONS ARE SECURED BY THE EIGHTEENTH SUPPLEMENTAL INDENTURE. NOTICE - THE EIGHTEENTH SUPPLEMENTAL INDENTURE, AS AMENDED HEREBY, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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| | | |
|:---|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| SECTION | HEADING | PAGE |

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| | | |
|:---|:---|:---|
| Article I Definitions | Article I Definitions | 2 |
| Section 1.1. | Definitions | 2 |
| Article II Amendments | Article II Amendments | 2 |
| Section 2.1. | Amendment of Section 1.1 (Definitions) | 2 |
| Section 2.2. | New Section 2.12 (Benchmark Replacement) | 6 |
| Section 2.3. | Amendment to 2008 Series B Notes and Appendix C (Form of 2008 Series B Notes) | 7 |
| Section 2.4. | Transition Date | 7 |
| Article III Miscellaneous | Article III Miscellaneous | 7 |
| Section 3.1. | Amendment | 7 |
| Section 3.2. | Recitals | 7 |
| Section 3.3. | Successors and Assigns | 8 |
| Section 3.4. | No Rights, Remedies, Etc | 8 |
| Section 3.5. | Counterparts | 8 |
| Section 3.6. | Mailing Address | 8 |
| Section 3.7. | Effectiveness | 8 |
| EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;— | Indenture Filing Information |  |

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THIS AMENDMENT NO. 1 TO EIGHTEENTH SUPPLEMENTAL INDENTURE, dated as of June 1, 2023 (this "*Amendment*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 425 Walnut Street, 6<sup>th</sup> Floor, Cincinnati, Ohio 45202, and shall amend that certain Eighteenth Supplemental Indenture, dated February 15, 2008 (the "*Eighteenth Supplemental Indenture*"), between the Company and the Trustee;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture), and as further supplemented and amended, including as supplemented by the Eighteenth Supplemental Indenture and amended hereby (collectively, the "*Indenture*"), which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, pursuant to the Eighteenth Supplemental Indenture, the Company issued the Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series B Notes, due June 11, 2029 (the "*2008 Series B Notes*" and each, individually, a "*2008 Series B Note*") in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00);

WHEREAS, the Company desires to execute and deliver this Amendment, in accordance with the provisions of the Indenture, for the purpose of amending provisions relating to the transition from a London Inter-Bank Offering Rate benchmark for the calculation of interest charges on the 2008 Series B Notes to a new benchmark as provided herein;

WHEREAS, Section 12.2 of the Indenture provides *inter alia* that, with the consent of the Holders of all Obligations affected by the change any installment of interest on the 2008 Series B Notes, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes of and subject to the conditions set forth in said Section 12.2(A) and such other conditions set forth in the Indenture; and

WHEREAS, as the Holders of all of the Obligations affected by this Amendment have consented thereto, this Amendment is permitted pursuant to the provisions of Section 12.2 of the Indenture; and the execution and delivery of this Amendment has been in all respects duly authorized;

NOW, THEREFORE, THIS AMENDMENT WITNESSES, that, in consideration of the premises and the covenants, conditions and agreements hereinafter set forth, the parties hereto agree as follows:

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**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture and the Eighteenth Supplemental Indenture shall have the same meaning in this Amendment, including any exhibit hereto, except as otherwise appears herein or as amended hereby, unless the context clearly requires otherwise.

**ARTICLE II**

**AMENDMENTS**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Amendment of Section 1.1 (Definitions)*. Section 1.1 of the Eighteenth Supplemental Indenture shall be amended by deleting the definitions of "Default Rate", "Interest Payment Date" and "Interest Period" and adding and substituting the following in lieu thereof:

"*Adjusted Daily Compounded SOFR*" means, for purposes of any calculation, the rate per annum equal to the sum of (i) Daily Compounded SOFR for such calculation and (ii) the SOFR Adjustment; *provided* that if Adjusted Daily Compounded SOFR as so determined shall ever be less than the Floor, then Adjusted Daily Compounded SOFR shall be deemed to be the Floor.

"*Available Tenor*" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to the terms hereof as of such date.

"*Benchmark*" means, initially, Adjusted Daily Compounded SOFR; *provided* that if a Benchmark Transition Event has occurred with respect to Daily Compounded SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.12 hereof.

"*Benchmark Replacement*" means, with respect to any Benchmark Transition Event, the first alternative set forth in the order below that can be determined by the Holders of the 2008 Series B Notes for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the sum of (i) Daily Simple SOFR and (ii) the SOFR Adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate benchmark rate that has been selected by the Holders of the 2008 Series B Notes and the Company giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

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If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Eighteenth Supplemental Indenture.

"*Benchmark Replacement Adjustment*" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Holders of the 2008 Series B Notes and the Company giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"*Benchmark Replacement Date*" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been, or if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, if such Benchmark is a term rate, the "*Benchmark Replacement Date*" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

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"*Benchmark Transition Event*" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, if such Benchmark is a term rate, a "*Benchmark Transition Event*" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*Conforming Changes*" means, with respect to either the use or administration of Daily Compounded SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition, timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of any lookback periods and other technical, administrative or operational matters) that the Holders of the 2008 Series B

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Notes and the Company decide may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Holders of the 2008 Series B Notes and the Company in a manner substantially consistent with market practice (or, if the Holders of the 2008 Series B Notes and the Company decide that adoption of any portion of such market practice is not administratively feasible or if the Holders of the 2008 Series B Notes and the Company determine that no market practice for the administration of any such rate exists, in such other manner of administration as the Holders of the 2008 Series B Notes and the Company decide is reasonably necessary in connection with the administration of this Eighteenth Supplemental Indenture).

"*Daily Compounded SOFR*" means, for any day, SOFR, with interest accruing on a compounded daily basis, with the conventions for this rate being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Compounded SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series B Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series B Notes and the Company may establish another convention.

"*Daily Simple SOFR*" means, for any day, SOFR, with the conventions for this rate (which may include a lookback) being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series B Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series B Notes and the Company may establish another convention.

"*Default Rate*" means with respect to the 2008 Series B Notes, that rate of interest that is 2.00% per annum plus rate of interest otherwise in effect.

"*Floor*" means a rate of interest equal to 0%.

*"Interest Payment Date"* means, for each Interest Period commencing on or after July 11, 2023, the second Business Day following the 11<sup>th</sup> of the immediately following calendar month.

*"Interest Period"* means each period commencing on July 11, 2023 and, thereafter, commencing on the 11<sup>th</sup> of every calendar month and continuing up to, but not including, the 11<sup>th</sup> of the immediately following calendar month.

"*Relevant Governmental Body*" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"*SOFR*" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"*SOFR Adjustment*" means a percentage equal to 0.11448% per annum.

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"*SOFR Administrator*" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"*Unadjusted Benchmark Replacement*" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"*U.S. Government Securities Business Day*" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;New Section 2.12 (Benchmark Replacement)*. The Eighteenth Supplemental Indenture is hereby amended by including the following as a new Section 2.12:

*Section 2.12.*&nbsp;&nbsp;&nbsp;&nbsp;*Benchmark Replacement*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (i) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Eighteenth Supplemental Indenture and (ii) if a Benchmark Replacement is determined in accordance with clause (b) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is issued to the public without any amendment to, or further action or consent of any other party to, this Eighteenth Supplemental Indenture. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of Daily Compounded SOFR or a Benchmark Replacement, the Holders of the 2008 Series B Notes and the Company will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Eighteenth Supplemental Indenture. The Holders of the Series 2008 B Notes may also implement Conforming Changes in accordance with this Section 2.12(b) that reflect protocols applicable to CME cleared swaps that are appropriate or necessary to maintain the relationship between the interest rate on the 2008 Series B Notes and the Swap Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Holders of the 2008 Series B Notes will promptly notify the Company of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Any determination, decision or election that may be made by the Holders of the 2008 Series B Notes pursuant to this Section 2.12, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Eighteenth Supplemental Indenture, except, in each case, as expressly required pursuant to this Section 2.12.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to 2008 Series B Notes and Appendix C (Form of 2008 Series B Notes)*. Commencing on the Interest Period beginning on July 11, 2023, (a) each outstanding 2008 Series B Note issued, authenticated and delivered pursuant to the Eighteenth Supplemental Indenture and (b) the form of 2008 Series B Notes in Exhibit C to the Eighteenth Supplemental Indenture are hereby amended by (i) deleting each reference to "Adjusted LIBOR Rate" therein and inserting "Benchmark plus 160 basis points" in lieu thereof and (ii) deleting the reference to "on every 11<sup>th</sup> of each calendar month in each year" and inserting "on the second Business Day following the 11<sup>th</sup> of each calendar month in each year" in lieu thereof.

Each outstanding, certificated 2008 Series B Note shall automatically incorporate the amended interest rates and terms and conditions set forth in this Amendment and no additional execution, authentication or delivery of an amended or replacement Series 2008 B Note shall be required to implement the amendments set forth herein.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Transition Date*. The Amendments set forth in this Article II shall only apply to and be effective for each Interest Period for the Series 2008 B Notes beginning on or after July 11, 2023 and shall not modify in any manner the applicable interest rate provisions related to any Interest Period ending on or before July 10, 2023.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Amendment*. This Amendment is executed and shall be construed as an indenture amendatory to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Amendment, all of the provisions, terms, covenants and conditions of the Indenture, including the Eighteenth Supplemental Indenture, shall be applicable to the 2008 Series B Notes to the same extent as if specifically set forth herein.

*Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;Recitals*. All recitals in this Amendment are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect

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hereof as fully and with like effect as if set forth herein in full. The Company hereby reaffirms its obligations under the Indenture to indemnify and hold harmless the Trustee as required under Article IX of the Indenture, including under Section 9.7 of the Indenture, and in particular (but not limited to) against losses, liabilities, claims, or expenses (including the fees and expenses of its counsel) arising out of or in connection with its execution and performance of this Amendment. This indemnity shall survive the final payment in full of the 2008 Series B Notes and the resignation or removal of the Trustee to the extent provided in Section 7.1 and Article IX of the Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns*. Whenever in this Amendment any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Amendment contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc*. Nothing in this Amendment, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Amendment or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Amendment contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.&nbsp;&nbsp;&nbsp;&nbsp;Counterparts*. This Amendment may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.&nbsp;&nbsp;&nbsp;&nbsp;Mailing Address*. The mailing address of the Company, as debtor, is:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party, is:

U.S. Bank Trust Company, National Association

425 Walnut Street, 6<sup>th</sup> Floor

Cincinnati, OH 45202

Additionally, this Amendment shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

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*Section 3.7.&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness. This Amendment shall be effective upon the execution and delivery hereof by the Company and the Trustee.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Todd E. Telesz |
| &nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz | &nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer &<br>General Manager | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer &<br>General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | <u>/s/ Mark D. Foss</u> |
| | Name: Mark D. Foss |
| | Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 23rd day of June, 2023, by Todd E. Telesz, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, an electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Lisa J. Carney |
| Name: Lisa J. Carney |
| Notary Public |
| My commission expires: Oct. 19, 2026 |

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(Notarial Seal)

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| |
|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as Trustee |
| /s/ William Sicking |
| Name: William Sicking |
| Title: Vice President |

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STATE OF OHIO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF HAMILTON&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 21st day of June, 2023, by William Sicking, Vice President of U.S. Bank Trust Company, National Association, a national banking association, as Trustee, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| s/ Monica Slater |
| Name: Monica Slater |
| Notary Public |
| My commission expires: 05-17-2026 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

to Amendment No. 1 to Eighteenth Supplemental Indenture

## Exhibit 4.1

**Exhibit 4.1(g)**

NINETEENTH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of March 1, 2008

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series C Notes, due June 10, 2031

Authorized by this Nineteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS NINETEENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURE'S, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE BORROWER. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN AL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

**Page**

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| | | |
|:---|:---|:---|
| ARTICLE I | DEFINITIONS | 4 |
| Section 1.1 | Definitions | 4 |
| ARTICLE II | THE 2008 SERIES C NOTES AND CERTAIN PROVISIONS RELATING THERETO | 5 |
| Section 2.1 | Authorization and Terms of the 2008 Series C Notes | 5 |
| Section 2.2 | Form of the 2008 Series C Notes | 5 |
| Section 2.3 | Maturity | 5 |
| Section 2.4 | Optional Prepayments with Make-Whole Amount | 5 |
| Section 2.5 | Allocation of Partial Prepayments | 6 |
| Section 2.6 | Maturity; Surrender, Etc | 6 |
| Section 2.7 | Purchase of 2008 Series C Notes | 6 |
| Section 2.8 | Make-Whole Amount | 7 |
| Section 2.9 | Use of Proceeds | 8 |
| Section 2.10 | Acceleration | 8 |
| ARTICLE III | MISCELLANEOUS | 8 |
| Section 3.1 | Supplemental Indenture | 8 |
| Section 3.2 | Recitals | 9 |
| Section 3.3 | Successors and Assigns | 9 |
| Section 3.4 | No Rights, Remedies, Etc | 9 |
| Section 3.5 | Counterparts | 9 |
| Section 3.6 | Security Agreement; Mailing Address | 9 |

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C | Form of 2008 Series C Notes |
| EXHIBIT D | Form of Trustee's Authentication |

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-i-

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THIS NINETEENTH SUPPLEMENTAL INDENTURE, dated as of March 1, 2008 (this "*Nineteenth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 (as previously supplemented and as supplemented hereby hereinafter called the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series C Notes, due June 10, 2031 (the "*2008 Series C Notes*") in the original principal amount of $50,000,000; such 2008 Series C Notes being issued to the parties set forth in Schedule A of the 2008 Series C Note Purchase Agreement described below (and their successor or assigns of the 2008 Series C Notes, each individually, the "*Lender*" or collectively, the "*Lenders*") to secure the Company's obligations under the 2008 Series C Note Purchase Agreement dated as of March 12, 2008 between the Company and the Lenders in the aggregate principal amount of Fifty Million Dollars ($50,000,000), and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Nineteenth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2008 Series C Notes as Additional Obligations and specifying the form and provisions of the 2008 Series C Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Nineteenth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2008 Series C Notes, to make the 2008 Series C Notes to be issued hereunder,

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when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Original Indenture a valid and binding lien for the security of the 2008 Series C Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Nineteenth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS NINETEENTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2008 Series C Notes., to confirm the lien of the Original Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2008 Series C Notes are secured and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in such Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Original Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Original Indenture, as amended by the Seventeenth Supplemental Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver; become subject to the lien of the Original Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Original Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Original Indenture.

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The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Original Indenture any Excepted Property (other than the property described on Exhibit B thereto) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Nineteenth Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Original Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Original Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Original Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2008 Series C Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Original Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Obligations, as follows:

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**Article I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Nineteenth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, the following terms have the following meaning in this Nineteenth Supplemental Indenture unless the context clearly requires otherwise.

"*Adjusted LIBOR Rate*" shall mean, for any Interest Period, LIBOR *plus* 160 basis points.

"*Business Day*" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

"*Closing Date*" means March 12, 2008.

"*Default Rate*" means with respect to the 2008 Series C Notes, that rate of interest that is·2.00% per annum plus the Adjusted LIBOR Rate.

"*Nineteenth Supplemental Indenture*" means the Nineteenth Supplemental Indenture dated as of March 1, 2008.

"*Interest Payment Date*" means the 12th of every calendar month, commencing on April 12, 2008.

"*Interest Period*" shall mean each period commencing on the Closing Date and, thereafter, commencing on an Interest Payment Date and continuing up to, but not including, the next Interest Payment Date.

"*Lender*" or "*Lenders*" are defined in the Recitals.

"*LIBOR*" shall mean, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point)for deposits in U.S. Dollars for a one month period which appears on the Bloomberg "BBAM Screen" published by the British Bankers Association or any successor page or source thereto (or if no service to which the Lenders have access publishes such rates, the analogous rate as determined by the Lenders consistent with their customary practices and procedures), effective as of 11:00 a.m. (London, England time) two (2) Business Days prior to the beginning of such Interest Period.

"*2008 Series C Notes*" are defined in the Recitals.

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**Article II**

**THE 2008 SERIES C NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2008* Series *C Notes*. There shall be established (i) a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series Notes."

The aggregate principal amount of the 2008 Series C Notes which may be authenticated and delivered and Outstanding at any one time is limited to Fifty Million Dollars ($50,000,000). The 2008 Series C Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2008 Series C Notes shall bear interest as provided in the form of Notes attached hereto as Exhibit C.

The principal of, premium, if any, and interest on the 2008 Series C Notes shall be payable to Lender in immediately available funds as described in such notes. Any payment of principal of or premium or interest on any 2008 Series C Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2008 Series C Note is a date other than a Business Day, the payment otherwise due on-such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

In the event the Company fails to make any payment with respect to the 2008 Series C Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2008* Series *C Notes*. The 2008 Series C Notes shall each be a promissory note substantially in the form of Exhibit C hereto, and the Trustee's authentication certificate to be executed on the 2008 Series C Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Maturity*. As provided therein, the entire unpaid principal balance of the 2008 Series C Notes shall be due and payable on the stated maturity date thereof.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount*. The Company may, at its option, upon notice as provided below, prepay on an Interest Payment Date all, or from time to time any part of, the 2008 Series C Notes, in an amount not less than 10% of the aggregate principal amount of the 2008 Series C Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of 2008 Series C Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such

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notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the 2008 Series C Notes to be prepaid on such date, the principal amount of each 2008 Series C Note held by such holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of 2008 Series C Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments*. In the case of each partial prepayment of the 2008 Series C Notes, the principal amount of the 2008 Series C Notes to be prepaid shall be allocated among all of the 2008 Series C Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender,* Etc. In the case of each prepayment of 2008 Series C Notes pursuant to this Article 2, the principal amount of each 2008 Series C Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2008 Series C Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2008 Series C Note shall be issued in lieu of any prepaid principal amount of any 2008 Series C Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2008* Series *C Notes*. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2008 Series C Notes except (a) upon the payment or prepayment of the 2008 Series C Notes in accordance with the terms of the Original Indenture and the 2008 Series C Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all 2008 Series C Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the holders of more than 51% of the principal amount of the 2008 Series C Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of 2008 Series C Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all 2008 Series C Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2008 Series C Notes pursuant to any provision of this Agreement and no 2008 Series C Notes may be issued in substitution or exchange for any such 2008 Series C Notes.

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*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount*. The term "*Make-Whole Amount*" means, with respect to any 2008 Series C Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2008 Series C Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2008 Series C Note, the following terms have the following meanings:

"*Called Principal*" means, with respect to any 2008 Series C Note, the principal of such 2008 Series C Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

"*Discounted Value*" means, with respect to the Called Principal of such 2008 Series C Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on a semi-annual basis) equal to the Reinvestment Yield with respect to such Called Principal.

"*Reinvestment Yield*" means, with respect to the Called Principal of such 2008 Series C Note, the sum of .50% plus the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such ,time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life.

"*Remaining Average Life*" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each

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Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

"*Remaining Scheduled Payments*" means, with respect to the Called Principal of any 2008 Series C Note, all payments of such Called Principal and interest thereon calculated at the Remaining Scheduled Payments Interest Rate (as if interest were payable on a monthly basis) that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date.

"*Remaining Scheduled Payments Interest Rate*" means the sum of (i) 160 bps, plus (ii) the mid market swap rate for the number of years equal to the Remaining Average Life of such Called Principal as of such Settlement Date indicated on the display designated as "IRSB" (or such other display as may replace IRSB) (or if no service to which the Lenders have access publishes such rates, the analogous rate as determined by the Lenders consistent with their customary practices and procedures) for US dollar interest rates on Bloomberg Financial Markets reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal.

In the case of any determination under the preceding paragraph (ii), such swap rate will be determined, if necessary, by interpolating linearly between (1) the applicable swap rate for the number of years closest to but greater than such Remaining Average Life and (2) the applicable swap rate for the number of years closest to but less than such Remaining Average Life.

"*Settlement Date*" means, with respect to the Called Principal of any 2008 Series C Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2008 Series C Notes for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2008 Series C Notes becoming due and payable as the result of an Event of Default (as defined in the Indenture) under the Indenture, whether automatically or by declaration, such 2008 Series C Notes will forthwith mature and the entire unpaid principal amount of such 2008 Series C Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**Article III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture*. The Nineteenth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as hereby supplemented, modified, and amended,

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is hereby confirmed. Except to the extent inconsistent with the express terms of this Nineteenth Supplemental Indenture and the 2008 Series C Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2008 Series C Notes to the same extent as if specifically set forth herein.

*Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;Recitals*. All recitals in this Nineteenth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns*. Whenever in this Nineteenth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Nineteenth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc*. Nothing in this Nineteenth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Nineteenth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Nineteenth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.&nbsp;&nbsp;&nbsp;&nbsp;Counterparts*. This Nineteenth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.&nbsp;&nbsp;&nbsp;&nbsp;Security Agreement; Mailing Address*. To the extent permitted by applicable law, this Nineteenth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

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and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

Additionally, this Nineteenth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Nineteenth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper | /s/ Ronald R. Harper |
|  | Name: | Ronald R. Harper |
|  | Title: | Chief Executive Officer & General Manager |

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| | |
|:---|:---|
| (Seal) | (Seal) |
| Attest: | /s/ Claire M. Olson |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Claire M. Olson | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Claire M. Olson |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 6th day of March, 2008, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public |
| My commission expires: March 1, 2009 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Richard Prokosch | /s/ Richard Prokosch |
|  | Name: | Richard Prokosch |
|  | Title: | Vice President |

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STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 7th day of March, 2008, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Denise Landeen |
| Name: Denise Landeen |
| Notary Public |
| My commission expires: January 31, 2012 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT A

(to Nineteenth Supplement Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT B

(to Nineteenth Supplement Indenture)

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**[FORM OF 2008 SERIES C NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2008 SERIES C NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2008 SERIES C NOTES DUE JUNE 10, 2031

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| | |
|:---|:---|
| No. RC-[________] | [Date] |
| $[___________] | PPN[_____________] |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [_____________] or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 10, 2031, with interest (computed on the basis of actual days elapsed and a 360-day year) (a) on the unpaid balance hereof at a rate per annum for each Interest Period equal to the Adjusted LIBOR Rate (as such terms, Interest Period and Adjusted LIBOR Rate, are defined in the Nineteenth Supplement referred to below) from the date hereof, payable monthly, on every 12th of each calendar month in each year, commencing April 12, 2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Nineteenth Supplement referred to below), payable monthly as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2008 Series C Note Purchase Agreement (defined below).

This Note is one of a series of Senior Notes (herein called the "*Notes*") issued pursuant to the Nineteenth Supplemental Indenture dated as of March 1, 2008 (as from time to time amended, the "*Nineteenth Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Original Indenture*") and is entitled to the benefits thereof and the 2008 Series C Note Purchase Agreement dated as of March 12, 2008 between the Company and the purchasers listed in Schedule A thereto (the "*2008 Series C Note Purchase* 

EXHIBIT C

(to Nineteenth Supplement Indenture)

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*Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2008 Series C Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2008 Series C Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Nineteenth Supplement.

This Note is a registered Note and, as provided in the Original Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Nineteenth Supplement, but not otherwise.

If an Event of Default under the Original Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Original Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: |  |
|  | Name: |
|  | Its: |

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EXHIBIT C

(to Nineteenth Supplement Indenture)

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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EXHIBIT C

(to Nineteenth Supplement Indenture)

------

**FORM OF ____________________ NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Original Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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EXHIBIT D

(to Nineteenth Supplement Indenture)

## Exhibit 4.1

**Exhibit 4.1(g)(1)**

AMENDMENT NO. 1 TO

NINETEENTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of June 1, 2023

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2008 Series C Notes, due June 10, 2031

Authorized by the Nineteenth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THE NINETEENTH SUPPLEMENTAL INDENTURE AMENDED HEREBY GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THE NINETEENTH SUPPLEMENTAL INDENTURE CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THE NINETEENTH SUPPLEMENTAL INDENTURE. FUTURE OBLIGATIONS ARE SECURED BY THE NINETEENTH SUPPLEMENTAL INDENTURE. NOTICE - THE NINETEENTH SUPPLEMENTAL INDENTURE, AS AMENDED HEREBY, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| SECTION&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HEADING | SECTION&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HEADING | PAGE |
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 2 |
| Section 1.1 | Definitions | 2 |
| ARTICLE II AMENDMENTS | ARTICLE II AMENDMENTS | 2 |
| Section 2.1 | Amendment of Section 1.1 (Definitions) | 2 |
| Section 2.2 | New Section 2.12 (Benchmark Replacement) | 5 |
| Section 2.3 | Amendment to 2008 Series C Notes and Appendix C (Form of 2008 Series C Notes) | 6 |
| Section 2.4 | Effective Date of Amendments | 7 |
| ARTICLE III MISCELLANEOUS | ARTICLE III MISCELLANEOUS | 7 |
| Section 3.1 | Amendment | 7 |
| Section 3.2 | Recitals | 7 |
| Section 3.3 | Successors and Assigns | 7 |
| Section 3.4 | No Rights, Remedies, Etc | 7 |
| Section 3.5 | Counterparts | 8 |
| Section 3.6 | Mailing Address | 9 |
| Section 3.7 | Effectiveness | 9 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

-i-

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THIS AMENDMENT NO. 1 TO NINETEENTH SUPPLEMENTAL INDENTURE, dated as of June 1, 2023 (this "*Amendment*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 425 Walnut Street, 6<sup>th</sup> Floor, Cincinnati, Ohio 45202, and shall amend that certain Nineteenth Supplemental Indenture, dated March 1, 2008 (the "*Nineteenth Supplemental Indenture*"), between the Company and the Trustee;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture), and as further supplemented and amended, including as supplemented by the Nineteenth Supplemental Indenture and amended hereby (collectively, the "*Indenture*"), which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, pursuant to the Nineteenth Supplemental Indenture, the Company issued the Basin Electric Power Cooperative First Mortgage Obligations, 2008 Series C Notes, due June 10, 2031 (the "*2008 Series C Notes*" and each, individually, a "*2008 Series C Note*") in the original principal amount of Fifty Million Dollars and No Cents ($50,000,000.00);

WHEREAS, the Company desires to execute and deliver this Amendment, in accordance with the provisions of the Indenture, for the purpose of amending provisions relating to the transition from a London Inter-Bank Offering Rate benchmark for the calculation of interest charges on the 2008 Series C Notes to a new benchmark as provided herein;

WHEREAS, Section 12.2 of the Indenture provides *inter alia* that, with the consent of the Holders of all Obligations affected by the change any installment of interest on the 2008 Series C Notes, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes of and subject to the conditions set forth in said Section 12.2(A) and such other conditions set forth in the Indenture; and

WHEREAS, as the Holders of all of the Obligations affected by this Amendment have consented thereto, this Amendment is permitted pursuant to the provisions of Section 12.2 of the Indenture; and the execution and delivery of this Amendment has been in all respects duly authorized;

NOW, THEREFORE, THIS AMENDMENT WITNESSES, that, in consideration of the premises and the covenants, conditions and agreements hereinafter set forth, the parties hereto agree as follows:

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**ARTICLE I**

**DEFINITIONS**

*Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture and the Nineteenth Supplemental Indenture shall have the same meaning in this Amendment, including any exhibit hereto, except as otherwise appears herein or as amended hereby, unless the context clearly requires otherwise.

**ARTICLE II**

**AMENDMENTS**

*Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Amendment of Section 1.1 (Definitions)*. Section 1.1 of the Nineteenth Supplemental Indenture shall be amended by deleting the definitions of "Adjusted LIBOR Rate," "Default Rate," and "LIBOR" therein and substituting the following in lieu thereof:

"*Adjusted Daily Compounded SOFR*" means, for purposes of any calculation, the rate per annum equal to the sum of (i) Daily Compounded SOFR for such calculation and (ii) the SOFR Adjustment; *provided* that if Adjusted Daily Compounded SOFR as so determined shall ever be less than the Floor, then Adjusted Daily Compounded SOFR shall be deemed to be the Floor.

"*Available Tenor*" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (i) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to the terms hereof or (ii) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date.

"*Benchmark*" means, initially, Adjusted Daily Compounded SOFR; *provided* that if a Benchmark Transition Event has occurred with respect to Daily Compounded SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.12 hereof.

"*Benchmark* Replacement" means, with respect to any Benchmark Transition Event, the first alternative set forth in the order below that can be determined by the Holders of the 2008 Series C Notes for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the sum of (i) Daily Simple SOFR and (ii) the SOFR Adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the sum of: (i) the alternate benchmark rate that has been selected by the Holders of the 2008 Series C Notes and the Company giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for U.S.

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dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Nineteenth Supplemental Indenture.

"*Benchmark Replacement Adjustment*" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Holders of the 2008 Series C Notes and the Company giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"*Benchmark Replacement Date*" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "*Benchmark Replacement Date*" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"*Benchmark Transition Event*" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof)

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announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "*Benchmark Transition Event*" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"*Conforming Changes*" means, with respect to either the use or administration of Daily Compounded SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition, timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods and other technical, administrative or operational matters) that the Holders of the 2008 Series C Notes and the Company decide may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Holders of the 2008 Series C Notes and the Company in a manner substantially consistent with market practice (or, if the Holders of the 2008 Series C Notes and the Company decide that adoption of any portion of such market practice is not administratively feasible or if the Holders of the 2008 Series C Notes and the Company determine that no market practice for the administration of any such rate exists, in such other manner of administration as the Holders of the 2008 Series C Notes and the Company decide is reasonably necessary in connection with the administration of this Nineteenth Supplemental Indenture).

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"*Daily Compounded SOFR*" means, for any day, SOFR for the corresponding day during the SOFR Observation Period, with interest accruing on a compounded daily basis, with the conventions for this rate (which will include compounding in arrears with a lookback) being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Compounded SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series C Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series C Notes and the Company may establish another convention.

"*Daily Simple SOFR*" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; *provided*, that if the Holders of the 2008 Series C Notes decides that any such convention is not administratively feasible or has become inconsistent with any then-prevailing market practice, then the Holders of the 2008 Series C Notes and the Company may establish another convention.

"*Default Rate*" means with respect to the 2008 Series C Notes, that rate of interest that is 2.00% per annum plus rate of interest otherwise in effect.

"*Floor*" means a rate of interest equal to 0%.

"*Relevant Governmental Body*" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"*SOFR*" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"*SOFR Adjustment*" means a percentage equal to 0.11448% per annum.

"*SOFR Administrator*" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"*SOFR Observation Period*" means, in respect of an Interest Period referencing Daily Compounded SOFR, the period commencing from, and including, the date which is two U.S. Government Securities Business Days immediately preceding the first date of such Interest Period to, but excluding, the date which is two U.S. Government Securities Business Day immediately preceding the Interest Payment Date on which such Interest Period ends (but which is not included in such Interest Period).

"*Unadjusted Benchmark Replacement*" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

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"*U.S. Government Securities Business Day*" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

*Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;New Section 2.12 (Benchmark Replacement)*. The Nineteenth Supplemental Indenture is hereby amended by including the following as a new Section 2.12:

*Section 2.12.*&nbsp;&nbsp;&nbsp;&nbsp;*Benchmark Replacement*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (i) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Nineteenth Supplemental Indenture and (ii) if a Benchmark Replacement is determined in accordance with clause (b) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is issued to the public without any amendment to, or further action or consent of any other party to, this Nineteenth Supplemental Indenture. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of Daily Compounded SOFR or a Benchmark Replacement, the Holders of the 2008 Series C Notes and the Company will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Nineteenth Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Holders of the 2008 Series C Notes will promptly notify the Company of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Any determination, decision or election that may be made by the Holders of the 2008 Series C Notes pursuant to this Section 2.12, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Nineteenth

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Supplemental Indenture, except, in each case, as expressly required pursuant to this Section 2.12.

*Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;Amendment to 2008 Series C Notes and Appendix C (Form of 2008 Series C Notes)*. Each outstanding 2008 Series C Note issued, authenticated and delivered pursuant to the Nineteenth Supplemental Indenture and the form of 2008 Series C Notes in Exhibit C to the Nineteenth Supplemental Indenture are hereby amended by deleting the reference to "Adjusted LIBOR Rate" therein and inserting "Benchmark plus 160 basis points" in lieu thereof.

Each outstanding, certificated 2008 Series C Note shall automatically incorporate the amended interest rates and terms and conditions set forth in this Amendment and no additional execution, authentication or delivery of an amended or replacement Series 2008 C Note shall be required to implement the amendments set forth herein.

*Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;Effective Date of Amendments*. The Amendments set forth in this Article II shall automatically become effective for each Interest Period for the Series 2008 C Notes beginning on or after July 12, 2023 and shall not modify in any manner the applicable interest rate related to the Interest Period ending on July 11, 2023.

In connection with the Amendments set forth herein, upon the request of a Noteholder, the Company shall execute and deliver and the Trustee shall authenticate a replacement Series 2008 C Note with the amendments set forth in Section 2.3 hereof.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;Amendment.* This Amendment is executed and shall be construed as an indenture amendatory to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Amendment, all of the provisions, terms, covenants and conditions of the Indenture, including the Nineteenth Supplemental Indenture, shall be applicable to the 2008 Series C Notes to the same extent as if specifically set forth herein.

*Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;Recitals*. All recitals in this Amendment are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full. The Company hereby reaffirms its obligations under the Indenture to indemnify and hold harmless the Trustee as required under Article IX of the Indenture, including under Section 9.7 of the Indenture, and in particular (but not limited to) against losses, liabilities, claims, or expenses (including the fees and expenses of its counsel) arising out of or in connection with its execution and performance of this Amendment. This indemnity shall survive the final payment in full of the 2008 Series C Notes and the resignation or removal of the Trustee to the extent provided in Section 7.1 and Article IX of the Indenture.

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*Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Amendment any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Amendment contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Amendment, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Amendment or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Amendment contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;Counterparts*. This Amendment may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;Mailing Address.* The mailing address of the Company, as debtor, is:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party, is:

U.S. Bank Trust Company, National Association

425 Walnut Street, 6<sup>th</sup> Floor

Cincinnati, OH 45202

Additionally, this Amendment shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.* This Amendment shall be effective upon the execution and delivery hereof by the Company and the Trustee.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Todd E. Telesz | /s/ Todd E. Telesz |
| Name: | Name: | Todd E. Telesz |
| Title: | Title: | Chief Executive Officer &<br>General Manager |

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| | |
|:---|:---|
| (SEAL) | (SEAL) |
| Attest: | /s/ Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 23rd day of June, 2023, by Todd E. Telesz, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, an electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Lisa J. Carney |
| Name: Lisa J. Carney |
| Notary Public |
| My commission expires: Oct. 19, 2026 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK TRUST COMPANY, NATIONAL<br>ASSOCIATION, a national banking association, as<br>Trustee | U.S. BANK TRUST COMPANY, NATIONAL<br>ASSOCIATION, a national banking association, as<br>Trustee |
| /s/ William Sicking | /s/ William Sicking |
| Name: | William Sicking |
| Title: | Vice President |

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STATE OF OHIO&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF HAMILTON&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 21st day of June, 2023, by William Sicking, Vice President of U.S. Bank Trust Company, National Association, a national banking association, as Trustee, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Monica Slater |
| Name: Monica Slater |
| Notary Public |
| My commission expires: 05-17-2026 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

to Amendment No. 1 to Nineteenth Supplemental Indenture

## Exhibit 4.1

**Exhibit 4.1(h)**

**TWENTY-SEVENTH SUPPLEMENTAL INDENTURE** 

(to that certain Indenture dated as of January 1, 1998)

Dated as of October 1, 2009

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2009 Series B Notes, due October 28, 2016

First Mortgage Obligations, 2009 Series C Notes, due October 28, 2027

First Mortgage Obligations, 2009 Series D Notes, due April 28, 2040

Authorized by this Twenty-Seventh Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS TWENTY-SEVENTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
| SECTION | SECTION | HEADING | PAGE |
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 4 |
| Section 1.1 | Definitions | Definitions | 4 |
| ARTICLE II THE 2009 SERIES B/C/D NOTES AND CERTAIN PROVISIONS RELATING THERETO | ARTICLE II THE 2009 SERIES B/C/D NOTES AND CERTAIN PROVISIONS RELATING THERETO | ARTICLE II THE 2009 SERIES B/C/D NOTES AND CERTAIN PROVISIONS RELATING THERETO | 4 |
| Section 2.1 | Authorization and Terms of the 2009 Series B/C/D Notes | Authorization and Terms of the 2009 Series B/C/D Notes | 4 |
| Section 2.2 | Form of the 2009 Series B/C/D Notes | Form of the 2009 Series B/C/D Notes | 6 |
| Section 2.3 | Required Prepayments | Required Prepayments | 6 |
| Section 2.4 | Optional Prepayments with Make-Whole Amount | Optional Prepayments with Make-Whole Amount | 6 |
| Section 2.5 | Allocation of Partial Prepayments | Allocation of Partial Prepayments | 7 |
| Section 2.6 | Maturity; Surrender, Etc. | Maturity; Surrender, Etc. | 7 |
| Section 2.7 | Purchase of 2009 Series B/C/D Notes | Purchase of 2009 Series B/C/D Notes | 7 |
| Section 2.8 | Make-Whole Amount. | Make-Whole Amount. | 8 |
| Section 2.9 | Use of Proceeds | Use of Proceeds | 9 |
| Section 2.10 | Acceleration | Acceleration | 9 |
| ARTICLE III MISCELLANEOUS | ARTICLE III MISCELLANEOUS | ARTICLE III MISCELLANEOUS | 10 |
| Section 3.1 | Supplemental Indenture | Supplemental Indenture | 10 |
| Section 3.2 | Recitals | Recitals | 10 |
| Section 3.3 | Successors and Assigns | Successors and Assigns | 10 |
| Section 3.4 | No Rights, Remedies, Etc. | No Rights, Remedies, Etc. | 10 |
| Section 3.5 | Counterparts | Counterparts | 10 |
| Section 3.6 | Security Agreement; Mailing Address | Security Agreement; Mailing Address | 10 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2009 Series B Notes

EXHIBIT C-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2009 Series C Notes

EXHIBIT C-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2009 Series D Notes

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Authentication

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THIS TWENTY-SEVENTH SUPPLEMENTAL INDENTURE, dated as of October 1, 2009 (this "*Twenty-Seventh Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the "*Company*"), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is Mail Stop EP-MN-WS3C, 60 Livingston Avenue, St. Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented and amended;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 as previously supplemented and amended by twenty-six Supplemental Indentures (the "*Original Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established three new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series B Notes, due October 28, 2016 (the "*2009 Series B Notes*") in the original principal amount of $325,000,000; (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series C Notes, due October 28, 2027 (the "*2009 Series C Notes*") in the original principal amount of $100,000,000 and (iii) the Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series D Notes, due April 28, 2040 (the "*2009 Series D Notes*," together with the 2009 Series B Notes and the 2009 Series C Notes are individually a "*2009 Series B/C/D Note*" and collectively, the "*2009 Series B/C/D Notes*") in the original principal amount of $110,000,000; such 2009 Series B/C/D Notes being issued to the parties set forth in Schedule A of the 2009 Series B/C/D Note Purchase Agreement described below (and their successors or assigns of the 2009 Series B/C/D Notes, each individually, the "*Lender*" or collectively, the "*Lenders*") to secure the Company's obligations under the 2009 Series B/C/D Note Purchase Agreement dated as of October 21, 2009 between the Company and the Lenders (the "*2009 Series B/C/D Note Purchase Agreement*") in the aggregate principal amount of Five Hundred Thirty-Five Million Dollars ($535,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Twenty-Seventh Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2009 Series B/C/D Notes as Additional Obligations and specifying the form and provisions of the 2009 Series B/C/D Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by

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a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Twenty-Seventh Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2009 Series B/C/D Notes, to make the 2009 Series B/C/D Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2009 Series B/C/D Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Twenty-Seventh Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS TWENTY-SEVENTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2009. Series B/C/D Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2009 Series B/C/D Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to

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the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B to the Original Indenture) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

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AND IT IS HEREBY COVENANTED AND DECLARED that the 2009 Series B/C/D Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Twenty-Seventh Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Twenty-Seventh Supplemental Indenture unless the context clearly requires otherwise.

"*Business Day*" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

"*Code*" means the Internal Revenue Code of 1986, as amended from time to time.

"*Default Rate*" means with respect to the 2009 Series B/C/D Notes, that rate of interest that is the greater of (i) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of the 2009 Series B/C/D Notes or (ii) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, N.A. in Bismarck, North Dakota as its "base" or "prime" rate.

"*Lender*" or "*Lenders*" are defined in the Recitals.

"*Make-Whole Amount*" is defined in Section 2.8.

"*Series*" shall refer to any series of the 2009 Series B/C/D Notes issued under this Twenty-Seventh Supplemental Indenture.

"*2009 Series B Notes*" are defined in the Recitals.

"*2009 Series C Notes*" are defined in the Recitals.

"*2009 Series D Notes*" are defined in the Recitals.

"*2009 Series B/C/D Notes*" are defined in the Recitals.

**ARTICLE II**

**THE 2009 SERIES B/C/D NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2009 Series B/C/D Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series B Notes."

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The aggregate principal amount of the 2009 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to Three Hundred Twenty-Five Million Dollars ($325,000,000). The 2009 Series B Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2009 Series B Notes shall bear interest as provided in the form of 2009 Series B Notes attached hereto as Exhibit C-I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series C Notes."

The aggregate principal amount of the 2009 Series C Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Million Dollars $100,000,000). The 2009 Series C Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2009 Series C Notes shall bear interest as provided in the form of 2009 Series C Notes attached hereto as Exhibit C-2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2009 Series D Notes."

The aggregate principal amount of the 2009 Series D Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred and Ten Million Dollars ($110,000,000). The 2009 Series D Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2009 Series D Notes shall bear interest as provided in the form of 2009 Series D Notes attached hereto as Exhibit C-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2009 Series B/C/D Notes shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2009 Series B/C/D Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2009 Series B/C/D Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2009 Series B/C/D Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

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*Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2009 Series B/C/D Notes*. The 2009 Series B Notes shall each be a promissory note substantially in the form of Exhibit C-1 hereto, the 2009 Series C Notes shall each be a promissory note substantially in the form of Exhibit C-2 hereto, and the 2009 Series D Notes shall each be a promissory note substantially in the form of Exhibit C-3 hereto. The Trustee's authentication certificate to be executed on the 2009 Series B/C/D Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;Required Prepayments*. (i) On October 28, 2014 and on October 28, 2015, the Company will prepay $108,333,333.33 in principal amount (or such lesser amount as shall then be outstanding) of the 2009 Series B Notes at par and without payment of any premium (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2009 Series B Notes pursuant to Section 2.4 or partial purchase of the 2009 Series B Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2009 Series B Notes becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2009 Series B Notes is reduced as a result of such prepayment or purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;On October 28; 2019 and on the 28th day of October thereafter to and including October 28, 2026, the Company will prepay $11,111,111.11 in principal amount (or such lesser amount as shall then be outstanding) of the 2009 Series C Notes at par and without payment of any premium (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2009 Series C Notes pursuant to Section 2.4 or partial purchase of the 2009 Series C Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2009 Series C Notes becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2009 Series C Notes is reduced as a result of such prepayment or purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;On April 28, 2038 and April 28, 2039, the Company will prepay $36,666,666.66 in principal amount (or such lesser amount as shall then be outstanding) of the 2009 Series D Notes at par and without payment of any premium (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2009 Series D Notes pursuant to Section 2.4 or partial purchase of the 2009 Series D Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2009 Series D Notes becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2009 Series D Notes is reduced as a result of such prepayment or purchase.

*Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount*. So long as no Event of Default exists and is continuing under the Indenture, the Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any particular Series of 2009 Series B/C/D Notes, in an amount not less than 10% of the aggregate principal amount of such particular Series of 2009 Series B/C/D Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount

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determined for the prepayment date with respect to such principal amount. The Company will give each holder of 2009 Series B/C/D Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such particular Series of 2009 Series B/C/D Notes to be prepaid on such date, the principal amount of each 2009 Series B/C/D Note held by such holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of such particular Series of 2009 Series B/C/D Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. If an Event of Default exists and is continuing under the Indenture, then the Company may only prepay all 2009 Series B/C/D Notes on a pro rata basis (and not on a Series by Series basis).

*Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments*. In the case of each partial prepayment of any Series of the 2009 Series B/C/D Notes, the principal amount of the 2009 Series B/C/D Notes to be prepaid shall be allocated among all of the 2009 Series B/C/D Notes of such Series to be prepaid at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* In the case of each prepayment of 2009 Series B/C/D Notes pursuant to this Article 2, the principal amount of each 2009 Series B/C/D Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2009 Series B/C/D Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2009 Series B/C/D Note shall be issued in lieu of any prepaid principal amount of any 2009 Series B/C/D Note.

*Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2009 Series B/C/D Notes*. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2009 Series B/C/D Notes except (a) upon the payment or prepayment of the 2009 Series B/C/D Notes in accordance with the terms of the Indenture and the 2009 Series B/C/D Notes or (b) (i) if no Event of Default exists and is continuing under the Indenture, pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of any particular Series of 2009 Series B/C/D Notes at the time outstanding upon the same terms and conditions or (ii) if an Event of Default exists and is continuing under the Indenture, such offer shall be made to all 2009 Series B/C/D Notes upon the same terms and conditions (and not on a Series by Series basis). Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30

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Business Days. If the holders of more than 51% of the principal amount of any particular Series of 2009 Series B/C/D Notes (or in the case of an Event of Default, more than 51% of the principal amount of all 2009 Series B/C/D Notes) then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of 2009 Series B/C/D Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all 2009 Series B/C/D Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2009 Series B/C/D Notes pursuant to any provision of this Agreement and no 2009 Series B/C/D Notes may be issued in substitution or exchange for any such 2009 Series B/C/D Notes.

*Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount*. The term "*Make-Whole Amount*" means, with respect to any 2009 Series B/C/D Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2009 Series B/C/D Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2009 Series B/C/D Note, the following terms have the following meanings:

"*Called Principal*" means, with respect to any 2009 Series B/C/D Note, the principal of such 2009 Series B/C/D Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

"*Discounted Value*" means, with respect to the Called Principal of such 2009 Series B/C/D Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2009 Series B/C/D Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"*Reinvestment Yield*" means, with respect to the Called Principal of such 2009 Series B/C/D Note, the sum of 0.50% plus the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1",(or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

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In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2009 Series B/C/D Note.

"*Remaining Average Life*" means, with respect to any Called Principal of any 2009 Series B/C/D Note, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

"*Remaining Scheduled Payments*" means, with respect to the Called Principal of any 2009 Series B/C/D Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the 2009 Series B/C/D Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above.

"*Settlement Date*" means, with respect to the Called Principal of any 2009 Series B/C/D Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2009 Series B/C/D Notes to repay outstanding indebtedness under the Company's commercial paper program and for general corporate purposes.

*Section 2.10&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2009 Series B/C/D Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2009 Series B/C/D Notes will forthwith mature and the entire unpaid principal amount of such 2009 Series B/C/D Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

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**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture*. This Twenty-Seventh Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Twenty-Seventh Supplemental Indenture and the 2009 Series B/C/D Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2009 Series B/C/D Notes to the same extent as if specifically set forth herein.

*Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;Recitals*. All recitals in this Twenty-Seventh Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns*. Whenever in this Twenty-Seventh Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Twenty-Seventh Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Twenty-Seventh Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Twenty-Seventh Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Twenty-Seventh Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;Counterparts*. This Twenty-Seventh Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;Security Agreement; Mailing Address*. To the extent permitted by applicable law, this Twenty-Seventh Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

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as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

Mail Stop EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN 55107

Additionally, this Twenty-Seventh Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Seventh Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper | /s/ Ronald R. Harper |
|  | Name: | Ronald R. Harper |
|  | Title: | Chief Executive Officer & General Manager |

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| | |
|:---|:---|
| Attest: | /s/ Claire M. Olson |
| | Name: Claire M. Olson |
| | Title: Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 14th day of October, 2009, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public |
| My commission expires: March 1, 2015 |

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Richard Prokosch | /s/ Richard Prokosch |
|  | Name: | Richard Prokosch |
|  | Title: Vice President | Title: Vice President |

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| | |
|:---|:---|
| STATE OF MINNESOTA |) |
| |) SS |
| COUNTY OF RAMSEY |) |

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THE FOREGOING instrument was acknowledged before me this 15th day of October, 2009, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Denise R. Landeen |
| Name: Denise R. Landeen |
| Notary Public |
| My commission expires: January 31, 2012 |

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(Notarial Seal)

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**EXHIBIT A**

**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT A

(to Twenty-Seventh Supplemental Indenture)

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**EXHIBIT B**

**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT B

(to Twenty-Seventh Supplemental Indenture)

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**EXHIBIT C-1**

**[FORM OF 2009 SERIES B NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2009 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2009 SERIES B NOTES DUE OCTOBER 28, 2016

No. RB-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN__________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on October 28, 2016, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.00% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.00% per annum) from the date hereof, payable semiannually on the 28th day of April and October in each year, commencing April 28, 2010, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Twenty-Seventh Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

"*Interest Rate Adjustment Event*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2009 Series B/C/D Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Twenty-Seventh Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance

EXHIBIT C

(to Twenty-Seventh Supplemental Indenture)

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with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2009 Series B/C/D Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

"*ERISA*" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"*ERISA Affiliate*" means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

"*ERISA Event*" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any

C-1-2

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notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

"*Material Adverse Change*" means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2009 Series B/C/D Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

"*Multiemployer Plan*" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"*Plan*" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2009 Series B/C/D Note Purchase Agreement (defined below).

This Note is one of a series of the 2009 Series B Notes (herein called the "*Notes*") issued pursuant to the Twenty-Seventh Supplemental Indenture dated as of October 1, 2009 (as from time to time amended, the "*Twenty-Seventh Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Indenture*") and is entitled to the benefits thereof and the 2009 Series B/C/D Note Purchase Agreement dated as of October 21, 2009 between the Company and the purchasers listed in Schedule A thereto (the "*2009 Series B/C/D Note Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2009 Series B/C/D Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2009 Series B/C/D Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Twenty-Seventh Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name

C-1-3

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this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Twenty-Seventh Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Twenty-Seventh Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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[SEAL]

Attest:

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

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C-1-4

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: October __, 2009

C-1-5

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**EXHIBIT C-2**

**[FORM OF 2009 SERIES C NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2009 SERIES C NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2009 SERIES C NOTES DUE OCTOBER 28, 2027

No. RC-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN__________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on October 28, 2027, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.89% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.89% per annum) from the date hereof, payable semiannually on the 28th day of April and October in each year, commencing April 28, 2010, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Twenty-Seventh Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

"*Interest Rate Adjustment Event*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2009 Series B/C/D Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Twenty-Seventh Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance

EXHIBIT C-2

(to Twenty-Seventh Supplemental Indenture)

------

with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2009 Series B/C/D Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

"*ERISA*" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"*ERISA Affiliate*" means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

"*ERISA Event*" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any

C-2-2

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notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

"*Material Adverse Change*" means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2009 Series B/C/D Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

"*Multiemployer Plan*" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"*Plan*" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2009 Series B/C/D Note Purchase Agreement (defined below).

This Note is one of a series of the 2009 Series C Notes (herein called the "*Notes*") issued pursuant to the Twenty-Seventh Supplemental Indenture dated as of October 1, 2009 (as from time to time amended, the "*Twenty-Seventh Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Indenture*") and is entitled to the benefits thereof and the 2009 Series B/C/D Note Purchase Agreement dated as of October 21, 2009 between the Company and the purchasers listed in Schedule A thereto (the "*2009 Series B/C/D Note Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2009 Series B/C/D Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2009 Series B/C/D Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Twenty-Seventh Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name

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this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Twenty-Seventh Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Twenty-Seventh Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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[SEAL]

Attest:

---

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

---

C-2-4

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: October ____, 2009

C-2-5

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**EXHIBIT C-3**

**[FORM OF 2009 SERIES D NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2009 SERIES D NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "*SECURITIES ACT*"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION 1S AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2009 SERIES D NOTES DUE APRIL 28, 2040

No. RD-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_____]&nbsp;&nbsp;&nbsp;&nbsp;PPN__________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the "*Company*"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [__________], or registered assigns, the principal sum of [_______________] DOLLARS (or so much thereof as shall not have been prepaid) on April 28, 2040, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 5.59% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 7.59% per annum) from the date hereof, payable semiannually on the 28th day of April and October in each year, commencing April 28, 2010, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Twenty-Seventh Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

"*Interest Rate Adjustment Event*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2009 Series B/C/D Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Twenty-Seventh Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance

EXHIBIT C-3

(to Twenty-Seventh Supplemental Indenture)

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with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2009 Series B/C/D Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

"*ERISA*" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"*ERISA Affiliate*" means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

"*ERISA Event*" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any

C-3-2

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notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

"*Material Adverse Change*" means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2009 Series B/C/D Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

"*Multiemployer Plan*" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"*Plan*" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated; would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2009 Series B/C/D Note Purchase Agreement (defined below).

This Note is one of a series of the 2009 Series D Notes (herein called the "*Notes*") issued pursuant to the Twenty-Seventh Supplemental Indenture dated as of October 1, 2009 (as from time to time amended, the "*Twenty-Seventh Supplement*"), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the "*Indenture*") and is entitled to the benefits thereof and the 2009 Series B/C/D Note Purchase Agreement dated as of October 21, 2009 between the Company and the purchasers listed in Schedule A thereto (the "*2009 Series B/C/D Note Purchase Agreement*"). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2009 Series B/C/D Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2009 Series B/C/D Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Twenty-Seventh Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name

C-3-3

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this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Twenty-Seventh Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Twenty-Seventh Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

Attest:

---

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

---

C-3-4

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**EXHIBIT D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

Date of Authentication: October ___, 2009

## Exhibit 4.1

**Exhibit 4.1(i)**

THIRTIETH SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of September 15, 2011

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2011 Series A Notes, due October 1, 2031

First Mortgage Obligations, 2011 Series B Notes, due October 1, 2049

Authorized by this Thirtieth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTIETH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
| SECTION | SECTION | HEADING | PAGE |
| ARTICLE I | DEFINITIONS | DEFINITIONS | 4 |
| Section 1.1 | Definitions | Definitions | 4 |
| ARTICLE II | THE 2011 SERIES A/B NOTES AND CERTAIN PROVISIONS RELATING THERETO | THE 2011 SERIES A/B NOTES AND CERTAIN PROVISIONS RELATING THERETO | 4 |
| Section 2.1 | Authorization and Terms of the 2011 Series A/B Notes | Authorization and Terms of the 2011 Series A/B Notes | 4 |
| Section 2.2 | Form of the 2011 Series A/B Notes | Form of the 2011 Series A/B Notes | 5 |
| Section 2.3 | Required Prepayments | Required Prepayments | 5 |
| Section 2.4 | Optional Prepayments with Make-Whole Amount | Optional Prepayments with Make-Whole Amount | 7 |
| Section 2.5 | Allocation of Partial Prepayments | Allocation of Partial Prepayments | 7 |
| Section 2.6 | Maturity; Surrender, Etc. | Maturity; Surrender, Etc. | 7 |
| Section 2.7 | Purchase of 2011 Series A/B Notes | Purchase of 2011 Series A/B Notes | 8 |
| Section 2.8 | Make-Whole Amount. | Make-Whole Amount. | 8 |
| Section 2.9 | Use of Proceeds | Use of Proceeds | 10 |
| Section 2.10 | Acceleration | Acceleration | 10 |
| ARTICLE III | MISCELLANEOUS | MISCELLANEOUS | 10 |
| Section 3.1 | Supplemental Indenture | Supplemental Indenture | 10 |
| Section 3.2 | Recitals | Recitals | 10 |
| Section 3.3 | Successors and Assigns | Successors and Assigns | 10 |
| Section 3.4 | No Rights, Remedies, Etc. | No Rights, Remedies, Etc. | 11 |
| Section 3.5 | Counterparts | Counterparts | 11 |
| Section 3.6 | Security Agreement; Mailing Address | Security Agreement; Mailing Address | 11 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2011 Series A Notes

EXHIBIT C-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2011 Series B Notes

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Authentication

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THIS THIRTIETH SUPPLEMENTAL INDENTURE, dated as of September 15, 2011 (this *"Thirtieth Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented and amended;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 as previously supplemented and amended by twenty-nine Supplemental Indentures (the *"Original Indenture"*), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established two new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2011 Series A Notes, due October 1, 2031 (the *"2011 Series A Notes"*) in the original principal amount of $250,000,000 and (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2011 Series B Notes, due October 1, 2049 (the *"2011 Series B Notes,"* together with the 2011 Series A Notes are individually a *"2011 Series A/B Note* and collectively, the *"2011 Series A/B Notes""*) in the original principal amount of $100,000,000; such 2011 Series A/B Notes being issued to the parties set forth in Schedule A of the 2011 Series A/B Note Purchase Agreement described below (and their successors or assigns of the 2011 Series A/B Notes, each individually, the *"Lender"* or collectively, the *"Lenders"*) to secure the Company's obligations under the 2011 Series A/B Note Purchase Agreement dated as of October 31, 2011 between the Company and the Lenders (the *"2011 Series A/B"*) in the aggregate principal amount of Three Hundred Fifty Million Dollars ($350,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Thirtieth Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2011 Series A/B Notes as Additional Obligations and specifying the form and provisions of the 2011 Series A/B Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

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WHEREAS, this Thirtieth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2011 Series A/B Notes, to make the 2011 Series A/B Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2011 Series A/B Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirtieth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTIETH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2011 Series A/B Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2011 Series A/B Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession

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thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B to the Original Indenture) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

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AND IT IS HEREBY COVENANTED AND DECLARED that the 2011 Series A/B Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Thirtieth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Thirtieth Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Code"* means the Internal Revenue Code of 1986, as amended from time to time.

*"Default Rate"* means with respect to the 2011 Series A/B Notes, that rate of interest that is the greater of (i) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of the 2011 Series A/B Notes or (ii) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, N.A. in Bismarck, North Dakota as its "base" or "prime" rate.

*"Lender"* or *"Lenders"* are defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series"* shall refer to any series of the 2011 Series A/B Notes issued under this Thirtieth Supplemental Indenture.

*"2011 Series A Notes"* are defined in the Recitals.

*"2011 Series B Notes"* are defined in the Recitals.

*"2011 Series A/B Notes"* are defined in the Recitals.

**ARTICLE II<br>THE 2011 SERIES A/B NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2011 Series A/B Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2011 Series A Notes."

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The aggregate principal amount of the 2011 Series A Notes which may be authenticated and delivered and Outstanding at any one time is limited to Two Hundred Fifty Million Dollars ($250,000,000). The 2011 Series A Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2011 Series A Notes shall bear interest as provided in the form of 2011 Series A Notes attached hereto as Exhibit C-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2011 Series B Notes."

The aggregate principal amount of the 2011 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Million Dollars $100,000,000). The 2011 Series B Notes shall originally be registered in the name of Lenders, and shall be dated the date of authentication.

The 2011 Series B Notes shall bear interest as provided in the form of 2011 Series B Notes attached hereto as Exhibit C-2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2011 Series A/B Notes shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2011 Series A/B Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2011 Series A/B Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2011 Series A/B Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2011 Series A/B Notes*. The 2011 Series A Notes shall each be a promissory note substantially in the form of Exhibit C-1 hereto and the 2011 Series B Notes shall each be a promissory note substantially in the form of Exhibit C-2 hereto. The Trustee's authentication certificate to be executed on the 2011 Series A/B Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Required Prepayments*. (i) On October 1 of each of the years set forth below, the Company will prepay the respective aggregate principal amount (or such lesser amount as shall then be outstanding) of the 2011 Series A Notes set forth opposite such year at

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par and without payment of any premium (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2011 Series A Notes pursuant to Section 2.4 or partial purchase of the 2011 Series A Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2011 Series A Notes becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2011 Series A Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Payment Dates** | **Principal**<br>**Amount Due** |
| October 1, 2012 | $9760000 |
| October 1, 2013 | 11010000 |
| October 1, 2014 | 0 |
| October 1, 2015 | 0 |
| October 1, 2016 | 0 |
| October 1, 2017 | 11450000 |
| October 1, 2018 | 11905000 |
| October 1, 2019 | 12380000 |
| October 1, 2020 | 12875000 |
| October 1, 2021 | 13395000 |
| October 1, 2022 | 13930000 |
| October 1, 2023 | 14485000 |
| October 1, 2024 | 15065000 |
| October 1, 2025 | 15665000 |
| October 1, 2026 | 16295000 |
| October 1, 2027 | 16945000 |
| October 1, 2028 | 17625000 |
| October 1, 2029 | 18330000 |
| October 1, 2030 | 19060000 |
| October 1, 2031 | 19825000 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;On October 1, 2040 and on the 1<sup>st</sup> day of October thereafter to and including October 1, 2049, the Company will prepay the aggregate principal amount (or such lesser amount as shall then be outstanding) of the 2011 Series B Notes set forth opposite such year at par and without payment of any premium (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2011 Series B Notes pursuant to Section 2.4 or partial purchase of the 2011 Series B Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2011 Series B Notes becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the

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aggregate unpaid principal amount of the 2011 Series B Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Payment Dates** | **Principal**<br>**Amount Due** |
| October 1, 2040 | $7950000 |
| October 1, 2041 | 8350000 |
| October 1, 2042 | 8765000 |
| October 1, 2043 | 9205000 |
| October 1, 2044 | 9665000 |
| October 1, 2045 | 10145000 |
| October 1, 2046 | 10655000 |
| October 1, 2047 | 11185000 |
| October 1, 2048 | 11745000 |
| October 1, 2049 | 12335000 |

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*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* So long as no Event of Default exists and is continuing under the Indenture, the Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any particular Series of 2011 Series A/B Notes, in an amount not less than 10% of the aggregate principal amount of such particular Series of 2011 Series A/B Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of 2011 Series A/B Notes written notice of each optional prepayment under this Section 2.4 not less than 10 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such particular Series of 2011 Series A/B Notes to be prepaid on such date, the principal amount of each 2011 Series A/B Note held by such holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of such particular Series of 2011 Series A/B Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. If an Event of Default exists and is continuing under the Indenture, then the Company may only prepay all 2011 Series A/B Notes on a pro rata basis (and not on a Series by Series basis).

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments.* In the case of each partial prepayment of any Series of the 2011 Series A/B Notes, the principal amount of the 2011 Series A/B Notes to be prepaid shall be allocated among all of the 2011 Series A/B Notes of such Series to be prepaid at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

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*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* &nbsp;&nbsp;&nbsp;&nbsp;In the case of each prepayment of 2011 Series A/B Notes pursuant to this Article 2, the principal amount of each 2011 Series A/B Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2011 Series A/B Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2011 Series A/B Note shall be issued in lieu of any prepaid principal amount of any 2011 Series A/B Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2011 Series A/B Notes.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2011 Series A/B Notes except (a) upon the payment or prepayment of the 2011 Series A/B Notes in accordance with the terms of the Indenture and the 2011 Series A/B Notes or (b) (i) if no Event of Default exists and is continuing under the Indenture, pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of any particular Series of 2011 Series A/B Notes at the time outstanding upon the same terms and conditions or (ii) if an Event of Default exists and is continuing under the Indenture, such offer shall be made to all 2011 Series A/B Notes upon the same terms and conditions (and not on a Series by Series basis). Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the holders of more than 51% of the principal amount of any particular Series of 2011 Series A/B Notes (or in the case of an Event of Default, more than 51% of the principal amount of all 2011 Series A/B Notes) then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of 2011 Series A/B Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer. Any consent made pursuant to the Indenture by the holder of any Note that has transferred or has agreed to transfer such Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring holder. The Company will promptly cancel all 2011 Series A/B Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2011 Series A/B Notes pursuant to any provision of this Agreement and no 2011 Series A/B Notes may be issued in substitution or exchange for any such 2011 Series A/B Notes.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount.* The term *"Make-Whole Amount"* means, with respect to any 2011 Series A/B Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2011 Series A/B

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Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2011 Series A/B Note, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2011 Series A/B Note, the principal of such 2011 Series A/B Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*"Discounted Value"* means, with respect to the Called Principal of such 2011 Series A/B Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2011 Series A/B Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of such 2011 Series A/B Note, the sum of 0.50% plus the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1",(or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2011 Series A/B Note.

*"Remaining Average Life"* means, with respect to any Called Principal of any 2011 Series A/B Note, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse

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between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2011 Series A/B Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the 2011 Series A/B Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above.

*"Settlement Date"* means, with respect to the Called Principal of any 2011 Series A/B Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2011 Series A/B Notes to repay outstanding indebtedness of the Company and for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2011 Series A/B Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2011 Series A/B Notes will forthwith mature and the entire unpaid principal amount of such 2011 Series A/B Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirtieth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirtieth Supplemental Indenture and the 2011 Series A/B Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2011 Series A/B Notes to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirtieth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

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*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirtieth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirtieth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirtieth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirtieth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirtieth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirtieth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirtieth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirtieth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the

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Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirtieth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper | /s/ Ronald R. Harper |
|  | Name: | Ronald R. Harper |
|  | Title: | Chief Executive Officer & General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | /s/ Claire M. Olson |
| | Name: Claire M. Olson |
| | Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 21st day of October, 2011, by Ronald R. Harper, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Michelle Wiedrich |
| Name: Michelle Wiedrich |
| Notary Public |
| My commission expires: August 6, 2015 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ R. Jason Fry | /s/ R. Jason Fry |
|  | Name: | R. Jason Fry |
|  | Title: | Vice President |

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(SEAL)

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| | |
|:---|:---|
| STATE OF MICHIGAN |) |
| |) SS |
| COUNTY OF KENT |) |

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THE FOREGOING instrument was acknowledged before me this 20th day of October, 2011, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Marylyn Putschko |
| Name: Marylyn Putschko |
| Notary Public |
| My commission expires: September 12, 2016 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT A

(to Thirtieth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT B

(to Thirtieth Supplemental Indenture)

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**[FORM OF 2011 SERIES A NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2011 SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2011 SERIES A NOTES DUE OCTOBER 1, 2031

No. RB-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN __________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on October 1, 2031, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.00% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.00% per annum) from the date hereof, payable semiannually on the 1<sup>st</sup> day of April and October in each year, commencing April 1, 2012, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirtieth Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A/B Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Thirtieth Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance

EXHIBIT C-1

(to Thirtieth Supplemental Indenture)

------

with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2011 Series A/B Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

*"ERISA"* means the Employee Retirement Income Security Act of 1974, as amended from time to time.

*"ERISA Affiliate"* means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

*"ERISA Event"* means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any

C-1-2

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Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

*"Material Adverse Change"* means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2011 Series A/B Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

*"Multiemployer Plan"* means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

*"Plan"* means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2011 Series A/B Note Purchase Agreement (defined below).

This Note is one of a series of the 2011 Series A Notes (herein called the *"Notes"*) issued pursuant to the Thirtieth Supplemental Indenture dated as of September 15, 2011 (as from time to time amended, the *"Thirtieth Supplement"*), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the 2011 Series A/B Note Purchase Agreement dated as of October 31, 2011 between the Company and the purchasers listed in Schedule A thereto (the *"2011 Series A/B Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2011 Series A/B Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2011 Series A/B Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirtieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name

C-1-3

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this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirtieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirtieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

Attest:

---

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

---

C-1-4

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

Date of Authentication: October __, 2011

C-1-5

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**[FORM OF 2011 SERIES B NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2011 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2011 SERIES B NOTES DUE OCTOBER 1, 2049

No. RC-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN __________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on October 1, 2049, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 5.10% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 7.10% per annum) from the date hereof, payable semiannually on the 1<sup>st</sup> day of April and October in each year, commencing April 1, 2012, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirtieth Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2011 Series A/B Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Thirtieth Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance

EXHIBIT C-2

(to Thirtieth Supplemental Indenture)

------

with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2011 Series A/B Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

*"ERISA"* means the Employee Retirement Income Security Act of 1974, as amended from time to time.

*"ERISA Affiliate"* means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

*"ERISA Event"* means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any

C-2-2

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Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

*"Material Adverse Change"* means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2011 Series A/B Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

*"Multiemployer Plan"* means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

*"Plan"* means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2011 Series A/B Note Purchase Agreement (defined below).

This Note is one of a series of the 2011 Series B Notes (herein called the *"Notes"*) issued pursuant to the Thirtieth Supplemental Indenture dated as of September 15, 2011 (as from time to time amended, the *"Thirtieth Supplement"*), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the 2011 Series A/B Note Purchase Agreement dated as of October 31, 2011 between the Company and the purchasers listed in Schedule A thereto (the *"2011 Series A/B Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2011 Series A/B Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2011 Series A/B Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirtieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name

C-2-3

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this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirtieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirtieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

Attest:

---

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

---

C-2-4

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

Date of Authentication: October __, 2011

C-2-5

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**FORM OF _________________ NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

---

Date of Authentication: October __, 2011

EXHIBIT D

(to Thirtieth Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(j)**

THIRTY-SECOND SUPPLEMENTAL INDENTURE

(to that certain Indenture dated as of January 1, 1998)

Dated as of September 15, 2012

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2012 Series A Notes, due November 1, 2044

Authorized by this Thirty-Second Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

(TAXPAYER IDENTIFICATION NO. 45-0277395)

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-SECOND SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN INDENTURE DATED AS OF JANUARY 1, 1998, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
| SECTION | SECTION | HEADING | PAGE |
| ARTICLE I | DEFINITIONS | DEFINITIONS | 4 |
| Section 1.1 | Definitions | Definitions | 4 |
| ARTICLE II | THE 2012 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO | THE 2012 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO | 4 |
| Section 2.1 | Authorization and Terms of the 2012 Series A Notes | Authorization and Terms of the 2012 Series A Notes | 4 |
| Section 2.2 | Form of the 2012 Series A Notes | Form of the 2012 Series A Notes | 5 |
| Section 2.3 | Payment of Principal | Payment of Principal | 5 |
| Section 2.4 | Optional Prepayments with Make-Whole Amount | Optional Prepayments with Make-Whole Amount | 5 |
| Section 2.5 | Allocation of Partial Prepayments | Allocation of Partial Prepayments | 6 |
| Section 2.6 | Maturity; Surrender, Etc. | Maturity; Surrender, Etc. | 6 |
| Section 2.7 | Purchase of 2012 Series A Notes | Purchase of 2012 Series A Notes | 6 |
| Section 2.8 | Make-Whole Amount. | Make-Whole Amount. | 7 |
| Section 2.9 | Use of Proceeds | Use of Proceeds | 8 |
| Section 2.10 | Acceleration | Acceleration | 8 |
| ARTICLE III | MISCELLANEOUS | MISCELLANEOUS | 8 |
| Section 3.1 | Supplemental Indenture | Supplemental Indenture | 8 |
| Section 3.2 | Recitals | Recitals | 9 |
| Section 3.3 | Successors and Assigns | Successors and Assigns | 9 |
| Section 3.4 | No Rights, Remedies, Etc. | No Rights, Remedies, Etc. | 9 |
| Section 3.5 | Counterparts | Counterparts | 9 |
| Section 3.6 | Security Agreement; Mailing Address | Security Agreement; Mailing Address | 9 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2012 Series A Notes

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Authentication

-i-

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THIS THIRTY-SECOND SUPPLEMENTAL INDENTURE, dated as of September 15, 2012 (this *"Thirty-Second Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented and amended;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of January 1, 1998 as previously supplemented and amended by thirty-one Supplemental Indentures (the *"Original Indenture"*), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Original Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Original Indenture, which Original Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, 2012 Series A Notes, due November 1, 2044 (the *"2012 Series A Notes"*) in the original principal amount of $100,000,000; such 2012 Series A Notes being issued to the parties set forth in Schedule A of the 2012 Series A Note Purchase Agreement described below (and their successors or assigns of the 2012 Series A Notes, each individually, the *"Lender"* or collectively, the *"Lenders"*) to secure the Company's obligations under the 2012 Series A Note Purchase Agreement, dated as of October 15, 2012 between the Company and the Lenders in the aggregate principal amount of One Hundred Million Dollars ($100,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Original Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Second Supplemental Indenture, in accordance with the provisions of the Original Indenture, for the purpose of providing for the creation and designation of the 2012 Series A Notes as Additional Obligations and specifying the form and provisions of the 2012 Series A Notes;

WHEREAS, Section 12.1 of the Original Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Thirty-Second Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Original Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of,

------

premium (including the Make-Whole Amount), if any, and interest on the 2012 Series A Notes, to make the 2012 Series A Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2012 Series A Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Second Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-SECOND SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2012 Series A Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2012 Series A Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Original Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Original Indenture and to the rights of the Company under the Original Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Original Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Original Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Original Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Original Indenture (other than the property described in Exhibit B to the Original Indenture), upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

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The Company may, however, pursuant to the Third Granting Clause of the Original Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B to the Original Indenture) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Original Indenture, and not in limitation of the rights elsewhere provided in the Original Indenture, including the rights set forth in Article V of the Original Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2012 Series A Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

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**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Original Indenture shall have the same meaning in this Thirty-Second Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Thirty-Second Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means (a) for the purposes of Section 2.8 only, any day other than a Saturday, Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of this Thirty-Second Supplemental Indenture any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Code"* means the Internal Revenue Code of 1986, as amended from time to time.

*"Default Rate"* means with respect to the 2012 Series A Notes, that rate of interest that is the greater of (i) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of the 2012 Series A Notes or (ii) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, N.A. in Bismarck, North Dakota as its "base" or "prime" rate.

*"Lender"* or *"Lenders"* are defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"2012 Series A Notes"* are defined in the Recitals.

**ARTICLE II**

**THE 2012 SERIES A NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2012 Series A Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2012 Series A Notes."

The aggregate principal amount of the 2012 Series A Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Million Dollars ($100,000,000). The 2012 Series A Notes shall originally be registered in the name of the Lenders, and shall be dated the date of authentication.

The 2012 Series A Notes shall bear interest as provided in the form of 2012 Series A Notes attached hereto as Exhibit C.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2012 Series A Notes shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2012 Series A Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2012 Series A Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2012 Series A Notes within five (5) days of its due date, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2012 Series A Notes*. The 2012 Series A Notes shall each be a promissory note substantially in the form of Exhibit C hereto. The Trustee's authentication certificate to be executed on the 2012 Series A Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Original Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Principal*. The 2012 Series A Notes shall be payable in sixty-four consecutive semi-annual payments of combined principal and interest, each in the combined total amount for all of the 2012 Series A Notes, of $2,812,573.69 payable on May 1 and November 1 of each year, commencing on May 1, 2013 and ending on November 1, 2044, each such payment to be applied, first, to the payment of interest accrued on the unpaid principal amount thereof to the date of such payment and, second, to the reduction of such unpaid principal amount.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the 2012 Series A Notes, in an amount not less than 10% of the aggregate principal amount of the 2012 Series A Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of 2012 Series A Notes written notice of each optional prepayment under this Section 2.4 not less than 10 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the 2012 Series A Notes to be prepaid on such date, the principal amount of each 2012 Series A Note held by such holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of 2012 Series A Notes a

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certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments.* In the case of each partial prepayment of the 2012 Series A Notes, the principal amount of the 2012 Series A Notes to be prepaid shall be allocated among all of the 2012 Series A Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* &nbsp;&nbsp;&nbsp;&nbsp;In the case of each prepayment of 2012 Series A Notes pursuant to this Article 2, the principal amount of each 2012 Series A Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2012 Series A Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2012 Series A Note shall be issued in lieu of any prepaid principal amount of any 2012 Series A Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2012 Series A Notes.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2012 Series A Notes except (a) upon the payment or prepayment of the 2012 Series A Notes in accordance with the terms of the Indenture and the 2012 Series A Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of the 2012 Series A Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the holders of more than 51% of the principal amount of the 2012 Series A Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of 2012 Series A Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer. Any consent made pursuant to the Indenture by the holder of any Note that has transferred or has agreed to transfer such Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring holder. The Company will promptly cancel all 2012 Series A Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2012 Series A Notes pursuant to any provision of this Agreement and no 2012 Series A Notes may be issued in substitution or exchange for any such 2012 Series A Notes.

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*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount.* The term *"Make-Whole Amount"* means, with respect to any 2012 Series A Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2012 Series A Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than 1% of the Called Principal. For the purposes of determining the Make-Whole Amount with respect to any 2012 Series A Note, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2012 Series A Note, the principal of such 2012 Series A Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*"Discounted Value"* means, with respect to the Called Principal of such 2012 Series A Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2012 Series A Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of such 2012 Series A Note, the sum of 0.50% plus the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1",(or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2012 Series A Note.

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*"Remaining Average Life"* means, with respect to any Called Principal of any 2012 Series A Note, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2012 Series A Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the 2012 Series A Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above.

*"Settlement Date"* means, with respect to the Called Principal of any 2012 Series A Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2012 Series A Notes to finance capital expenditures or for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2012 Series A Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2012 Series A Notes will forthwith mature and the entire unpaid principal amount of such 2012 Series A Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges and agrees that each holder of a 2012 Series A Note has the right to maintain its investment in the 2012 Series A Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company, in the event that the 2012 Series A Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and shall form a part thereof, and the Original Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express

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terms of this Thirty-Second Supplemental Indenture and the 2012 Series A Notes, all of the provisions, terms, covenants and conditions of the Original Indenture shall be applicable to the 2012 Series A Notes to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Second Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Second Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Original Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Second Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Second Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Second Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Second Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Second Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Second Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

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and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirty-Second Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Original Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Second Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Andrew M. Serri | /s/ Andrew M. Serri |
|  | Name: | Andrew M. Serri |
|  | Title: | Chief Executive Officer & General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | /s/ Claire M. Olson |
| | Name: Claire M. Olson |
| | Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 28th day of September, 2012, by Andrew M. Serri, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Mark D. Foss |
| Name: Mark D. Foss |
| Notary Public |
| My commission expires: March 1, 2015 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ R. Jason Fry | /s/ R. Jason Fry |
|  | Name: | R. Jason Fry |
|  | Title: | Vice President |

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| | |
|:---|:---|
| STATE OF MICHIGAN |) |
| |) SS |
| COUNTY OF KENT |) |

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THE FOREGOING instrument was acknowledged before me this 27th day of September, 2012, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Marylyn Putschko |
| Name: Marylyn Putschko |
| Notary Public |
| My commission expires: September 12, 2016 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT A

(to Thirty-Second Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBITS WERE ATTACHED BY COMPANY PRIOR TO FILING BECAUSE THEY VARY BY JURISDICTION

EXHIBIT B

(to Thirty-Second Supplemental Indenture)

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**[FORM OF 2012 SERIES A NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2012 SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2012 SERIES A NOTES DUE NOVEMBER 1, 2044

No. RA-[_____]&nbsp;&nbsp;&nbsp;&nbsp;[Date]

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN [__________]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns (the *"Payee"*), the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on November 1, 2044, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at a rate of 4.067% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.067% per annum) from the date hereof, payable in sixty-four (64) consecutive semi-annual payments of combined principal and interest each in the amount of $[__________] payable on the 1<sup>st</sup> day of May and November in each year, commencing May 1, 2013 and ending November 1, 2044, each such payment to be applied, first, to the payment of interest accrued on the unpaid principal amount hereof to the date of such payment and second, to the reduction of such unpaid principal amount. The allocations between principal and interest with respect to such semi-annual payments of combined principal and interest are set forth in the amortization schedule attached hereto as Annex I.

All payments hereunder shall be made in lawful money of the United States in immediately available funds. If any payment on this Note is not paid within five (5) days after its due date, the undersigned agrees to pay on demand, in addition to the amount of such payment, interest on the overdue amount at the Default Rate, but only to the extent permitted by applicable law. For purposes of determining the unpaid principal balance of this Note at any time, the amount of each payment which constitutes principal and the amount which constitutes interest shall be determined based on the amortization schedule attached hereto as Annex I, provided that all payments are made on the day they are due and no Event of Default has occurred that would entitle the payee to collect the Default Rate.

EXHIBIT C-1

(to Thirty-Second Supplemental Indenture)

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*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the 2012 Series A Note Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions contemplated by the Thirty-Second Supplement proves to have been false or incorrect in any material respect on the date as of which it was made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of Lenders holding a majority of this Series of the 2012 Series A Notes, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;any Event of Default.

*"ERISA"* means the Employee Retirement Income Security Act of 1974, as amended from time to time.

*"ERISA Affiliate"* means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 4.14 of the Code.

*"ERISA Event"* means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(c) of ERISA, whether or not waived;

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(c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan; (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Company or any ERISA Affiliate from the Pension Benefit Guaranty Corporation, or its successor, or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; and (g) the receipt by the Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

*"Material Adverse Change"* means a material adverse change in (i) the business, assets, liabilities (actual or contingent) operations, condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the 2012 Series A Note Purchase Agreement or the Indenture, or (iii) rights of any of the Trustee or Holders of the Outstanding Obligations under the Indenture.

*"Multiemployer Plan"* means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

*"Plan"* means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code of Section 302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the 2012 Series A Note Purchase Agreement (defined below).

This Note is one of a series of the 2012 Series A Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Second Supplemental Indenture dated as of September 15, 2012 (as from time to time amended, the *"Thirty-Second Supplement"*), between the Company and the Trustee named therein which amends and supplements the Indenture dated as of January 1, 1998 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the 2012 Series A Note Purchase Agreement dated as of October 15, 2012 between the Company and the purchasers listed in Schedule A thereto (the *"2012 Series A Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the 2012 Series A Note

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Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the 2012 Series A Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Second Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Second Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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[SEAL]

Attest:

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

---

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: ___________, 2012

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**ANNEX I**

**AMORTIZATION SCHEDULE**

[To be attached]

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**FORM OF 2012 SERIES A NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: ___________, 2012

EXHIBIT D

(to Thirty-Second Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(k)**

THIRTY-THIRD SUPPLEMENTAL AND AMENDATORY INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of June 15, 2015

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2015 Series A Notes, due June 15, 2027

First Mortgage Obligations, 2015 Series B Notes, due June 15, 2034

First Mortgage Obligations, 2015 Series BK Notes, due June 15, 2034

First Mortgage Obligations, 2015 Series C Notes, due June 15, 2044

Authorized by this Thirty-Third Supplemental and Amendatory Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-THIRD SUPPLEMENTAL AND AMENDATORY INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

SECTION HEADING PAGE

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| | | |
|:---|:---|:---|
| ARTICLE I | DEFINITIONS | 4 |
| Section 1.1. | Definitions | 4 |
| ARTICLE II | THE 2015 NOTES AND CERTAIN PROVISIONS RELATING THERETO | 5 |
| Section 2.1. | Authorization and Terms of the 2015 Notes | 5 |
| Section 2.2. | Form of the 2015 Notes | 7 |
| Section 2.3. | Required Prepayments | 7 |
| Section 2.4. | Optional Prepayments with Make Whole Amount | 10 |
| Section 2.5. | Allocation of Partial Prepayments | 10 |
| Section 2.6. | Maturity; Surrender, Etc. | 11 |
| Section 2.7. | Purchase of 2015 Notes | 11 |
| Section 2.8. | Make Whole Amount | 11 |
| Section 2.9. | Use of Proceeds | 13 |
| Section 2.10. | Acceleration | 13 |
| Section 2.11. | Home Office Payment | 13 |
| Section 2.12. | Denominations | 13 |
| Section 2.13. | Optional Prepayments upon Payment of Additional Amounts | 14 |
| ARTICLE III | AMENDMENTS TO AMENDED AND RESTATED INDENTURE | 14 |
| Section 3.1. | Amendment to Definition of Additional Obligations in Section 1.1 of the Amended and Restated Indenture | 14 |
| Section 3.2. | Amendment to Section 8.1D of the Amended and Restated Indenture | 14 |
| ARTICLE IV | AMENDMENTS TO AMENDED AND RESTATED INDENTURE TO BE EFFECTIVE | 15 |
| Section 4.1. | Amendment to Definition of Retired in Section 1.1 of the Amended and Restated Indenture | 15 |
| ARTICLE V | MISCELLANEOUS | 15 |
| Section 5.1. | Supplemental Indenture | 15 |
| Section 5.2. | Recitals | 16 |
| Section 5.3. | Successors and Assigns | 16 |
| Section 5.4. | No Rights, Remedies, Etc | 16 |
| Section 5.5. | Counterparts | 16 |
| Section 5.6. | Security Agreement; Mailing Address | 16 |
| Section 5.7. | Effectiveness | 17 |

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-i-

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C-1 | Form of 2015 Series A Notes |
| EXHIBIT C-2 | Form of 2015 Series B Notes |
| EXHIBIT C-3 | Form of 2015 Series BK Notes |
| EXHIBIT C-4 | Form of 2015 Series C Notes |
| EXHIBIT D | Form of Trustee's Authentication |

---

-ii-

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THIS THIRTY-THIRD SUPPLEMENTAL AND AMENDATORY INDENTURE, dated as of June 15, 2015 (this *"Thirty-Third Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the *"Amended and Restated Indenture"*), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), and as further supplemented and amended hereby (the *"Indenture"*), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established four new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series A Notes, due June 15, 2027 (the *"2015 Series A Notes"*) in the original principal amount of $250,000,000, (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series B Notes, due June 15, 2034 (the *"2015 Series B Notes"*) in the original principal amount of $285,000,000, (iii) the Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series BK Notes, due June 15, 2034 (the *"2015 Series BK Notes"*) in the original principal amount of $40,000,000 and (iv) the Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series C Notes, due June 15, 2044 (the *"2015 Series C Notes"*, together with the 2015 Series A Notes, 2015 Series B Notes and 2015 Series BK Notes are individually a *"2015 Note"* and collectively, the *"2015 Notes"*) in the original principal amount of $925,000,000; such 2015 Notes being issued to the parties set forth in Schedule A of the Note Purchase Agreement described below (and their successors or assigns of the 2015 Notes, each individually, the *"Holder"* or collectively, the *"Holders"*) to secure the Company's obligations under the Note Purchase Agreement, dated as of July 7, 2015, between the Company and the Holders (the *"Note Purchase Agreement"*); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company to make certain amendments to the Amended and Restated Indenture as provided herein;

WHEREAS, the Company desires to execute and deliver this Thirty-Third Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2015 Notes as Additional Obligations and specifying the form and provisions of the 2015 Notes;

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WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, Section 12.2 of the Indenture provides that, with the consent of a majority of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.2;

WHEREAS, this Thirty-Third Supplemental Indenture is permitted pursuant to the provisions of Sections 12.1 C, 12.1 G, 12.1 L and 12.2 of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2015 Notes, to make the 2015 Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2015 Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Third Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-THIRD SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2015 Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2015 Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have

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entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other

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income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the Amended and Restated Indenture is to be amended and the 2015 Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Third Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article, or as amended hereby or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Thirty-Third Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Default Rate"* means with respect to any Series of the 2015 Notes, that rate of interest per annum that is the greater of (i) 2.00% above the rate of interest stated in clause (a) of the first paragraph of the 2015 Notes of such Series or (ii) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, N.A. in Bismarck, North Dakota as its "base" or "prime" rate.

*"Holder"* or *"Holders"* are defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series"* shall refer to any series of the 2015 Notes issued under this Thirty-Third Supplemental Indenture.

*"2015 Notes"* are defined in the Recitals.

*"2015 Series A Notes"* are defined in the Recitals.

*"2015 Series B Notes"* are defined in the Recitals.

*"2015 Series BK Notes"* are defined in the Recitals.

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*"2015 Series C Notes"* are defined in the Recitals.

**ARTICLE II**

**THE 2015 NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2015 Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series A Notes due June 15, 2027."

The aggregate principal amount of the 2015 Series A Notes which may be authenticated and delivered and Outstanding at any one time is limited to Two Hundred Fifty Million Dollars ($250,000,000). The 2015 Series A Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2015 Series A Notes shall bear interest as provided in the form of 2015 Series A Notes attached hereto as Exhibit C-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series B Notes due June 15, 2034."

The aggregate principal amount of the 2015 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to Two Hundred Eighty-Five Million Dollars ($285,000,000); *provided*, that the aggregate principal amount of the 2015 Series B Notes may be increased up to Three Hundred Twenty-Five Million Dollars ($325,000,000) as a result of the exchange of 2015 Series BK Notes for 2015 Series B Notes as provided in Section 2.1(iii). The 2015 Series B Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2015 Series B Notes shall bear interest as provided in the form of 2015 Series B Notes attached hereto as Exhibit C-2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series BK Notes due June 15, 2034."

The aggregate principal amount of the 2015 Series BK Notes which may be authenticated and delivered and Outstanding at any one time is limited to Forty Million Dollars ($40,000,000). The 2015 Series BK Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2015 Series BK Notes shall bear interest as provided in the form of 2015 Series BK Notes attached hereto as Exhibit C-3.

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Subject to the provisions of the Indenture, including this Thirty-Third Supplemental Indenture, the Holder of any 2015 Series BK Notes shall have the right, at such Holder's option, at any time following the one (1) year anniversary of the date of the authentication and delivery of such Holder's 2015 Series BK Notes, to exchange the principal amount of such 2015 Series BK Notes into an equal principal amount of the 2015 Series B Notes. The right of the Holder of the 2015 Series BK Notes to exercise this option shall be subject to the following: (a) delivery to the Company and the Trustee of a request for exchange, which the Company and the Trustee shall be entitled to rely upon, stating (1) the principal amount of the Holder's 2015 Series BK Notes, (2) such Holder requests the exchange of all of its 2015 Series BK Notes into 2015 Series B Notes and the aggregate principal amount thereof equals or exceeds $10,000,000, (3) the designated record holder in whose name the 2015 Series B Notes should be issued, and (4) the Holder has otherwise complied with the provisions of this Thirty-Third Supplemental Indenture; (b) the absence of any notice of prepayment with respect to such Holder's 2015 Series BK Notes pursuant to Section 2.4 or 2.13 before or after the request for exchange, (c) the Company shall have the right to prepay any portion of the principal amount of the 2015 Series BK Notes that is less than the minimum denomination of the 2015 Series B Notes at 100% of the principal amount so prepaid, without premium (including without payment of any Make-Whole Amount), together with interest accrued thereon to the date of such prepayment; (d) satisfaction of the Company with the provisions of Article IV of the Indenture for the authentication and delivery of Additional Obligations in the form of 2015 Series B Notes; and (e) entry into a Supplemental Indenture providing for the authentication, execution and delivery of the 2015 Series B Notes to be issued upon the exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2015 Series C Notes due June 15, 2044."

The aggregate principal amount of the 2015 Series C Notes which may be authenticated and delivered and Outstanding at any one time is limited to Nine Hundred Twenty-Five Million Dollars ($925,000,000). The 2015 Series C Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2015 Series C Notes shall bear interest as provided in the form of 2015 Series C Notes attached hereto as Exhibit C-4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2015 Notes shall be payable to the Holder in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2015 Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2015 Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2015 Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2015 Notes*. The 2015 Series A Notes shall each be a promissory note substantially in the form of Exhibit C-1 hereto. The 2015 Series B Notes shall each be a promissory note substantially in the form of Exhibit C-2 hereto. The 2015 Series BK Notes shall each be a promissory note substantially in the form of Exhibit C-3 hereto. The 2015 Series C Notes shall each be a promissory note substantially in the form of Exhibit C-4 hereto. The Trustee's authentication certificate to be executed on the 2015 Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Required Prepayments*. (i) On June 15 of each of the respective years set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2015 Series A Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2015 Series A Notes pursuant to Section 2.4 or Section 2.13 or partial purchase of the 2015 Series A Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2015 Series A Notes becoming due under this Section 2.3(i) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2015 Series A Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Prepayment Dates** | **Principal**<br>**Amount Due** |
| June 15, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;$62500000 |
| June 15, 2025 | &nbsp;&nbsp;&nbsp;&nbsp;$62500000 |
| June 15, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;$62500000 |
| June 15, 2027 | &nbsp;&nbsp;&nbsp;&nbsp;$62500000 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;On June 15 of each of the respective years set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2015 Series B Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2015 Series B Notes pursuant to Section 2.4 or Section 2.13 or partial purchase of the 2015 Series B Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2015 Series B Notes becoming due under this Section 2.3(ii) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the

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aggregate unpaid principal amount of the 2015 Series B Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Prepayment Dates** | **Principal**<br>**Amount Due** |
| June 15, 2021 | $429692 |
| June 15, 2022 | $705923 |
| June 15, 2023 | $3845308 |
| June 15, 2024 | $3709385 |
| June 15, 2025 | $10233692 |
| June 15, 2026 | $18906462 |
| June 15, 2027 | $26583923 |
| June 15, 2028 | $59810539 |
| June 15, 2031 | $3279692 |
| June 15, 2033 | $79567615 |
| June 15, 2034 | $77927769 |

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Upon any exchange of any 2015 Series BK Notes for 2015 Series B Notes pursuant to Section 2.1(iii) of this Thirty-Third Supplemental Indenture, the Company shall prepare and distribute to the Trustee (which the Trustee shall be entitled to rely upon), for further distribution to the Holders of the 2015 Series B Notes, a revised schedule of required prepayments pursuant to this Section 2.3(ii) for the 2015 Series B Notes, which shall, absent manifest error, automatically amend such schedule then in effect for the 2015 Series B Notes. Such revised 2015 Series B Notes schedule of required prepayments shall reflect the aggregate principal amount of the 2015 Series B Notes becoming due after any exchange for each required prepayment date of the 2015 Series B Notes following the date of such exchange by the addition of the amounts required for prepayment of the newly issued 2015 Series B Notes consistent with how the exchanged 2015 Series BK Notes would have been required to be prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;On June 15 of each of the respective years set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2015 Series BK Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2015 Series BK Notes pursuant to Section 2.4 or Section 2.13 or partial purchase of the 2015 Series BK Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2015 Series BK Notes becoming due under this Section 2.3(iii) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2015 Series BK Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Prepayment Dates** | **Principal**<br>**Amount Due** |
| June 15, 2021 | $60308 |
| June 15, 2022 | $99077 |
| June 15, 2023 | $539692 |
| June 15, 2024 | $520615 |
| June 15, 2025 | $1436308 |
| June 15, 2026 | $2653538 |
| June 15, 2027 | $3731077 |
| June 15, 2028 | $8394461 |
| June 15, 2031 | $460308 |
| June 15, 2033 | $11167385 |
| June 15, 2034 | $10937231 |

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Upon any exchange of any 2015 Series BK Notes for 2015 Series B Notes pursuant to Section 2.1(iii) of this Thirty-Third Supplemental Indenture, the Company shall prepare and distribute to the Trustee (which the Trustee shall be entitled to rely upon), for further distribution to the Holders of the 2015 Series BK Notes, a revised schedule of required prepayments pursuant to this Section 2.3(iii) for the 2015 Series BK Notes, which shall, absent manifest error, automatically amend such schedule of required prepayments then in effect for the 2015 Series BK Notes. Such revised 2015 Series BK Notes schedule of required prepayments shall reflect the aggregate principal amount of the 2015 Series BK Notes becoming due after any exchange for each required prepayment date of the 2015 Series BK Notes following the date of such exchange by a pro rata decrease in the aggregate principal amount outstanding of 2015 Series BK Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;On June 15 of each of the respective years set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2015 Series C Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2015 Series C Notes pursuant to Section 2.4 or Section 2.13 or partial purchase of the 2015 Series C Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2015 Series C Notes becoming due under this Section 2.3(iv) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the

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aggregate unpaid principal amount of the 2015 Series C Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| **Required**<br>**Prepayment Dates** | **Principal**<br>**Amount Due** |
| June 15, 2035 | &nbsp;&nbsp;&nbsp;&nbsp;$59020000 |
| June 15, 2036 | &nbsp;&nbsp;&nbsp;&nbsp;$64970000 |
| June 15, 2037 | &nbsp;&nbsp;&nbsp;&nbsp;$69015000 |
| June 15, 2038 | &nbsp;&nbsp;&nbsp;&nbsp;$72665000 |
| June 15, 2040 | &nbsp;&nbsp;&nbsp;&nbsp;$89445000 |
| June 15, 2041 | &nbsp;&nbsp;&nbsp;&nbsp;$108290000 |
| June 15, 2042 | &nbsp;&nbsp;&nbsp;&nbsp;$154810000 |
| June 15, 2043 | &nbsp;&nbsp;&nbsp;&nbsp;$179085000 |
| June 15, 2044 | &nbsp;&nbsp;&nbsp;&nbsp;$127700000 |

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*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* So long as no Event of Default exists and is continuing under the Indenture, the Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any particular Series of 2015 Notes, in an amount not less than 10% of the aggregate principal amount of such particular Series of 2015 Notes then Outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each Holder of 2015 Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such particular Series of 2015 Notes to be prepaid on such date, the principal amount of each 2015 Note held by such Holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each Holder of such particular Series of 2015 Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. If an Event of Default exists and is continuing under the Indenture, then the Company may only prepay all 2015 Notes on a pro rata basis (and not on a Series by Series basis).

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments.* In the case of each partial prepayment of any Series of the 2015 Notes pursuant to Section 2.3 or Section 2.4, the principal amount of the 2015 Notes to be prepaid shall be allocated among all of the 2015 Notes of such Series to be prepaid at the time Outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

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*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* In the case of each prepayment of 2015 Notes pursuant to this Article 2, the principal amount of each 2015 Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2015 Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2015 Note shall be issued in lieu of any prepaid principal amount of any 2015 Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2015 Notes.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the Outstanding 2015 Notes except (a) upon the payment or prepayment of the 2015 Notes in accordance with the terms of the Indenture and the 2015 Notes or (b) (i) if no Event of Default exists and is continuing under the Indenture, pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the Holders of any particular Series of 2015 Notes at the time Outstanding upon the same terms and conditions or (ii) if an Event of Default exists and is continuing under the Indenture, such offer shall be made to all Holders of 2015 Notes upon the same terms and conditions (and not on a Series by Series basis). Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the Holders of more than 51% of the principal amount of any particular Series of 2015 Notes (or in the case of an Event of Default, more than 51% of the principal amount of all 2015 Notes) then Outstanding accept such offer, the Company shall promptly notify the remaining Holders of such fact and the expiration date for the acceptance by Holders of 2015 Notes of such offer shall be extended by the number of days necessary to give each such remaining Holder at least 10 Business Days from its receipt of such notice to accept such offer. Any consent made pursuant to the Indenture by the Holder of any 2015 Note that has transferred or has agreed to transfer such 2015 Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders of 2015 Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring Holder. The Company will promptly cancel all 2015 Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2015 Notes pursuant to any provision of this Thirty-Third Supplemental Indenture and no 2015 Notes may be issued in substitution or exchange for any such 2015 Notes.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount.* For purposes of the provisions of the Indenture, the term "premium" as used therein will be deemed to mean, with respect to the 2015 Notes, the Make-Whole Amount. The term *"Make-Whole Amount"* means, with respect to any 2015 Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled

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Payments with respect to the Called Principal of such 2015 Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2015 Note, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2015 Note, the principal of such 2015 Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*"Discounted Value"* means, with respect to the Called Principal of such 2015 Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2015 Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of such 2015 Note, the sum of 0.50% plus the yield to maturity implied by (i) the ask-side yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. In the case of each determination under clause (i) or clause (ii) above, as the case may be, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2015 Note.

*"Remaining Average Life"* means, with respect to any Called Principal of any 2015 Note, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

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*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2015 Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the 2015 Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above or the Indenture.

*"Settlement Date"* means, with respect to the Called Principal of any 2015 Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2015 Notes to refinance existing indebtedness of the Company, including prepayment of Outstanding Secured Obligations issued in connection with the United States Department of Agriculture's Rural Utilities Service-guaranteed loans and associated premiums, and for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2015 Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2015 Notes will forthwith mature and the entire unpaid principal amount of such 2015 Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

*Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;Home Office Payment*. Notwithstanding the terms of the Indenture, the Company and the Trustee will pay (and the Company shall cause any subsequent Paying Agent to pay) all sums becoming due on the 2015 Notes to any Holder for principal of and premium (including the Make-Whole Amount), if any, and interest by the method and at the address specified for such purpose below the Holder's name in Schedule A to the Note Purchase Agreement, or by such other method or at such other address as such Holder shall have from time to time specified to the Company and the Trustee in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Holder shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 3.7 of the Indenture.

*Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;Denominations*. The 2015 Notes shall be issuable in denominations of at least (i) $100,000 in the case of the 2015 Series A Notes, 2015 Series B Notes, and 2015 Series C Notes and (ii) $1,000,000 in the case of the 2015 Series BK Notes.

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*Section 2.13.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments upon Payment of Additional Amounts*. If the Company has paid or becomes obligated to pay Additional Amounts (as defined in the Note Purchase Agreement) to any Holder pursuant to Section 8.7 of the Note Purchase Agreement, and such obligation is not waived by such Holder, the Company may, at its option, upon notice as provided below, prepay at any time all of the Series of 2015 Notes of any such Holder at 100% of the principal amount so prepaid, without premium (including without payment of any Make-Whole Amount), together with interest accrued thereon to the date of such prepayment. The Company will give each such Holder of 2015 Notes written notice of each optional prepayment under this Section 2.13 not less than 10 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the principal amount of each 2015 Note held by such Holder to be prepaid, and the interest to be paid on the prepayment date with respect to such principal amount being prepaid.

**ARTICLE III**

**AMENDMENTS TO AMENDED AND RESTATED INDENTURE**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Definition of Additional Obligations in Section 1.1 of the Amended and Restated Indenture*. The definition of "Additional Obligations" in Section 1.1 of the Amended and Restated Indenture is hereby amended to read as follows:

**"Additional Obligations"** has the meaning stated in the first recital of the Indenture and includes any Obligation authenticated and delivered hereunder after January 1, 1998.

*Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Section 8.1D of the Amended and Restated Indenture*. Section 8.1D of the Amended and Restated Indenture is hereby amended and restated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. &nbsp;&nbsp;&nbsp;&nbsp;(1) a failure to pay any portion of the principal when due and payable (other than amounts due and payable on acceleration) under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, whether such indebtedness now exists or shall hereafter be created, which failure shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on which it otherwise would have been due and payable in an aggregate principal amount exceeding $25,000,000, without such indebtedness having been discharged or such acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or (2) as a result of any default in the performance, or breach, of any covenant or warranty of the Company in a Supplemental Indenture for the benefit of the Holders of Obligations of any one or more series but not Holders of all other series of Obligations at the time Outstanding or the occurrence of an Event of Default under any such Supplemental Indenture, any such Obligation to any such Holder has become, or has been declared, due and payable before its stated maturity or before its regularly scheduled dates of payment, without such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

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**ARTICLE IV**

**AMENDMENTS TO AMENDED AND RESTATED INDENTURE TO BE EFFECTIVE**

*Section 4.1.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Definition of Retired in Section 1.1 of the Amended and Restated Indenture*. Upon closing of the issuance and delivery of the 2015 Notes, the consents of the Holders of the 2015 Notes pursuant to Section 3 of the Note Purchase Agreement shall become effective and the definition of "Retired" in Section 1.1 of the Amended and Restated Indenture shall be hereby amended to read as follows:

"**Retired"** means, when used with respect to property, Bondable Property that, since the Cut-Off Date, has been retired, abandoned, destroyed, worn out, removed, permanently discontinued, lost through the enforcement of any liens or released, sold or otherwise disposed of free of the lien of this Indenture or taken by eminent domain or under the exercise of a right of a government authority to purchase or take the same or recorded as retired on the books of the Company or permanently retired from service for any reason, whether or not replaced, or shall have permanently ceased to be used or useful in the business of the Company, including as a consequence of the termination of any lease, whether or not recorded as retired on the books of the Company, except that,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) when a minor item of property has been replaced by other property of equal value and efficiency and the cost of such replacement has been charged to other than fixed property accounts such as maintenance, repairs or other similar account, the property replaced shall not be considered as Retired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if, with respect to Bondable Property that would otherwise be considered Retired in circumstances where such Bondable Property becomes unfit or uneconomical for use in the Company's business or the use of such Bondable Property for its intended purpose becomes prohibited by applicable law or governmental action, (i) such Bondable Property has permanently ceased to be used or useful in the Company's business, (ii) the Board of Directors of the Company has approved the recovery in Rates of the value of such Bondable Property as such value is recorded on the books of the Company (taking into account depreciation) on the date of such approval (the "Depreciated Value"), and (iii) any regulatory approvals or determinations needed at the time for such recovery have been obtained, then such Bondable Property shall not be considered as Retired until the earlier of (a) the date the Depreciated Value of such Bondable Property has been fully recovered in Rates or (b) on the date the Depreciated Value of such Bondable Property is no longer being recovered in Rates.

**ARTICLE V**

**MISCELLANEOUS**

*Section 5.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Third Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a

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part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented and amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Third Supplemental Indenture and the 2015 Notes, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2015 Notes to the same extent as if specifically set forth herein.

*Section 5.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Third Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 5.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Third Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Third Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 5.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Third Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Third Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Third Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 5.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Third Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 5.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Third Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

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and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirty-Third Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 5.7.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Thirty-Third Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Sections 1.6, 12.1L and 12.3 of the Amended and Restated Indenture, which may be evidenced by the Trustee's authentication of any 2015 Notes under this Thirty-Third Supplemental Indenture.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Third Supplemental and Amendatory Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | <u>/s/ Paul M. Sukut</u> |
| Name:&nbsp;&nbsp;&nbsp;&nbsp;Paul M. Sukut | Name:&nbsp;&nbsp;&nbsp;&nbsp;Paul M. Sukut |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer & <br>General Manager | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer & <br>General Manager |

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| | |
|:---|:---|
| (SEAL) | |
| Attest: | <u>/s/ Mark D. Foss</u> |
| | Name: Mark D. Foss |
| | Title: Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 24th day of June, 2015, by Paul M. Sukut, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Darlene Steffan</u> |
| Name: Darlene Steffan |
| Notary Public |
| My commission expires: April 15, 2020 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | <u>/s/ R. Jason Fry</u> |
| Name: R. Jason Fry | Name: R. Jason Fry |
| Title: Vice President | Title: Vice President |

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| | |
|:---|:---|
| (SEAL) | |
| STATE OF MICHIGAN |) |
| |) SS |
| COUNTY OF KENT |) |

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THE FOREGOING instrument was acknowledged before me this 24th day of June, 2015, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Marylyn Putschko</u> |
| Name: Marylyn Putschko |
| Notary Public |
| My commission expires: September 12, 2016 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

(to Thirty-Third Supplemental Indenture)

------

**[PROPERTY ADDITIONS]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT B

(to Thirty-Third Supplemental Indenture)

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**[FORM OF 2015 SERIES A NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2015 SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2015 SERIES A NOTES DUE JUNE 15, 2027

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| | |
|:---|:---|
| No. RA-[_____] | [Date] |
| $[_______] | PPN 070101 F@4 |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 15, 2027, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 3.74% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 5.74% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of June and December in each year, commencing December 15, 2015, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Third Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Third Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-1

(to Thirty-Third Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2015 Series A Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Third Supplemental and Amendatory Indenture dated as of June 15, 2015

C-1-2

------

(as from time to time amended, the *"Thirty-Third Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated July 7, 2015, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Third Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Third Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Third Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

---

C-1-3

------

---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

---

C-1-4

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: ______________________________________ |
| Authorized Signatory |
| Date of Authentication: __________, 2015 |

---

C-1-5

------

**[FORM OF 2015 SERIES B NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2015 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2015 SERIES B NOTES DUE JUNE 15, 2034

---

| | |
|:---|:---|
| No. RB-[_____] | [Date] |
| $[_______] | PPN 070101 F#2 |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 15, 2034, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.10% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.10% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of June and December in each year, commencing December 15, 2015, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Third Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Third Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-2

(to Thirty-Third Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2015 Series B Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Third Supplemental and Amendatory Indenture dated as of June 15, 2015

C-2-2

------

(as from time to time amended, the *"Thirty-Third Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated July 7, 2015, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Third Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Third Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Third Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

---

C-2-3

------

---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

---

C-2-4

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: ______________________________________ |
| Authorized Signatory |
| Date of Authentication: __________, 2015 |

---

C-2-5

------

**[FORM OF 2015 SERIES BK NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2015 SERIES BK NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"*SECURITIES *ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2015 SERIES BK NOTES DUE JUNE 15, 2034

---

| | |
|:---|:---|
| No. RBK-[_____] | [Date] |
| $[_______] | PPN 070101 G\*5 |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 15, 2034, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.10% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.10% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of June and December in each year, commencing December 15, 2015, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Third Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Third Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-3

(to Thirty-Third Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2015 Series BK Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Third Supplemental and Amendatory Indenture dated as of June 15,

C-3-2

------

2015 (as from time to time amended, the *"Thirty-Third Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated July 7, 2015, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Third Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Third Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Third Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota

C-3-3

------

excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

---

---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

---

C-3-4

------

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

---

| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: ______________________________________ |
| Authorized Signatory |
| Date of Authentication: __________, 2015 |

---

C-3-5

------

**[FORM OF 2015 SERIES C NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2015 SERIES C NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2015 SERIES C NOTES DUE JUNE 15, 2044

---

| | |
|:---|:---|
| No. RC-[_____] | [Date] |
| $[_______] | PPN 070101 G@3 |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on June 15, 2044, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 4.74% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 6.74% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of June and December in each year, commencing December 15, 2015, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Third Supplement referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Third Supplement (as hereinafter defined) proves to have been false or incorrect in any material

Exhibit C-4

(to Thirty-Third Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2015 Series C Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Third Supplemental and Amendatory Indenture dated as of June 15, 2015

C-4-2

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(as from time to time amended, the *"Thirty-Third Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated July 7, 2015, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Third Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Third Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Third Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

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C-4-3

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---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

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C-4-4

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: ______________________________________ |
| Authorized Signatory |
| Date of Authentication: __________, 2015 |

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C-4-5

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**FORM OF _________________ NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| |
|:---|
| U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: ______________________________________ |
| Authorized Signatory |
| Date of Authentication: __________, 2015 |

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EXHIBIT D

(to Thirty-Third Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(l)**

THIRTY-FOURTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of April 29, 2016

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, Series 2016 CoBank Note, due March 30, 2046

Authorized by this Thirty-Fourth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-FOURTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| Section 1.1. | Definitions | 5 |
| Section 2.1. | Authorization and Terms of the Series 2016 CoBank Note | 6 |
| Section 2.2. | Form of the Series 2016 CoBank Note | 6 |
| Section 2.3. | Payment of Principal | 7 |
| Section 2.4. | Optional Prepayments with Make-Whole Amount | 7 |
| Section 2.5. | Allocation of Partial Prepayments | 7 |
| Section 2.6. | Maturity; Surrender, Etc. | 7 |
| Section 2.7. | Purchase of Series 2016 CoBank Note | 7 |
| Section 2.8. | Make-Whole Amount | 7 |
| Section 2.9. | Use of Proceeds | 8 |
| Section 2.10. | Acceleration | 8 |
| Section 3.1. | Supplemental Indenture | 8 |
| Section 3.2. | Recitals | 8 |
| Section 3.3. | Successors and Assigns | 9 |
| Section 3.4. | No Rights, Remedies, Etc | 9 |
| Section 3.5. | Counterparts | 9 |
| Section 3.6. | Security Agreement; Mailing Address | 9 |
| Section 3.7. | Effectiveness | 10 |

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C | Form of Series 2016 CoBank Note |
| EXHIBIT D | Form of Trustee's Authentication |

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THIS THIRTY-FOURTH SUPPLEMENTAL INDENTURE, dated as of April 29, 2016 (the "*Thirty-Fourth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Amended and Restated Indenture dated as of May 5, 2015, between the Company and the Trustee, as heretofore supplemented and amended;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture, dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), as previously supplemented and amended by the Thirty-Third Supplemental and Amendatory Indenture, and as further supplemented and amended hereby (the "*Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, Series 2016 CoBank Note, due March 30, 2046 (the "*Series 2016 CoBank Note*") in the original principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000); such Series 2016 CoBank Note being issued to CoBank, ACB, (and its successors and assigns) (the "*Lender*") in order to secure the Company's obligations under the Loan Agreement, dated as of March 30, 2016, between the Company and the Lender in the aggregate principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Fourth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the Series 2016 CoBank Note as Additional Obligations and specifying the form and provisions of the Series 2016 CoBank Note;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Thirty-Fourth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Series 2016 CoBank Note, to make the Series 2016 CoBank Note to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and

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legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the Series 2016 CoBank Note, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Fourth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-FOURTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the Series 2016 CoBank Note, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date , to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the Series 2016 CoBank Note are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B to the Indenture) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated,

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remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the Series 2016 CoBank Note are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I *DEFINITIONS***

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Fourth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Thirty-Fourth Supplemental Indenture unless the context clearly requires otherwise.

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*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Code"* means the Internal Revenue Code of 1986, as amended from time to time.

*"Default Rate"* shall mean 2% per annum in excess of the rate or rates that would otherwise be in effect under the terms of the Note, except that in the case of overdue interest, fees, and, prior to the final maturity of the Loan (whether as a result of acceleration or otherwise) principal, the term Default Rate shall mean 2% per annum in excess of the CoBank Base Rate, as from time to time in effect during that period.

*"Lender"* is defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series 2016 CoBank Note"* is defined in the Recitals.

**ARTICLE II**

**THE SERIES 2016 COBANK NOTE AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the Series 2016 CoBank Note*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, Series 2016 CoBank Note."

The aggregate principal amount of the Series 2016 CoBank Note which may be authenticated and delivered and Outstanding at any one time is limited to ONE HUNDRED MILLION DOLLARS ($100,000,000). The Series 2016 CoBank Note shall originally be registered in the name of the Lender, and shall be dated the date of authentication.

The Series 2016 CoBank Note shall bear interest as provided in the form of Series 2016 CoBank Note attached hereto as Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the Series 2016 CoBank Note shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any Series 2016 CoBank Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any Series 2016 CoBank Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the Series 2016 CoBank Note within five (5) days of its due date, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the Series 2016 CoBank Note*. The Series 2016 CoBank Note shall each be a promissory note substantially in the form of Exhibit C hereto. The Trustee's

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authentication certificate to be executed on the Series 2016 CoBank Note shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Repayment*. The Series 2016 CoBank Note shall be payable in sixty equal consecutive semi-annual payments of $1,666,667, each due on the last day of March and September, with the first installment due on September 30, 2016, and the last installment due on March 30, 2046; provided, however, that the final such installment shall be in an amount equal to the then unpaid principal balance of the Loan.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* The Company may prepay the Loan in whole or in part on any Business Day; provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $25,000,000 and amounts in excess thereof shall be in increments of $5,000,000. In the event the Company desires to prepay the Loan, it shall notify the Lender thereof in writing not less than three (3) Business Days prior to the date on which the Company intends to prepay the Loan. Unless otherwise agreed to by the Lender in writing, all such notices shall be irrevocable. On the date fixed for prepayment, the Company shall prepay the Loan (or so much thereof as provided in the Company's notice), together with accrued interest thereon and any premium owing under Section 2.8 hereof.

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Application of Partial Prepayments.* All partial prepayments shall be applied to principal installments owing on the Loan in the inverse order of their maturity.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* &nbsp;&nbsp;&nbsp;&nbsp;In the case of each prepayment of Series 2016 CoBank Note pursuant to this Article 2, the principal amount of the Series 2016 CoBank Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. The Series 2016 CoBank Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Series 2016 CoBank Note shall be issued in lieu of any prepaid principal amount of any Series 2016 CoBank Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Series 2016 CoBank Note.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Series 2016 CoBank Note except upon the payment or prepayment of the Series 2016 CoBank Note in accordance with the terms of the Indenture and the Series 2016 CoBank Note.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.* The term "*Make-Whole Amount*" means, with respect to any Series 2016 CoBank Note, an amount equal to the present value of any funding losses imputed by CoBank to have been incurred as a result of such payment, prepayment, or failure to borrow. Such premium shall be determined and calculated in accordance with the methodology set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) &nbsp;&nbsp;&nbsp;&nbsp;Determine the difference between: (1) the rate estimated by CoBank on the date the rate was fixed to be its cost to fund the Loan in the manner set forth in its then

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current methodology; minus (2) the rate estimated by CoBank on the date the surcharge is calculated to be its cost, less dealer concessions and other issuance costs, to fund a new fixed rate Loan in accordance with its then current methodology having the remaining fixed rate period and repayment characteristics as the balance being repaid. If such difference is negative, then for purposes of the remaining calculation, the result shall be deemed to be zero (0).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;Divide the result determined in (A) above by the number of times interest is payable during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;For each interest period (or portion thereof) during which interest was scheduled to accrue at the fixed rate, multiply the amount determined in (B) above by the principal balance scheduled to have been outstanding during such period (such that there is a calculation for each interest period during which the amount repaid was scheduled to have been outstanding at the fixed rate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) &nbsp;&nbsp;&nbsp;&nbsp;Determine the present value of each calculation made under (C) above as of the date of calculation based upon the scheduled time that interest on the amount repaid would have been payable and a discount rate equal to the rate set forth in (A)(2) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;Add all of the calculations made under (D) above. The result is the premium.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the Series 2016 CoBank Note to finance capital expenditures or for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any Series 2016 CoBank Note becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such Series 2016 CoBank Note will forthwith mature and the entire unpaid principal amount of such Series 2016 CoBank Note, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Fourth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Fourth Supplemental Indenture and the Series 2016 CoBank Note, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the Series 2016 CoBank Note to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Fourth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

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*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Fourth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Fourth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Fourth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Fourth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Fourth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Fourth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Fourth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirty-Fourth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

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*Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.* This Thirty-Fourth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions, and other documents required under Sections 1.6, 12.1L, and 12.3 of the Amended and Restated Indenture, which may be evidenced by the Trustee's authentication of the 2016 Notes under this Thirty-Fourth Supplemental Indenture.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Fourth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Name: | Name: | Paul M. Sukut |
| Title: | Title: | Chief Executive Officer &<br>General Manager |

---

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| | |
|:---|:---|
| (SEAL) | (SEAL) |
| Attest: | /s/ Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 26th day of April, 2016, by Paul M. Sukut, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Darlene Steffan |
| Darlene Steffan, Notary Public |
| My commission expires: April 15, 2020 |

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(Notarial Seal)

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee | &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: | /s/ R. Jason Fry |
| Name: R. Jason Fry | Name: R. Jason Fry |
| Title: Vice President | Title: Vice President |

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STATE OF MICHIGAN&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF KENT&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 26th day of April, 2016, by R. Jason Fry, Vice President of US Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Marylyn Putschko |
| Notary Public: Marylyn Putschko |
| My commission expires: September 12, 2016 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBIT A

(to Thirty-Fourth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBIT B

(to Thirty-Fourth Supplemental Indenture)

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**[FORM OF SERIES 2016 COBANK NOTE]**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, SERIES 2016 COBANK NOTE**

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| | |
|:---|:---|
| **$100000000.00** | **Date: _________________________** |

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**FOR VALUE RECEIVED, BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "Company"), hereby promises to pay to the order of **CoBANK, ACB** ("CoBank"), at the times, in the manner and with interest at the rate or rates hereinafter provided, the principal sum of **ONE HUNDRED MILLION DOLLARS** ($100,000,000.00). This First Mortgage Note: (1) has been given to evidence the Company's obligation to repay a loan (the "Loan") made by CoBank, ACB to the Company pursuant to Section 2.01(A)(1) of that certain Loan Agreement dated as of March 31, 2016, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"); and (2) is secured under that certain Amended and Restated Indenture dated as of May 5, 2015, between the Company and U.S. Bank National Association, as Trustee (as supplemented, amended or restated from time to time, the "Indenture").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Principal.** The principal balance of this First Mortgage Note shall be repaid in sixty (60) equal consecutive semi-annual installments of $1,666,667, each due on the last day of each March and September, with the first installment due on September 30, 2016, and the last installment due on March 30, 2046; provided, however, that the final installment shall be in an amount equal to the then unpaid principal balance of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate.** The Company agrees to pay interest on the unpaid principal balance of the Loan at a fixed rate equal to 4.48% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Calculation and Payment**. Interest shall be calculated on the basis of a year consisting of 360 days and twelve 30-day months. In calculating interest, the date the Loan is made shall be included and the date the Loan or each principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid semi-annually in arrears on the last day of each September and March.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C) &nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event of Default, the unpaid principal balance hereof may, at CoBank's option in each instance, and shall, following an acceleration, bear interest at the Default Rate. All such interest shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayment**. The Company shall have the right to prepay this First Mortgage Note in whole or in part on any Business Day; provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $25,000,000 and amounts in excess thereof shall be in increments of $5,000,000. In the event the Company desires to prepay this First Mortgage Note, it shall furnish written notice thereof to CoBank not less than three (3) Business Days prior to the date thereof, specifying the date on which this First Mortgage Note is to be

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prepaid and the amount thereof. On such date, unless CoBank otherwise agrees, the portion thereof designated for prepayment shall become due and payable together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) if applicable, a prepayment premium in an amount calculated pursuant to the Loan Agreement. All partial prepayments shall be applied to principal installments in the inverse order of their maturity. Unless otherwise agreed to by CoBank and except as provided in Subsection (B) hereof, the Company may not prepay this First Mortgage Note in any other manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B) &nbsp;&nbsp;&nbsp;&nbsp;Mandatory Prepayment.** The Company shall prepay this First Mortgage Note in full, together with all accrued interest and a prepayment premium in an amount calculated pursuant to the Loan Agreement, in the event repayment hereof is accelerated in accordance with the terms of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** All payments made hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds. Wire transfers shall be made to such account or accounts as shall be designed by CoBank in accordance with the terms of the Loan Agreement. CoBank shall not be obligated to present this First Mortgage Note as a condition for obtaining any payment of principal or interest required to be made hereunder, unless the Company prepays this First Mortgage Note in full and, under the Indenture, CoBank is required to present this First Mortgage Note to the Trustee or any Paying Agent (other than the Company) for payment. Upon payment of this First Mortgage Note in full, CoBank will mark this First Mortgage Note as cancelled and return it as directed by this Company. If the date on which any installment of principal and interest are due is not a Business Day, such installment shall be due and payable on the next Business Day and interest shall continue to accrue on the principal amount thereof until paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. &nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** Unless CoBank otherwise agrees in writing, the Company shall not have a right to defease the obligations evidenced by this First Mortgage Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.01B(6) of the Indenture is of a nationally recognized firm and is unqualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default**. For purposes of the Indenture and without limiting any other provision of the Indenture, an Event of Default shall arise in the event the Company fails to make any payment of interest due hereon within five (5) Business Days of the date when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;Reference**. This First Mortgage Note is the: (A) "Replacement Note" contemplated in Section 2.07 of the Loan Agreement and by Section 5.11(A)(1) of the Loan Agreement; and (B) "2016 CoBank Note" contemplated by that certain Thirty Fourth Supplemental Indenture dated as of April 29, 2016, between the Company and the Trustee. Reference to the Loan Agreement and the Indenture (as supplemented) should be made for a complete statement of the rights of the Holder hereof and the nature and extent of the security for this First Mortgage Note, including the right to accelerate repayment of this First Mortgage Note. In addition, reference to the Loan Agreement should be made for the meaning of all capitalized terms used herein and not defined herein or stated to be defined in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Reference is hereby also made to the Indenture, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the holder of the First Mortgage Note, the terms upon which this First Mortgage Note is issued and secured, and the modification or amendment of the Indenture, to all of which the holder of this First Mortgage Note assents by the acceptance of this First Mortgage Note. The holder of this First

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Mortgage Note shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. No covenant or agreement contained in this First Mortgage Note, the Indenture or the Sixteenth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this First Mortgage Note shall be liable personally on this First Mortgage Note or be subject to any personal liability or accountability by reason of the issuance of this First Mortgage Note. This First Mortgage Note shall not be entitled to any benefit under the Indenture or be valid until this First Mortgage Note shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.** Except to the extent governed by Federal law, this First Mortgage Note shall be governed by and construed in accordance with the laws of the State of North Dakota.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;Restatement.** This Note amends and restates in its entirety the Promissory Note dated as of March 31, 2016, in the principal amount of $100,000,000, and furnished to CoBank under Section 3.01(B) of the Loan Agreement (the "Existing Note"). On and after the date this First Mortgage Note has been authenticated by the Trustee and delivered to CoBank, the Existing Note shall cease to be in effect and shall be deemed replaced and superseded by this First Mortgage Note.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** | |
|  | &nbsp;&nbsp;&nbsp;Paul M. Sukut Chief Executive Officer<br>and General Manager |

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| | |
|:---|:---|
| **Attest:** | **Attest:** |
| **By:** | |
|  | &nbsp;&nbsp;&nbsp;Mark D. Foss<br>Assistant Secretary  |

---

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION**,<br>as Trustee | **U.S. BANK NATIONAL ASSOCIATION**,<br>as Trustee |
| By: |  |
|  | Authorized Signatory |

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## Exhibit 4.1

**Exhibit 4.1(m)**

THIRTY-FIFTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of April 29, 2016

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, Series 2016 CFC Note 9004, due April 29, 2046

Authorized by this Thirty-Fifth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-FIFTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| Section 1.1. | Definitions | 5 |
| Section 2.1. | Authorization and Terms of the Series 2016 CFC Note 9004 | 6 |
| Section 2.2. | Form of the Series 2016 CFC Note 9004 | 7 |
| Section 2.3. | Payment of Principal | 7 |
| Section 2.4. | Optional Prepayments with Make-Whole Amount | 7 |
| Section 2.6. | Maturity; Surrender, Etc. | 7 |
| Section 2.7. | Purchase of Series 2016 CFC Note 9004 | 7 |
| Section 2.8. | Make-Whole Amount | 7 |
| Section 2.9. | Use of Proceeds | 8 |
| Section 2.10. | Acceleration | 8 |
| Section 3.1. | Supplemental Indenture | 8 |
| Section 3.2. | Recitals | 8 |
| Section 3.3. | Successors and Assigns | 9 |
| Section 3.4. | No Rights, Remedies, Etc | 9 |
| Section 3.5. | Counterparts | 9 |
| Section 3.6. | Security Agreement; Mailing Address | 9 |
| Section 3.7. | Effectiveness | 10 |

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C | Form of the Series 2016 CFC Note 9004 |
| EXHIBIT D | Form of Trustee's Authentication |

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THIS THIRTY-FIFTH SUPPLEMENTAL INDENTURE, dated as of April 29, 2016 (the "*Thirty-Fifth Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Amended and Restated Indenture dated as of May 5, 2015, between the Company and the Trustee, as heretofore supplemented and amended;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture, dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), as previously supplemented and amended by the Thirty-Third Supplemental and Amendatory Indenture and Thirty-Fourth Supplemental Indenture, and as further supplemented and amended hereby (the "*Indenture*"), for the purpose of securing its Existing Obligations and providing for the authentication and delivery of Additional Obligations (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof) by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, Series 2016 CFC Note 9004, due April 29, 2046 (the "*Series 2016 CFC Note 9004*") in the original principal amount of SEVENTY FIVE MILLION DOLLARS ($75,000,000); such Series 2016 CFC Note 9004 being issued to National Rural Utilities Cooperative Finance Corporation (and its successors and assigns) (the "*Lender*") in order to secure the Company's obligations under the Loan Agreement, dated as of April 29, 2016, between the Company and the Lender in the aggregate principal amount of SEVENTY FIVE MILLION DOLLARS ($75,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Fifth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the Series 2016 CFC Note 9004 as Additional Obligations and specifying the form and provisions of the Series 2016 CFC Note 9004;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Thirty-Fifth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C and 12.1 G of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Series 2016 CFC Note 9004, to make the Series 2016 CFC Note 9004 to be issued hereunder, when executed by the

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Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the Series 2016 CFC Note 9004, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Fifth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-FIFTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the Series 2016 CFC Note 9004, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date , to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the Series 2016 CFC Note 9004 are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property (other than the property described on Exhibit B to the Indenture) or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

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TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the Series 2016 CFC Note 9004 is to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I *DEFINITIONS***

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Fifth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly

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requires otherwise. In addition, each of the following terms has the following meaning in this Thirty-Fifth Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Code"* means the Internal Revenue Code of 1986, as amended from time to time.

*"Default Rate"* shall mean a rate per annum equal to the interest rate in effect for an Advance plus two hundred (200) basis points.

*"Lender"* is defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series 2016 CFC Note 9004"* is defined in the Recitals.

**ARTICLE II**

**THE SERIES 2016 CFC NOTE 9004 AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the Series 2016 CFC Note 9004*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, Series 2016 CFC Note 9004."

The aggregate principal amount of the Series 2016 CFC Note 9004 which may be authenticated and delivered and Outstanding at any one time is limited to SEVENTY FIVE MILLION DOLLARS ($75,000,000). The Series 2016 CFC Note 9004 shall originally be registered in the name of the Lender, and shall be dated the date of authentication.

The Series 2016 CFC Note 9004 shall bear interest as provided in the form of Series 2016 CFC Note 9004 attached hereto as Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the Series 2016 CFC Note 9004 shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on the Series 2016 CFC Note 9004 that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of the Series 2016 CFC Note 9004 is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the Series 2016 CFC Note 9004 within five (5) days of its due date, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

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*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the Series 2016 CFC Note 9004*. The Series 2016 CFC Note 9004 shall be a promissory note substantially in the form of Exhibit C hereto. The Trustee's authentication certificate to be executed on the Series 2016 CFC Note 9004 shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Repayment*. In repayment of the Series 2016 CFC Note 9004, the Company shall pay interest and principal in the amounts due on each Payment Date, which shall be the last day of each March, June, September and December. If not sooner paid, any amount due on account of the unpaid principal, interest accrued thereon and fees, if any, shall be due and payable on the Maturity Date. The principal amount of the Note shall amortize on a level principal payment basis from the Amortization Date (as defined in the Loan Agreement) to the Maturity Date.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* The Company may prepay all or any part of the outstanding principal of the Note upon at least thirty (30) days prior written notice to the Lender. If any principal of the Note is prepaid (whether voluntarily by the Company, by acceleration or otherwise, and regardless of the source of prepayment), then on the prepayment date there shall be due and owing, and the Company shall pay on the amount of principal prepaid (i) all accrued but unpaid interest, calculated up to the prepayment date, (ii) the Prepayment Fee and (iii) a Make-Whole Premium, if any.

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;*[ Omitted ]

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* &nbsp;&nbsp;&nbsp;&nbsp;In the case of each prepayment of Series 2016 CFC Note 9004 pursuant to this Article 2, the principal amount of the Series 2016 CFC Note 9004 to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. In the event that the Series 2016 CFC Note 9004 is paid or prepaid in full, it shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of the Series 2016 CFC Note 9004.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Series 2016 CFC Note 9004.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Series 2016 CFC Note 9004 except upon the payment or prepayment of the Series 2016 CFC Note 9004 in accordance with the terms of the Indenture and the Series 2016 CFC Note 9004.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.* The term "*Make-Whole Amount*" shall mean, with respect to any Prepaid Principal Amount, an amount calculated as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Compute the amount of interest ("Loan Interest") that would have been due on the Prepaid Principal Amount at the applicable CFC Fixed Rate for the period from the prepayment date through the end of the CFC Fixed Rate Term (such period is hereinafter referred to as the "Remaining Term"), calculated on the basis of a 30-day month/360-day year, adjusted

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to include any amortization of principal in accordance with the amortization schedule that would have been in effect for the Prepaid Principal Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Compute the amount of interest ("Investment Interest") that would be earned on the Prepaid Principal Amount (adjusted to include any applicable amortization) if invested in a United States Treasury Note with a term equivalent to the Remaining Term, calculated on the basis of a 30-day month/360-day year. The yield used to determine the amount of Investment Interest shall be based upon United States Treasury Note yields as reported no more than two Business Days prior to the prepayment date in Federal Reserve statistical release H.15 (519), under the caption "U.S. Government Securities/Treasury Constant Maturities". If there is no United States Treasury Note under said caption with a term equivalent to the Remaining Term, then the yield shall be determined by interpolating between the terms of whole years nearest to the Remaining Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Subtract the amount of Investment Interest from the amount of Loan Interest. If the difference is zero or less, then the Make-Whole Premium is zero. If the difference is greater than zero, then the Make-Whole Premium is a sum equal to the present value of the difference, applying as the present value discount a rate equal to the yield utilized to determine Investment Interest.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the Series 2016 CFC Note 9004 to finance capital expenditures or for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any Series 2016 CFC Note 9004 becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such Series 2016 CFC Note 9004 will forthwith mature and the entire unpaid principal amount of such Series 2016 CFC Note 9004, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Fifth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Fifth Supplemental Indenture and the Series 2016 CFC Note 9004, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the Series 2016 CFC Note 9004 to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Fifth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

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*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Fifth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Fifth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Fifth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Fifth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Fifth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Fifth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Fifth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirty-Fifth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

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*Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.* This Thirty-Fifth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions, and other documents required under Sections 1.6, 12.1L, and 12.3 of the Amended and Restated Indenture, which may be evidenced by the Trustee's authentication of the 2016 Notes under this Thirty-Fifth Supplemental Indenture.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Fifth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Name: | Name: | Paul M. Sukut |
| Title: | Title: | Chief Executive Officer &<br>General Manager |

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| | |
|:---|:---|
| (SEAL) | (SEAL) |
| Attest: | /s/ Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 26th day of April, 2016, by Paul M. Sukut, Chief Executive Office and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Darlene Steffan |
| Notary Public: Darlene Steffan |
| My commission expires: April 15, 2020 |

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(Notarial Seal)

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee | &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK NATIONAL ASSOCIATION, as<br>Trustee |
| By: | /s/ R. Jason Fry |
| Name: R. Jason Fry | Name: R. Jason Fry |
| Title: Vice President | Title: Vice President |

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STATE OF MICHIGAN&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF KENT&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 26th day of April, 2016, by R. Jason Fry, Vice President of US Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Marylyn Putschko |
| Notary Public: Marylyn Putschko |
| My commission expires: September 12, 2016 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

EXHIBIT A

(to Thirty-Fifth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

EXHIBIT B

(to Thirty-Fifth Supplemental Indenture)

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**EXHIBIT C**

**[FORM OF SERIES 2016 CFC NOTE 9004]**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, SERIES 2016 CFC NOTE 9004**

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| | |
|:---|:---|
| **$75000000.00** | **Date: _________________________** |

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FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, or registered assigns, the principal sum of SEVENTY FIVE MILLION DOLLARS (or so much thereof as shall not have been prepaid) on April 29, 2046, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at a rate of 3.74% per annum from the date hereof, payable on each Payment Date, which shall be the last day of each March, June, September and December, commencing June 30, 2016, until the principal hereof shall have become due and payable. If not sooner paid, any amount due on account of the unpaid principal, interest accrued thereon, and fees, if any, shall be due and payable on the Maturity Date. The principal amount of the Note shall amortize on a level principal payment basis from the Amortization Date to the Maturity Date.

If the Company defaults on its obligation to make a payment due hereunder by the applicable date payment is due, and such default continues for thirty (30) days thereafter, then beginning on the thirty-first (31st) day after the payment is due and for so long as such default continues, the unpaid balance of this Note shall bear interest at a rate of 5.74% per annum, which shall be the Default Rate. Upon the occurrence of an Event of Default (as contemplated in the Loan Agreement, the Indenture, or the Thirty-Fifth Supplement) other than a payment default, the unpaid balance of this Note shall bear interest at a rate of 5.74% per annum, which shall be the Default Rate. Notwithstanding anything to the contrary, in the event that more than one Event of Default shall exist at any time, the aggregate interest rate applicable on the unpaid balance of this Note shall be the Default Rate.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Loan Agreement (defined below).

This Note is issued pursuant to the Thirty-Fifth Supplemental and Amendatory Indenture dated as of April 29, 2016 (as from time to time amended, the *"Thirty-Fifth Supplement"*), between the Company and the Trustee named therein which amends and supplements the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Loan Agreement dated April 29, 2016, between the Company and NATIONAL RURAL UTILITIES

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**EXHIBIT C**

COOPERATIVE FINANCE CORPORATION, or registered assigns (the *"Loan Agreement"*). Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Fifth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Fifth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Fifth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this First Mortgage Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Paul M. Sukut Chief Executive Officer<br>and General Manager |

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| | |
|:---|:---|
| **Attest:** | **Attest:** |
| **By:** | |
|  | &nbsp;&nbsp;&nbsp;Mark D. Foss<br>Assistant Secretary  |

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**EXHIBIT D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK NATIONAL ASSOCIATION**,<br>as Trustee | **U.S. BANK NATIONAL ASSOCIATION**,<br>as Trustee |
| By: |  |
|  | Authorized Signatory |

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## Exhibit 4.1

**Exhibit 4.1(n)**

THIRTY-SIXTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of April 1, 2017

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2017 Series A Bonds, due April 26, 2047

Authorized by this Thirty-Sixth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-SIXTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
| SECTION | SECTION | HEADING | PAGE |
| ARTICLE I | DEFINITIONS | DEFINITIONS | 3 |
| Section 1.1. | Definitions | Definitions | 3 |
| ARTICLE II | THE 2017 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO | THE 2017 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO | 4 |
| Section 2.1. | Authorization and Terms of the 2017 Series A Bonds | Authorization and Terms of the 2017 Series A Bonds | 4 |
| Section 2.2. | Form of the 2017 Series A Bonds | Form of the 2017 Series A Bonds | 5 |
| Section 2.3. | Optional Redemption | Optional Redemption | 5 |
| Section 2.4. | Use of Proceeds | Use of Proceeds | 7 |
| ARTICLE III | MISCELLANEOUS | MISCELLANEOUS | 8 |
| Section 3.1. | Supplemental Indenture | Supplemental Indenture | 7 |
| Section 3.2. | Recitals | Recitals | 7 |
| Section 3.3. | Successors and Assigns | Successors and Assigns | 7 |
| Section 3.4. | No Rights, Remedies, Etc. | No Rights, Remedies, Etc. | 7 |
| Section 3.5. | Counterparts | Counterparts | 7 |
| Section 3.6. | Security Agreement; Mailing Address | Security Agreement; Mailing Address | 8 |
| Section 3.7. | Effectiveness | Effectiveness | 8 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2017 Series A Bonds and Trustee's Authentication Certificate

-i-

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THIS THIRTY-SIXTH SUPPLEMENTAL INDENTURE, dated as of April 1, 2017 (this *"Thirty-Sixth Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the *"Amended and Restated Indenture"*), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), and as further supplemented and amended including as supplemented hereby (the *"Indenture"*), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, 2017 Series A Bonds, due April 26, 2047 (the *"2017 Series A Bonds"* and each, individually, a *"2017 Series A Bond"*) in the original principal amount of $500,000,000.00, and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Sixth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2017 Series A Bonds as Additional Obligations and specifying the form and provisions of the 2017 Series A Bonds;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1 and such other conditions set forth in the Indenture;

WHEREAS, this Thirty-Sixth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium, if any, and interest on the 2017 Series A Bonds, to make the 2017 Series A Bonds to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the

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Indenture a valid and binding lien for the security of the 2017 Series A Bonds, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Sixth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-SIXTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium, if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2017 Series A Bonds, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2017 Series A Bonds are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated,

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remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2017 Series A Bonds are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Sixth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article, or as amended hereby or unless the context clearly requires otherwise. In addition, each of the following terms has the following

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meaning in this Thirty-Sixth Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Interest Payment Date"* means April 26 and October 26 of each year, commencing on October 26, 2017.

*"Record Date"* shall mean the 11<sup>th</sup> day (whether or not a Business Day) of the calendar month of such Interest Payment Date.

**ARTICLE II**

**THE 2017 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2017 Series A Bonds*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2017 Series A Bonds due April 26, 2047."

The aggregate principal amount of the 2017 Series A Bonds which may be authenticated and delivered and Outstanding at any one time is limited to Five Hundred Fifty Million Dollars ($550,000,000.00). The 2017 Series A Bonds shall consist of Bonds in an aggregate principal amount of $500,000,000.00 due April 26, 2047.

The 2017 Series A Bonds shall bear interest from their date of issuance, payable semi-annually on April 26 and October 26 of each year, commencing on October 26, 2017. The 2017 Series A Bonds shall bear interest at the annual rate of 4.75%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium, if any, and interest on the 2017 Series A Bonds shall be payable to the Person in whose name that Obligation is registered at the close of business on the Record Date applicable to such Interest Payment Date or principal payment date.

The 2017 Series A Bonds shall be dated the date of authentication. Interest on the 2017 Series A Bonds shall be computed on the basis of a 360-day year of twelve 30-day months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The 2017 Series A Bonds will be issued as one or more fully registered global bonds without coupons and in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

The 2017 Series A Bonds shall be registered in the name of Cede & Co., as nominee for DTC, pursuant to the Depository's Book-Entry System. When the 2017 Series A Bonds are held in the Book-Entry System, purchases of beneficial interests in the 2017 Series A Bonds shall be made in book-entry form, without certificates. If at any time the Book-Entry System is discontinued for the 2017 Series A Bonds, the 2017 Series A Bonds shall be exchangeable for

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other fully registered certificated 2017 Series A Bonds of like tenor and of an equal aggregate principal amount, in authorized denominations. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a 2017 Series A Bond. The cost, if any, of preparing each new 2017 Series A Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by the person requesting such exchange or transfer.

Interest on the 2017 Series A Bonds shall be payable by check mailed to the registered owners thereof. However, interest on the 2017 Series A Bonds shall be paid to any owner of $1,000,000 or more in aggregate principal amount of the 2017 Series A Bonds by wire transfer to a wire transfer address within the continental United States upon the written request of such owner received by the Trustee, which the Trustee shall be entitled to conclusively rely upon, not less than five days prior to the Record Date. As long as the 2017 Series A Bonds are registered in the name of Cede & Co., as a nominee of DTC, such payments shall be made directly to the Depository.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2017 Series A Bonds*. The 2017 Series A Bonds and the Trustee's authentication certificate shall be in substantially in the form of Exhibit C hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Optional Redemption .*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company may redeem the 2017 Series A Bonds, in whole or in part, on any date or from time to time prior to their maturity, at its option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;If the redemption date is before October 26, 2046, the Redemption Price for the 2017 Series A Bonds will be equal to the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;100% of the principal amount of the 2017 Series A Bonds being redeemed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the sum of the present values of the remaining principal and interest payments on the 2017 Series A Bonds being redeemed that would be due if such 2017 Series A Bonds matured on October 26, 2046 (excluding interest accrued and unpaid through the redemption date), discounted on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of (x) the yield to maturity, determined on the third Business Day prior to the redemption date, of a U.S. Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the 2017 Series A Bonds matured on October 26, 2046) of the maturity of 2017 Series A Bonds being redeemed and trading in the secondary market at the price closest to par, and (y) 30 basis points,

plus in each case accrued and unpaid interest thereon to but excluding the redemption date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;If the redemption date is on or after October 26, 2046, the Redemption Price for the 2017 Series A Bonds will be 100% of the principal amount of the 2017 Series A Bonds being redeemed plus accrued and unpaid interest thereon to but excluding the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If there is no U.S. Treasury security having a life equal to the remaining average life (assuming, for this purpose, that the 2017 Series A Bonds matured on October 26, 2046) of the 2017 Series A Bonds being redeemed, the discount rate will be calculated using a yield to maturity determined on a straight-line basis (rounding to the nearest calendar month, if necessary) from the average yield to maturity, determined on the third Business Day prior to the redemption date, of two U.S. Treasury securities having lives most closely corresponding to the remaining average life (assuming, for this purpose, that the 2017 Series A Bonds matured on October 26, 2046) of the 2017 Series A Bonds being redeemed and trading in the secondary market at the price closest to par.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Company will give, or cause the Trustee to give, each Holder of 2017 Series A Bonds written notice of each optional redemption under this Section 2.3 not less than 30 days and not more than 60 days prior to the date fixed for such redemption, except as otherwise required by the procedures of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In the case of each partial redemption of the 2017 Series A Bonds pursuant to Section 2.3, the Trustee shall select the 2017 Series A Bonds to be redeemed on a pro rata basis, by lot or by such other method the Trustee in its sole discretion will deem fair and appropriate, or if the 2017 Series A Bonds are registered in the name of the Depository, in accordance with the procedures of the Depository. The portion of the 2017 Series A Bonds to be redeemed shall be in a minimum amount of $2,000 or a whole multiple of $1,000 in excess thereof. If the Series A Bonds are held in the Book-Entry System, no beneficial interest of $2,000 principal amount or less may be redeemed in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;If, at the time the notice of optional redemption of the 2017 Series A Bonds is given, the Company has not deposited sufficient funds with the Trustee to pay the full Redemption Price of the 2017 Series A Bonds to be redeemed, the notice of optional redemption will so state and will further state that the 2017 Series A Bonds will remain Outstanding as though no redemption notice had been given unless the Company provides, or causes to be provided, to the Trustee, by 2:00 p.m. New York City Time on the redemption date, funds sufficient to pay the full Redemption Price of the 2017 Series A Bonds to be redeemed. The failure of the Company to deposit sufficient funds with the Trustee to effect the redemption will not constitute a payment or other default by the Company under the Indenture and the Company will not be liable to any Holder of those 2017 Series A Bonds as a result of the failed redemption. If the Company has deposited funds with the Trustee sufficient to pay the full Redemption Price of the 2017 Series A Bonds to be redeemed at the time the notice of optional redemption is given, then the Company is obligated to redeem the 2017 Series A Bonds as provided in that notice.

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*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2017 Series A Bonds for general corporate purposes.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Sixth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented and amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Sixth Supplemental Indenture and the 2017 Series A Bonds, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2017 Series A Bonds to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Sixth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full. The Company hereby reaffirms its obligations under the Indenture to indemnify and hold harmless the Trustee as required under Article IX of the Indenture, including under Section 9.7 of the Indenture, and in particular (but not limited to) against losses, liabilities, claims, or expenses (including the fees and expenses of its counsel) arising out of or in connection with its execution and performance of this Thirty-Sixth Supplemental Indenture. This indemnity shall survive the final payment in full of the 2017 Series A Bonds and the resignation or removal of the Trustee to the extent provided in Section 7.1 and Article IX of the Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Sixth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Sixth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Sixth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Sixth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Sixth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Sixth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an

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original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Sixth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

40 Pearl Street NW

Suite 838

Grand Rapids, MI 49503

Additionally, this Thirty-Sixth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Thirty-Sixth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Sections 1.6, 12.1 and 12.3 of the Amended and Restated Indenture, which may be evidenced by the Trustee's authentication of any 2017 Series A Bonds under this Thirty-Sixth Supplemental Indenture.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Sixth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
|  | Name: | Paul M. Sukut |
|  | Title: | Chief Executive Officer & General Manager |

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(SEAL)

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| | |
|:---|:---|
| Attest: | /s/ Mark D. Foss |
| | Name: Mark D. Foss |
| | Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 19th day of April, 2017, by Paul M. Sukut, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Michelle Wiedrich |
| Name: Michelle Wiedrich |
| Notary Public |
| My commission expires: August 6, 2021 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ R. Jason Fry | /s/ R. Jason Fry |
|  | Name: | R. Jason Fry |
|  | Title: | Vice President |

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| | |
|:---|:---|
| STATE OF MICHIGAN |) |
| |) SS |
| COUNTY OF KENT |) |

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THE FOREGOING instrument was acknowledged before me this 17th day of April, 2017, by R. Jason Fry, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Marylyn Putschko |
| Name: Marylyn Putschko |
| Notary Public |
| My commission expires: September 12, 2022 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

(to Thirty-Sixth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT B

(to Thirty-Sixth Supplemental Indenture)

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**[FORM OF 2017 SERIES A BONDS]**

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

**[RESTRICTED SECURITIES LEGEND]**

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) SUCH SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY:

(I)(A) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE

EXHIBIT C

(to Thirty-Sixth Supplemental Indenture)

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SECURITIES ACT, (D) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1),(2),(3) OR (7) OF THE SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF BONDS LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, OR (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL AND OTHER CERTIFICATIONS AND DOCUMENTS IF THE COMPANY SO REQUESTS),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) TO THE COMPANY, OR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT

AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND IN EACH CASE SUBJECT TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF THIS SECURITY BY THE HOLDER OR BY ANY INVESTOR ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

THIS SECURITY MAY NOT BE ACQUIRED OR HELD WITH THE ASSETS OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS SUBJECT TO ERISA, (II) A "PLAN" (INCLUDING AN INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT) WHICH IS SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), (III) ANY ENTITY DEEMED UNDER ERISA TO HOLD "PLAN ASSETS" (WITHIN THE MEANING OF ERISA) OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN'S OR PLAN'S INVESTMENT IN SUCH ENTITY, OR (IV) A GOVERNMENTAL PLAN OR CHURCH PLAN SUBJECT TO APPLICABLE LAW THAT IS SIMILAR IN PURPOSE OR EFFECT TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE ("SIMILAR LAW"), UNLESS THE ACQUISITION AND HOLDING OF THIS SECURITY (AND ANY EXCHANGE OF THE BOND FOR AN EXCHANGE BOND) BY THE PURCHASER OR TRANSFEREE, THROUGHOUT THE PERIOD THAT IT HOLDS THIS SECURITY, ARE EXEMPT FROM THE PROHIBITED TRANSACTION RESTRICTIONS UNDER ERISA

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AND SECTION 4975 OF THE CODE OR ANY PROVISIONS OF SIMILAR LAW, AS APPLICABLE, PURSUANT TO ONE OR MORE PROHIBITED TRANSACTION STATUTORY OR ADMINISTRATIVE EXEMPTIONS. BY ITS ACQUISITION OR HOLDING OF THIS SECURITY, EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT THE FOREGOING REQUIREMENTS HAVE BEEN SATISFIED.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

THIS SECURITY AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS SECURITY TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS SECURITY SHALL BE DEEMED BY THE ACCEPTANCE OF THIS SECURITY TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

**[ADDITIONAL REGULATION S LEGEND]**

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED AND SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME OR (II) OTHERWISE UNTIL 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OR THE DATE OF ISSUANCE OF THIS SECURITY, EXCEPT IN EITHER CASE IN ACCORDANCE WITH REGULATION S (OR RULE 144A, IF AVAILABLE) UNDER THE SECURITIES ACT. TERMS USED HEREIN SHALL HAVE THE MEANING GIVEN TO THEM BY REGULATION S.

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| | |
|:---|:---|
| NO. __________________ | $500000000.0 |

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**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2017 SERIES A BONDS DUE APRIL 26, 2047**

REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT:

ISSUANCE DATE: APRIL 26, 2017

CUSIP NO.: ____________________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to the registered owner referred to above, or registered assigns, the principal sum of FIVE HUNDRED MILLION DOLLARS (or so much thereof as shall not have been redeemed) on April 26, 2047, with interest (computed on the basis of a 360-day year of twelve 30-day months on the unpaid balance hereof at a rate of 4.75% per annum) from the date hereof, payable semiannually on the 26<sup>th</sup> day of April and October in each year, commencing October 26, 2017, until the principal hereof shall have become due and payable.

This Bond is one of a series of the 2017 Series A Bonds (herein called the *"Bonds"*) issued pursuant to the Thirty-Sixth Supplemental Indenture dated as of April 1, 2017, the *"Thirty-Sixth Supplement"*), between the Company and the Trustee named therein which supplements the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof. Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the Thirty-Sixth Supplement.

The principal of, and interest, on this Bond are payable at the principal corporate trust office of the Trustee, or of its successor as Trustee, or, at the option of the owner of this Bond, at the principal office of any Paying Agent appointed in accordance with the Indenture; provided, however, that, subject to the next succeeding paragraph, interest may be payable, at the option of the Trustee, by check or draft drawn upon the Trustee and mailed to the registered address of the registered owner of this Bond as of the close of business on the applicable Record Date (as defined in the Thirty-Sixth Supplement), or, at the written request of the registered owner of Bonds in an aggregate principal amount greater than or equal to $1,000,000 delivered to the Trustee, which the Trustee shall be entitled to conclusively rely upon, at least five days prior to the Record Date next preceding such payment date, by wire transfer to a wire transfer address in the continental United States as set forth in such request. Payment of the principal of and interest on this Bond shall be in any coin or currency of the United States of America as, at the respective times of payment, shall be legal tender for the payment of public and private debts.

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Notwithstanding any other provision of this Bond to the contrary, so long as this Bond shall be registered on books of the Company kept by the Obligation Registrar (as defined in the Indenture) in the name of The Depository Trust Company, a New York Corporation ("DTC"), or its nominee, the provisions of the Indenture governing the Book-Entry System (as defined in the Indenture) shall govern the manner of payment of the principal of, and interest on, this Bond.

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the owner of this Bond, the terms upon which this Bond is issued and secured, and the modification or amendment of the Indenture, to all of which the registered owner of this Bond assents by the acceptance of this Bond.

The Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney. The Obligation Registrar shall not be obliged to (i) make any exchange or transfer of this Bond during the period beginning at the opening of business fifteen days next preceding the date of the mailing of the notice of redemption of the Bond or (ii) register the transfer of or exchange of any Bond so selected for redemption in whole or in part, except the unredeemed portion of a Bond being redeemed in part.

The Bonds are issuable in the form of fully registered global bonds without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. Upon payment of any required tax or other governmental charge and, subject to such conditions, the Bond, upon the surrender thereof at the principal office of the Obligation Registrar, with a written instrument of transfer satisfactory to the Obligation Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be exchanged for an equal principal amount of Bonds of the same interest rate and in any other authorized denominations.

This Bond is also subject to optional redemption, in whole or from time to time in part, at the times and on the terms specified in Thirty-Sixth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Indenture.

This Bond shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Bond shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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[SEAL]

Attest:

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

---

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**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: April ____, 2017

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**BASIN ELECTRIC POWER COOPERATIVE**

**4.75% FIRST MORTGAGE OBLIGATIONS 2017 SERIES A BONDS DUE APRIL 26, 2047**

**ASSIGNMENT FORM**

To assign this Bond, fill in the form below:

I or we assign and transfer this Bond to

 <br> (Print or type assignee's name, address and zip code)

 <br> (Insert assignee's soc. Sec. or tax I.D. No.)

and irrevocably appoint agent to transfer this Bond on the books of the Company. The agent may substitute another to act for him.

Date: Your Signature: <br> Sign exactly as your name appears on the other side of this Bond

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In connection with any transfer of any of the Bonds evidenced by this certificate occurring while this Bond is a Transfer Restricted Bond, the undersigned confirms that such Bonds are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

&nbsp;&nbsp;&nbsp;&nbsp;(1) □ To the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;(2) □ Pursuant to an effective registration statement under the Securities Act of 1933; or

&nbsp;&nbsp;&nbsp;&nbsp;(3) □ Inside the United States to a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act of 1933) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act of 1933; or

&nbsp;&nbsp;&nbsp;&nbsp;(4) □ Outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act of 1933; or

&nbsp;&nbsp;&nbsp;&nbsp;(5) □ To an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) and (7) under the Securities Act of 1933) that has furnished to the Trustee a signed letter containing certain representations and agreements (the form of which letter can be obtained from the Trustee); or

&nbsp;&nbsp;&nbsp;&nbsp;(6) □ Pursuant to another available exemption from registration provided by Rule 144 under the Securities Act of 1933

Unless one of the boxes is checked, the Trustee will refuse to register any of the Bonds evidenced by this certificate in the name of any person other than the registered holder thereof; <u>provided</u> <u>however</u>, that if box (4), (5) or (6) is checked, the Trustee may require, prior to registering any such transfer of the Bonds, such legal opinions, certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.

 <br> Your Signature

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Signature Guarantee: <br> Signature must be guaranteed by a participant in a recognizedsignature guaranty medallion program or other signatureguarantor acceptable to the Trustee

Date: <br> Signature of Signature Guarantee

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**TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.**

The undersigned represents and warrants that it is purchasing this Bond for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim the exemption from registration provided by Rule 144A.

Dated: <br> NOTICE: To be executed by an executive officer

## Exhibit 4.1

**Exhibit 4.1(o)**

THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of April 15, 2019

Relating to the Basin Electric Power Cooperative

First Mortgage Note, 2019 Series A

Authorized by this Thirty-Eighth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY-EIGHTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| ARTICLE I | DEFINITIONS | 4 |
| Section 1.1. | Definitions | 4 |
| ARTICLE II | THE FIRST MORTGAGE NOTE, 2019 SERIES A AND CERTAIN PROVISIONS RELATING THERETO | 4 |
| Section 2.1. | Authorization and Terms of the First Mortgage Note, 2019 Series A | 4 |
| Section 2.2. | Form of the First Mortgage Note, 2019 Series A | 5 |
| Section 2.3. | Payments on First Mortgage Note, 2019 Series A | 5 |
| ARTICLE III | MISCELLANEOUS | 5 |
| Section 3.1. | Supplemental Indenture | 5 |
| Section 3.2. | Recitals | 5 |
| Section 3.3. | Successors and Assigns | 6 |
| Section 3.4. | No Rights, Remedies, Etc | 6 |
| Section 3.5. | Counterparts | 6 |
| Section 3.6. | Security Agreement; Mailing Address | 6 |
| Section 3.7. | Effectiveness | 7 |

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C | Form of First Mortgage Note, 2019 Series A and Trustee's Authentication |
|  | Certificate |

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-i-

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THIS THIRTY-EIGHTH SUPPLEMENTAL INDENTURE, dated as of April 15, 2019 (this *"Thirty-Eighth Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 40 Pearl Street NW, Suite 838, Grand Rapids, MI 49503, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the *"Amended and Restated Indenture"*), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), and as further supplemented and amended including as supplemented hereby (the *"Indenture"*), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Company is the owner of a 92.9 percent undivided interest in, and operator of, the Dry Fork Station, a single coal-fired steam-electric generating unit (the "*Station*") located within the geographical limits of Campbell County, Wyoming (the "*County*"), and pursuant to resolutions adopted by the Board of County Commissioners of the County on June 16, 2009 and the provisions of the Wyoming Industrial Development Projects Act (Wyoming Statutes Annotated, Sections 15-1-701, et seq.), as amended (the "*Act*"), the County agreed to finance a portion of the costs of the acquisition, construction and installation of certain solid waste disposal and sewage facilities at the Station (the "*Facilities*") as an authorized project under the Act, by issuing its "Solid Waste Facilities Revenue Bonds, 2009 Series A (Basin Electric Power Cooperative – Dry Fork Station Facilities)" (the "*2009 Series A Bonds*") pursuant to the Trust Indenture, dated as of July 1, 2009, between the County and U.S. Bank National Association, as trustee (the "*2009 Indenture*") and loaned the proceeds thereof to the Company pursuant to the Loan Agreement, dated as of July 1, 2009, between the County and the Company (the "*2009 Financing Agreement*");

WHEREAS, in order to evidence its obligation to repay the loan of the proceeds of the 2009 Series A Bonds, the Company issued to the County its note (the "*First Mortgage Note, 2009 Series A*"), which First Mortgage Note, 2009 Series A is secured under the Indenture;

WHEREAS, the Company has requested and pursuant to resolutions adopted by the Board of Commissioners of the County on April 2, 2019, the County has agreed to issue its "Solid Waste Facilities Revenue Bonds, 2019 Series A (Basin Electric Power Cooperative – Dry Fork Station Facilities)" (the "*2019 Series A Bonds*") pursuant to the Trust Indenture, dated as of April 15, 2019, between the County and U.S. Bank National Association, as trustee (the "*2019 Indenture*") under the Act for the purpose of refinancing the 2009 Bonds, and loan the proceeds

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thereof to the Company pursuant to the Loan Agreement, dated as of April 15, 2019, between the County and the Company (the "*2019 Financing Agreement*");

WHEREAS, in order to evidence its obligation to repay the loan proceeds of the 2019 Series A Bonds to the County, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Note, 2019 Series A, due July 15, 2039 (the *"First Mortgage Note, 2019 Series A"*) in the original principal amount of $150,000,000.00, and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Eighth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2019 Series A as Additional Obligations and specifying the form and provisions of the First Mortgage Note, 2019 Series A;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1 and such other conditions set forth in the Indenture;

WHEREAS, this Thirty-Eighth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium, if any, and interest on the First Mortgage Note, 2019 Series A, to make the First Mortgage Note, 2019 Series A to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the First Mortgage Note, 2019 Series A, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Eighth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-EIGHTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium, if any, and interest on the Outstanding Secured Obligations, including, when issued, the First Mortgage Note, 2019 Series A, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the First Mortgage Note, 2019 Series A are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of

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the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

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BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the First Mortgage Note, 2019 Series A are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Eighth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein or unless the context clearly requires otherwise.

**ARTICLE II**

**THE FIRST MORTGAGE NOTE, 2019 SERIES A AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the First Mortgage Note, 2019 Series A*. There shall be established an Additional Obligation in the form of the promissory note known as and entitled the "First Mortgage Note, 2019 Series A" (hereinafter referred to as the "*First Mortgage Note, 2019 Series A*"), the form, terms and conditions of which shall be substantially as set forth in this Section and Section 2.1. The First Mortgage Note, 2019 Series A is the same Note described and defined in the 2019 Indenture and the 2019 Financing Agreement as the "*Note*". The aggregate principal face amount of the First Mortgage Note, 2019 Series A which shall be authenticated and delivered and Outstanding at any one time is limited to $150,000,000.

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The First Mortgage Note, 2019 Series A shall be dated the date of its authentication and shall mature on July 15, 2039. The First Mortgage Note, 2019 Series A shall bear interest computed in the same manner and payable at the same time as the interest on the 2019 Series A Bonds is computed and paid as described and computed in accordance with the terms of the 2019 Indenture. The First Mortgage Note, 2019 Series A shall be subject to optional prepayment as more particularly set forth in such First Mortgage Note, 2019 Series A. The First Mortgage Note, 2019 Series A shall be authenticated and delivered to, and made payable to, U.S. Bank National Association, as trustee for the 2019 Series A Bonds (in such capacity, the "*Bond Trustee*"), as assignee and pledgee of the County pursuant to the 2019 Indenture.

All payments made on the First Mortgage Note, 2019 Series A shall be made to the Bond Trustee at its principal corporate office in lawful money of the United States of America which will be immediately available on the date payment is due.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the First Mortgage Note, 2019 Series A*. The First Mortgage Note, 2019 Series A and the Trustee's authentication certificate to be executed on the First Mortgage Note, 2019 Series A shall be substantially in the form of Exhibit C attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Payments on First Mortgage Note, 2019 Series A.* Payments by the Company on the First Mortgage Note, 2019 Series A shall be used to make payments required under the 2019 Financing Agreement.

**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Eighth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented and amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Eighth Supplemental Indenture and the First Mortgage Note, 2019 Series A, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the First Mortgage Note, 2019 Series A to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Thirty-Eighth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full. The Company hereby reaffirms its obligations under the Indenture to indemnify and hold harmless the Trustee as required under Article IX of the Indenture, including under Section 9.7 of the Indenture, and in particular (but not limited to) against losses, liabilities, claims, or expenses (including the fees and expenses of its counsel) arising out of or in connection with its execution and performance of this Thirty-Eighth Supplemental Indenture. This indemnity shall survive the

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final payment in full of the First Mortgage Note, 2019 Series A and the resignation or removal of the Trustee to the extent provided in Section 7.1 and Article IX of the Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Eighth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Eighth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Eighth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Eighth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Eighth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Eighth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Eighth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank National Association

Corporate Trust Services

60 Livingston Avenue

EP-MN-WS3C

St. Paul, MN 55107

Additionally, this Thirty-Eighth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing

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Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Thirty-Eighth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Sections 1.6, 12.1 and 12.3 of the Amended and Restated Indenture, which may be evidenced by the Trustee's authentication of the First Mortgage Note, 2019 Series A under this Thirty-Eighth Supplemental Indenture.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Eighth Supplemental Indenture to be duly executed as of the day and year first above written.

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| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: <u>/s/ Paul M. Sukut</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: Paul M. Sukut |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer & <br>General Manager |

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| | |
|:---|:---|
| (SEAL) | (SEAL) |
| Attest: | <u>/s/ Mark D. Foss</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 29th day of April, 2019, by Paul M. Sukut, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Sheila E. Wald</u> |
| Name: Sheila E. Wald |
| Notary Public |
| My commission expires: May 2, 2022 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Trustee | U.S. BANK NATIONAL ASSOCIATION, as Trustee |
| By: | <u>/s/ Richard Prokosch</u> |
| &nbsp;&nbsp;&nbsp;&nbsp; Name: Richard Prokosch | &nbsp;&nbsp;&nbsp;&nbsp; Name: Richard Prokosch |
| &nbsp;&nbsp;&nbsp;&nbsp; Title: Vice President | &nbsp;&nbsp;&nbsp;&nbsp; Title: Vice President |

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(SEAL)

STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;)) SS

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 30th day of April, 2019, by Richard Prokosch, Vice President of U.S. Bank National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Denise R. Landeen</u> |
| Name: Denise R. Landeen |
| Notary Public |
| My commission expires: 01/31/2022 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

(to Thirty-Eighth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT B

(to Thirty-Eighth Supplemental Indenture)

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THIS FIRST MORTGAGE NOTE, 2019 SERIES A IS NONTRANSFERABLE EXCEPT AS MAY BE REQUIRED TO EFFECT ANY TRANSFER TO ANY SUCCESSOR TRUSTEE UNDER THE TRUST INDENTURE, DATED AS OF APRIL 15, 2019, BETWEEN CAMPBELL COUNTY, WYOMING AND U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE.

No. &nbsp;&nbsp;&nbsp;&nbsp;$150,000,000

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE NOTE, 2019 SERIES A**

BASIN ELECTRIC POWER COOPERATIVE ("Basin Electric"), an electric cooperative corporation existing under the laws of the State of North Dakota, for value received, promises to pay to U.S. Bank National Association, as trustee (the "Trustee"), or its successors in trust, the principal sum of $150,000,000 and interest thereon as follows: Basin Electric shall pay, during the term of the Loan Agreement, dated as of April 15, 2019 (the "Financing Agreement"), between Campbell County, Wyoming (the "County") and Basin Electric, for deposit into the Bond Fund, (i) on or prior to each date on which interest is due on the County's Solid Waste Facilities Bonds, 2019 Series A (Basin Electric Power Cooperative-Dry Fork Station Facilities) (the "2019 Series A Bonds") issued by the County under the Trust Indenture, dated as of April 15, 2019 (the "Bond Indenture"), between the County and the Trustee, as the same may be amended and supplemented from time to time, the amount of interest due on the 2019 Series A Bonds on such date, computed in the manner described in the Bond Indenture, (ii) on the stated maturity date of the 2019 Series A Bonds (or earlier date to which the maturity of the 2019 Series A Bonds has been accelerated as a result of an event of default), a sum which will equal the principal amount of the 2019 Series A Bonds which will become due on such date and (iii) on or prior to any redemption date for the 2019 Series A Bonds, an amount equal to the principal of (premium, if any) and interest on the 2019 Series A Bonds which are to be redeemed on such date.

This First Mortgage Note, 2019 Series A is issued under, is described in and is subject to the Financing Agreement, and is secured by the Amended and Restated Indenture, dated as of May 5, 2015, between Basin Electric and U.S. Bank National Association, as Trustee, as supplemented and amended (the "Basin Electric Indenture").

All payments required pursuant hereto shall be made to the Trustee at its principal corporate trust office, in lawful money of the United States of America. As set forth in Section 5.7 of the Financing Agreement, the obligation of Basin Electric to make the payments required hereunder shall be absolute and unconditional.

This First Mortgage Note, 2019 Series A may be prepaid upon the terms and conditions set forth in Article X of the Financing Agreement.

Basin Electric shall be entitled to credits against payments required hereby as provided in Section 5.2 of the Financing Agreement.

EXHIBIT C-1

(to Thirty-Eighth Supplemental Indenture)

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If the maturity date of the 2019 Series A Bond shall be accelerated as a result of an event of default, the principal of this First Mortgage Note, 2019 Series A shall become due and payable in the manner and with the effect provided in the Financing Agreement. The Financing Agreement provides that, under certain conditions, such acceleration shall be rescinded.

No recourse shall be had for the payments required hereby or for any claim based herein or on the Financing Agreement or on the Basin Electric Indenture against any officer, director or stockholder, past, present or, future, of Basin Electric as such, either directly or through Basin Electric, or under any constitution and provision, statute or rule of law or by the enforcement of any assessment or by any legal or equitable proceedings or otherwise.

This First Mortgage Note, 2019 Series A shall not be entitled to any benefit under the Basin Electric Indenture and shall not become valid or obligatory for any purpose until the Trustee shall have signed the form of authentication certificate endorsed hereon.

All terms use in this First Mortgage Note, 2019 Series A which are not defined herein shall have the meanings assigned to them in the Financing Agreement or the Bond Indenture.

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IN WITNESS WHEREOF, Basin Electric has caused this First Mortgage Note, 2019 Series A to be duly executed, attested and delivered the ____ day of May, 2019.

(SEAL)&nbsp;&nbsp;&nbsp;&nbsp;**BASIN ELECTRIC POWER COOPERATIVE**

_________________________________________Paul M. Sukut

Chief Executive Officer and General Manager

Attest:

______________________________

Name:

Title:

STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;))

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this __ day of May, 2019, by Paul M. Sukut, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation

WITNESS my hand and official seal.

_________________________________________Name:

Notary Public, State of North Dakota

(Notarial Seal)

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This is to certify that this First Mortgage Note, 2019 Series A is one of the 2019 Series A Mortgage Notes designated in the within-mentioned Basin Electric Indenture.

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| |
|:---|
| **U.S. BANK NATIONAL ASSOCIATION, as Trustee** |
| By: _____________________________________ |

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Date of Authentication: May ____, 2019

## Exhibit 4.1

**Exhibit 4.1(p)**

THIRTY-NINTH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of February 15, 2022

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2022 Series A Notes, due February 15, 2042

First Mortgage Obligations, 2022 Series B Notes, due August 15, 2051

First Mortgage Obligations, 2022 Series C Notes, due February 15, 2062

Authorized by this Thirty-Ninth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS THIRTY NINTH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE I. | Definitions | 4 |
| Section 1.1. | Definitions | 4 |
| ARTICLE II. | The 2022 Notes and Certain Provisions Relating Thereto | 4 |
| Section 2.1. | Authorization and Terms of the 2022 Notes | 4 |
| Section 2.2. | Form of the 2022 Notes | 6 |
| Section 2.3. | Required Prepayments | 6 |
| Section 2.4. | Optional Prepayments with Make-Whole Amount | 9 |
| Section 2.5. | Allocation of Partial Prepayments | 9 |
| Section 2.6. | Maturity; Surrender, Etc. | 9 |
| Section 2.7. | Purchase of 2022 Notes | 10 |
| Section 2.8. | Make-Whole Amount | 10 |
| Section 2.9. | Use of Proceeds | 12 |
| Section 2.10. | Acceleration | 12 |
| Section 2.11. | Home Office Payment | 12 |
| Section 2.12. | Denominations | 12 |
| ARTICLE III. | Miscellaneous | 13 |
| Section 3.1. | Supplemental Indenture | 13 |
| Section 3.2. | Recitals | 13 |
| Section 3.3. | Successors and Assigns | 13 |
| Section 3.4. | No Rights, Remedies, Etc | 13 |
| Section 3.5. | Counterparts | 13 |
| Section 3.6. | Security Agreement; Mailing Address | 13 |
| Section 3.7. | Effectiveness | 14 |
| Section 3.8. | Governing Law | 14 |

---

---

| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C-1 | Form of 2022 Series A Notes |

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| | |
|:---|:---|
| EXHIBIT C-2 | Form of 2022 Series B Notes |
| EXHIBIT C-3 | Form of 2022 Series C Notes |
| EXHIBIT D | Form of Trustee's Authentication |

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-ii-

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THIS THIRTY-NINTH SUPPLEMENTAL INDENTURE, dated as of February 15, 2022 (this *"Thirty-Ninth Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION as successor in interest to U.S. Bank National Association, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 425 Walnut Street, 6<sup>th</sup> Floor, Cincinnati, Ohio 45202, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the *"Amended and Restated Indenture"*), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), as amended and supplemented, including as further supplemented hereby (the *"Indenture"*), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established three new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series A Notes, due February 15, 2042 (the "*2022 Series A Notes*") in the original principal amount of $167,000,000; (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series B Notes (the "*2022 Series B Notes*"), due August 15, 2051, in the original principal amount of $61,000,000; and (iii) the Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series C Notes, due February 15, 2062 (the *2022 Series C Notes*") in the original principal amount of $72,000,000 (the 2022 Series A Notes, 2022 Series B Notes, 2022 Series C Notes may be referred to individually as a "*2022 Note*" and collectively as the "*2022 Notes*); such 2022 Notes being issued to the parties set forth in Schedule A of the Note Purchase Agreement described below (and their successors or assigns of the 2022 Notes, each individually, the *"Holder"* or collectively, the *"Holders"*) to secure the Company's obligations under the Note Purchase Agreement, dated as of February 15, 2022, between the Company and the Holders (the *"Note Purchase Agreement"*); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Thirty-Ninth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2022 Notes as Additional Obligations and specifying the form and provisions of the 2022 Notes;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

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WHEREAS, this Thirty-Ninth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2022 Notes, to make the 2022 Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2022 Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Thirty-Ninth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS THIRTY-NINTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2022 Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2022 Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted

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Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2022 Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company

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does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Thirty-Ninth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article, or as amended hereby or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Thirty-Ninth Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Default Rate"* means with respect to any Series of the 2022 Notes, that rate of interest per annum that is 2.00% above the rate of interest stated in clause (a) of the first paragraph of the 2022 Notes of such Series.

*"Holder"* or *"Holders"* are defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series"* shall refer to any series of the 2022 Notes issued under this Thirty-Ninth Supplemental Indenture.

*"2022 Notes"* are defined in the Recitals.

*"2022 Series A Notes"* are defined in the Recitals.

*"2022 Series B Notes"* are defined in the Recitals.

*"2022 Series C Notes"* are defined in the Recitals.

**ARTICLE II**

**THE 2022 NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2022 Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series A Notes, due February 15, 2042."

The aggregate principal amount of the 2022 Series A Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Sixty Seven Million

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Dollars ($167,000,000). The 2022 Series A Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2022 Series A Notes shall bear interest as provided in the form of 2022 Series A Notes attached hereto as Exhibit C-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series B Notes, due August 15, 2051."

The aggregate principal amount of the 2022 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to Sixty One Million Dollars ($61,000,000). The 2022 Series B Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2022 Series B Notes shall bear interest as provided in the form of 2022 Series B Notes attached hereto as Exhibit C-2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2022 Series C Notes, due February 15, 2062."

The aggregate principal amount of the 2022 Series C Notes which may be authenticated and delivered and Outstanding at any one time is limited to Seventy Two Million Dollars ($72,000,000). The 2022 Series C Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2022 Series C Notes shall bear interest as provided in the form of 2022 Series C Notes attached hereto as Exhibit C-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2022 Notes shall be payable to the Holder in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2022 Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2022 Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2022 Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

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*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2022 Notes*. The 2022 Series A Notes shall each be a promissory note substantially in the form of Exhibit C-1 hereto. The 2022 Series B Notes shall each be a promissory note substantially in the form of Exhibit C-2 hereto. The 2022 Series C Notes shall each be a promissory note substantially in the form of Exhibit C-3 hereto. The Trustee's authentication certificate to be executed on the 2022 Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Required Prepayments*. (i) On each of the respective dates set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2022 Series A Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2022 Series A Notes pursuant to Section 2.4 or partial purchase of the 2022 Series A Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2022 Series A Notes becoming due under this Section 2.3(i) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2022 Series A Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Required<br>Prepayment<br>Dates | Principal<br>Amount Due |
| 02/15/2022 | -- |
| 08/15/2022 | $7730000 |
| 02/15/2023 | $7730000 |
| 08/15/2023 | $7730000 |
| 02/15/2024 | -- |
| 08/15/2024 | -- |
| 02/15/2025 | -- |
| 08/15/2025 | -- |
| 02/15/2026 | -- |
| 08/15/2026 | -- |
| 02/15/2027 | -- |
| 08/15/2027 | -- |
| 02/15/2028 | $7730000 |
| 08/15/2028 | $7730000 |
| 02/15/2029 | -- |
| 08/15/2029 | -- |
| 02/15/2030 | $7730000 |
| 08/15/2030 | $7730000 |
| 02/15/2031 | $7730000 |
| 08/15/2031 | $7730000 |
| 02/15/2032 | -- |

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| | |
|:---|:---|
| 08/15/2032 | -- |
| 02/15/2033 | $3865000 |
| 08/15/2033 | $3865000 |
| 02/15/2034 | -- |
| 08/15/2034 | -- |
| 02/15/2035 | $7730000 |
| 08/15/2035 | $7730000 |
| 02/15/2036 | $7730000 |
| 08/15/2036 | $7730000 |
| 02/15/2037 | $7730000 |
| 08/15/2037 | $7730000 |
| 02/15/2038 | $6185000 |
| 08/15/2038 | $6185000 |
| 02/15/2039 | -- |
| 08/15/2039 | -- |
| 02/15/2040 | $4640000 |
| 08/15/2040 | $4640000 |
| 02/15/2041 | $4640000 |
| 08/15/2041 | $4640000 |
| 02/15/2042 (maturity date) | $12390000 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **&nbsp;&nbsp;&nbsp;&nbsp;**On each of the respective dates set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2022 Series B Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2022 Series B Notes pursuant to Section 2.4 or partial purchase of the 2022 Series B Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2022 Series B Notes becoming due under this Section 2.3(ii) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2022 Series B Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Required<br>Prepayment<br>Dates | Principal<br>Amount Due |
| 08/15/2042 | $7285000 |
| 02/15/2043 | $4095000 |
| 08/15/2043 | $4095000 |
| 02/15/2044 | $4550000 |
| 08/15/2044 | $4550000 |
| 02/15/2045 | $5465000 |
| 08/15/2045 | $5465000 |
| 02/15/2046 | $5465000 |

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| | |
|:---|:---|
| 08/15/2046 | $5465000 |
| 02/15/2047 | -- |
| 08/15/2047 | -- |
| 02/15/2048 | $1820000 |
| 08/15/2048 | $1820000 |
| 02/15/2049 | $1820000 |
| 08/15/2049 | $1820000 |
| 02/15/2050 | $1820000 |
| 08/15/2050 | $1820000 |
| 02/15/2051 | $1820000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;08/15/2051 (maturity date) | $1825000 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On each of the respective dates set forth below, the Company will prepay the respective aggregate principal amounts (or such lesser amount as shall then be outstanding) of the 2022 Series C Notes set forth opposite such year at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2022 Series C Notes pursuant to Section 2.4 or partial purchase of the 2022 Series C Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2022 Series C Notes becoming due under this Section 2.3(iii) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2022 Series C Notes is reduced as a result of such prepayment or purchase.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Required<br>Prepayment<br>Dates | Principal<br>Amount Due |
| 08/15/2052 | -- |
| 02/15/2053 | $3375000 |
| 08/15/2053 | $3390000 |
| 02/15/2054 | $3390000 |
| 08/15/2054 | $3390000 |
| 02/15/2055 | $3390000 |
| 08/15/2055 | $3390000 |
| 02/15/2056 | $3390000 |
| 08/15/2056 | $3390000 |
| 02/15/2057 | $3390000 |
| 08/15/2057 | $3390000 |
| 02/15/2058 | $4235000 |
| 08/15/2058 | $4235000 |
| 02/15/2059 | $4235000 |
| 08/15/2059 | $4235000 |
| 02/15/2060 | $4235000 |
| 08/15/2060 | $4235000 |

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| | |
|:---|:---|
| 02/15/2061 | $4235000 |
| 08/15/2061 | $4235000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;02/15/2062 (maturity date) | $4235000 |

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*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* So long as no Event of Default exists and is continuing under the Indenture, the Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any particular Series of 2022 Notes, in an amount not less than 10% of the aggregate principal amount of such particular Series of 2022 Notes then Outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each Holder of 2022 Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such particular Series of 2022 Notes to be prepaid on such date, the principal amount of each 2022 Note held by such Holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each Holder of such particular Series of 2022 Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. If an Event of Default exists and is continuing under the Indenture, then the Company may only prepay all 2022 Notes on a pro rata basis (and not on a Series by Series basis).

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments.* In the case of each partial prepayment of any Series of the 2022 Notes pursuant to Section 2.3 or Section 2.4, the principal amount of the 2022 Notes to be prepaid shall be allocated among all of the 2022 Notes of such Series to be prepaid at the time Outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* In the case of each prepayment of 2022 Notes pursuant to this Article 2, the principal amount of each 2022 Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2022 Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2022 Note shall be issued in lieu of any prepaid principal amount of any 2022 Note.

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*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2022 Notes.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the Outstanding 2022 Notes except (a) upon the payment or prepayment of the 2022 Notes in accordance with the terms of the Indenture and the 2022 Notes or (b) (i) if no Event of Default exists and is continuing under the Indenture, pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the Holders of any particular Series of 2022 Notes at the time Outstanding upon the same terms and conditions or (ii) if an Event of Default exists and is continuing under the Indenture, such offer shall be made to all Holders of 2022 Notes upon the same terms and conditions (and not on a Series by Series basis). Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the Holders of more than 51% of the principal amount of any particular Series of 2022 Notes (or in the case of an Event of Default, more than 51% of the principal amount of all 2022 Notes) then Outstanding accept such offer, the Company shall promptly notify the remaining Holders of such fact and the expiration date for the acceptance by Holders of 2022 Notes of such offer shall be extended by the number of days necessary to give each such remaining Holder at least 10 Business Days from its receipt of such notice to accept such offer. Any consent made pursuant to the Indenture by the Holder of any 2022 Note that has transferred or has agreed to transfer such 2022 Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders of 2022 Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring Holder. The Company will promptly cancel all 2022 Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2022 Notes pursuant to any provision of this Thirty-Ninth Supplemental Indenture and no 2022 Notes may be issued in substitution or exchange for any such 2022 Notes.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount.* For purposes of the provisions of the Indenture, the term "premium" as used therein will be deemed to mean, with respect to the 2022 Notes, the Make-Whole Amount. The term *"Make-Whole Amount"* means, with respect to any 2022 Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2022 Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2022 Note, the principal of such 2022 Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

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*"Discounted Value"* means, with respect to the Called Principal of any 2022 Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2022 Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of any 2022 Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the "Ask Yield(s)" reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities ("*Reported*") having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the "Ask Yields" Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2022 Note.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then "*Reinvestment Yield*" means, with respect to the Called Principal of any 2022 Note, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2022 Note.

*"Remaining Average Life"* means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

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*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2022 Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the 2022 Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above or the Indenture.

*"Settlement Date"* means, with respect to the Called Principal of any 2022 Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2022 Notes for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2022 Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2022 Notes will forthwith mature and the entire unpaid principal amount of such 2022 Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

*Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;Home Office Payment*. Notwithstanding the terms of the Indenture, the Company and the Trustee will pay (and the Company shall cause any subsequent Paying Agent to pay) all sums becoming due on the 2022 Notes to any Holder for principal of and premium (including the Make-Whole Amount), if any, and interest by the method and at the address specified for such purpose below the Holder's name in Schedule A to the Note Purchase Agreement, or by such other method or at such other address as such Holder shall have from time to time specified to the Company and the Trustee in writing for such purpose, without the presentation or surrender of such 2022 Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any 2022 Note, such Holder shall surrender such 2022 Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 3.7 of the Indenture.

*Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;Denominations*. The 2022 Notes shall be issuable in denominations of at least (i) $100,000 in the case of the 2022 Series A Notes; (ii) $100,000 in the case of the 2022 Series B Notes, and (iii) $100,000 in the case of the 2022 Series C Notes.

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**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Thirty-Ninth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented and amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Thirty-Ninth Supplemental Indenture and the 2022 Notes, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2022 Notes to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals; the Trustee*. All recitals in this Thirty-Ninth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof, including in connection with the execution and delivery of this Supplemental Indenture, as fully and with like effect as if set forth herein in full. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Supplemental Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Thirty-Ninth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Thirty-Ninth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Thirty-Ninth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Thirty-Ninth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Thirty-Ninth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Thirty-Ninth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Thirty-Ninth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest

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in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank Trust Company, National Association

Corporate Trust Services

425 Walnut Street

6<sup>th</sup> Floor

Cincinnati, Ohio 45202

Additionally, this Thirty-Ninth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Thirty-Ninth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Section 1.6, Section 12.3, and Article IV of the Indenture, which may be evidenced by the Trustee's authentication of any 2022 Notes under this Thirty-Ninth Supplemental Indenture.

*Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.* This Thirty-Ninth Supplemental Indenture and the Obligations shall be governed by and construed in accordance with the laws of the State of North Dakota.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Ninth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | <u>/s/ Todd E. Telesz</u> |
| Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz | Name:&nbsp;&nbsp;&nbsp;&nbsp;Todd E. Telesz |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer & <br>General Manager | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer & <br>General Manager |

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| | |
|:---|:---|
| (SEAL) | |
| Attest: | <u>/s/ Mark D. Foss</u> |
| | Name: Mark D. Foss |
| | Title: Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 24<sup>th</sup> day of January, 2022, by Todd E. Telesz, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Sheila E. Wald</u> |
| Name: Sheila E. Wald |
| Notary Public |
| My commission expires: May 2, 2022 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee | U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
| By: | <u>/s/ William Sicking</u> |
| Name: William Sicking | Name: William Sicking |
| Title: Vice President | Title: Vice President |

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| | |
|:---|:---|
| STATE OF OHIO |) |
| |) SS |
| COUNTY OF BUTLER |) |

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THE FOREGOING instrument was acknowledged before me this 1st day of February, 2022, by William Sicking, Vice President of U.S. Bank Trust Company, National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Margaret A. Lambert</u> |
| Name: Margaret A. Lambert |
| Notary Public |
| My commission expires: 07-17-2022 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

(to Thirty-Ninth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT B

(to Thirty-Ninth Supplemental Indenture)

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**[FORM OF 2022 SERIES A NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2022 SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2022 SERIES A NOTES, DUE FEBRUARY 15, 2042

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| | |
|:---|:---|
| No. RA-[_____] | February 15, 2022 |
| $[_______] | PPN [ ] |

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FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2042, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at a rate of 2.72% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 4.72% per annum) from the date hereof, payable semiannually on the fifteenth day of each February and August, commencing August 15, 2022, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Ninth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Ninth Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-1

(to Thirty-Ninth Supplemental Indenture)

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respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens permitted under Section 13.6 of the Indenture, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

C-1-2

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This Note is one of a series of the 2022 Series A Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Ninth Supplemental Indenture dated as of February 15, 2022 (as from time to time amended, the *"Thirty-Ninth Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated February 15, 2022, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Ninth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Ninth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Ninth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |
| [SEAL] | [SEAL] |

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C-1-3

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| | |
|:---|:---|
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

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C-1-4

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**[Form of 2022 Series B Notes]**

THIS FIRST MORTGAGE OBLIGATIONS, 2022 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2022 SERIES B NOTES, DUE AUGUST 15, 2051

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| | |
|:---|:---|
| No. RB-[_____] | February 15, 2022 |
| $[_______] | PPN [ ] |

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FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on August 15, 2051, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 3.19% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 5.19% per annum) from the date hereof, payable semiannually on the fifteenth day of each February and August, commencing August 15, 2022, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Ninth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Ninth Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-2

(to Thirty-Ninth Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2022 Series B Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Ninth Supplemental and Amendatory Indenture dated as of February 15,

C-2-2

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2022 (as from time to time amended, the *"Thirty-Ninth Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated February 15, 2022, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Ninth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Ninth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Ninth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

---

C-2-3

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---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

---

C-2-4

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**[Form of 2022 Series C Notes]**

THIS FIRST MORTGAGE OBLIGATIONS, 2022 SERIES C NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2022 SERIES C NOTES, DUE FEBRUARY 15, 2062

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| | |
|:---|:---|
| No. RC-[_____] | February 15, 2022 |
| $[_______] | PPN [ ] |

---

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2062, with interest (computed on the basis of a 360-day year of twelve 30-day months (a) on the unpaid balance hereof at a rate of 3.38% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 5.38% per annum) from the date hereof, payable semiannually on the fifteenth day of each February and August, commencing August 15, 2022, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Thirty-Ninth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Thirty-Ninth Supplement (as hereinafter defined) proves to have been false or incorrect in any material

EXHIBIT C-3

(to Thirty-Ninth Supplemental Indenture)

------

respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2022 Series C Notes (herein called the *"Notes"*) issued pursuant to the Thirty-Ninth Supplemental and Amendatory Indenture dated as of February 15,

C-3-2

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2022 (as from time to time amended, the *"Thirty-Ninth Supplement"*), between the Company and the Trustee named therein which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof and the Note Purchase Agreement dated February 15, 2022, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Thirty-Ninth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Thirty-Ninth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Thirty-Ninth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota

C-3-3

------

excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

---

---

| | |
|:---|:---|
| [SEAL] | [SEAL] |
| Attest: | Attest: |
| By: |  |
|  | Name: |
|  | Title: |

---

C-3-4

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**FORM OF 2022 NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| |
|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
| By: _____________________________________ |
| Authorized Signatory |
| Date of Authentication: February 15, 2022 |

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EXHIBIT D

(to Thirty-Ninth Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(q)**

FORTIETH SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of February 1, 2024

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2024 Series A Notes, due February 15, 2029

First Mortgage Obligations, 2024 Series B Notes, due February 15, 2031

First Mortgage Obligations, 2024 Series C Notes, due February 15, 2044

First Mortgage Obligations, 2024 Series D Notes, due February 15, 2054

Authorized by this Fortieth Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS FORTIETH SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE I. | Definitions | 4 |
| Section 1.1. | Definitions | 4 |
| ARTICLE II. | The 2024 Notes and Certain Provisions Relating Thereto | 5 |
| Section 2.1. | Authorization and Terms of the 2024 Notes | 5 |
| Section 2.2. | Form of the 2024 Notes | 6 |
| Section 2.3. | Required Prepayments | 6 |
| Section 2.4. | Optional Prepayments with Make-Whole Amount | 7 |
| Section 2.5. | Allocation of Partial Prepayments | 7 |
| Section 2.6. | Maturity; Surrender, Etc. | 7 |
| Section 2.7. | Purchase of 2024 Notes | 8 |
| Section 2.8. | Make-Whole Amount | 8 |
| Section 2.9. | Use of Proceeds | 10 |
| Section 2.10. | Acceleration | 10 |
| Section 2.11. | Home Office Payment | 10 |
| Section 2.12. | Denominations | 10 |
| ARTICLE III. | Miscellaneous | 11 |
| Section 3.1. | Supplemental Indenture | 11 |
| Section 3.2. | Recitals | 11 |
| Section 3.3. | Successors and Assigns | 11 |
| Section 3.4. | No Rights, Remedies, Etc | 11 |
| Section 3.5. | Counterparts | 11 |
| Section 3.6. | Security Agreement; Mailing Address | 11 |
| Section 3.7. | Effectiveness | 12 |
| Section 3.8. | Governing Law | 12 |

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EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Indenture Filing Information

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Property Additions

EXHIBIT C-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2024 Series A Notes

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EXHIBIT C-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2024 Series B Notes

EXHIBIT C-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2024 Series C Notes

EXHIBIT C-4&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of 2024 Series D Notes

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trustee's Authentication

-ii-

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THIS FORTIETH SUPPLEMENTAL INDENTURE, dated as of February 1, 2024 (this *"Fortieth Supplemental Indenture"*), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as successor in interest to U.S. Bank National Association, a national banking association, as trustee (in such capacity, the *"Trustee"*), whose post office address is 60 Livingston Avenue, Saint Paul, Minnesota 55107, and shall supplement that certain Indenture dated as of January 1, 1998 between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture dated as of May 5, 2015 (the *"Amended and Restated Indenture"*), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), as amended and supplemented, including as further supplemented hereby (the *"Indenture"*), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established four new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series A Notes, due February 15, 2029, (the "*2024 Series A Notes*") in the original principal amount of $25,000,000; (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series B Notes, due February 15, 2031 (the "*2024 Series B Notes*"), in the original principal amount of $25,000,000; (iii) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series C Notes, due February 15, 2044 (the "*2024 Series C Notes*"), in the original principal amount of $139,000,000; and (iv) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series D Notes, due February 15, 2054 (the "*2024 Series D Notes*"), in the original principal amount of $181,000,000 (the 2024 Series A Notes, the 2024 Series B Notes, the 2024 Series C Notes, and the 2024 Series D Notes may be referred to individually as a "*2024 Note*" and collectively as the "*2024 Notes*); such 2024 Notes being issued to the parties set forth in Schedule A of the Note Purchase Agreement described below (and their successors or assigns of the 2024 Notes, each individually, the *"Holder"* or collectively, the *"Holders"*) to secure the Company's obligations under the Note Purchase Agreement, dated as of February 12, 2024, between the Company and the Holders (the *"Note Purchase Agreement"*); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Fortieth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2024 Notes as Additional Obligations and specifying the form and provisions of the 2024 Notes;

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WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

WHEREAS, this Fortieth Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2024 Notes, to make the 2024 Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2024 Notes, in accordance with its terms, have been done and taken; and the execution and delivery of this Fortieth Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS FORTIETH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2024 Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2024 Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become

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subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

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AND IT IS HEREBY COVENANTED AND DECLARED that the 2024 Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Fortieth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article, or as amended hereby or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Fortieth Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Bismarck, North Dakota are required or authorized to be closed.

*"Default Rate"* means with respect to any Series of the 2024 Notes, that rate of interest per annum that is 2.00% above the rate of interest stated in clause (a) of the first paragraph of the 2024 Notes of such Series.

*"Holder"* or *"Holders"* are defined in the Recitals.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series"* shall refer to any series of the 2024 Notes issued under this Fortieth Supplemental Indenture.

*"2024 Notes"* are defined in the Recitals.

*"2024 Series A Notes"* are defined in the Recitals.

*"2024 Series B Notes"* are defined in the Recitals.

*"2024 Series C Notes"* are defined in the Recitals.

*"2024 Series D Notes"* are defined in the Recitals.

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**ARTICLE II**

**THE 2024 NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2024 Notes*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series A Notes, due February 15, 2029."

The aggregate principal amount of the 2024 Series A Notes which may be authenticated and delivered and Outstanding at any one time is limited to Twenty-Five Million Dollars ($25,000,000). The 2024 Series A Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2024 Series A Notes shall bear interest as provided in the form of 2024 Series A Notes attached hereto as Exhibit C-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series B Notes, due February 15, 2031."

The aggregate principal amount of the 2024 Series B Notes which may be authenticated and delivered and Outstanding at any one time is limited to Twenty-Five Million Dollars ($25,000,000). The 2024 Series B Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2024 Series B Notes shall bear interest as provided in the form of 2024 Series B Notes attached hereto as Exhibit C-2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series C Notes, due February 15, 2044."

The aggregate principal amount of the 2024 Series C Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Thirty-Nine Million Dollars ($139,000,000). The 2024 Series C Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2024 Series C Notes shall bear interest as provided in the form of 2024 Series C Notes attached hereto as Exhibit C-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series D Notes, due February 15, 2054."

The aggregate principal amount of the 2024 Series D Notes which may be authenticated and delivered and Outstanding at any one time is limited to One Hundred Eighty-One Million

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Dollars ($181,000,000). The 2024 Series D Notes shall originally be registered in the name of certain Holders, and shall be dated the date of authentication.

The 2024 Series D Notes shall bear interest as provided in the form of 2024 Series D Notes attached hereto as Exhibit C-4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2024 Notes shall be payable to the Holder in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2024 Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; *provided* that if the maturity date of any 2024 Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2024 Notes when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2024 Notes*. The 2024 Series A Notes shall each be a promissory note substantially in the form of Exhibit C-1 hereto. The 2024 Series B Notes shall each be a promissory note substantially in the form of Exhibit C-2 hereto. The 2024 Series C Notes shall each be a promissory note substantially in the form of Exhibit C-3 hereto. The 2024 Series D Notes shall each be a promissory note substantially in the form of Exhibit C-4 hereto. The Trustee's authentication certificate to be executed on the 2024 Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Required Prepayments*. (i) On August 15, 2024, and on the 15th day of each February and August thereafter to and including February 15, 2044, the Company will prepay $3,475,000.00 in principal amount (or such lesser amount as shall then be outstanding) of the 2024 Series C Notes at par and without payment of any premium of any kind (including the Make-Whole Amount), *provided* that upon any partial prepayment of the 2024 Series C Notes pursuant to Section 2.4 or partial purchase of the 2024 Series C Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2024 Series C Notes becoming due under this Section 2.3(i) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2024 Series C Notes is reduced as a result of such prepayment or purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **&nbsp;&nbsp;&nbsp;&nbsp;**On August 15, 2024, and on the 15th day of each February and August thereafter to and including February 15, 2054, the Company will prepay $3,016,666.67 in principal amount (or such lesser amount as shall then be outstanding) of the 2024 Series D Notes at par and without payment of any premium of any kind (including the Make-Whole Amount),

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provided that upon any partial prepayment of the 2024 Series D Notes pursuant to Section 2.4 or partial purchase of the 2024 Series D Notes permitted by Section 2.7, the principal amount of each required prepayment of the 2024 Series D Notes becoming due under this Section 2.3(ii) on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the 2024 Series D Notes is reduced as a result of such prepayment or purchase.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* So long as no Event of Default exists and is continuing under the Indenture, the Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any particular Series of 2024 Notes, in an amount not less than 10% of the aggregate principal amount of such particular Series of 2024 Notes then Outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each Holder of 2024 Notes written notice of each optional prepayment under this Section 2.4 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such particular Series of 2024 Notes to be prepaid on such date, the principal amount of each 2024 Note held by such Holder to be prepaid (determined in accordance with Section 2.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each Holder of such particular Series of 2024 Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. If an Event of Default exists and is continuing under the Indenture, then the Company may only prepay all 2024 Notes on a pro rata basis (and not on a Series by Series basis).

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Partial Prepayments.* In the case of each partial prepayment of any Series of the 2024 Notes pursuant to Section 2.3 or Section 2.4, the principal amount of the 2024 Notes to be prepaid shall be allocated among all of the 2024 Notes of such Series to be prepaid at the time Outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* In the case of each prepayment of 2024 Notes pursuant to this Article 2, the principal amount of each 2024 Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any 2024 Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2024 Note shall be issued in lieu of any prepaid principal amount of any 2024 Note.

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*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2024 Notes.* The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the Outstanding 2024 Notes except (a) upon the payment or prepayment of the 2024 Notes in accordance with the terms of the Indenture and the 2024 Notes or (b) (i) if no Event of Default exists and is continuing under the Indenture, pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the Holders of any particular Series of 2024 Notes at the time Outstanding upon the same terms and conditions or (ii) if an Event of Default exists and is continuing under the Indenture, such offer shall be made to all Holders of 2024 Notes upon the same terms and conditions (and not on a Series by Series basis). Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the Holders of more than 51% of the principal amount of any particular Series of 2024 Notes (or in the case of an Event of Default, more than 51% of the principal amount of all 2024 Notes) then Outstanding accept such offer, the Company shall promptly notify the remaining Holders of such fact and the expiration date for the acceptance by Holders of 2024 Notes of such offer shall be extended by the number of days necessary to give each such remaining Holder at least 10 Business Days from its receipt of such notice to accept such offer. Any consent made pursuant to the Indenture by the Holder of any 2024 Note that has transferred or has agreed to transfer such 2024 Note to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders of 2024 Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring Holder. The Company will promptly cancel all 2024 Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2024 Notes pursuant to any provision of this Fortieth Supplemental Indenture and no 2024 Notes may be issued in substitution or exchange for any such 2024 Notes.

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Make-Whole Amount.* For purposes of the provisions of the Indenture, the term "premium" as used therein will be deemed to mean, with respect to the 2024 Notes, the Make-Whole Amount. The term *"Make-Whole Amount"* means, with respect to any 2024 Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2024 Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2024 Note, the principal of such 2024 Note that is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

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*"Discounted Value"* means, with respect to the Called Principal of any 2024 Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2024 Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of any 2024 Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the "Ask Yield(s)" reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities ("*Reported*") having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the "Ask Yields" Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2024 Note.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then "*Reinvestment Yield*" means, with respect to the Called Principal of any 2024 Note, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2024 Note.

*"Remaining Average Life"* means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

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*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2024 Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the 2024 Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above or the Indenture.

*"Settlement Date"* means, with respect to the Called Principal of any 2024 Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the loan evidenced by the 2024 Notes for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2024 Notes becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2024 Notes will forthwith mature and the entire unpaid principal amount of such 2024 Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

*Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;Home Office Payment*. Notwithstanding the terms of the Indenture, the Company and the Trustee will pay (and the Company shall cause any subsequent Paying Agent to pay) all sums becoming due on the 2024 Notes to any Holder for principal of and premium (including the Make-Whole Amount), if any, and interest by the method and at the address specified for such purpose below the Holder's name in Schedule A to the Note Purchase Agreement, or by such other method or at such other address as such Holder shall have from time to time specified to the Company and the Trustee in writing for such purpose, without the presentation or surrender of such 2024 Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any 2024 Note, such Holder shall surrender such 2024 Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 3.7 of the Indenture.

*Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;Denominations*. The 2024 Notes shall be issuable in denominations of at least (i) $100,000 in the case of the 2024 Series A Notes; (ii) $100,000 in the case of the 2024 Series B Notes, (iii) $100,000 in the case of the 2024 Series C Notes and (iv) $100,000 in the case of the 2024 Series D Notes.

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**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Fortieth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented and amended is hereby confirmed. Except to the extent inconsistent with the express terms of this Fortieth Supplemental Indenture and the 2024 Notes, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2024 Notes to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals; the Trustee*. All recitals in this Fortieth Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof, including in connection with the execution and delivery of this Supplemental Indenture, as fully and with like effect as if set forth herein in full. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Supplemental Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Fortieth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Fortieth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Fortieth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Fortieth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Fortieth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Fortieth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Fortieth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of

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the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank Trust Company, National Association

Corporate Trust Services

60 Livingston Avenue

Saint Paul, MN 55107

Additionally, this Fortieth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Fortieth Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Section 1.6, Section 12.3, and Article IV of the Indenture, which may be evidenced by the Trustee's authentication of any 2024 Notes under this Fortieth Supplemental Indenture.

*Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.* This Fortieth Supplemental Indenture and the Obligations shall be governed by and construed in accordance with the laws of the State of North Dakota.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Fortieth Supplemental Indenture to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Todd Brickhouse | /s/ Todd Brickhouse |
|  | Name: | Todd Brickhouse |
|  | Title: | Chief Executive Officer & General Manager |

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(SEAL)

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| | | |
|:---|:---|:---|
| Attest: | /s/ Mark D. Foss | /s/ Mark D. Foss |
| | Name: | Mark D. Foss |
| | Title: | Assistant Secretary |

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) SS |
| COUNTY OF BURLEIGH |) |

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THE FOREGOING instrument was acknowledged before me this 29th day of January, 2024, by Todd Brickhouse, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, an electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Lisa J. Carney |
| Name: Lisa J. Carney |
| Notary Public |
| My commission expires: 10/19/2026 |

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(Notarial Seal)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee | &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee | &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Benjamin J. Krueger | /s/ Benjamin J. Krueger |
|  | Name: | Benjamin J. Krueger |
|  | Title: | Vice President |

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| | |
|:---|:---|
| STATE OF MINNESOTA |) |
| |) SS |
| COUNTY OF RAMSEY |) |

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THE FOREGOING instrument was acknowledged before me this 1st day of February, 2024, by Benjamin J. Krueger, Vice President of U.S. Bank Trust Company, National Association, a national banking association, for and on behalf of said association.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Benjamin Frederick Palmer |
| Name: Benjamin Frederick Palmer |
| Notary Public |
| My commission expires: Jan. 31, 2028 |

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(Notarial Seal)

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**[INDENTURE FILING INFORMATION]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT A

(to Fortieth Supplemental Indenture)

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**[PROPERTY ADDITIONS]**

*Exhibits to be attached by Company prior to filing because they vary by jurisdiction.*

EXHIBIT B

(to Fortieth Supplemental Indenture)

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**[FORM OF 2024 SERIES A NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2024 SERIES A NOTES, DUE FEBRUARY 15, 2029

No. RA-[_____]&nbsp;&nbsp;&nbsp;&nbsp;February [●], 2024

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN [ ]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2029, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at a rate of 5.69% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 7.69% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of each February and August, commencing August 15, 2024, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Fortieth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Fortieth Supplement (as hereinafter defined) proves to have been false or incorrect in any material respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall

EXHIBIT C-1

(to Fortieth Supplemental Indenture)

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terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens permitted under Section 13.6 of the Indenture, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2024 Series A Notes (herein called the *"Notes"*) issued pursuant to the Fortieth Supplemental Indenture dated as of February 1, 2024 (as from time to

C-1-2

------

time amended, the *"Fortieth Supplement"*), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*), and is entitled to the benefits thereof and the Note Purchase Agreement dated February 12, 2024, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Fortieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Fortieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Fortieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

C-1-3

------

Attest:

---

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

---

C-1-4

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**[FORM OF 2024 SERIES B NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES B NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2024 SERIES B NOTES, DUE FEBRUARY 15, 2031

No. RB-[_____]&nbsp;&nbsp;&nbsp;&nbsp;February [●], 2024

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN [ ]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2031, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at a rate of 6.00% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 8.00% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of each February and August, commencing August 15, 2024, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Fortieth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Fortieth Supplement (as hereinafter defined) proves to have been false or incorrect in any material respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall

EXHIBIT C-2

(to Fortieth Supplemental Indenture)

------

terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens permitted under Section 13.6 of the Indenture, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2024 Series B Notes (herein called the *"Notes"*) issued pursuant to the Fortieth Supplemental Indenture dated as of February 1, 2024 (as from time to

C-2-2

------

time amended, the *"Fortieth Supplement"*), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*), and is entitled to the benefits thereof and the Note Purchase Agreement dated February 12, 2024, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Fortieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Fortieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Fortieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

C-2-3

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Attest:

---

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

---

C-2-4

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**[Form of 2024 Series C Notes]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES C NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2024 SERIES C NOTES, DUE FEBRUARY 15, 2044

No. RC-[_____]&nbsp;&nbsp;&nbsp;&nbsp;February [●], 2024

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN [ ]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2044, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at a rate of 6.14% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 8.14% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of each February and August, commencing August 15, 2024, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Fortieth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Fortieth Supplement (as hereinafter defined) proves to have been false or incorrect in any material respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall

EXHIBIT C-3

(to Fortieth Supplemental Indenture)

------

terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens permitted under Section 13.6 of the Indenture, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2024 Series C Notes (herein called the *"Notes"*) issued pursuant to the Fortieth Supplemental Indenture dated as of February 1, 2024 (as from time to

C-3-2

------

time amended, the *"Fortieth Supplement"*), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*), and is entitled to the benefits thereof and the Note Purchase Agreement dated February 12, 2024, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Fortieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Fortieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Fortieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

---

[SEAL]

C-3-3

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Attest:

---

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

---

C-3-4

------

**[FORM OF 2024 SERIES D NOTES]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES D NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE *"SECURITIES ACT"*), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

BASIN ELECTRIC POWER COOPERATIVE

FIRST MORTGAGE OBLIGATIONS, 2024 SERIES D NOTES, DUE FEBRUARY 15, 2054

No. RD-[_____]&nbsp;&nbsp;&nbsp;&nbsp;February [●], 2024

$[_______]&nbsp;&nbsp;&nbsp;&nbsp;PPN [ ]

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS (or so much thereof as shall not have been prepaid) on February 15, 2054, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at a rate of 6.39% per annum (or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined) 8.39% per annum) from the date hereof, payable semiannually on the 15<sup>th</sup> day of each February and August, commencing August 15, 2024, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Fortieth Supplement referred to below), payable as aforesaid (or, at the option of the registered Holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate.

*"Interest Rate Adjustment Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Note Purchase Agreement (as defined below); *provided* that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Indenture or the Note Purchase Agreement (as hereinafter defined) or in any writing furnished in connection with the transactions contemplated by the Note Purchase Agreement or the Fortieth Supplement (as hereinafter defined) proves to have been false or incorrect in any material respect on the date as of which made; *provided* that, such Interest Rate Adjustment Event shall

EXHIBIT C-4

(to Fortieth Supplemental Indenture)

------

terminate upon the Company providing accurate information in writing to the Holder of this Note correcting such false or incorrect representation or warranty; *provided*, *further* that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to pay any portion of the principal, interest, make-whole amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Company is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens permitted under Section 13.6 of the Indenture, or the Company or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien.

*"Material Adverse Effect"* means a material adverse effect on (i) the business, operations, affairs, financial condition, assets, or properties of the Company and its Subsidiaries taken as a whole, (ii) the ability of the Company to perform its obligations under this Note, the Note Purchase Agreement or the Indenture, or (iii) the validity or enforceability of this Note, the Note Purchase Agreement or the Indenture.

Payments of principal of, interest on, any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at Wells Fargo Bank, N.A. in Bismarck, North Dakota or at such other place as the Company shall have designated by written notice to the Holder of this Note as provided in the Note Purchase Agreement (as defined below).

This Note is one of a series of the 2024 Series D Notes (herein called the *"Notes"*) issued pursuant to the Fortieth Supplemental Indenture dated as of February 1, 2024 (as from time to

C-4-2

------

time amended, the *"Fortieth Supplement"*), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*), and is entitled to the benefits thereof and the Note Purchase Agreement dated February 12, 2024, between the Company and the purchasers listed in Schedule A thereto (the *"Note Purchase Agreement"*). Each Holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 16 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Fortieth Supplement.

This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The Company will make required prepayments of principal on the dates and in the amounts specified in the Fortieth Supplement. This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in Fortieth Supplement, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | |
| | Name: |
| | Its: |

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[SEAL]

C-4-3

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Attest:

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

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C-4-4

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**FORM OF 2024 NOTE**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee | U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: February [●], 2024

EXHIBIT D

(to Fortieth Supplemental Indenture)

## Exhibit 4.1

**Exhibit 4.1(r)**

FORTY-FIRST SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of November 1, 2024

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2024 Series E Note, due November 15, 2034

First Mortgage Obligations, 2024 Series F Note, due May 15, 2035

Authorized by this Forty-First Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE - THIS FORTY-FIRST SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| ARTICLE I. | Definitions |
| Section 1.1. | Definitions |
| ARTICLE II. | The 2024 CoBank Notes and Certain Provisions Relating Thereto |
| Section 2.1. | Authorization and Terms of the 2024 CoBank Notes |
| Section 2.2. | Form of the 2024 CoBank Notes |
| Section 2.3. | Repayment |
| Section 2.4. | Optional Prepayments with Make-Whole Amount |
| Section 2.5. | Application of Partial Prepayments |
| Section 2.6. | Maturity; Surrender, Etc. |
| Section 2.7. | [Reserved] |
| Section 2.8. | Make-Whole Amount |
| Section 2.9. | Use of Proceeds |
| Section 2.10. | Acceleration |
| ARTICLE III. | Miscellaneous |
| Section 3.1. | Supplemental Indenture |
| Section 3.2. | Recitals |
| Section 3.3. | Successors and Assigns |
| Section 3.4. | No Rights, Remedies, Etc |
| Section 3.5. | Counterparts |
| Section 3.6. | Security Agreement; Mailing Address |
| Section 3.7. | Effectiveness |
| Section 3.8. | Governing Law |

---

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| | |
|:---|:---|
| EXHIBIT A | Indenture Filing Information |
| EXHIBIT B | Property Additions |
| EXHIBIT C-1 | Form of 2024 Series E Note |
| Exhibit C-2 | Form of 2024 Series F Note |
| EXHIBIT D | Form of Trustee's Authentication |

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THIS FORTY-FIRST SUPPLEMENTAL INDENTURE, dated as of November 1, 2024 (the "*Forty-First Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as successor in interest to U.S. Bank National Association, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 111 Filmore Avenue, Saint Paul, Minnesota 55107, and shall supplement that certain Indenture dated January 1, 1998, between the Company and the Trustee, as heretofore supplemented, amended and restated;

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture, dated as of May 5, 2015 (the "*Amended and Restated Indenture*"), which supplemented, amended and restated the Existing Indenture (capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof), as amended and supplemented, including as further supplemented hereby (the "*Indenture*"), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established two new series of Additional Obligations to be designated as (i) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series E Note, due November 15, 2034 (the "*2024 Series E Note*") in the original principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000); and (ii) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series F Note, due May 15, 2035 (the "*2024 Series F Note*") in the original principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000) (the 2024 Series E Note and the 2024 Series F Note may be referred to individually as a "*2024 CoBank Note*" and collectively as the "*2024 CoBank Notes*"); such 2024 CoBank Notes being issued to CoBank, ACB (and its successors and assigns) (the "*Lender*") in order to secure the Company's obligations under that certain Term Loan Agreement, to be dated on or about November 22, 2024 (the "*Loan Agreement*"), between the Company and the Lender, providing for term loans in the aggregate principal amount of TWO HUNDRED MILLION DOLLARS ($200,000,000); and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company desires to execute and deliver this Forty-First Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2024 CoBank Notes as Additional Obligations and specifying the form and provisions of the 2024 CoBank Notes;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

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WHEREAS, this Forty-First Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the 2024 CoBank Notes, to make the 2024 CoBank Notes to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2024 CoBank Notes, in accordance with their terms, have been done and taken; and the execution and delivery of this Forty-First Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS FORTY-FIRST SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium (including the Make-Whole Amount), if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2024 CoBank Notes, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2024 CoBank Notes are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted

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Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2024 CoBank Notes are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

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**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Forty-First Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Forty-First Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means a day (other than a Saturday or Sunday) on which banks generally are open in New York City, New York, for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system.

*"Default Rate"* means, with respect to any Series of the 2024 CoBank Notes, that rate of interest per annum that is 2.00% above the rate of interest stated in clause (a) of the first paragraph of the 2024 CoBank Notes of such Series.

*"Make-Whole Amount"* is defined in Section 2.8.

*"Series"* shall refer to any series of the 2024 CoBank Notes issued under this Forty-First Supplemental Indenture.

*"2024 CoBank Notes"* are defined in the Recitals.

*"2024 Series E Note"* is defined in the Recitals.

*"2024 Series F Note"* is defined in the Recitals.

*"Loan"* shall have the meaning given in Section 2.01 of the Loan Agreement.

**ARTICLE II**

**THE 2024 COBANK NOTES AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2024 CoBank Notes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There shall be established two new series of Additional Obligations to be designated as (a) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series E Note, due November 15, 2034, in the original principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000); and (b) the Basin Electric Power Cooperative First Mortgage Obligations, 2024 Series F Note, due May 15, 2035, in the original principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000). Each of the 2024 CoBank Notes are the same Notes described and defined in the Loan Agreement as the "Note."

The aggregate principal amount of the 2024 CoBank Notes which may be authenticated and delivered and Outstanding at any one time is limited to TWO HUNDRED MILLION DOLLARS ($200,000,000). The 2024 CoBank Notes shall originally be registered in the name of the Lender, and shall be dated the date of authentication.

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The 2024 CoBank Notes shall bear interest and interest shall be payable as provided in Section 2.04(a) of the Loan Agreement. Interest shall accrue and be calculated pursuant to Section 2.04(b) of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2024 CoBank Notes shall be payable to the Lender in immediately available funds as described in such notes. Any payment of principal of or premium (including the Make-Whole Amount), if any, or interest on any 2024 CoBank Note that is due on a date other than a Business Day shall, subject to Section 2.09(a) of the Loan Agreement, be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company fails to make any payment with respect to the 2024 CoBank Notes when due, then such payment shall accrue interest from the date due until the date paid at the applicable Default Rate as set forth in Section 2.04(a) of the Loan Agreement.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2024 CoBank Notes*. The 2024 CoBank Notes shall each be a promissory note substantially in the form of Exhibit C hereto. The Trustee's authentication certificate to be executed on the 2024 CoBank Notes shall be substantially in the form of Exhibit D attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Repayment*. The 2024 CoBank Notes shall be payable in such amounts and on such dates as set forth in Section 2.05(a) of the Loan Agreement.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Optional Prepayments with Make-Whole Amount.* The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Loans only to the extent permitted by Section 2.05(b) of the Loan Agreement. In the event the Company desires to prepay the Loan, it shall notify the Lender in writing, as provided in Section 2.05(b) of the Loan Agreement, not less than fifteen (15) Business Days and not more than sixty (60) days prior to the date (which shall be a Business Day) fixed by the Company for such prepayment. Unless otherwise agreed to by the Lender in writing, all such notices shall be irrevocable. On the date fixed for prepayment, the Company shall prepay the Loans (or so much thereof as provided in the Company's notice), together with interest accrued thereon to the date of such prepayment and any Make-Whole Amount due in connection with such prepayment, as determined pursuant to Section 2.8 hereof.

*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Application of Partial Prepayments.* All partial prepayments shall be applied to principal installments owing on the Loans as set forth in Section 2.05(b) of the Loan Agreement.

*Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Maturity; Surrender, Etc.* In the case of each prepayment of a 2024 CoBank Note pursuant to this Article 2, the principal amount of each 2024 CoBank Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-

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Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. A 2024 CoBank Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2024 CoBank Note shall be issued in lieu of any prepaid principal amount of any 2024 CoBank Note.

*Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;[ Reserved ]* 

*Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Amount.* For purposes of the provisions of the Indenture, the term "premium" as used therein will be deemed to mean, with respect to the 2024 CoBank Notes, the Make-Whole Amount. The term *"Make-Whole Amount"* means, with respect to any 2024 CoBank Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2024 CoBank Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

*"Called Principal"* means, with respect to any 2024 CoBank Note, the principal of such 2024 CoBank Note that is to be prepaid pursuant to Section 2.4 hereof or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*"Discounted Value"* means, with respect to the Called Principal of any 2024 CoBank Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2024 CoBank Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

*"Reinvestment Yield"* means, with respect to the Called Principal of any 2024 CoBank Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the "Ask Yield(s)" reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities ("*Reported*") having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the "Ask Yields" Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2024 CoBank Note.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then "*Reinvestment Yield*" means, with respect to the Called Principal of any 2024 CoBank Note, the sum of (x) 0.50% plus (y) the yield to

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maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2024 CoBank Note.

*"Remaining Average Life"* means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

*"Remaining Scheduled Payments"* means, with respect to the Called Principal of any 2024 CoBank Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, *provided* that if such Settlement Date is not a date on which interest payments are due to be made under the 2024 CoBank Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.4 above or the Indenture.

*"Settlement Date"* means, with respect to the Called Principal of any 2024 CoBank Note, the date on which such Called Principal is to be prepaid pursuant to Section 2.4 hereof or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

*Section 2.9.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the Loans evidenced by the 2024 CoBank Notes to finance capital expenditures or for general corporate purposes.

*Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Acceleration*. Upon any 2024 CoBank Note becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, such 2024 CoBank Note will forthwith mature and the entire unpaid principal amount of such 2024 CoBank Note, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

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**ARTICLE III**

**MISCELLANEOUS**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Forty-First Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Forty-First Supplemental Indenture and the 2024 CoBank Notes, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2024 CoBank Notes to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals*. All recitals in this Forty-First Supplemental Indenture are made by the Company only and not by the Trustee; and all of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Forty-First Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Forty-First Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies, Etc.* Nothing in this Forty-First Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Forty-First Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Forty-First Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Forty-First Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement; Mailing Address.* To the extent permitted by applicable law, this Forty-First Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest

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in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. The mailing address of the Company,

as debtor is:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party is:

U.S. Bank Trust Company, National Association

Corporate Trust Services

111 Filmore Avenue

Saint Paul, MN 55107

Additionally, this Forty-First Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Existing Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.* This Forty-First Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions, and other documents required under Sections 1.6, 12.1, and 12.3, and Article IV of the Indenture, which may be evidenced by the Trustee's authentication of the 2024 CoBank Notes under this Forty-First Supplemental Indenture.

*Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.* This Forty-First Supplemental Indenture and the Obligations shall be governed by and construed in accordance with the laws of the State of North Dakota.

[Signatures on Next Page]

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IN WITNESS WHEREOF, the parties hereto have caused this Forty-First Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Todd Brickhouse |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: Todd Brickhouse  | &nbsp;&nbsp;&nbsp;&nbsp;Name: Todd Brickhouse  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer & <br>General Manager | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer & <br>General Manager |

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| | |
|:---|:---|
| Attest: | /s/ Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Mark D. Foss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 13<sup>th</sup> day of November, 2024, by Todd Brickhouse, Chief Executive Officer and General Manager of Basin Electric Power Cooperative, an electric cooperative corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Lisa J. Carney______________________</u> |
| Name: Lisa J. Carney |
| Notary Public |
| My commission expires: 10/19/2026 |

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(Notarial Seal)

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| | |
|:---|:---|
| U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee | U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
| By: | /s/ Benjamin J. Krueger |
| &nbsp;&nbsp;&nbsp;&nbsp; Name: Benjamin J. Krueger | &nbsp;&nbsp;&nbsp;&nbsp; Name: Benjamin J. Krueger |
| &nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President | &nbsp;&nbsp;&nbsp;&nbsp; Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President |

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STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;)) SS

COUNTY OF RAMSEY&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 7th day of November, 2024, by Benjamin J. Krueger, Vice President of US Bank Trust Company, National Association, for and on behalf of said association, as Trustee.

WITNESS my hand and official seal.

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| |
|:---|
| <u>/s/ Benjamin Frederick Palmer</u> |
| Notary Public |
| My commission expires: Jan 31, 2028 |

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(Notarial Seal)

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**EXHIBIT A**

**[INDENTURE FILING INFORMATION]**

EXHIBIT A

(to Forty-First Supplemental Indenture)

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**EXHIBIT B**

**[PROPERTY ADDITIONS]**

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**EXHIBIT C-1**

**[FORM OF 2024 SERIES E NOTE]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES E NOTE, HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2024 SERIES E NOTE, DUE NOVEMBER 15, 2034**

**$100,000,000.00&nbsp;&nbsp;&nbsp;&nbsp;Date: [_____________]**

**FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE** (herein called the "Company"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to **COBANK, ACB** ("CoBank"), or registered assigns, the principal sum of **ONE HUNDRED MILLION DOLLARS** ($100,000,000.00), or, if less, the aggregate amount of the Initial Term Loan (as defined in the Loan Agreement referred to below) made by CoBank to the Company pursuant to Section 2.01 of that certain Term Loan Agreement dated as of November 22, 2024, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"), in such amounts and on such dates as set forth in Section 2.05(a)(i) of the Loan Agreement. In addition, the Company also promises to pay to CoBank or its registered assigns interest on the unpaid principal balance of the Initial Term Loan for the period such balance is outstanding in like money, at the rates of interest, at the times, and calculated in the manner set forth in the Loan Agreement. All payments made hereunder shall be made at the times in the manner set forth in the Loan Agreement. If not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on November 15, 2034 (the "Maturity Date"). Further, upon an Interest Rate Adjustment Event (as defined in the Loan Agreement), CoBank or its registered assigns shall be entitled to additional interest on the unpaid principal balance of the Initial Term Loan on the terms specified in Section 2.04(a) of the Loan Agreement. This Note is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in Section 2.05(b) of the Loan Agreement, but not otherwise.

This First Mortgage Obligations, 2024 Series E Note is one of a series of the 2024 CoBank Notes (herein called the "Notes") issued pursuant to the Forty-First Supplemental Indenture dated as of November 1, 2024 (as from time to time amended, the "Forty-First Supplement"), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the "Indenture"). This Note is a "Note" referred to in, and has been executed and delivered pursuant to, the Loan Agreement, and constitutes an "Obligation" (as defined in the Indenture) under the Indenture. This Note is equally and ratably secured, to the extent provided in the Indenture, by the Trust Estate, except and excluding the Excepted Property and the Excludable Property. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Forty-First Supplement.

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the

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Company, the Trustee and the owner of this Note, the terms upon which this Note is issued and secured, and the modification or amendment of the Indenture, to all of which the registered owner of this Note assents by the acceptance of this Note.

This Note is a registered Obligation and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The principal hereof and accrued interest thereon may be declared to be forthwith due and payable in the manner, upon the conditions, and with the effect provided in the Indenture, and with respect to any other amount due under the Loan Agreement, as provided in the Indenture or the Loan Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice of law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| |
|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** ___________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Todd Brickhouse |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and General Manager |

---

---

| |
|:---|
| **Attest:** |
| **By:** ______________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

---

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**EXHIBIT C-2**

**[FORM OF 2024 SERIES F NOTE]**

THIS FIRST MORTGAGE OBLIGATIONS, 2024 SERIES F NOTE, HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH AN EXEMPTION IS REQUIRED BY LAW.

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2024 SERIES F NOTE, DUE MAY 15, 2035**

**$100,000,000.00&nbsp;&nbsp;&nbsp;&nbsp;Date: [___________]**

**FOR VALUE RECEIVED,** the undersigned, **BASIN ELECTRIC POWER COOPERATIVE** (herein called the "Company"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to **COBANK, ACB** ("CoBank"), or registered assigns, the principal sum of **ONE HUNDRED MILLION DOLLARS** ($100,000,000.00), or, if less, the aggregate amount of the Incremental Term Loan (as defined in the Loan Agreement referred to below) made by CoBank to the Company pursuant to Section 2.01 of that certain Term Loan Agreement dated as of November 22, 2024, between the Company and CoBank (as amended or restated from time to time, the "Loan Agreement"), in such amounts and on such dates as set forth in Section 2.05(a)(ii) of the Loan Agreement. In addition, the Company also promises to pay to CoBank or its registered assigns interest on the unpaid principal balance of the Incremental Term Loan for the period such balance is outstanding in like money, at the rates of interest, at the times, and calculated in the manner set forth in the Loan Agreement. All payments made hereunder shall be made at the times in the manner set forth in the Loan Agreement. If not sooner paid, any balance of the principal amount and interest accrued thereon shall be due and payable on May 15, 2035 (the "Maturity Date"). Further, upon an Interest Rate Adjustment Event (as defined in the Loan Agreement), CoBank or its registered assigns shall be entitled to additional interest on the unpaid principal balance of the Incremental Term Loan on the terms specified in Section 2.04(a) of the Loan Agreement. This Note is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in Section 2.05(b) of the Loan Agreement, but not otherwise.

This First Mortgage Obligations, 2024 Series F Note is one of a series of the 2024 CoBank Notes (herein called the "Notes") issued pursuant to the Forty-First Supplemental Indenture dated as of November 1, 2024 (as from time to time amended, the "Forty-First Supplement"), between the Company and the Trustee named therein, which supplements and amends the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the "Indenture"). This Note is a "Note" referred to in, and has been executed and delivered pursuant to, the Loan Agreement, and constitutes an "Obligation" (as defined in the Indenture) under the Indenture. This Note is equally and ratably secured, to the extent provided in the Indenture, by the Trust Estate, except and excluding the Excepted Property and the Excludable Property. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Forty-First Supplement.

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the owner of this Note, the terms upon which this Note is issued and secured,

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and the modification or amendment of the Indenture, to all of which the registered owner of this Note assents by the acceptance of this Note.

This Note is a registered Obligation and, as provided in the Indenture, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed, by the registered Holder hereof or such Holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

The principal hereof and accrued interest thereon may be declared to be forthwith due and payable in the manner, upon the conditions, and with the effect provided in the Indenture, and with respect to any other amount due under the Loan Agreement, as provided in the Indenture or the Loan Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Note shall be governed by, the law of the State of North Dakota excluding choice of law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

**IN WITNESS WHEREOF,** Basin Electric Power Cooperative has caused this Note to be duly executed by one of its officers thereunto duly authorized as of the date first written above.

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| |
|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** |
| **By:** ___________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Todd Brickhouse |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and General Manager |

---

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| |
|:---|
| **Attest:** |
| **By:** ______________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark D. Foss |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |

---

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**EXHIBIT D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION**, <br>as Trustee | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION**, <br>as Trustee |
| By: |  |
|  | Authorized Signatory |

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Date of Authentication: _________________

## Exhibit 4.1

**Exhibit 4.1(s)**

FORTY-SECOND SUPPLEMENTAL INDENTURE

(to that certain Amended and Restated Indenture dated as of May 5, 2015)

Dated as of September 15, 2025

Relating to the Basin Electric Power Cooperative

First Mortgage Obligations, 2025 Series A Bonds, due October 15, 2055

Authorized by this Forty-Second Supplemental Indenture

BASIN ELECTRIC POWER COOPERATIVE

to

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, TRUSTEE

FIRST MORTGAGE OBLIGATIONS

THIS INSTRUMENT GRANTS A SECURITY INTEREST IN THE PROPERTY OF A TRANSMITTING UTILITY. THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY CLAUSE. PROCEEDS AND PRODUCTS OF COLLATERAL ARE COVERED BY THIS INSTRUMENT. FUTURE OBLIGATIONS ARE SECURED BY THIS INSTRUMENT. NOTICE – THIS FORTY-SECOND SUPPLEMENTAL INDENTURE, TOGETHER WITH THAT CERTAIN AMENDED AND RESTATED INDENTURE DATED AS OF MAY 5, 2015, AS HERETOFORE SUPPLEMENTED AND AMENDED (DESCRIBED MORE PARTICULARLY HEREIN) SECURE AN UNLIMITED AMOUNT OF OBLIGATIONS AND SUCH AMOUNT, TOGETHER WITH INTEREST, IS SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED AND FILED INDENTURES, MORTGAGES OR LIENS WITH RESPECT TO THE PROPERTY INTERESTS OF THE COMPANY. THIS INDENTURE IS A SECURITY AGREEMENT WHEREBY THE COMPANY GRANTS TO THE TRUSTEE A SECURITY INTEREST IN ALL OF THE TRUST ESTATE THAT IS PERSONAL PROPERTY OR FIXTURES UNDER THE UNIFORM COMMERCIAL CODE.

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THIS FORTY-SECOND SUPPLEMENTAL INDENTURE, dated as of September 15, 2025 (this "*Forty-Second Supplemental Indenture*"), is between BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Grantor (hereinafter called the *"Company"*), whose post office address is 1717 East Interstate Avenue, Bismarck, North Dakota 58503-0564, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as successor in interest to U.S. Bank National Association, a national banking association, as trustee (in such capacity, the "*Trustee*"), whose post office address is 60 Livingston Avenue, Saint Paul, Minnesota 55107, and shall supplement the Indenture (as defined below). Capitalized terms used herein shall have the meanings ascribed to them in the Indenture and as provided in Section 1.1 hereof.

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Amended and Restated Indenture, dated as of May 5, 2015 (which supplemented, amended and restated that certain Indenture, dated as of January 1, 1998, between the Company and the Trustee), as previously supplemented and amended, and as further supplemented hereby (the "*Indenture*"), for the purpose of securing its Outstanding Secured Obligations and providing for the authentication and delivery of Additional Obligations by the Trustee from time to time under the Indenture, which Indenture is filed of record as shown on Exhibit A hereto;

WHEREAS, the Board of Directors of the Company has established a new series of Additional Obligations to be designated as the Basin Electric Power Cooperative First Mortgage Obligations, 2025 Series A Bonds, due October 15, 2055 (the "*2025 Series A Bonds*") in the original principal amount of SEVEN HUNDRED MILLION DOLLARS ($700,000,000); such 2025 Series A Bonds are being issued pursuant to that certain Purchase Agreement, dated as of October 6, 2025 (the "*Purchase Agreement*"), between the Company and the parties set forth in Schedule I of the Purchase Agreement; and the Company has complied or will comply with all provisions required to issue Additional Obligations provided for in the Indenture;

WHEREAS, the Company will enter into that certain Exchange and Registration Rights Agreement with Wells Fargo Securities, LLC, PNC Capital Markets LLC, and U.S. Bancorp Investments, Inc., as representatives of the Purchasers (as defined therein), to be dated on or about October 14, 2025 (as it may be amended, supplemented or modified, the "*Registration Rights Agreement*"), pursuant to which the Company will agree to register the 2025 Series A Bonds under the Securities Act of 1933, as amended (the "*Securities Act*"), with the Securities and Exchange Commission (the "*Commission*");

WHEREAS, the Company desires to execute and deliver this Forty-Second Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of providing for the creation and designation of the 2025 Series A Bonds as Additional Obligations and specifying the form and provisions of the 2025 Series A Bonds;

WHEREAS, Section 12.1 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee, may enter into Supplemental Indentures for the purposes and subject to the conditions set forth in said Section 12.1;

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WHEREAS, this Forty-Second Supplemental Indenture is permitted pursuant to the provisions of Section 12.1 C of the Indenture; and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of, premium, if any, and interest on the 2025 Series A Bonds, to make the 2025 Series A Bonds to be issued hereunder, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute the Indenture a valid and binding lien for the security of the 2025 Series A Bonds, in accordance with its terms, have been done and taken; and the execution and delivery of this Forty-Second Supplemental Indenture has been in all respects duly authorized;

NOW, THEREFORE, THIS FORTY-SECOND SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of, premium, if any, and interest on the Outstanding Secured Obligations, including, when issued, the 2025 Series A Bonds, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the Cut-Off Date, to secure performance of the covenants therein and herein contained, to declare the terms and conditions on which the 2025 Series A Bonds are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, in trust, all property, rights, privileges and franchises (other than Excepted Property or Excludable Property) of the Company of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the Cut-Off Date (the descriptions of the real property included in said Trust Estate are set forth on Exhibit B hereto) subject to all exceptions, reservations and matters of the character therein referred to, and subject in all cases to Sections 5.2 and 11.2B of the Indenture and to the rights of the Company under the Indenture, including the rights set forth in Article V thereof; but expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as "Excepted Property" or "Excludable Property" in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 9.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Paragraphs A through H, inclusive, of "Excepted Property" in the Indenture then owned or thereafter acquired by the Company, shall immediately, and, in the case of any Excepted Property described or referred to in Paragraphs I, J, L and N of "Excepted Property" in the Indenture, upon demand of the Trustee or such other trustee or receiver, become subject to the lien of the Indenture to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and whenever all Events of Default shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted

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Property shall again be excepted and excluded from the lien of the Indenture to the extent and otherwise as hereinabove set forth and as set forth in the Indenture.

The Company may, however, pursuant to the Third Granting Clause of the Indenture, subject to the lien of the Indenture any Excepted Property or Excludable Property, whereupon the same shall cease to be Excepted Property or Excludable Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default and subject to the provisions of Article V of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article V of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, Designated Qualifying Securities and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate. Should the indebtedness secured by the Indenture be paid according to the tenor and effect thereof when the same shall become due and payable and should the Company perform all covenants herein contained in a timely manner, then the Indenture shall be canceled and surrendered.

AND IT IS HEREBY COVENANTED AND DECLARED that the 2025 Series A Bonds are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

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**ARTICLE I**

**DEFINITIONS**

*Section 1.1.&nbsp;&nbsp;&nbsp;&nbsp;Definitions*. All words and phrases defined in Article I of the Indenture shall have the same meaning in this Forty-Second Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in this Article or unless the context clearly requires otherwise. In addition, each of the following terms has the following meaning in this Forty-Second Supplemental Indenture unless the context clearly requires otherwise.

*"Business Day"* means any day other than a Saturday, a Sunday, or a day on which commercial banks in New York, New York, or Bismarck, North Dakota, are required or authorized to be closed.

"*close of business*" means 5:00 p.m., New York City time.

"*Closing Date*" means October 14, 2025.

"*Commission*" is defined in the Recitals.

"*Distribution Compliance Period*" means, with respect to any 2025 Series A Bonds, the period of 40 consecutive days beginning on and including the later of (i) the day on which such 2025 Series A Bonds are first offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in reliance on Regulation S and (ii) the issue date with respect to such 2025 Series A Bonds.

*"Interest Payment Date"* means April 15 and October 15 of each year, commencing on April 15, 2026.

"*Par Call Date*" means April 15, 2055 (the date that is six months prior to the maturity date of the 2025 Series A Bonds).

"*Purchase Agreement*" is defined in the Recitals.

"*Record Date"* means the 1<sup>st</sup> day (whether or not a Business Day) of the calendar month of such Interest Payment Date.

"*Registration Rights Agreement*" is defined in the Recitals.

"*Regulation S*" means Regulation S promulgated under the Securities Act.

"*Rule 144A*" means Rule 144A promulgated under the Securities Act.

"*Securities Act*" is defined in the Recitals.

"*Treasury Rate*" means, with respect to any redemption date, the yield determined by the Company in accordance with the following two paragraphs:

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The Treasury Rate shall be determined by the Company after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day preceding the redemption date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as "Selected Interest Rates (Daily) - H.15" (or any successor designation or publication) ("H.15") under the caption "U.S. government securities–Treasury constant maturities–Nominal" (or any successor caption or heading) ("H.15 TCM"). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the "Remaining Life"); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the redemption date.

If on the third business day preceding the redemption date H.15 TCM is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

"*2025 Series A Bonds*" are defined in the Recitals.

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**ARTICLE II**

**THE 2025 SERIES A BONDS AND CERTAIN PROVISIONS RELATING THERETO**

*Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Terms of the 2025 Series A Bonds*. (i) There shall be established a series of Additional Obligations known as and entitled the "Basin Electric Power Cooperative First Mortgage Obligations, 2025 Series A Bonds, due October 15, 2055."

The aggregate principal amount of the 2025 Series A Bonds which may be authenticated and delivered and Outstanding at any one time is limited to Seven Hundred Million Dollars ($700,000,000).

Pursuant to the Registration Rights Agreement, the Company will register the 2025 Series A Bonds under the Securities Act with the Commission. For the purposes of this paragraph and Exhibit C attached hereto, the 2025 Series A Bonds issued on the Closing Date shall be referred to as the "*Initial 2025 Series A Bonds*" and the 2025 Series A Bonds issued in exchange for Initial 2025 Series A Bonds pursuant to the Exchange Offer (as hereinafter defined) shall be referred to as the "*Exchange 2025 Series A Bonds*." The Registration Rights Agreement requires the Company to register the Initial 2025 Series A Bonds (i) by exchanging the Initial 2025 Series A Bonds for Exchange 2025 Series A Bonds pursuant to a registered offer (the "*Exchange Offer*") and/or (ii) if applicable, by filing an Alternative Registration Statement (as defined in the Registration Rights Agreement). For all purposes under this Forty-Second Supplemental Indenture, each series of the Initial 2025 Series A Bonds and the related Exchange 2025 Series A Bonds shall be treated as a single series of 2025 Series A Bonds.

The 2025 Series A Bonds shall bear interest as provided in the form of 2025 Series A Bonds attached hereto as Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;The principal of, premium, if any, and interest on the 2025 Series A Bonds shall be payable to the Person in whose name the 2025 Series A Bonds are registered at the close of business on the Record Date applicable to such Interest Payment Date or principal payment date. Interest on the 2025 Series A Bonds shall be computed on the basis of a 360-day year of twelve 30-day months, from the date of issuance or from the most recent Interest Payment Date to which interest has been paid or provided for, payable in arrears on each Interest Payment Date. The 2025 Series A Bonds shall be dated the date of authentication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The 2025 Series A Bonds will be issued as one or more fully registered global bonds (each, a "*Global 2025 Series A Bond*") and in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

The Global 2025 Series A Bonds shall originally be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("*DTC*"), pursuant to the Depository's Book-Entry System. Purchases of beneficial interests in the Global 2025 Series A Bonds will be made in book-entry form, without certificates. If at any time the Book-Entry System is discontinued for the 2025 Series A Bonds, the Global 2025 Series A Bonds will be exchangeable for other fully registered certificated 2025 Series A Bonds of like tenor and of an equal aggregate principal amount, in authorized denominations. The Trustee may impose a charge sufficient to reimburse

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the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a 2025 Series A Bond. The cost, if any, of preparing each new certificated 2025 Series A Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by the person requesting such exchange or transfer.

*Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Form of the 2025 Series A Bonds; Transfer and Exchange.*&nbsp;&nbsp;&nbsp;&nbsp;(a) The Initial 2025 Series A Bonds are being offered and sold by the Company pursuant to the Purchase Agreement. The Initial 2025 Series A Bonds will be resold initially only to (i) Persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A) ("*QIBs*") in reliance on Rule 144A and (ii) Persons other than U.S. Persons (as defined in Regulation S) in transactions outside the United States in reliance on Regulation S. The Initial 2025 Series A Bonds may thereafter be transferred to, among others, QIBs and purchasers in reliance on Regulation S, in each case, subject to the restrictions on transfer set forth herein.

Initial 2025 Series A Bonds initially resold pursuant to Rule 144A shall be issued initially in the form of one or more permanent Global 2025 Series A Bonds (collectively, the "*Rule 144A Global 2025 Series A Bond*") and Initial 2025 Series A Bonds initially resold pursuant to Regulation S shall be issued initially in the form of one or more temporary Global 2025 Series A Bonds (collectively, the "*Temporary Regulation S Global 2025 Series A Bond*"), in each case substantially in the form of Exhibit C hereto, without interest coupons, and with the global securities legends and applicable restrictive legends set forth in Exhibit C hereto, and with such other appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

Upon the consummation of the Exchange Offer, the Company shall issue, and the Trustee shall authenticate upon a Company Order, Exchange 2025 Series A Bonds in the form of one or more permanent Global 2025 Series A Bonds in exchange for Initial 2025 Series A Bonds accepted for exchange in the Exchange Offer, which Exchange 2025 Series A Bonds shall be substantially in the form of Exhibit C hereto, without interest coupons, and with the global securities legends set forth in Exhibit C hereto, and with such other appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture, but shall not bear the restrictive legends set forth in Exhibit C hereto, in each case unless the Holder of such Initial 2025 Series A Bonds is either (i) a broker-dealer who purchased such Initial 2025 Series A Bonds directly from the Company for resale pursuant to Rule 144A or any other available exemption under the Securities Act, (ii) a Person participating in the distribution of the Initial 2025 Series A Bonds or (iii) a Person who is an affiliate (as defined in Rule 144 under the Securities Act) of the Company. After a transfer of any Initial 2025 Series A Bonds during the period of the effectiveness of an Alternative Registration Statement with respect to such Initial 2025 Series A Bonds, all requirements pursuant to this Section pertaining to restrictive legends on such Initial 2025 Series A Bonds shall cease to apply.

The Trustee's authentication certificate to be executed on the 2025 Series A Bonds shall be substantially in the form of Exhibit D attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Initial 2025 Series A Bonds, and those Exchange 2025 Series A Bonds with respect to which any Person described in clause (a) above is the beneficial owner, may not be transferred except as otherwise provided herein and in compliance with the applicable restrictive legends contained in Exhibit C unless otherwise determined by the Company in accordance with applicable law.

Except as set forth herein, beneficial ownership interests in the Temporary Regulation S Global 2025 Series A Bond (x) will not be exchangeable for interests in the Rule 144A Global 2025 Series A Bond, a permanent Global 2025 Series A Bond (the "*Permanent Regulation S Global 2025 Series A Bond*" and, together with the Temporary Regulation S Global 2025 Series A Bond, the "*Regulation S Global 2025 Series A Bond*"), or any other 2025 Series A Bond prior to the expiration of the Distribution Compliance Period and (y) after the expiration of the Distribution Compliance Period, may be exchanged for interests in a Rule 144A Global 2025 Series A Bond or the Permanent Regulation S Global 2025 Series A Bond only upon certification that beneficial ownership interests in such Temporary Regulation S Global 2025 Series A Bond are owned either by non-U.S. Persons or U.S. Persons who purchased such interests in a transaction that did not require registration under the Securities Act.

During the Distribution Compliance Period, beneficial ownership interests in the Temporary Regulation S Global 2025 Series A Bond may be sold, pledged or transferred only (i) to the Company, (ii) in an offshore transaction in accordance with Regulation S (other than a transaction resulting in an exchange for interest in a Permanent Regulation S Global 2025 Series A Bond) or (iii) pursuant to an effective registration statement under the Securities Act, in each case in accordance with any applicable securities laws of any State of the United States.

Beneficial interests in a Temporary Regulation S Global 2025 Series A Bond may be exchanged for interests in a Rule 144A Global 2025 Series A Bond if (x) such exchange occurs in connection with a transfer of 2025 Series A Bonds in compliance with Rule 144A, and (y) the transferor of the beneficial interest in such Temporary Regulation S Global 2025 Series A Bond first delivers to the Trustee a written certificate (in a form satisfactory to the Trustee) to the effect that the beneficial interest in such Temporary Regulation S Global 2025 Series A Bond is being transferred (i) to a Person who the transferor reasonably believes to be a QIB, (ii) to a Person who is purchasing for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and (iii) in accordance with all applicable securities laws of the States of the United States and other applicable jurisdictions.

Beneficial interests in a Rule 144A Global 2025 Series A Bond may be transferred to a Person who takes delivery in the form of an interest in a Regulation S Global 2025 Series A Bond, whether before or after the expiration of the Distribution Compliance Period, only if the transferor first delivers to the Trustee a written certificate (in a form satisfactory to the Trustee) to the effect that such transfer is being made in accordance with Rule 903 or 904 of Regulation S or Rule 144 under the Securities Act (if applicable).

*Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Optional Redemption.* At any time, or from time to time, before the Par Call Date, the Company may redeem the 2025 Series A Bonds, at its option, in whole or in part, at a "make-whole" redemption price (expressed as a percentage of principal amount and rounded

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to three decimal places) equal to the greater of: (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 2025 Series A Bonds to be redeemed discounted to the redemption date (assuming the 2025 Series A Bonds to be redeemed matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points less (b) interest accrued on the 2025 Series A Bonds to be redeemed to the date of redemption; and 100% of the principal amount of the 2025 Series A Bonds to be redeemed; plus, in either case, accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

At any time, or from time to time, on or after the Par Call Date, the Company may redeem the 2025 Series A Bonds at its option, in whole or in part, at a redemption price equal to 100% of the aggregate principal amount of the 2025 Series A Bonds being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

The Company's actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.

Notice of any redemption will be transmitted at least 30 days but not more than 60 days before the redemption date to each Holder of the 2025 Series A Bonds to be redeemed. Unless the Company defaults in payment of the redemption price, on or after the redemption date, interest will cease to accrue on the 2025 Series A Bonds called for redemption.

If less than all of the 2025 Series A Bonds are to be redeemed, the Trustee will select pro rata or by lot or in such other manner as the Trustee shall deem fair and appropriate the 2025 Series A Bonds to be redeemed, provided that as long as the 2025 Series A Bonds are registered in the name of Cede & Co., as nominee of DTC, the 2025 Series A Bonds to be redeemed may be selected by DTC in accordance with applicable DTC procedures. The Trustee may select for redemption 2025 Series A Bonds and portions of 2025 Series A Bonds in amounts of $2,000 and integral multiples of $1,000 in excess thereof (provided that the unredeemed portion of such 2025 Series A Bonds redeemed in part will not be less than $2,000) and shall thereafter promptly notify the Company in writing of the numbers of 2025 Series A Bonds to be redeemed, in whole or in part.

In addition, the Company may at any time purchase 2025 Series A Bonds by tender, in the open market or by private agreement, subject to applicable law.

*Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Rule 144A Reporting Requirement*. &nbsp;&nbsp;&nbsp;&nbsp;So long as any 2025 Series A Bond that remains Outstanding is a "restricted security" within the meaning of Rule 144(a)(3) under the Securities Act, the Company shall, during any period in which the Company is not subject to and in compliance with Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, or does not make voluntary filings pursuant to such Sections, furnish at the Company's expense, upon the request of any Holder of a 2025 Series A Bond, to such Holder of a 2025 Series A Bond and to a prospective purchaser of such 2025 Series A Bond designated by such Holder the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

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*Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds*. The Company shall use the proceeds of the 2025 Series A Bonds for capital expenditures and for general corporate purposes.

**Article III**

**Miscellaneous**

*Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.* This Forty-Second Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as heretofore supplemented and amended, and as hereby supplemented is hereby confirmed. Except to the extent inconsistent with the express terms of this Forty-Second Supplemental Indenture and the 2025 Series A Bonds, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2025 Series A Bonds to the same extent as if specifically set forth herein.

*Section 3.2.*&nbsp;&nbsp;&nbsp;&nbsp;*Recitals; the Trustee*. All recitals in this Forty-Second Supplemental Indenture are made by the Company only and not by the Trustee. All of the provisions contained in the Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof, including in connection with the execution and delivery of this Forty-Second Supplemental Indenture, as fully and with like effect as if set forth herein in full. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Forty-Second Supplemental Indenture.

*Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.* Whenever in this Forty-Second Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles IX and XI of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Forty-Second Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

*Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;No Rights, Remedies.* Nothing in this Forty-Second Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Forty-Second Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Forty-Second Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

*Section 3.5.*&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Forty-Second Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

*Section 3.6.*&nbsp;&nbsp;&nbsp;&nbsp;*Security Agreement.* To the extent permitted by applicable law, this Forty-Second Supplemental Indenture shall be deemed to be a security agreement and financing

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statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code. Additionally, this Forty-Second Supplemental Indenture shall, if appropriate, be an amendment to the financing documents originally filed in connection with the Indenture. The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

*Section 3.7. &nbsp;&nbsp;&nbsp;&nbsp;Mailing Addresses*

The mailing address of the Company, as debtor, is:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, ND 58503-0564

and the mailing address of the Trustee, as secured party, is:

U.S. Bank Trust Company, National Association

Corporate Trust Services

60 Livingston Avenue

Saint Paul, MN 55107

*Section 3.8.*&nbsp;&nbsp;&nbsp;&nbsp;*Effectiveness.* This Forty-Second Supplemental Indenture shall not be effective until the Trustee receives the certificates, opinions and other documents required under Section 1.6, Section 12.1, and Section 12.3 of the Indenture, which may be evidenced by the Trustee's authentication of any 2025 Series A Bonds under this Forty-Second Supplemental Indenture.

*Section 3.9&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.* This Forty-Second Supplemental Indenture and the Additional Obligations shall be governed by and construed in accordance with the laws of the State of North Dakota.

[Signatures on Next Page.]

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IN WITNESS WHEREOF, the parties hereto have caused this Forty-Second Supplemental Indenture to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: /s/ Todd Brickhouse | By: /s/ Todd Brickhouse |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: | Todd Brickhouse |
| &nbsp;&nbsp;&nbsp;&nbsp;Title: | Chief Executive Officer &<br>General Manager |

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| | | |
|:---|:---|:---|
| (SEAL) | | |
| Attest: | /s/ James Horan | /s/ James Horan |
| | Name: | James Horan |
| | Title: | Assistant Secretary |

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STATE OF NORTH DAKOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF BURLEIGH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 15th day of September, 2025, by Todd Brickhouse, Chief Executive Officer & General Manager of Basin Electric Power Cooperative, a corporation, for and on behalf of said corporation.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Lisa Carney |
| Lisa Carney |
| Notary Public |
| My commission expires: October 19, 2026 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK TRUST COMPANY, NATIONAL<br>ASSOCIATION, as Trustee | &nbsp;&nbsp;&nbsp;&nbsp;U.S. BANK TRUST COMPANY, NATIONAL<br>ASSOCIATION, as Trustee |
| By: /s/ Quinton M. DePompolo | By: /s/ Quinton M. DePompolo |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: | Quinton M. DePompolo |
| &nbsp;&nbsp;&nbsp;&nbsp;Title: | Vice President |

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STATE OF MINNESOTA&nbsp;&nbsp;&nbsp;&nbsp;)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) SS

COUNTY OF RAMSEY &nbsp;&nbsp;&nbsp;&nbsp;)

THE FOREGOING instrument was acknowledged before me this 23rd day of September, 2025, by Quinton M. DePompolo, Vice President of U.S. Bank Trust Company, National Association, as Trustee, for and on behalf of said Trustee.

WITNESS my hand and official seal.

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| |
|:---|
| /s/ Jose Luis Gavilan |
| Notary Public |
| My commission expires: 1-31-2028 |

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**EXHIBIT A**

**[INDENTURE FILING INFORMATION]**

[ *To be attached by the Company prior to filing* ]

[ *Specific Filing Information varies by county and jurisdiction* ]

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**EXHIBIT B**

**[PROPERTY ADDITIONS]**

[ *To be attached by Company prior to filing* ]

[ *Specific Property Additions vary by county and jurisdiction* ]

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**[ EXHIBIT ONLY – PAGE INTENTIONALLY LEFT BLANK ]**

**EXHIBIT C**

**[ FORM OF 2025 SERIES A BONDS ]**

[*If a Global 2025 Series A Bond, then insert*: UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

THIS GLOBAL SECURITY SHALL BE EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAMES OF PERSONS OTHER THAN DTC OR ITS NOMINEE ONLY IF (I) DTC NOTIFIES THE COMPANY THAT IT IS UNWILLING OR UNABLE TO CONTINUE AS A DEPOSITARY FOR SUCH GLOBAL SECURITY, OR IF AT ANY TIME DTC CEASES TO BE A CLEARING AGENCY REGISTERED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AT A TIME WHEN DTC IS REQUIRED TO BE SO REGISTERED TO ACT AS SUCH DEPOSITARY AND, IN EACH CASE, NO SUCCESSOR DEPOSITARY SHALL HAVE BEEN APPOINTED BY THE COMPANY WITHIN 120 DAYS OF SUCH NOTICE, OR (II) THERE SHALL HAVE OCCURRED AN EVENT OF DEFAULT UNDER THE INDENTURE WITH RESPECT TO THE SECURITIES. ANY GLOBAL SECURITY THAT IS EXCHANGEABLE PURSUANT TO THE PRECEDING SENTENCE SHALL BE EXCHANGEABLE FOR SECURITIES REGISTERED IN SUCH NAMES AS THE DEPOSITARY SHALL DIRECT.] [*If an Initial 2025 Series A Bond, then insert*: ANY SECURITIES ISSUED IN EXCHANGE FOR SECURITIES INITIALLY OFFERED AND SOLD IN RELIANCE ON RULE 144A OR REGULATION S UNDER THE SECURITIES ACT PURSUANT TO THE PRECEDING TWO SENTENCES SHALL BEAR, AND BE SUBJECT TO, THE LEGENDS RELATING TO RESTRICTIONS ON TRANSFER REQUIRED BY THE INDENTURE RELATING HERETO.]

[*If an Initial 2025 Series A Bond, then insert*: THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY

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**[ EXHIBIT ONLY – PAGE INTENTIONALLY LEFT BLANK ]**

EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;SUCH SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY: (I)&nbsp;&nbsp;&nbsp;&nbsp;(A) FOR SO LONG AS SUCH SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904 UNDER THE SECURITIES ACT, OR (D) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL AND OTHER CERTIFICATIONS AND DOCUMENTS IF THE COMPANY SO REQUESTS), (II) TO THE COMPANY, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND IN EACH CASE SUBJECT TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF THIS SECURITY BY THE HOLDER OR BY ANY INVESTOR ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

THE SECURITY EVIDENCED HEREBY AND ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF SUCH SECURITY TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THE SECURITY EVIDENCED HEREBY SHALL BE DEEMED BY THE ACCEPTANCE OF SUCH SECURITY TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.]

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**[ EXHIBIT ONLY – PAGE INTENTIONALLY LEFT BLANK ]**

[*If a Regulation S Global 2025 Series A Bond, then insert*: THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED AND SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME OR (II) OTHERWISE UNTIL 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OR THE DATE OF ISSUANCE OF SUCH SECURITIES, EXCEPT IN EITHER CASE IN ACCORDANCE WITH REGULATION S (OR RULE 144A, IF AVAILABLE) UNDER THE SECURITIES ACT. TERMS USED HEREIN SHALL HAVE THE MEANING GIVEN TO THEM BY REGULATION S.]

[*If a certificated 2025 Series A Bond, then insert*: IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.]

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**[ EXHIBIT ONLY – PAGE INTENTIONALLY LEFT BLANK ]**

**BASIN ELECTRIC POWER COOPERATIVE**

**FIRST MORTGAGE OBLIGATIONS, 2025 SERIES A BONDS, DUE OCTOBER 15, 2055**

REGISTERED OWNER: CEDE & CO., as nominee of The Depository Trust Company

PRINCIPAL AMOUNT: _______________

ISSUANCE DATE: ___________________, 2025

CUSIP NO.: _________________________

NO. RA-___________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $_______________________

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE (herein called the *"Company"*), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, hereby promises to pay to the registered owner referred to above, or registered assigns, the principal sum of [\*] DOLLARS (or so much thereof as shall not have been redeemed) on October 15, 2055, with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at a rate of 5.85% per annum from the date hereof, payable semiannually on the 15<sup>th</sup> day of April and October in each year, commencing April 15, 2026, until the principal hereof shall have become due and payable.

This Bond is one of a series of the 2025 Series A Bonds (herein called the "*Bonds*") issued pursuant to the Forty-Second Supplemental Indenture dated as of September 15, 2025 (the "*Forty-Second Supplemental Indenture*"), between the Company and the Trustee named therein, which supplements the Amended and Restated Indenture dated as of May 5, 2015 (as amended and supplemented from time to time, the *"Indenture"*) and is entitled to the benefits thereof. Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the Forty-Second Supplemental Indenture.

[*If an Initial 2025 Series A Bond, then insert*: Notwithstanding any other provision of this Bond to the contrary, if (i) the Company fails to file a registration statement under the Securities Act relating to the Exchange Offer (the "*Exchange Offer Registration Statement*") on or prior to the 210<sup>th</sup> day after the Closing Date, (ii) the Exchange Offer Registration Statement is not declared effective by the Commission or does not otherwise become effective on or before the 360<sup>th</sup> day after the Closing Date, (iii) the Exchange Offer has not been completed within 60 Business Days after the initial effective date of the Exchange Offer Registration Statement, (iv) an Alternative Registration Statement is required to be filed pursuant to the Registration Rights Agreement but is not filed with the Commission on or prior to the later of (x) the 30th Business Day after the date such obligation to file arises or (y) the 210<sup>th</sup> day after the Closing Date, (v) an Alternative Registration Statement is required to be filed pursuant to the terms of the Registration Rights Agreement but is not declared effective by the Commission or does not otherwise become effective on or prior to the later of (x) the 150<sup>th</sup> day after the date such obligation to file arises or (y) the 360<sup>th</sup> day after the Closing Date, or (vi) the Exchange Offer Registration Statement or Alternative Registration Statement, as applicable, is filed and declared effective but thereafter either (x) is withdrawn by the Company or (y) becomes subject to an

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effective stop order issued pursuant to the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted under the Registration Rights Agreement, including with respect to any Alternative Registration Statement, during any applicable Suspension Period (as defined in the Registration Rights Agreement)) without being succeeded within 30 days from the date such registration statement was suspended by an additional registration statement filed and declared effective (each such event referred to in clauses (i) through (vi), a "*Registration Default*" and each period during which a Registration Default has occurred and is continuing, a "*Registration Default Period*"), then additional interest on the Bonds will accrue (in addition to the stated interest on the Bonds) at a rate of (x) 0.25% per annum for the first 90 days of a Registration Default Period and (y) at a rate per annum of 0.50% thereafter (such additional interest, "*Special Interest*") on the principal amount of the Bonds, from the date on which any Registration Default has occurred to the date on which all such Registration Defaults have been cured. Special Interest shall accrue and be payable only with respect to a single Registration Default at any given time, notwithstanding the fact that multiple Registration Defaults may exist at such time. Immediately upon the cure of all Registration Defaults, the accrual of Special Interest will cease and the interest rate on the Bonds shall revert to the original rate.]

The principal of, premium, if any, and interest, on this Bond are payable at the principal corporate trust office of the Trustee, or of its successor as Trustee, or, at the option of the owner of this Bond, at the principal office of any Paying Agent appointed in accordance with the Indenture; provided, however, that, subject to the next succeeding paragraph, interest may be payable, at the option of the Trustee, by check or draft drawn upon the Trustee and mailed to the registered address of the registered owner of this Bond as of the close of business on the applicable Record Date (as defined in the Forty-Second Supplemental Indenture), or, at the written request of the registered owner of Bonds in an aggregate principal amount greater than or equal to $1,000,000 delivered to the Trustee at least five days prior to the Record Date next preceding such payment date, by wire transfer to a wire transfer address in the continental United States as set forth in such request. Payment of the principal of and interest on this Bond shall be in any coin or currency of the United States of America as, at the respective times of payment, shall be legal tender for the payment of public and private debts.

Notwithstanding any other provision of this Bond to the contrary, so long as this Bond shall be registered on books of the Company kept by the Obligation Registrar (as defined in the Indenture) in the name of The Depository Trust Company, a New York corporation ("DTC"), or its nominee, the provisions of the Indenture governing the Book-Entry System (as defined in the Indenture) shall govern the manner of payment of the principal of, premium, if any, and interest on, this Bond.

Reference is hereby made to the Indenture, a copy of which is on file with the Trustee, for the provisions, among others, with respect to the nature and extent of the rights, duties and obligations of the Company, the Trustee and the owner of this Bond, the terms upon which this Bond is issued and secured, and the modification or amendment of the Indenture, to all of which the registered owner of this Bond assents by the acceptance of this Bond.

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The Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney. The Obligation Registrar shall not be obliged to (i) make any exchange or transfer of this Bond during the period beginning at the opening of business fifteen days next preceding the Record Date for any payment of interest on the Bond, (ii) make any exchange or transfer of this Bond during the period beginning at the opening of business fifteen days next preceding the date of the mailing of the notice of redemption of the Bond or (iii) register the transfer of or exchange of any Bond so selected for redemption in whole or in part, except the unredeemed portion of a Bond being redeemed in part.

The Bonds are issuable in the form of fully registered global bonds without interest coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. Upon payment of any required tax or other governmental charge and, subject to such conditions, the Bond, upon the surrender thereof at the principal office of the Obligation Registrar, with a written instrument of transfer satisfactory to the Obligation Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be exchanged for an equal principal amount of Bonds of the same interest rate and in any other authorized denominations.

This Bond is also subject to optional redemption, in whole or from time to time in part, at the times and on the terms specified in Forty-Second Supplemental Indenture, but not otherwise.

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Indenture.

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This Bond shall be construed and enforced in accordance with, and the rights of the Company and the Holder of this Bond shall be governed by, the law of the State of North Dakota excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | By |
| | Name: |
| | Its: |

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| |
|:---|
| [SEAL] |
| Attest: |
| By: |
| Name: |
| Title: |

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**EXHIBIT D**

**TRUSTEE'S CERTIFICATE OF AUTHENTICATION**

This is one of the Obligations of the series designated therein referred to in the within-mentioned Indenture.

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| | |
|:---|:---|
| **U.S. BANK TRUST COMPANY, NATIONAL**<br>**ASSOCIATION**, as Trustee | **U.S. BANK TRUST COMPANY, NATIONAL**<br>**ASSOCIATION**, as Trustee |
| By: |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory |

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Date of Authentication: ___________________, 2025

## Exhibit 4.2

**Exhibit 4.2**

No. T86015

**LOAN AGREEMENT**

**THIS LOAN AGREEMENT** (this "Agreement") is entered into as of December 1, 2005, by and between **BASIN ELECTRIC POWER COOPERATIVE** (the "Company") and **CoBANK, ACB** ("CoBank").

In consideration of the agreements herein and in the other "Loan Documents" (as hereinafter defined) and in reliance upon the representations and warranties set forth herein and therein, the parties agree as follows:

**ARTICLE 1**

**DEFINITIONS AND ACCOUNTING TERMS**

**SECTION 1.01.&nbsp;&nbsp;&nbsp;&nbsp;Definitions.** Capitalized terms used in this Agreement and defined in Exhibit A hereto shall have the meanings set forth in such Exhibit.

**SECTION 1.02.&nbsp;&nbsp;&nbsp;&nbsp;Rules of Interpretation.** The rules of interpretation set forth in Exhibit A shall apply to this Agreement.

**ARTICLE 2**

**AMOUNT AND TERMS OF LOAN**

**SECTION 2.01.&nbsp;&nbsp;&nbsp;&nbsp;Commitment.** On the terms and subject to the conditions set forth herein, CoBank agrees to make two loans to the Company, each in the amount of $45,000,000 (the "Commitment"). For ease of reference: (A) the first loan shall hereinafter be referred to as the "First Loan"; (B) the second loan shall hereinafter be referred to as the "Second Loan"; and (C) the First Loan and the Second Loan shall hereinafter be collectively referred to as the "Loans". The Commitment shall expire at 12:00 Noon, Mountain time, on December 29, 2005, or on such later date as CoBank may, in its sole discretion, authorize in writing.

**SECTION 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Purpose.** The purpose of the Loans is to finance the construction of the Dry Fork Station and for general corporate purposes.

**SECTION 2.03.&nbsp;&nbsp;&nbsp;&nbsp;Availability.** Subject to Article 3 hereof, the Loans will be made available on December 29, 2005 (the "Closing Date"). The Loans will be made available in a single advance by wire transfer of immediately available funds.

**SECTION 2.04.&nbsp;&nbsp;&nbsp;&nbsp;Interest.** The Company agrees to pay interest on the unpaid balance of the: (A) First Loan at 5.85% per annum until December 31, 2028; (B) Second Loan at 5.85% per annum until May 31, 2030, and (C) on and after each such date, in accordance with one of more of the following interest rate options, as selected by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Weekly Quoted Variable Rate.** At a rate per annum equal at all times to the rate of interest established by CoBank on the first Business Day of each week. The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Rate.** 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, provided that: (a) the minimum fixed period shall be 180 days; (b) the minimum amount that may be fixed at any one time shall be $500,000.00; and (c) for each Loan, the maximum number of fixes in place at any one time shall be ten (10).

Subject to the limitations set forth above, the Company: (1) shall select the applicable rate option on the date the initial fixed rate expires for each Loan; and (2) may, on any Business Day, elect to convert balances bearing interest at the variable rate option to the fixed rate option. 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, rates may not be fixed in such a manner as to cause the Company to have to break any fixed rate balance in order to pay any installment of principal on the Loans. All elections provided for herein shall be made telephonically or in writing and must be received by 1:45 p.m. Mountain Time; provided, however, that telephonic requests shall be promptly confirmed in writing if requested by CoBank. Interest shall be calculated on the actual number of days the Loans are outstanding on the basis of a year consisting of 360 days. Interest shall be calculated and paid quarterly in arrears as of the last day of each March, June, September, and December;.

**SECTION 2.05.&nbsp;&nbsp;&nbsp;&nbsp;Repayment.** The First Loan shall be repaid in accordance with the schedule attached hereto as Exhibit B. The Second Loan shall be repaid in accordance with the schedule attached hereto as Exhibit C.

**SECTION 2.06.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment.** The Company may, on three Business Day's prior written notice, prepay the First Loan and/or the Second Loan in whole or in part, together with: (A) accrued interest on the amount prepaid to the date of payment; and (B) in the event any fixed rate balance is prepaid, a prepayment premium in an amount equal to the greater of: (a) the present value of any funding losses imputed by CoBank to have been incurred as a result of such payment; or (b) $300. Such surcharge shall be determined and calculated in accordance with methodology established by CoBank, a copy of which will be made available upon request All prepayments shall be applied to principal installments on the Loan being prepaid in the inverse order of their maturity and to such fixed and variable rate balances outstanding on the Loan being prepaid as shall be designated by CoBank.

**SECTION 2.07.&nbsp;&nbsp;&nbsp;&nbsp;Notes.** The Company's obligation to repay the: (A) First Loan shall be evidenced by a First Mortgage Note in substantially the form of Exhibit D-l hereto (the "First Note"); and (B) Second Loan shall be evidenced by a First Mortgage Note in substantially the form of Exhibit D-2 hereto (the "Second Note"). Each Note shall be duly completed, dated the date hereof, and in the amount of $45,000,000.

**SECTION 2.08.&nbsp;&nbsp;&nbsp;&nbsp;Security.** The Company's obligations hereunder and under the Notes shall be secured by: (A) a statutory first priority Lien on all equity which the Company may now own or hereafter acquire or be allocated in CoBank; and (B) the Indenture.

**SECTION 2.09.&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted]**

**SECTION 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Payments.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Manner of Making Payments.** Notwithstanding the terms of the Indenture, the Company shall make, or cause its Paying Agent to make, all payments to CoBank under this Agreement and the Notes by wire transfer of immediately available funds in accordance with the following wire transfer instructions (or in accordance with such other wire transfer instructions as CoBank may direct by notice pursuant to Section 9.03):

Name of Bank: COBANK

Location:&nbsp;&nbsp;&nbsp;&nbsp;Greenwood Village, CO

ABA No.&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

Reference:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric

In addition, to the extent permitted under the Indenture, the Company agrees that CoBank need not present the Notes as a condition for receiving payment thereon; provided, however, that CoBank agrees that it will not transfer the Notes without having first complied with the requirements of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Late Payments; Default Rate.** In the event the Company fails to make any payment when due, then without limiting any other rights or remedies that CoBank may have for or on account of such failure, such payment shall be due and payable on demand and, at CoBank's option in each instance, shall accrue interest from the date due to the date paid at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Business Days.** In the event any day on which principal and interest are due is not a Business Day, then such payment shall be made on the next Business Day and, notwithstanding the Indenture, interest shall continue to accrue during such period on the principal balance of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Records.** CoBank shall keep a record of the unpaid principal balance of the Loans, the interest rate elections made with respect thereto, the interest accrued on the Loans, and all payments made with respect to the Loans, and such record shall, absent proof of error, be conclusive evidence of the outstanding principal and interest on the Loans. On the request of the Trustee, CoBank shall certify such information to the Trustee, as well as the amount of any premium provided for herein, and the Company agrees that such certification shall, absent proof of error, be conclusive evidence of the amount so certified.

**ARTICLE 3**

**CONDITIONS PRECEDENT**

CoBank's obligation to make the Loans is subject to the following conditions precedent, which, in the case of instruments and documents, must be in form and content specified herein or otherwise acceptable to CoBank:

**SECTION 3.01.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement.** CoBank shall have received a duly executed original copy of this Agreement.

**SECTION 3.02.&nbsp;&nbsp;&nbsp;&nbsp;Notes.** CoBank shall have received an original copy of the First Note and the Second Note, duly executed by the Company and authenticated by the Trustee under the Indenture.

**SECTION 3.03.&nbsp;&nbsp;&nbsp;&nbsp;Request for Loans.** CoBank shall have received an original, duly executed copy of a request for the Loans in the form attached hereto as Exhibit E.

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**SECTION 3.04.&nbsp;&nbsp;&nbsp;&nbsp;Evidence of Authority.** CoBank shall have received copies, certified by the Secretary-Treasurer or an Assistant Secretary of the Company as of the date hereof, of such board resolutions, evidence of incumbency, and other evidence as CoBank may require that this Agreement, the Notes, and all Loan Documents executed in connection herewith or therewith have been duly authorized, executed and delivered.

**SECTION 3.05.&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** CoBank shall have received a copy of all supplemental indentures and amendments to the Indenture entered into since August 1, 2003, certified by the Company.

**SECTION 3.06.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.** CoBank shall have received an original copy, duly executed by the Company and the Trustee, of a Supplemental Indenture to the Indenture in the form attached hereto as Exhibit F (the "Supplemental Indenture").

**SECTION 3.07.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Documents.** CoBank shall have received copies of each instrument and document furnished to the Trustee under the Indenture in connection with the transactions contemplated hereby, including, without limitation: (A) the Board Resolution required by Section 4.1 of the Indenture; (B) the Officer's Certificate required by Section 4.1 B of the Indenture; (C) the Opinion of Counsel required by Section 4.1(C) of the Indenture; (D) and each of the instruments and documents required by Section 4.3 of the Indenture, including the Available Margins Certificate.

**SECTION 3.08.&nbsp;&nbsp;&nbsp;&nbsp;Consents and Approvals.** CoBank shall have received such evidence as CoBank may require that any required consents and approvals referred to in Section 4.05 hereof have been obtained and are in full force and effect.

**SECTION 3.09.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** CoBank shall have received such evidence as CoBank may require that the Company is in compliance with Section 5.03 hereof.

**SECTION 3.10.&nbsp;&nbsp;&nbsp;&nbsp;Opinion of Counsel.** CoBank shall have received a duly executed original copy of an opinion of counsel to the Company.

**SECTION 3.11.&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted]**

**SECTION 3.12.&nbsp;&nbsp;&nbsp;&nbsp;Fees and Charges.** CoBank shall have received all fees and charges provided for herein.

**SECTION 3.13.&nbsp;&nbsp;&nbsp;&nbsp;Absence of Default.** No Default or Event of Default shall have occurred and be continuing.

**SECTION 3.14.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties.** Each of the representations and warranties of the Company set forth herein and in all other Loan Documents shall be true and correct as of the date of the Loans.

**SECTION 3.15.&nbsp;&nbsp;&nbsp;&nbsp;Articles and Bylaws.** CoBank shall have received a copy of the Company's articles of incorporation and bylaws, certified by the Secretary-Treasurer or an Assistant Secretary of the Company as being in full force and effect as of the date hereof.

**SECTION 3.16.&nbsp;&nbsp;&nbsp;&nbsp;Good Standing Certificate.** CoBank shall have received a certificate of the Secretary of State of North Dakota dated within 30 days of the date hereof attesting to the due incorporation and good standing of the Company under the Laws of the State of North Dakota.

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**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES**

To induce CoBank to enter into this Agreement and make the Loans contemplated hereby, the Company represents and warrants that:

**SECTION 4.01.&nbsp;&nbsp;&nbsp;&nbsp;Organization, Etc.** The Company and each Subsidiary: (A) is a corporation duly organized, validly existing, and in good standing under the Laws of its jurisdiction of incorporation; (B) has all requisite power and authority to own and operate its properties and to carry on its business as now conducted and as presently proposed to be conducted; and (C) is duly licensed or qualified and is in good standing as a foreign corporation in each jurisdiction wherein the nature of the business transacted by it or the nature of the property owned or leased by it makes such licensing or qualification necessary.

**SECTION 4.02.&nbsp;&nbsp;&nbsp;&nbsp;Licenses, Permits, Etc.** The Company and each Subsidiary has all licenses, permits, franchises, patents, copyrights, trademarks, tradenames, or rights thereto which are material to the conduct of its business or required by Law.

**SECTION 4.03.&nbsp;&nbsp;&nbsp;&nbsp;Authority.** The execution, delivery and performance by the Company of this Agreement and the other Loan Documents and the performance of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and do not violate any provision of Law or of the articles of incorporation or bylaws of the Company or result in a breach of, or constitute a default under the Indenture or any other agreement to which the Company is a party or by which it may be bound.

**SECTION 4.04.&nbsp;&nbsp;&nbsp;&nbsp;Binding Agreement.** Each of the Loan Documents is, or when executed and delivered will be, the legal, valid, and binding obligation of the Company, enforceable in accordance with its terms, subject only to limitations on enforceability imposed in equity or by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally.

**SECTION 4.05.&nbsp;&nbsp;&nbsp;&nbsp;Consents.** No consent, permission, authorization, order, or license of any governmental authority or of any party to any agreement to which the Company is a party or by which it or any of its property may be bound or affected, is necessary in connection with the execution, delivery, or performance of the Loan Documents, except such as have been obtained are in full force and effect.

**SECTION 4.06.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws.** Neither the Company nor any Subsidiary is in violation of any Law to which it is subject, which violation could reasonably be expected to have a Material Adverse Effect.

**SECTION 4.07.&nbsp;&nbsp;&nbsp;&nbsp;Pending Litigation.** There are no actions, suits or proceedings pending, or to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary in any court or before any governmental authority, arbitration board or tribunal, mediator, or the like, which could, if adversely decided, have a Material Adverse Effect. Neither the Company nor any Subsidiary is in default with respect to any judgment or any order of any court, governmental authority, arbitration board or tribunal, mediator or the like.

**SECTION 4.08.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements.** The consolidated balance sheets of the Company and its consolidated Subsidiaries as of December 31 for each of the years 2003 and 2004, and the statements of operations, changes in equity, and statements of cash flows for the fiscal years ended on

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said dates, each accompanied by a report thereon containing an opinion unqualified as to scope limitations imposed by the Company and otherwise without qualification by Deloitte & Touche LLP, in each such case, have been prepared in accordance with GAAP consistently applied except as therein noted, are correct and complete and present fairly the financial position of the Company and its Subsidiaries as of such dates and the results of their operations and changes in their financial position or cash flows for such periods. The unaudited consolidated balance sheets of the Company and its consolidated Subsidiaries as of September 30, 2005, and the unaudited statements of operations and statements of cash flows for the nine-month period ended on said date prepared by the Company have been prepared in accordance with GAAP consistently applied, are correct and complete and present fairly the financial position of the Company and its consolidated Subsidiaries as of said date and the results of their operations and changes in their financial position or cash flows for such period. Since September 30, 2005, there has been no change in the condition, financial or otherwise, of the Company and its consolidated Subsidiaries as shown on the consolidated balance sheet as of such date except changes in the ordinary course of business, none of which individually or in the aggregate has been materially adverse. Neither the financial statements referred to above nor this Agreement, the Indenture or any other written statement furnished by the Company to CoBank in connection herewith, contains any untrue statement of a material fact or omits a material fact necessary to make the statements contained therein or herein not misleading. There is no fact peculiar to the Company or its Subsidiaries which the Company has not disclosed to CoBank in writing which has a Material Adverse Effect nor, so far as the Company can now foresee, will have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole.

**SECTION 4.09.&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries.** Exhibit G hereto states the name of each of the Company's Subsidiaries, its jurisdiction of incorporation, and the percentage of its voting stock owned by the Company and/or its Subsidiaries. The Company and each Subsidiary has good and marketable title to all of the shares it purports to own of the stock of each Subsidiary free and clear in each case of any Lien (other than the Lien of the Indenture). All such shares have been duly issued and are fully paid and non-assessable.

**SECTION 4.10.&nbsp;&nbsp;&nbsp;&nbsp;No Defaults.** Neither the Company nor any Subsidiary is in default in the payment of principal or interest on any indebtedness for borrowed money, and is not in material default under any instrument or instruments or agreements under and subject to which any indebtedness for borrowed money has been issued, and no event has occurred and is continuing under the provisions of any such instrument or agreement which with the lapse of time or the giving of notice, or both, would constitute an event of default thereunder. In addition, the Company is not in default under any Wholesale Power Contract or any other agreement which, if terminated, could have a Material Adverse Effect.

**SECTION 4.11.&nbsp;&nbsp;&nbsp;&nbsp;Title to Properties.** The Company and each Subsidiary has good and marketable title in fee simple (or its equivalent under applicable Law) to all material parcels of real property and has good title to all the other material items of property it purports to own, including that reflected in the most recent balance sheet referred to in Section 4.08 hereof, except as sold or otherwise disposed of in the ordinary course of business and except for the Lien of the Indenture and Permitted Exceptions.

**SECTION 4.12.&nbsp;&nbsp;&nbsp;&nbsp;Taxes.** All tax returns required to be filed by the Company or any Subsidiary in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Company or any Subsidiary or upon any of their respective properties, income or franchises, which are shown to be due and payable in such returns have been paid. For all taxable years ending on or before December 31, 1998, the Federal income tax liability of the Company

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and its Subsidiaries has been satisfied and either the period of limitations on assessment of additional Federal income tax has expired or the Company and its Subsidiaries have entered into an agreement with the Internal Revenue Service closing conclusively the total tax liability for the taxable year. The Internal Revenue Service has examined the years 1999 through 2003. The Revenue Agent's Report has been signed and all income taxes have been paid. The Report is currently under review by the Joint Committee on Taxation. The Company does not know of any proposed material additional tax assessment against it for which adequate provision has not been made on its accounts, and no material controversy in respect of additional Federal or state income taxes due since said date is pending or to the knowledge of the Company threatened. The provisions for taxes on the books of the Company and each Subsidiary are adequate for all open years, and for its current fiscal period.

**SECTION 4.13.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Environmental Laws.** Neither the Company nor any Subsidiary is in material violation of any applicable Laws relating to public health, safety or the environment (including, without limitation, relating to releases, discharges, emissions or disposals to air, water, land or ground water, to the withdrawal or use of ground water, to the use, handling or disposal of polychlorinated biphenyls (PCB's), asbestos or urea formaldehyde, to the treatment, storage, disposal or management of hazardous substances (including, without limitation, petroleum, crude oil or any fraction thereof, or other hydrocarbons), pollutants or contaminants, to exposure to toxic, hazardous or other controlled, prohibited or regulated substances), which violation could have a Material Adverse Effect. The Company does not know of any liability or class of liability of the Company or any Subsidiary under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.), or the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).

**SECTION 4.14.&nbsp;&nbsp;&nbsp;&nbsp;ERISA.** The Company and each of its ERISA Affiliates is in compliance with all requirements of ERISA, the Company and each ERISA Affiliate have met their minimum funding requirements under ERISA with respect to each plan governed thereby, no grounds exist entitling the Pension Benefit Guaranty Corporation to institute proceedings to terminate a plan maintained by the Company or any ERISA Affiliate this is subject to ERISA, and neither the Company nor any ERISA Affiliate has any liability arising form the withdrawal or termination of any plan subject to ERISA.

**SECTION 4.15. Conflicting Agreements.** None of the Loan Documents conflicts with, or constitutes (with or without the giving of notice and/or the passage of time and/or the occurrence of any other condition) a default under, any other agreement to which the Company or any Subsidiary is or expects to become a party or by which the Company, any Subsidiary, or any of its or their properties may be bound or affected.

**SECTION 4.16.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Matters. (A)** Upon making the Loans, the Notes will constitute Obligations and will be secured under the Indenture equally and ratably with all other Obligations; (B) the Supplemental Indenture has been duly filed and recorded in all places required by Law in order to accord CoBank the benefits of the Indenture; (C) all instruments and documents required to be filed or recorded in order to accord the Trustee a duly perfected Lien on the Trust Estate have been duly and properly filed and recorded; (D) except for Permitted Exceptions, there are no other Liens on the Trust Estate; (E) no Indenture Default or Indenture Event of Default has occurred and is continuing; and (F) there are no Qualifying Securities Indentures existing on the date hereof.

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**ARTICLE 5**

**AFFIRMATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the Company agrees to:

**SECTION 5.01.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Indenture and RUS Loan Agreement.** Comply with all of the terms of the Indenture and the RUS Loan Agreement, and cause each Qualifying Subsidiary to comply with all of the terms of its Qualifying Securities Indenture. Without limiting the foregoing, the Company will have for each fiscal year of the Company a Margins for Interest Ratio of not less than 1.10.

**SECTION 5.02.&nbsp;&nbsp;&nbsp;&nbsp;Compliance With Laws.** Comply in all material respects, and cause each Subsidiary to comply in all material respects, with all applicable Laws (including all Laws relating to the environment), which, if not complied with, could have a Material Adverse Effect.

**SECTION 5.03.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** Maintain insurance with such companies, in such amounts, and covering such risks as is required to be maintained by the Company under the terms of the Indenture. In addition, the Company agrees to cause each Subsidiary to maintain insurance in such amounts and covering such risks as are usually carried by companies engaged in the same business and similarly situated. The Company agrees to furnish to CoBank such proof of compliance with this Section as CoBank may from time to time reasonably require.

**SECTION 5.04.&nbsp;&nbsp;&nbsp;&nbsp;Property Maintenance.** Maintain the System in accordance with Prudent Utility Practice.

**SECTION 5.05.&nbsp;&nbsp;&nbsp;&nbsp;Books and Records.** Keep, and cause each Subsidiary to keep, adequate records and books of account in which complete entries will be made in accordance with Accounting Requirements.

**SECTION 5.06.&nbsp;&nbsp;&nbsp;&nbsp;Reports and Notices.** Furnish to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;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 prepared in accordance with GAAP consistently applied. Such financial statements shall: (a) in the case of the consolidated statements, be audited by a firm of nationally recognized independent certified public accountants selected by the Company; (b) in the case of the consolidated statements, be accompanied by a report of such accountants containing an opinion to the effect that the financial statements: (i) were audited in accordance with generally accepted auditing standards; and (ii) present fairly, in all material respects, the financial position of the Company as at the end of the year and the results of its operations for the year then ended, in conformity with GAAP; (c) be prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of operations, a statement of changes in equity, a statement of cash flows, and all notes and schedules (including consolidating schedules) relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Interim Financial Statements.** As soon as available, but in no event more than 60 days after the end of the first three fiscal quarters of the Company for each year occurring during the term hereof, a consolidated balance sheet of the Company and its consolidated Subsidiaries as of the end of

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such quarter and a consolidated statement of operations for the Company and its consolidated Subsidiaries for such period and for the period year to date, all prepared in reasonable detail and in comparative form in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Officer's Certificate.** Together with each set of financial statements delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a certificate of the Chief Financial Officer of the Company (or other officer of the Company acceptable to CoBank): (1) stating the Margins For Interest Ratio achieved by the Company for the fiscal year covered by such financial statements and setting forth the calculations used in computing such Ratio; (2) setting forth Basin's Credit Rating from each Rating Agency which has issued a Credit Rating on the Company or its debt; and (3) certifying that, to the best knowledge of such officer, no Default or Event of Default occurred during the period covered by such statements or, if a Default or Event of Default did occur during such period, a statement as to the nature thereof, whether such Default or Event of Default is continuing, and if continuing, the action which is proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Annual Financial Information and Budgets.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;RUS Form 12; FERC Form 1.** As soon as available, but in no event more than 120 days after each fiscal year end, a copy of either the Company's Form 12 submitted to RUS or FERC Form 1 submitted to Federal Energy Regulatory Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Budgets.** As soon as available, but in no event more than 60 days after each fiscal year end, annual budgets and forecasts of operations for the Company and its Subsidiaries for the ensuing year and for a ten year period, in such detail as CoBank may from time to time reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Litigation, Material Matters, Etc.** Promptly after becoming aware thereof, notice of: (1) the commencement of any action, suit or proceeding against the Company or any Subsidiary before any court, governmental instrumentality, arbitrator, mediator or the like which, if adversely decided, could reasonably be expected to have a Material Adverse Effect; (2) the receipt of any notice, indictment, pleading, or other communication alleging a condition that: (a) may require the Company or any Subsidiary to undertake or to contribute to a clean-up or other response under any environmental Law, or which seeks penalties, damages, injunctive relief, or other relief as a result of an alleged violation of any such Law, or which claims personal injury or property damage as a result of environmental factors or conditions; and (b) if true or proven, could reasonably be expected to have a Material Adverse Effect or result in criminal sanctions; (3) the occurrence of any other event or matter (including the rendering of any order, judgment, ruling and the like) which could reasonably be expected to have a Material Adverse Effect; (4) the occurrence of any event under the Indenture or any Qualifying Securities Indenture which would require the Trustee or any Subsidiary Trustee to resign; and (5) the breach by the Trustee or any Subsidiary Trustee of any provision of the Indenture or any Qualifying Securities Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Default.** Promptly after becoming aware thereof, notice of the occurrence of a Default, an Event of Default, a Qualifying Securities Indenture Default, or a Qualifying Securities Indenture Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Certain Events.** Notice of each of the following at least 30 days prior thereto: (1) any change in the name or structure of the Company; or (2) any change in the Trustee or any Subsidiary Trustee; (3) the sale by the Company or any Subsidiary of all or a portion of the equity

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interests held by the Company or any Subsidiary in a Subsidiary; and (4) the discontinuance of any material part of the operations of the Company or any Qualifying Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)&nbsp;&nbsp;&nbsp;&nbsp;Other Information.** Such other information regarding the condition or operations, financial or otherwise, of the Company and its Subsidiaries as CoBank may from time to time reasonably request, including copies of all opinions furnished under Section 13.5 (A) and (B) of the Indenture and all pleadings, notices and communications referred to in Section 5.06(E) hereof.

**SECTION 5.07.&nbsp;&nbsp;&nbsp;&nbsp;Capital.** Acquire voting stock in CoBank in such amounts and at such times as CoBank may from time to time require in accordance with its bylaws and capital plan (as each may be amended from time to time), except that the maximum amount of voting stock that the Company may be required to purchase in connection with the Loan may not exceed the maximum amount permitted by the bylaws on the date of this Agreement. The rights and obligations of the parties with respect to such stock and any patronage or other distributions made by CoBank shall be governed by CoBank's bylaws.

**SECTION 5.08.&nbsp;&nbsp;&nbsp;&nbsp;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 the properties, books and records of the Company and its Subsidiaries, and to discuss its affairs, finances and accounts with its officers, directors, and independent certified public accountants.

**SECTION 5.09.&nbsp;&nbsp;&nbsp;&nbsp;Ratings.** Maintain a Credit Rating with a Rating Agency.

**SECTION 5.10.&nbsp;&nbsp;&nbsp;&nbsp;Excepted Property.** If an Event of Default or a Qualifying Securities Indenture Event of Default has occurred and is continuing and CoBank so requests in writing: (A) enter into a Supplemental Indenture with the Trustee and cause each Qualifying Subsidiary to enter into a supplemental indenture or like instrument with each Subsidiary Trustee (in form and content reasonably acceptable to the Trustee, the Subsidiary Trustee, and CoBank) adding to the Trust Estate or Subsidiary Trust Estate such Excepted Property as CoBank may designate in writing; and (B) promptly record same in all places required by Law in order to accord the Trustee and the Subsidiary Trustee a duly perfected Lien on the designated Excepted Property; provided, however, that unless a Qualifying Securities Indenture Event of Default could reasonably be expected to have a Material Adverse Effect, the Company's obligations hereunder shall be limited to causing the Qualifying Subsidiary with respect to which the Qualifying Securities Indenture Event of Default has occurred, to enter into a supplemental indenture or like instrument as provided above.

**SECTION 5.11.&nbsp;&nbsp;&nbsp;&nbsp;Security.** Take, and cause each Qualifying Subsidiary to take, such steps (including the execution and recording of such instruments and documents) as CoBank may from time to time reasonably require in order to enable: (1) the Trustee to obtain, perfect and maintain its Lien on the Trust Estate; and (2) any Subsidiary Trustee to obtain, perfect and maintain its Lien on the Subsidiary Trust Estate; provided, however, that nothing contained herein shall obligate the Company to take steps which are in conflict with the requirements of the Indenture, any Qualifying Securities Indenture, or any contrary direction provided by the requisite Holders.

**SECTION 5.12.&nbsp;&nbsp;&nbsp;&nbsp;Condemnation.** In the event all or a material portion of the System is taken in a condemnation action or proceeding or in a like proceeding or is sold or otherwise transferred in lieu thereof or pursuant to any right of any governmental authority to direct the sale of transfer thereof, the Company shall apply the proceeds thereof to the redemption of the Obligations.

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**ARTICLE 6**

**NEGATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect:

**SECTION 6.01.&nbsp;&nbsp;&nbsp;&nbsp;Consolidations, Mergers and Corporate Reorganizations.** The Company shall not consolidate or merge with or into any other Person, or convey or transfer all or any material portion of its assets to any Person, or otherwise reorganize its corporate structure to transfer functions or any part of its assets to any other Person, or enter into a Restructuring Transaction.

**SECTION 6.02.&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts.** The Company will not: (A) enter any contract for the management or operation of all or any material portion of its assets; (B) breach or terminate any Wholesale Power Contract; or (C) amend, supplement, modify, or waive any provision of a Wholesale Power Contract, if the effect thereof could reasonably be expected to have a Material Adverse Effect.

**SECTION 6.03.&nbsp;&nbsp;&nbsp;&nbsp;Negative Pledge.** Except for Permitted Exceptions, the Company shall not, directly or indirectly create, incur, assume or permit to exist any Lien on the Trust Estate that is subordinated to the Lien of the Indenture, unless the instrument under which such Lien is created expressly states that: (i) it is subordinate to the Lien of the Indenture (whether or not duly recorded or perfected); and (ii) the holder thereof shall not have a right to foreclose on, or to exercise any other remedies with respect to, the property secured thereby, unless the Trustee shall then be pursuing like remedies; provided, however, that the Company shall not be required to comply with (ii) above if the Indenture provides that an Indenture Event of Default will arise upon the foreclosure of or the taking of any other action to enforce such subordinated Lien.

**SECTION 6.04.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** The Company shall not defease the obligations evidenced by any Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.1B(6) is of a nationally recognized firm and is unqualified.

**SECTION 6.05.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Restrictions.** Notwithstanding the provisions of the Indenture, the Company shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;**enter into a Supplemental Indenture pursuant to Section 12.1H of the Indenture if the effect thereof is to materially adversely affect the interests of the Holders of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;**enter into a Supplemental Indenture pursuant to Section 12.1C, 12.1D, 12.11 or 12.1K of the Indenture if (a) the Holders of the Obligations issued under such Supplemental Indenture are granted greater security rights in and to the Trust Estate than those security rights enjoyed by CoBank in its capacity as a Holder of Obligations under the Indenture, <u>provided,</u> <u>however,</u> that neither (I) the existence of Credit Enhancement nor (II) the creation and maintenance of debt service or similar funds for the payment of the principal and interest on Obligations issued under such Supplemental Indenture (to the extent such debt service or other similar funds are funded from the proceeds of the issuance of such Obligations or funded in connection with the refinancing of other debt by such Obligations), shall constitute greater security rights in and to the Trust Estate within the meaning of this Section; (b) the Holders of the Obligations issued under such Supplemental Indenture are given an independent right to accelerate repayment of such Obligations (whether directly or indirectly, including through a mandatory or optional redemption provision), unless such acceleration right is also given to CoBank <u>provided,</u> 

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<u>however,</u> that: (1) rights to acceleration arising as a result of the fact that interest on Obligations (or other indebtedness secured by such Obligations) is not excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, shall not constitute the providing of an independent right to accelerate within the meaning of this Section; and (2) that acceleration and similar rights may be granted to any government authorities and trustees without first complying with this Section in connection with the issuance of Obligations (or other indebtedness secured by such Obligations) the interest on which is excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, if such acceleration and similar rights are substantially similar to those granted to Mercer County, North Dakota and The First National Bank of Chicago, as trustee, pursuant to the Trust Indenture dated as of November 1, 1984 authorizing $147,000,000 Adjustable/Fixed Rate Pollution Control Bonds (Basin Electric Power Cooperative Antelope Valley Station) prior to conversion of the interest on such Bonds to a long-term interest rate pursuant to the provisions of subsection 3 of Section 2.04 of such Indenture; (c) modify or alter Section 8.7 of the Indenture or the obligation of the Trustee under the Indenture to hold the Trust Estate for the equal and proportionate benefit and security of the Holders, without any priority of any Obligation over any other Obligation.

**ARTICLE 7**

**EVENTS OF DEFAULT**

Each of the following shall constitute an "Event of Default" hereunder:

**SECTION 7.01.&nbsp;&nbsp;&nbsp;&nbsp;Payment Default.** The Company should fail to make when due any payment to CoBank hereunder or under any Note, and such failure shall continue for five Business Days.

**SECTION 7.02.&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** An Indenture Event of Default shall have occurred and be continuing.

**SECTION 7.03.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties, Etc.** Any opinion, certificate or like document furnished to CoBank or the Trustee by or on behalf of the Company, or any representation or warranty made or deemed made by the Company herein or in any other Loan Document, shall prove to have been false or misleading in any material respect on or as of the date furnished, made or deemed made.

**SECTION 7.04.&nbsp;&nbsp;&nbsp;&nbsp;Covenants.** The Company should fail to perform or comply with any covenant set forth herein and such failure continues for 30 days after written notice thereof shall have been given by CoBank to the Company.

**ARTICLE 8**

**REMEDIES UPON DEFAULT**

**SECTION 8.01.&nbsp;&nbsp;&nbsp;&nbsp;Remedies.** Upon the occurrence and during the continuance of an Event of Default, CoBank may terminate the Commitment, take such action as may be permitted by the Indenture (including, to the extent permitted under the Indenture, to declare the unpaid principal balance of the Notes, all accrued interest thereon, and all other amounts payable under this Agreement, the Notes, and all other Loan Documents to be immediately due and payable), and take such other action as may be permitted by Law or in equity, including an action or proceeding to specifically enforce any covenant contained herein or to restrain the breach thereof. The Company hereby waives any defense to any such action that an adequate remedy at law exists.

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**SECTION 8.02.&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of the Notes at the Default Rate.

**SECTION 8.03.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Each and every one of CoBank's 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 future or other 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 other balances held by CoBank for the Company's account (whether or not such balances are then due).

**SECTION 8.04.&nbsp;&nbsp;&nbsp;&nbsp;Application of Funds.** Upon the occurrence and during the continuance of an Event of Default, 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; provided, however, that to the extent that the Indenture requires a specific application, such application shall control.

**ARTICLE 9**

**MISCELLANEOUS**

**SECTION 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Complete Agreement, Amendments, Etc.** The Loan Documents are intended by the parties to be a complete and final expression of their agreement. No amendment, modification, or waiver of any provision of the Loan Documents, 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.

**SECTION 9.02.&nbsp;&nbsp;&nbsp;&nbsp;Applicable Law, Jurisdiction.** Except to the extent governed by applicable federal Law, this Agreement and the Notes shall be governed by the Laws of the State of Colorado, without reference to choice of law doctrine. The parties agree to submit to the non-exclusive jurisdiction of any federal or state court sitting in Colorado for any action or proceeding arising out of or relating to this Agreement or any other Loan Document. The Company hereby waives any objection that it may have to any such action or proceeding on the basis of forum non-conveniens.

**SECTION 9.03.&nbsp;&nbsp;&nbsp;&nbsp;Notices.** All notices hereunder shall be in writing and shall be deemed to have been duly given upon delivery if personally delivered or sent by overnight mail or by facsimile or similar transmission, or three (3) days after mailing if sent by express, certified or registered mail, to the parties at the following addresses (or such other address as either party may specify by like notice):

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| | |
|:---|:---|
| If to CoBank, as follows: | If to the Company, as follows: |
| CoBank, ACB<br>5500 South Quebec Street<br>Greenwood Village, Colorado 80111<br>Facsimile: (303) 740-4002<br>Attention: Energy Banking Group | Basin Electric Power Cooperative<br>1717 East Interstate Avenue<br>Bismarck, North Dakota 58503 Facsimile: (701) 224-5357<br>Attention: Senior Vice President & CFO |

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**SECTION 9.04.&nbsp;&nbsp;&nbsp;&nbsp;Costs, Expenses, and Taxes.** 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, interpretation, collection, and enforcement of this Agreement and the other Loan Documents, including, without limitation: (A) all costs and expenses incurred in determining compliance with the Company's obligations hereunder and other the other Loan Documents; (B) all costs and expenses (including all court costs) incurred in connection with any action or proceeding brought by CoBank under the terms hereof; and (C) any stamp, intangible, transfer or like tax incurred in connection with this Agreement or any other Loan Document or the recording hereof or thereof.

**SECTION 9.05.&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness and Severability.** This Agreement shall continue in effect until all indebtedness and obligations of the Company under this Agreement and the Notes shall have been paid or satisfied. Any provision of this Agreement or the Notes which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof.

**SECTION 9.06.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.** This Agreement 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 or the other Loan Documents without the prior written consent of CoBank. From time to time, CoBank may sell and assign its rights and/or participations in its rights under this Agreement, the Notes, and all instruments and documents executed in connection with, or relating hereto; provided, however, that: (1) each participant pays patronage on the portion sold to it; and (2) in the event CoBank sells a participation: (a) no such sale shall alter CoBank's obligations hereunder; and (b) any agreement pursuant to which CoBank may grant a participation shall provide that, the CoBank shall retain the sole right and responsibility to exercise CoBank's rights hereunder and under the Indenture and to enforce the obligations of the Company, including the right to approve any amendment, modification or waiver of any provision of this Agreement or any other Loan Document and the right to take action to have the Loans declared due and payable pursuant to the terms of the Indenture; <u>provided,</u> <u>however</u>, that such agreement may provide that the participant may have rights to approve or disapprove: (i) any reduction, modification or forgiveness in the principal amount, interest rates or prepayment premiums owing on the Loans; (ii) any change in the dates on which interest or principal is due; or (iii) the release of any material collateral for the Loans. In connection with the foregoing, CoBank may disclose information concerning the Company and its affiliates to all prospective purchasers. In the event CoBank sells or assigns its rights or participations in its rights, the portion sold shall not be subject to CoBank's patronage program.

**SECTION 9.07.&nbsp;&nbsp;&nbsp;&nbsp;Headings.** Captions and headings used in this Agreement are for reference and convenience of the parties only, and shall not constitute a part of this Agreement.

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

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| | | | |
|:---|:---|:---|:---|
| **CoBANK, ACB** | **CoBANK, ACB** | **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: | /s/ Pat Schultz | By: | /s/ Ronald R. Harper |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;Ronald R. Harper |
| Title: | Assistant Corporate Secretary | Title: | &nbsp;&nbsp;&nbsp;&nbsp;CEO & General Manager |

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**EXHIBIT A**

**DEFINITIONS AND RULES OF INTERPRETATION**

**SECTION 1.01 Definitions.** As used in the Agreement or any amendment thereto, the following terms shall have the following meanings:

**Accounting Requirements** shall have the meaning set forth in the Indenture.

**Agreement** shall mean this Agreement, as it may be amended or modified from time to time.

**Business Day** means any day other than a Saturday, Sunday, or other day on which CoBank is, or the Federal Reserve Banks are, closed for business.

**Closing Date** shall have the meaning set forth in Section 2.03 hereof.

**CoBank** shall mean CoBank, ACB and its successors and assigns.

**Commitment** shall have the meaning set forth in Section 2.01 hereof.

**Company** shall mean Basin Electric Power Cooperative and its permitted successors and assigns.

**Credit Enhancement** shall have the meaning set forth in the Indenture.

**Credit Rating** shall mean: (1) a rating assigned by a Rating Agency to any long-term indebtedness (that is not subject to Credit Enhancement issued by or on behalf of the Borrower (including indebtedness issued by any governmental authority with respect to which the Company is an obligor) and secured directly or indirectly under the Indenture; or (2) if the Company shall not have outstanding indebtedness of the type described in clause (1) hereof, a "shadow rating" of the Company's senior, secured long-term indebtedness (that is not subject to Credit Enhancement).

**Default** shall mean the occurrence of any event which with the giving of notice or the passage of time or the occurrence of any other condition would become an Event of Default or a Qualifying Securities Indenture Event of Default.

**Default Rate** shall 2% per annum in excess of the rate or rates that would otherwise be in effect under the terms of the Note, except that in the case of overdue interest, fees, and, prior to the final maturity of the Loan (whether as a result of acceleration or otherwise) principal, the term Default Rate shall mean 2% per annum in excess of the variable rate option provided in Section 2.04(C)(1) of the Agreement.

**Designated Qualifying Securities** shall have the meaning set forth in the Indenture.

**Dollars** and the sign **"$"** shall mean lawful money of the United States of America.

**ERISA** shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations and published interpretations thereof.

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**ERISA Affiliate** shall mean any trade or business, whether or not incorporated, which is a member of a controlled group with the Company within the meaning of Section 40001(a)(14) of ERISA.

**Event of Default** shall mean any of the events specified in Article 7 of this Agreement.

**Excepted Property** shall: (i) in the case of the Company, have the meaning set forth in the Indenture; and (ii) in the case of any Qualifying Subsidiary, like property and other property excepted from the Lien of any Qualifying Securities Indenture.

**First Loan** shall have the meaning set forth in Section 2.01 of the Agreement.

**First Note** shall have the meaning set forth in Section 2.07 hereof.

**GAAP** shall mean generally accepted accounting principles in the United States.

**Holders** shall have the meaning set forth in the Indenture.

**Indenture** shall mean that certain Indenture dated as of January 1, 1998, between the Company and U.S. Bank National Association, as Trustee, as amended, supplemented or restated from time to time.

**Indenture Default** shall mean the occurrence of an event which, with the giving of notice and/or the passage of time and/or the occurrence of any other condition would become an Indenture Event of Default.

**Indenture Event of Default** shall mean an Event of Default (as defined in the Indenture).

**Laws** shall mean all laws, rules, regulations, codes, orders and the like.

**Lien** shall mean any lien, mortgage, pledge, security interest, charge or encumbrance of any kind, whether voluntary or involuntary (including any conditional sale or other title retention agreement or any lease in the nature thereof).

**Loans** shall have the meaning set forth in Section 2.01 hereof.

**Loan Documents** shall mean this Agreement, the Note, the Indenture, and all instruments or documents relating to this Agreement or the Note to which the Company is a party..

**Margins For Interest Ratio** shall mean a ratio of "Margins for Interest" to "Interest Charges", as such terms are defined in, and as such ratio is calculated in accordance with, the terms of the Indenture.

**Material Adverse Effect** shall mean a material adverse effect on the condition, financial or otherwise, operations, properties, margins or business of the Company and its Subsidiaries taken as a whole, or on the ability of the Company or any Subsidiary to perform its obligations under the Loan Documents.

**Notes** shall mean the First Note and the Second Note, as each may be amended or restated from time to time.

**Obligation** shall have the meaning set forth in the Indenture.

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**Paying Agent** shall have the meaning set forth in the Indenture.

**Permitted Exceptions** shall have the meaning set forth in the Indenture.

**Person** shall mean an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority, or other entity of whatever nature.

**Prudent Utility Practice** shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry in the region during the relevant time period, or any of the practices, methods and acts that, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at lowest reasonable cost consistent with good business practices, reliability, safety and expedition. Prudent Utility Practice is not intended to be limited to the optimum practice, method or act, to the exclusion of all others, but rather to include a spectrum of possible practices, methods or acts generally in acceptance in the region in light of the circumstances.

**Qualifying Securities Indenture** shall have the meaning set forth in the Indenture.

**Qualifying Subsidiary** shall mean a Subsidiary subject to a Qualifying Securities Indenture.

**Qualifying Securities Indenture Event of Default** shall mean an Event of Default as defined in any Qualifying Securities Indenture.

**Qualifying Securities Indenture Default** shall mean the occurrence of an event which, with the giving of notice and/or the passage of time and/or the occurrence of any other condition would become an Qualifying Subsidiary Indenture Event of Default.

**Rating Agency** shall mean Standard & Poor's Ratings Services, a Division of The McGraw-Hill Companies, Inc., Fitch Ratings, Moody's Investors Service, Inc., any successor to any of the above, or a nationally recognized statistical rating organization (within the meaning of the rules of the United States Securities and Exchange Commission) acceptable to both the Company and CoBank.

**Restructuring Transaction** shall have the meaning set forth in the Indenture.

**RUS** shall mean the Rural Utilities Service of the United States Department of Agriculture, or any entity that assumes and succeeds to the rights and obligations of RUS.

**RUS Loan Agreement** shall mean all loan and other credit agreements between the Company and RUS.

**Second Loan** shall have the meaning set forth in Section 2.01 of the Agreement.

**Second Note** shall have the meaning set forth in Section 2.07 of the Agreement

**Subsidiary** shall mean, as to the Company, a corporation, partnership, limited liability company, joint venture, or other Person of which shares of stock or other equity interests having ordinary voting power to elect a majority of the board of directors or other managers of such corporation, partnership, limited liability company, joint venture, or other Person are at the time owned, or the management of

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which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by the Company.

**Subsidiary Trustee** shall mean the trustee, mortgagee, or Person performing a like function under any Qualifying Securities Indenture.

**Subsidiary Trust Estate** shall mean all property secured by a Qualifying Securities Indenture.

**Supplemental Indenture** shall have the meaning set forth in Section 3.06 of this Agreement.

**System** shall have the meaning set forth in the Indenture.

**Trustee** shall mean the Trustee under the Indenture.

**Trust Estate** shall have the meaning set forth in the Indenture.

**Wholesale Power Contracts** shall mean the contracts listed on item 1 of Exhibit D to the Indenture, and all amendments, supplements, extensions and replacements thereto.

**SECTION 1.02 Rules of Interpretation.** The following rules of interpretation shall apply to the Agreement, all Promissory Notes and Supplements, and all amendments to either of the foregoing:

**Accounting Terms.** All accounting terms not specifically defined herein shall be construed in accordance with Accounting Requirements, and all financial data submitted pursuant to this Agreement shall be prepared in accordance with such principles.

**Number.** All terms stated in the singular shall include the plural, and all terms stated in the plural shall include the singular.

**Including.** The term "including" shall mean including, but not limited to.

**Default.** The expression "while any Default or Event of Default shall have occurred and be continuing" (or like expression) shall be deemed to include the period following any acceleration of the Obligations (unless such acceleration is rescinded).

**Permitted Encumbrances.** CoBank's consent to the Company having one or more Liens on all or any portion of its assets, shall not be construed to be an agreement to subordinate its Lien on those assets to the extent that such Lien is not otherwise entitled to priority under Law.

**Incorporation.** All Exhibits to the Agreement shall form a part of, and shall be fully incorporated by reference into, the Agreement as if set forth in full therein.

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**EXHIBIT B**

**REPAYMENT SCHEDULE FOR FIRST LOAN**

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| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **AMOUNT DUE** | **PRINCIPAL BALANCE**<br>**(After Payment)** |
| 1 | 3/31/2029 | $646875.00 | $44353125.00 |
| 2 | 6/30/2029 | 656579.00 | 43696546.00 |
| 3 | 9/30/2029 | 666427.00 | 43030119.00 |
| 4 | 12/31/2029 | 676424.00 | 42353695.00 |
| 5 | 3/31/2030 | 686570.00 | 41667125.00 |
| 6 | 6/30/2030 | 696869.00 | 40970256.00 |
| 7 | 9/30/2030 | 707322.00 | 40262934.00 |
| 8 | 12/31/2030 | 717931.00 | 39545003.00 |
| 9 | 3/31/2031 | 728700.00 | 38816303.00 |
| 10 | 6/30/2031 | 739631.00 | 38076672.00 |
| 11 | 9/30/2031 | 750725.00 | 37325947.00 |
| 12 | 12/31/2031 | 761986.00 | 36563961.00 |
| 13 | 3/31/2032 | 773416.00 | 35790545.00 |
| 14 | 6/30/2032 | 785017.00 | 35005528.00 |
| 15 | 9/30/2032 | 796792.00 | 34208736.00 |
| 16 | 12/31/2032 | 808744.00 | 33399992.00 |
| 17 | 3/31/2033 | 820875.00 | 32579117.00 |
| 18 | 6/30/2033 | 833189.00 | 31745928.00 |
| 19 | 9/30/2033 | 845686.00 | 30900242.00 |
| 20 | 12/31/2033 | 858372.00 | 30041870.00 |
| 21 | 3/31/2034 | 871247.00 | 29170623.00 |
| 22 | 6/30/2034 | 884316.00 | 28286307.00 |
| 23 | 9/30/2034 | 897581.00 | 27388726.00 |
| 24 | 12/31/2034 | 911044.00 | 26477682.00 |
| 25 | 3/31/2035 | 924710.00 | 25552972.00 |
| 26 | 6/30/2035 | 938581.00 | 24614391.00 |
| 27 | 9/30/2035 | 952659.00 | 23661732.00 |
| 28 | 12/31/2035 | 966949.00 | 22694783.00 |
| 29 | 3/31/2036 | 981454.00 | 21713329.00 |
| 30 | 6/30/2036 | 996175.00 | 20717154.00 |
| 31 | 9/30/2036 | 1011118.00 | 19706036.00 |
| 32 | 12/31/2036 | 1026285.00 | 18679751.00 |
| 33 | 3/31/2037 | 1041679.00 | 17638072.00 |
| 34 | 6/30/2037 | 1057304.00 | 16580768.00 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **AMOUNT DUE** | **PRINCIPAL BALANCE (After Payment)** |
| 35 | 9/30/2037 | 1073164.00 | 15507604.00 |
| 36 | 12/31/2037 | 1089261.00 | 14418343.00 |
| 37 | 3/31/2038 | 1105600.00 | 13312743.00 |
| 38 | 6/30/2038 | 1122184.00 | 12190559.00 |
| 39 | 9/30/2038 | 1139017.00 | 11051542.00 |
| 40 | 12/31/2038 | 1156102.00 | 9895440.00 |
| 41 | 3/31/2039 | 1173444.00 | 8721996.00 |
| 42 | 6/30/2039 | 1191045.00 | 7530951.00 |
| 43 | 9/30/2039 | 1208911.00 | 6322040.00 |
| 44 | 12/31/2039 | 1227045.00 | 5094995.00 |
| 45 | 3/31/2040 | 1245450.00 | 3849545.00 |
| 46 | 6/30/2040 | 1264132.00 | 2585413.00 |
| 47 | 9/30/2040 | 1283094.00 | 1302319.00 |
| 48 | 12/31/2040 | 1302319.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

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**EXHIBIT C**

**REPAYMENT SCHEDULE**

---

| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **AMOUNT DUE** | **PRINCIPAL BALANCE**<br>**(After Payment)** |
| 1 | 6/30/2030 | $829220.00 | $44170780.00 |
| 2 | 9/30/2030 | 841658.00 | 43329122.00 |
| 3 | 12/31/2030 | 854283.00 | 42474839.00 |
| 4 | 3/31/2031 | 867097.00 | 41607742.00 |
| 5 | 6/30/2031 | 880104.00 | 40727638.00 |
| 6 | 9/30/2031 | 893305.00 | 39834333.00 |
| 7 | 12/31/2031 | 906705.00 | 38927628.00 |
| 8 | 3/31/2032 | 920306.00 | 38007322.00 |
| 9 | 6/30/2032 | 934110.00 | 37073212.00 |
| 10 | 9/30/2032 | 948122.00 | 36125090.00 |
| 11 | 12/31/2032 | 962344.00 | 35162746.00 |
| 12 | 3/31/2033 | 976779.00 | 34185967.00 |
| 13 | 6/30/2033 | 991430.00 | 33194537.00 |
| 14 | 9/30/2033 | 1006302.00 | 32188235.00 |
| 15 | 12/31/2033 | 1021396.00 | 31166839.00 |
| 16 | 3/31/2034 | 1036717.00 | 30130122.00 |
| 17 | 6/30/2034 | 1052268.00 | 29077854.00 |
| 18 | 9/30/2034 | 1068052.00 | 28009802.00 |
| 19 | 12/31/2034 | 1084073.00 | 26925729.00 |
| 20 | 3/31/2035 | 1100334.00 | 25825395.00 |
| 21 | 6/30/2035 | 1116839.00 | 24708556.00 |
| 22 | 9/30/2035 | 1133592.00 | 23574964.00 |
| 23 | 12/31/2035 | 1150595.00 | 22424369.00 |
| 24 | 3/31/2036 | 1167854.00 | 21256515.00 |
| 25 | 6/30/2036 | 1185372.00 | 20071143.00 |
| 26 | 9/30/2036 | 1203153.00 | 18867990.00 |
| 27 | 12/31/2036 | 1221200.00 | 17646790.00 |
| 28 | 3/31/2037 | 1239518.00 | 16407272.00 |
| 29 | 6/30/2037 | 1258111.00 | 15149161.00 |
| 30 | 9/30/2037 | 1276982.00 | 13872179.00 |
| 31 | 12/31/2037 | 1296137.00 | 12576042.00 |
| 32 | 3/31/2038 | 1315579.00 | 11260463.00 |
| 33 | 6/30/2038 | 1335313.00 | 9925150.00 |
| 34 | 9/30/2038 | 1355343.00 | 8569807.00 |
| 35 | 12/31/2038 | 1375673.00 | 7194134.00 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **NO.** | **DATE DUE** | **AMOUNT DUE** | **PRINCIPAL BALANCE**<br>**(After Payment)** |
| 36 | 3/31/2039 | 1,396,308.00 | 5,797,826.00 |
| 37 | 6/30/2039 | 1,417,252.00 | 4,380,574.00 |
| 38 | 9/30/2039 | 1,438,511.00 | 2,942,063.00 |
| 39 | 12/31/2039 | 1,460,089.00 | 1,481,974.00 |
| 40 | 3/31/2040 | 1,481,974.00 | - |

---

## Exhibit 4.3

**Exhibit 4.3**

Term Loan No. C

**LOAN AGREEMENT**

**THIS LOAN AGREEMENT** (this "<u>Agreement</u>" is entered into as of November 1, 2007, by and between **BASIN ELECTRIC POWER COOPERATIVE,** a North Dakota cooperative corporation (the "<u>Company</u>"), and **CoBANK, ACB,** a federally chartered instrumentality of the United States ("<u>CoBank</u>").

In consideration of the agreements herein and in the other "Loan Documents" (as hereinafter defined) and in reliance upon the representations and warranties set forth herein and therein, the parties agree as follows:

**ARTICLE 1**

**DEFINITIONS AND ACCOUNTING TERMS**

**SECTION 1.01.&nbsp;&nbsp;&nbsp;&nbsp;Definitions.** Capitalized terms used in this Agreement and defined in Exhibit A hereto shall have the meanings set forth in such Exhibit.

**SECTION 1.02.&nbsp;&nbsp;&nbsp;&nbsp;Rules of Interpretation.** The rules of interpretation set forth in Exhibit A shall apply to this Agreement.

**ARTICLE 2** 

**AMOUNT AND TERMS OF LOAN**

**SECTION 2.01.&nbsp;&nbsp;&nbsp;&nbsp;Commitments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Amount of Commitments.** On the terms and subject to the conditions set forth herein, CoBank agrees to make:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Facility A Loans.** Loans to the Company (the "<u>Facility A</u> <u>Loans</u>") from time to time during the period commencing on the date hereof and ending on the fifth anniversary of the date hereof, in an aggregate principal amount not to exceed $275,000,000.00 (the "<u>Facility A</u> <u>Commitment</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Facility B Loans.** Loans to the Company (the "<u>Facility B</u> <u>Loans</u>") from time to time during the period commencing on the date hereof and ending on the fifth anniversary of the date hereof, in an aggregate principal amount not to exceed $140,000,000.00 (the "<u>Facility B</u> <u>Commitment</u>").

Loans will be made under the Facility A Commitment and the Facility B Commitment (collectively, the "<u>Commitments</u>") pro rata in the proportion that the amount of each Commitment bears to the aggregate amount of both Commitments. Under the Commitments, amounts borrowed and later repaid may not be reborrowed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Limitation and Reduction of Commitment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Limitation of Commitment.&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding Subsection (A) hereof, the maximum amount of: (a) Facility A Loans that may be outstanding at any one time may not exceed $275,000,000 less the outstanding principal balance of all loans made by CoBank to the Company under Section 2.01(A)(l) of that certain Revolving Credit Agreement dated as of the date hereof between the Company and CoBank, as same may be amended or restated from time to time (the "<u>Revolving</u> <u>Credit</u> <u>Agreement</u>"); and (b) Facility B Loans that may be outstanding at any one time may not exceed $140,000,000 less the outstanding principal balance of all loans made by CoBank to the Company under Section 2.0l(A)(2) of the Revolving Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Permanent Reduction.** The Company shall have the right, upon ten (10) Business Days' prior written notice to CoBank (which notice shall be irrevocable), to cancel all or, subject to the next sentence hereof, a portion of the unused portion of the Facility A Commitment and the Facility B Commitment. Each reduction must be: (a) applied pro rata to the Commitments in the proportion that each Commitment bears to the sum of both Commitments; and (b) in a minimum amount of $10,000,000, and, in the case of amounts in excess thereof, in $5,000,000 increments.

**SECTION 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Purpose.** The purpose of the Facility A Loans and the Facility B Loans (collectively, the "<u>Loans</u>") is to finance the construction of the Dry Fork Station and for general corporate purposes, including refinancing loans outstanding from time to time under the Revolving Credit Agreement, together with accrued interest thereon and premiums (if any) owing as a result thereof.

**SECTION 2.03.&nbsp;&nbsp;&nbsp;&nbsp;Availability.** Subject to Article 3 hereof, the Loans will be made available upon the written request of the Company. Each request for a Loan (each a "<u>Request for</u> <u>Loan</u>") must be: (A) in the form attached hereto as Exhibit B; (B) duly executed and completed by the Company; and (C) received by CoBank not later than 10:00 AM Mountain Time three Business Days before the date of the Loan. Requests for Loans shall be furnished by facsimile transmission to 303-740-4002. Loans will be made available by: (1) wire transfer of immediately available funds to such account or accounts as may be authorized by the Company on forms supplied or approved by CoBank; or (2) in the event the purpose of the Loans is to refinance loans outstanding under the Revolving Credit Agreement, by CoBank retaining the proceeds of the Loans and applying them against the outstanding principal balance of the loans being refinanced, together with accrued interest and premiums (if any) owing as a result thereof.

**SECTION 2.04.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Options.** The Company agrees to pay interest on the unpaid principal balance of the Loans in accordance with one or more of the following interest rate options, as selected by the Company in accordance with the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;Weekly Quoted Variable Rate Option.** At a rate per annum equal to the rate of interest established by CoBank in its sole discretion in each instance on the first Business Day of each week (the "<u>Weekly Variable Rate Option</u>"). The rate established by CoBank shall be effective until the first Business Day of the next week. Each change in the rate shall be applicable to

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all balances subject to this option and information about the then current rate shall be made available upon telephonic request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Option.** At a fixed rate per annum equal to LIBOR plus the Applicable Margin (the "<u>LIBOR Option</u>"). Under this option, rates may be fixed: (a) on three (3) Business Days' prior notice; (b) on balances of $1,000,000 or in $1,000,000 increments in excess thereof; and (c) for Interest Periods of 1, 2, 3, or 6 months, as selected by the Company; provided, however, that: (i) the maximum number of balances outstanding under the Facility A Commitment that may be subject to this option at any one time shall be ten (10); (ii) the maximum number of balances outstanding under the Facility B Commitment that may be subject to this option at any one time shall be ten (10); and (iii) in no event may rates be fixed for Interest Periods expiring after the fifth anniversary of the date hereof (when this option shall terminate and cease to be in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)&nbsp;&nbsp;&nbsp;&nbsp;Quoted Fixed Rate Option.** At a fixed rate per annum equal to the Cost of Funds Rate plus the Applicable Margin on the date the rate is to take effect (the "<u>Quoted</u> <u>Fixed Rate</u> <u>Option</u>"). Under this option: (a) balances of $10,000,000 or more may be fixed for periods (each, a "<u>Quoted</u> <u>Fixed</u> <u>Rate</u> <u>Period</u>") ranging from one (1) year to the final maturity date of the Loans; (b) the maximum number of balances outstanding under the Facility A Commitment that may be subject to this option at any one time shall be ten (10); and (c) the maximum number of balances outstanding under the Facility B Commitment that may be subject to this option at any one time shall be ten (10). Rate quotes shall be made available upon telephonic request received not later than 9:00 AM Mountain Time on the date the rate is to take effect. However, unless waived by CoBank in its sole discretion in each instance, the Company must furnish CoBank with one Business Days' notice of its intent to obtain a rate quote for amounts in excess of $30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Elections.** Subject to the limitations set forth above, the Company: (1) shall select the applicable rate option in each Request for Loan; (2) may, on any Business Day, elect to convert balances bearing interest at the Weekly Variable Rate Option to the Quoted Fixed Rate Option; (3) may, on three (3) Business Days' prior notice, elect to convert balances bearing interest at the Weekly Variable Rate Option or Quoted Fixed Rate Option to the LIBOR Option; provided, however, that balances bearing interest at the Quoted Fixed Rate Option may not be converted to the LIBOR Option until the last day of the Quoted Fixed Rate Period; (4) may on the last day of any Quoted Fixed Rate Period, elect to re-fix the rate under the Quoted Fixed Rate Option or convert the balance to the Weekly Variable Rate Option; (5) may, on the last day of any Interest Period, elect to convert a balance bearing interest at the LIBOR Option to the Weekly Variable Rate or Quoted Fixed Rate Options; and (6) may, three Business Days' prior to the expiration of any Interest Period, elect to re-fix a rate under the LIBOR Option upon the expiration of the then current Interest Period. In the absence of an election provided for herein, the Company shall be deemed to have elected the Weekly Variable Rate Option. All elections provided for herein (other than those made in a Request for Loan) may be made telephonically or in writing and must be received not later than 9:00 AM Mountain Time on the applicable Business Day. However, if requested by CoBank, any election made telephonically shall be promptly confirmed in writing in the form attached hereto as Exhibit C. Written elections shall be furnished by facsimile to 303-740-4002. All interest rate elections made by the Company (including all elections made in a Request for Loan) shall be irrevocable, except that if the Company elects the Quoted Fixed Rate Option in any Request for Loan but does not accept the rate quoted by CoBank on the date the Loan is to be made, then the Loan shall bear interest at the Weekly Variable Rate Option until the Company elects to convert the rate to another option in

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accordance with the terms hereof. Notwithstanding the foregoing or any other provision hereof, the Company shall establish and maintain rates for Facility A Loans and Facility B Loans in the same manner <sup>1</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Calculation and Payment.** Interest shall be calculated on the actual number of days each Loan is outstanding on the basis of a year consisting of 360 days. In calculating interest, the date each Loan is made shall be included and the date each Loan or principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid quarterly in arrears on the last day of each March, June, September and December. Notwithstanding the foregoing, if requested by CoBank in its sole discretion in each instance, interest on balances subject to the LIBOR Option shall be calculated and paid at the end of each Interest Period or, in the case of Interest Periods longer than 3 months, at three month intervals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Applicable Margin.** For purposes hereof, the term "<u>Applicable Margin</u>" shall mean the percent per annum determined in accordance with the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| **If the Company's Credit Rating From S&P or Moody's Is:** | **Then The Applicable Margin For Facility A Loans bearing interest at the LIBOR Option Shall Be:** | **Then The Applicable Margin For Facility A Loans bearing interest at the Quoted Fixed Rate Option Shall Be:** | **Then The Applicable Margin For Facility B Loans bearing interest at the LIBOR Option Shall Be:** | **Then The Applicable Margin For Facility B Loans bearing interest at the Quoted Fixed Rate Option Shall Be:** |
| &nbsp;&nbsp;Equal to or better than A-<br>/A3 | 1.00% | 1.05% | 0.70% | 0.70% |
| BBB+/Baal | 1.10% | 1.10% | 0.80% | 0.80% |
| BBB/Baa2 | 1.20% | 1.20% | 0.90% | 0.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;Less than BBB/Baa2 | 1.30% | 1.30% | 1.00% | 1.00% |

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If the Credit Ratings from the Rating Agencies are different, then the lower Credit Rating shall be used in determining the Applicable Margin. The Company agrees to notify CoBank promptly after any change in the Company's Credit Rating. If as a result of any change, it is determined that a change to the Applicable Margin is warranted, then such change, if an increase, may be made at any time after the date of determination, and, if a decrease, shall be made not later than five (5) days after written notice from the Company requesting CoBank to decrease the Applicable Margin. Until the Company's Credit Rating changes, the Applicable Margin shall be the Applicable Margin for a Credit Rating equal to or better than A-/A3. Notwithstanding the foregoing, on and after the fifth anniversary of the date hereof, the Applicable Margin for balances fixed on or after such date shall be a margin to be quoted by CoBank in its sole discretion in each instance. Each change in the

<sup>1</sup> For example, if the Company elects one interest rate option for the Facility A Loan obtained on a given date, then the company shall select the same option for the Facility B Loan obtained on that same date. If the Company elects two interest rate options for the Facility A Loan obtained on a given date, then the Company shall select the same options in the same proportions for the Facility B Loan obtained on that same date. If thereafter, the Company converts all or a part of the Facility A Loan to another option, it shall convert all or a corresponding part of the Facility B Loan to the same option.

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Applicable Margin shall affect balances fixed on or after the date of the change (and shall not apply retroactively to balances already outstanding at a fixed rate).

**SECTION 2.05.&nbsp;&nbsp;&nbsp;&nbsp;Repayment.** The Facility A Loans and the Facility B Loans shall be repaid in accordance with the repayment schedules attached hereto as Exhibit H.

**SECTION 2.06.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment and Premium.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A) Voluntary.** The Company may prepay the Loans in whole or in part; provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid at any one time shall be $5,000,000 and amounts in excess thereof shall be in increments of $1,000,000. In the event the Company desires to prepay the Loans, it shall notify CoBank thereof in writing not less than three (3) Business Days prior to the date on which the Company intends to prepay the Loans. Unless otherwise agreed to by CoBank in writing, all such notices shall be irrevocable. On the date fixed for prepayment, the Company shall prepay the Loans (or so much thereof as provided in the Company's notice), together with accrued interest thereon and, if applicable, any premium owing under Subsection (C) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B) Application of Partial Prepayments.** All partial prepayments shall be applied: (1) pro rata to the outstanding Facility A Loans and Facility B Loans in the proportion that the outstanding principal balance of each type of Loan bears to the outstanding principal balance of all Loans; (2) to principal installments owing on the Loans in the inverse order of their maturity; and (3) to such balances, fixed or variable, on the Loans as shall be specified by CoBank in a manner consistent with the allocation of the prepayment to principal installments and the interest rate elections made by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Premium.** The Company agrees that in the event any Fixed Rate Balance is repaid prior to the last day of the Fixed Rate Period (whether such payment is made voluntarily, as a result of a prepayment, as a result of an acceleration, or otherwise), or the Company fails to borrow any Fixed Rate Balance on the date scheduled therefor (whether such failure is due to the inability to meet applicable conditions precedent, the suspension or termination of the one or more of the Commitments, or otherwise), the Company will pay to CoBank a premium in an amount calculated pursuant to Exhibit D hereto. Such premium shall be due and payable on the date such payment is made, the date on which the Fixed Rate Period was to commence, or at such other time as is contemplated herein.

**SECTION 2.07.&nbsp;&nbsp;&nbsp;&nbsp;Notes.** The Company's obligation to repay the: (A) Facility A Loans shall be evidenced by a First Mortgage Note in substantially the form of Exhibit E-1 hereto (the "<u>First Note</u>"); and (B) Facility B Loans shall be evidenced by a First Mortgage Note in substantially the form of Exhibit E-2 hereto (the "<u>Second Note</u>" and, together with the First Note, the "<u>Notes</u>"). Each Note shall be duly completed, dated the date hereof, and in the amount of: (1) in the case of the First Note, $275,000,000; and (2) in the case of the Second Note, $140,000,000.

**SECTION 2.08.&nbsp;&nbsp;&nbsp;&nbsp;Security.** The Company's obligations hereunder and under the Notes shall be secured by: (A) a statutory first priority Lien on all equity which the Company may now own or hereafter acquire or be allocated in CoBank; and (B) the Indenture, equally and ratably with all other "Obligations" (as such term is defined in the Indenture).

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**SECTION 2.09.&nbsp;&nbsp;&nbsp;&nbsp;Commitment Fee.** In consideration of the Commitments, the Company agrees to pay to CoBank a commitment fee on the unused portion of the Commitments from November 30, 2007, to the date on which the Commitments expire or are otherwise terminated, at a rate per annum (calculated on an actual/360 day basis) determined as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;If **the Company's Credit Rating from S&P or Moody's is**: | **Then The Commitment Fee Shall Be:** |
| Equal to or better than A-/A3 | 0.075% |
| BBB+/Baal | 0.100% |
| BBB/Baa2 | 0.125% |
| Less than BBB/Baa2 | 0.150% |

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If the Credit Ratings from the Rating Agencies are different, then the lower Credit Rating shall be used in determining the applicable rate for calculating the fees. The Company agrees to notify CoBank promptly after any change in the Company's Credit Rating. If as a result of any change, it is determined that a change to the applicable rate is warranted, then such change, if an increase, may be made at any time after the date of determination, and, if a decrease, shall be made not later than five (5) days after written notice from the Company requesting CoBank to decrease the applicable rate. Until the Company's Credit Rating changes, the applicable rate shall be the rate for a Credit Rating equal to or better than A-/A3. Notwithstanding the foregoing, while the Revolving Credit Agreement is outstanding, the amount of fees to be paid hereunder shall be reduced by the amount of commitment fees paid by the Company under Section 2.09 of the Revolving Credit Agreement.

**SECTION 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Manner of Making Payments.** Notwithstanding the terms of the Indenture, the Company shall make, or cause its Paying Agent to make, all payments to CoBank under this Agreement and the Notes by wire transfer of immediately available funds in accordance with the following wire transfer instructions (or in accordance with such other wire transfer instructions as CoBank may direct by notice pursuant to Section 9.03):

Name of Bank: COBANK

Location: Greenwood Village, CO

ABA No. [\*\*\*]

Reference: Basin Electric

In addition, to the extent permitted under the Indenture, the Company agrees that CoBank need not present the Notes as a condition for receiving payment thereon; provided, however, that CoBank agrees that it will not transfer the Notes without having first complied with the requirements of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Late Payments; Default Rate.** In the event the Company fails to make any payment when due, then without limiting any other rights or remedies that CoBank may have for or

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on account of such failure, such payment shall be due and payable on demand and, at CoBank's option in each instance, shall accrue interest from the date due to the date paid at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Business Days.** In the event any day on which principal, interest, premium, and/ or fees is due and payable is not a Business Day, then such payment shall be made on the next Business Day and, notwithstanding the Indenture, interest shall continue to accrue during such period on the principal balance of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Records.** CoBank shall keep a record of the unpaid principal balance of the Loans, the interest rate elections made with respect thereto, the interest accrued on the Loans, and all payments made with respect to the Loans, and such record shall, absent proof of error, be conclusive evidence of the outstanding principal and interest on the Loans. On the request of the Trustee, CoBank shall certify such information to the Trustee, as well as the amount of any premium provided for herein, and the Company agrees that such certification shall, absent proof of error, be conclusive evidence of the amount so certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)&nbsp;&nbsp;&nbsp;&nbsp;Application of Payments.** Except as provided in Section 8.04 hereof, all payments to be made hereunder shall be applied to the Facility A Loans and the Facility B Loans (or to amounts owing on account thereof) pro rata in the proportion that the outstanding principal balance of each type of Loan bears to the outstanding principal balance of all Loans.

**ARTICLE 3** 

**CONDITIONS PRECEDENT**

**SECTION 3.01. Conditions Precedent to Initial Loan.** CoBank's obligation to make the initial Loan to the Company hereunder is subject to the following conditions precedent, which, in the case of instruments and documents, must be in form and content specified herein or otherwise acceptable to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement.** CoBank shall have received a duly executed original copy of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Notes.** CoBank shall have received an original copy of the First Note and the Second Note, duly executed by the Company and authenticated by the Trustee under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Evidence of Authority.** CoBank shall have received copies, certified by the Secretary-Treasurer or an Assistant Secretary of the Company as of the date hereof, of such board resolutions, evidence of incumbency, and other evidence as CoBank may require that this Agreement, the Notes, and all Loan Documents executed in connection herewith or therewith have been duly authorized, executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** CoBank shall have received a copy of all supplemental indentures and amendments to the Indenture entered into since December 1, 2005, certified by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Indenture.** CoBank shall have received an original copy, duly executed by the Company and the Trustee, of a Supplemental Indenture to the Indenture in the form attached hereto as Exhibit F (the "<u>Supplemental</u> <u>Indenture</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)&nbsp;&nbsp;&nbsp;&nbsp;Indenture Documents.** CoBank shall have received copies of each instrument and document furnished to the Trustee under Section 4.8 of the Indenture in connection with the transactions contemplated hereby, including, without limitation: (A) the Board Resolution required by Section 4.1 of the Indenture; (B) the Officer's Certificate required by Section 4.1 B of the Indenture; and (C) the Opinion of Counsel required by Section 4.l(C) of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)&nbsp;&nbsp;&nbsp;&nbsp;Consents and Approvals.** CoBank shall have received such evidence as CoBank may require that any required consents and approvals referred to in Section 4.05 hereof have been obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** CoBank shall have received such evidence as CoBank may require that the Company is in compliance with Section 5.03 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)&nbsp;&nbsp;&nbsp;&nbsp;Opinion of Counsel.** CoBank shall have received a duly executed original copy of an opinion of counsel to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(J)&nbsp;&nbsp;&nbsp;&nbsp;Fees and Charges.** CoBank shall have received all fees and charges provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(K)&nbsp;&nbsp;&nbsp;&nbsp;Articles and Bylaws.** CoBank shall have received a copy of the Company's articles of incorporation and bylaws, certified by the Secretary-Treasurer or an Assistant Secretary of the Company as being in full force and effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(L) Good Standing Certificate.** CoBank shall have received a certificate of the Secretary of State of North Dakota dated within 30 days of the date hereof attesting to the due incorporation and good standing of the Company under the Laws of the State of North Dakota.

**SECTION 3.02. Conditions Precedent to Each Loan.** CoBank's obligation to make each Loan to the Company hereunder (including the initial Loans) is subject to the following conditions precedent, which, in the case of instruments and documents, must be in form and content specified herein or otherwise acceptable to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** (1) Each of the conditions precedent set forth in the Indenture to the Loans being secured thereunder shall have been satisfied, (2) the Trustee shall have consented to the Loans in the manner contemplated in Section 4.8 of the Indenture; and (3) in the event the basis for the Trustee's consent is Section 4.3, 4.4, or 4.11 of the Indenture, CoBank shall have consented thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Request for Loans.** CoBank shall have received an original, duly executed copy of a Request for Loan and all instruments and documents contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Absence of Default.** No Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties.** Each of the representations and warranties of the Company set forth herein and in all other Loan Documents (other than any representation and warranty that refers to the date of this Agreement) shall be true and correct as of the date of the Loans.

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**ARTICLE 4** 

**REPRESENTATIONS AND WARRANTIES**

To induce CoBank to enter into this Agreement and make the Loans contemplated hereby, the Company represents and warrants that:

**SECTION 4.01.&nbsp;&nbsp;&nbsp;&nbsp;Organization, Etc.** The Company and each Subsidiary: (A) is a corporation duly organized, validly existing, and in good standing under the Laws of its jurisdiction of incorporation; (B) bas all requisite power and authority to own and operate its properties and to carry on its business as now conducted and as presently proposed to be conducted; and (C) is duly licensed or qualified and is in good standing as a foreign corporation in each jurisdiction wherein the nature of the business transacted by it or the nature of the property owned or leased by it makes such licensing or qualification necessary.

**SECTION 4.02.&nbsp;&nbsp;&nbsp;&nbsp;Licenses, Permits, Etc.** The Company and each Subsidiary has all licenses, permits, franchises, patents, copyrights, trademarks, tradenames, or rights thereto which are material to the conduct of its business or required by Law.

**SECTION 4.03.**&nbsp;&nbsp;&nbsp;&nbsp;**Authority.** The execution, delivery and performance by the Company of this Agreement and the other Loan Documents and the performance of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and do not violate any provision of Law or of the articles of incorporation or bylaws of the Company or result in a breach of, or constitute a default under the Indenture or any other agreement to which the Company is a party or by which it may be bound.

**SECTION 4.04.&nbsp;&nbsp;&nbsp;&nbsp;Binding Agreement.** Each of the Loan Documents is, or when executed and delivered will be, the legal, valid, and binding obligation of the Company, enforceable in accordance with its terms, subject only to limitations on enforceability imposed in equity or by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally.

**SECTION 4.05.&nbsp;&nbsp;&nbsp;&nbsp;Consents.** No consent, permission, authorization, order, or license of any governmental authority or of any party to any agreement to which the Company is a party or by which it or any of its property may be bound or affected, is necessary in connection with the execution, delivery, or performance of the Loan Documents, except such as have been obtained are in full force and effect.

**SECTION 4.06.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws.** Neither the Company nor any Subsidiary is in violation of any Law to which it is subject, which violation could reasonably be expected to have a Material Adverse Effect.

**SECTION 4.07.&nbsp;&nbsp;&nbsp;&nbsp;Pending Litigation.** Except as disclosed in the opinion furnished under Section 3.01(1) hereof, there are no actions, suits or proceedings pending, or to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary in any court or before any governmental authority, arbitration board or tribunal, mediator, or the like, which could, if adversely decided, have a Material Adverse Effect. Neither the Company nor any Subsidiary is in default with respect to any judgment or any order of any court, governmental authority, arbitration board or tribunal, mediator or the like.

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**SECTION 4.08.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements.** The consolidated balance sheets of the Company and its consolidated Subsidiaries as of December 31 for each of the years 2005 and 2006, and the statements of operations, changes in equity, and statements of cash flows for the fiscal years ended on said dates, each accompanied by a report thereon containing an opinion unqualified as to scope limitations imposed by the Company and otherwise without qualification by Deloitte & Touche LLP, in each such case, have been prepared in accordance with GAAP consistently applied except as therein noted, are correct and complete and present fairly the financial position of the Company and its Subsidiaries as of such dates and the results of their operations and changes in their financial position or cash flows for such periods. The unaudited consolidated balance sheets of the Company and its consolidated Subsidiaries as of June 30, 2007, and the unaudited statements of operations and statements of cash flows for the six-month period ended on said date prepared by the Company have been prepared in accordance with GAAP consistently applied, are correct and complete and present fairly the financial position of the Company and its consolidated Subsidiaries as of said date and the results of their operations and changes in their financial position or cash flows for such period. Since June 30, 2007, there has been no change in the condition, financial or otherwise, of the Company and its consolidated Subsidiaries as shown on the consolidated balance sheet as of such date except changes in the ordinary course of business, none of which individually or in the aggregate has been materially adverse. Neither the financial statements referred to above nor this Agreement, the Indenture or any other written statement furnished by the Company to CoBank in connection herewith, contains any untrue statement of a material fact or omits a material fact necessary to make the statements contained therein or herein not misleading. There is no fact peculiar to the Company or its Subsidiaries which the Company has not disclosed to CoBank in writing which has a Material Adverse Effect nor, so far as the Company can now foresee, will have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole.

**SECTION 4.09.&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries.** Exhibit G hereto states the name of each of the Company's Subsidiaries, its jurisdiction of incorporation, and the percentage of its voting stock owned by the Company and/or its Subsidiaries. The Company and each Subsidiary has good and marketable title to all of the shares it purports to own of the stock of each Subsidiary free and clear in each case of any Lien (other than the Lien of the Indenture). All such shares have been duly issued and are fully paid and non-assessable.

**SECTION 4.10.&nbsp;&nbsp;&nbsp;&nbsp;No Defaults.** Neither the Company nor any Subsidiary is in default in the payment of principal or interest on any indebtedness for borrowed money, and is not in material default under any instrument or instruments or agreements under and subject to which any indebtedness for borrowed money has been issued, and no event has occurred and is continuing under the provisions of any such instrument or agreement which with the lapse of time or the giving of notice, or both, would constitute an event of default thereunder. In addition, the Company is not in default under any Wholesale Power Contract or any other agreement which, if terminated, could have a Material Adverse Effect.

**SECTION 4.11.&nbsp;&nbsp;&nbsp;&nbsp;Title to Properties.** The Company and each Subsidiary has good and marketable title in fee simple (or its equivalent under applicable Law) to all material parcels of real property and has good title to all the other material items of property it purports to own, including that reflected in the most recent balance sheet referred to in Section 4.08 hereof, except as sold or otherwise disposed of in the ordinary course of business and except for the Lien of the Indenture and Permitted Exceptions.

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**SECTION 4.12.&nbsp;&nbsp;&nbsp;&nbsp;Taxes.** All tax returns required to be filed by the Company or any Subsidiary in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Company or any Subsidiary or upon any of their respective properties, income or franchises, which are shown to be due and payable in such returns have been paid. For all taxable years ending on or before December 31, 2002, the Federal income tax liability of the Company and its Subsidiaries has been satisfied and either the period of limitations on assessment of additional Federal income tax has expired or the Company and its Subsidiaries have entered into an agreement with the Internal Revenue Service closing conclusively the total tax liability for the taxable year. The Internal Revenue Service is currently examining 2005 and 2006. The Company does not know of any proposed material additional tax assessment against it for which adequate provision has not been made on its accounts, and no material controversy in respect of additional Federal or state income taxes due since said date is pending or to the knowledge of the Company threatened. The provisions for taxes on the books of the Company and each Subsidiary are adequate for all open years, and for its current fiscal period.

**SECTION 4.13.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Environmental Laws.** Neither the Company nor any Subsidiary is in material violation of any applicable Laws relating to public health, safety or the environment (including, without limitation, relating to releases, discharges, emissions or disposals to air, water, land or ground water, to the withdrawal or use of ground water, to the use, handling or disposal of polychlorinated biphenyls (PCB's), asbestos or urea formaldehyde, to the treatment, storage, disposal or management of hazardous substances (including, without limitation, petroleum, crude oil or any fraction thereof, or other hydrocarbons), pollutants or contaminants, to exposure to toxic, hazardous or other controlled, prohibited or regulated substances), which violation could have a Material Adverse Effect. The Company does not know of any liability or class of liability of the Company or any Subsidiary under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.), or the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).

**SECTION 4.14.&nbsp;&nbsp;&nbsp;&nbsp;ERISA.** The Company and each of its ERISA Affiliates is in compliance with all requirements of ERISA, the Company and each ERISA Affiliate have met their minimum funding requirements under ERISA with respect to each plan governed thereby, no grounds exist entitling the Pension Benefit Guaranty Corporation to institute proceedings to terminate a plan maintained by the Company or any ERISA Affiliate this is subject to ERISA, and neither the Company nor any ERISA Affiliate has any liability arising from the withdrawal or termination of any plan subject to ERISA.

**SECTION 4.15.&nbsp;&nbsp;&nbsp;&nbsp;Conflicting Agreements.** None of the Loan Documents conflicts with, or constitutes (with or without the giving of notice and/or the passage of time and/or the occurrence of any other condition) a default under, any other agreement to which the Company or any Subsidiary is or expects to become a party or by which the Company, any Subsidiary, or any of its or their properties may be bound or affected.

**SECTION 4.16.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Matters.** (A) the Notes constitute Obligations and are secured under the Indenture equally and ratably with all other Obligations; (B) the Supplemental Indenture been duly filed and recorded in all places required by Law in order to accord CoBank the benefits of the Indenture; (C) all instruments and documents required to be filed or recorded in order to accord the Trustee a duly perfected Lien on the Trust Estate have been duly and properly filed and

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recorded; (D) except for Permitted Exceptions, there are no other Liens on the Trust Estate; (E) no Indenture Default or Indenture Event of Default has occurred and is continuing; and (F) there are no Qualifying Securities Indentures existing on the date hereof. Notwithstanding any other provision of this Article 4, the representation and warranty set forth in this Section shall not be deemed made upon the execution of this Agreement. Rather, the representations and warranties set forth in this Section shall only be deemed made to induce CoBank to make Loans hereunder.

**ARTICLE 5** 

**AFFIRMATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the Company agrees to:

**SECTION 5.01.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Indenture and RUS Loan Agreement.** Comply with all of the terms of the Indenture and the RUS Loan Agreement, and cause each Qualifying Subsidiary to comply with all of the terms of its Qualifying Securities Indenture. Without limiting the foregoing, the Company will have for each fiscal year of the Company a Margins for Interest Ratio of not less than 1.10.

**SECTION 5.02.&nbsp;&nbsp;&nbsp;&nbsp;Compliance With Laws.** Comply in all material respects, and cause each Subsidiary to comply in all material respects, with all applicable Laws (including all Laws relating to the environment), which, if not complied with, could have a Material Adverse Effect.

**SECTION 5.03.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** Maintain insurance with such companies, in such amounts, and covering such risks as is required to be maintained by the Company under the terms of the Indenture. In addition, the Company agrees to cause each Subsidiary to maintain insurance in such amounts and covering such risks as are usually carried by companies engaged in the same business and similarly situated. The Company agrees to furnish to CoBank such proof of compliance with this Section as CoBank may from time to time reasonably require.

**SECTION 5.04.&nbsp;&nbsp;&nbsp;&nbsp;Property Maintenance.** Maintain the System in accordance with Prudent Utility Practice.

**SECTION 5.05.&nbsp;&nbsp;&nbsp;&nbsp;Books and Records.** Keep, and cause each Subsidiary to keep, adequate records and books of account in which complete entries will be made in accordance with Accounting Requirements.

**SECTION 5.06.&nbsp;&nbsp;&nbsp;&nbsp;Reports and Notices.** Furnish to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;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 prepared in accordance with GAAP consistently applied. Such financial statements shall: (a) in the case of the consolidated statements, be audited by a firm of nationally recognized independent certified public accountants selected by the Company; (b) in the case of the consolidated statements, be accompanied by a report of such accountants containing an opinion to the effect that the financial statements: (i) were audited in accordance with generally accepted auditing standards; and (ii) present fairly, in all material respects, the financial position of the Company as at the end of

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the year and the results of its operations for the year then ended, in conformity with GAAP; (c) be prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of operations, a statement of changes in equity, a statement of cash flows, and all notes and schedules (including consolidating schedules) relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;Interim Financial Statements.** As soon as available, but in no event more than 60 days after the end of the first three fiscal quarters of the Company of each year occurring during the term hereof, a consolidated balance sheet of the Company and its consolidated Subsidiaries as of the end of such quarter and a consolidated statement of operations for the Company and its consolidated Subsidiaries for such period and for the period year to date, all prepared in reasonable detail and in comparative form in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)&nbsp;&nbsp;&nbsp;&nbsp;Officer's Certificate.** Together with each set of financial statements delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a certificate of the Chief Financial Officer of the Company (or other officer of the Company acceptable to CoBank): (1) stating the Margins For Interest Ratio achieved by the Company for the fiscal year covered by such financial statements and setting forth the calculations used in computing such Ratio; (2) setting forth Basin's Credit Rating from each Rating Agency which has issued a Credit Rating; and (3) certifying that, to the best knowledge of such officer, no Default or Event of Default occurred during the period covered by such statements or, if a Default or Event of Default did occur during such period, a statement as to the nature thereof, whether such Default or Event of Default is continuing, and if continuing, the action which is proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)&nbsp;&nbsp;&nbsp;&nbsp;Annual Financial Information and Budgets.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)&nbsp;&nbsp;&nbsp;&nbsp;RUS Form 12; FERC Form 1.** As soon as available, but in no event more than 120 days after each fiscal year end, a copy of either the Company's Form 12 submitted to RUS or FERC Form 1 submitted to Federal Energy Regulatory Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)&nbsp;&nbsp;&nbsp;&nbsp;Budgets.** As soon as available, but in no event more than 60 days after each fiscal year end, annual budgets and forecasts of operations for the Company and its Subsidiaries for the ensuing year and for a ten year period, in such detail as CoBank may from time to time reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Litigation, Material Matters, Etc.** Promptly after becoming aware thereof, notice of: (1) the commencement of any action, suit or proceeding against the Company or any Subsidiary before any court, governmental instrumentality, arbitrator, mediator or the like which, if adversely decided, could reasonably be expected to have a Material Adverse Effect; (2) the receipt of any notice, indictment, pleading, or other communication alleging a condition that: (a) may require the Company or any Subsidiary to undertake or to contribute to a clean-up or other response under any environmental Law, or which seeks penalties, damages, injunctive relief, or other relief as a result of an alleged violation of any such Law, or which claims personal injury or property damage as a result of environmental factors or conditions; and (b) if true or proven, could reasonably be expected to have a Material Adverse Effect or result in criminal sanctions; (3) the occurrence of any other event or matter (including the rendering of any order, judgment, ruling and the like) which could reasonably be expected to have a Material Adverse Effect; (4) the occurrence of any event under the Indenture or any Qualifying Securities Indenture which would require the Trustee or any

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Subsidiary Trustee to resign; and (5) the breach by the Trustee or any Subsidiary Trustee of any provision of the Indenture or any Qualifying Securities Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Default.** Promptly after becoming aware thereof, notice of the occurrence of a Default, an Event of Default, a Qualifying Securities Indenture Default, or a Qualifying Securities Indenture Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)&nbsp;&nbsp;&nbsp;&nbsp;Notice of Certain Events.** Notice of each of the following at least 30 days prior thereto: (1) any change in the name or structure of the Company; or (2) any change in the Trustee or any Subsidiary Trustee; (3) the sale by the Company or any Subsidiary of all or a portion of the equity interests held by the Company or any Subsidiary in a Subsidiary; and (4) the discontinuance of any material part of the operations of the Company or any Qualifying Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)&nbsp;&nbsp;&nbsp;&nbsp;Ratings.** Promptly after receipt thereof by the Company, a copy of each Credit Rating received by the Company, together with all reports issued in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)&nbsp;&nbsp;&nbsp;&nbsp;Other Information.** Such other information regarding the condition or operations, financial or otherwise, of the Company and its Subsidiaries as CoBank may from time to time reasonably request, including copies of all opinions furnished under Section 13.5 (A) and (B) of the Indenture and all pleadings, notices and communications referred to in Section 5.06(E) hereof.

**SECTION 5.07.&nbsp;&nbsp;&nbsp;&nbsp;Capital.** Acquire voting stock in CoBank in such amounts and at such times as CoBank may from time to time require in accordance with its bylaws and capital plan (as each may be amended from time to time), except that: (A) the maximum amount of voting stock that the Company may be required to purchase in connection with the Facility A Loans may not exceed the maximum amount permitted by the bylaws on the date of this Agreement; and (B) CoBank shall not have the right to require the Company to purchase voting stock in connection with the Facility B Loans. The rights and obligations of the parties with respect to such stock and any patronage or other distributions made by CoBank shall be governed by CoBank's bylaws and capital plan (as each may be amended from time to time). Notwithstanding the foregoing: (1) CoBank agrees that 100% of the Facility A Loans will be held by CoBank and one or more participants that pay patronage and will be eligible for patronage in accordance with the capital plans and bylaws of such institutions; and (2) the Company acknowledges and agrees that none of the Facility B Loans will be eligible for patronage.

**SECTION 5.08.&nbsp;&nbsp;&nbsp;&nbsp;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 the properties, books and records of the Company and its Subsidiaries, and to discuss its affairs, finances and accounts with its officers, directors, and independent certified public accountants.

**SECTION 5.09.&nbsp;&nbsp;&nbsp;&nbsp;Ratings.** Maintain a Credit Rating with S&P or Moody's.

**SECTION 5.10.&nbsp;&nbsp;&nbsp;&nbsp;Excepted Property.** If an Event of Default or a Qualifying Securities Indenture Event of Default has occurred and is continuing and CoBank so requests in writing: (A) enter into a Supplemental Indenture with the Trustee and cause each Qualifying Subsidiary to enter into a supplemental indenture or like instrument with each Subsidiary Trustee (in form and content reasonably acceptable to the Trustee, the Subsidiary Trustee, and CoBank) adding to the Trust Estate or Subsidiary Trust Estate such Excepted Property as CoBank may designate in writing; and (B)

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promptly record same in all places required by Law in order to accord the Trustee and the Subsidiary Trustee a duly perfected Lien on the designated Excepted Property; provided, however, that unless a Qualifying Securities Indenture Event of Default could reasonably be expected to have a Material Adverse Effect, the Company's obligations hereunder shall be limited to causing the Qualifying Subsidiary with respect to which the Qualifying Securities Indenture Event of Default has occurred, to enter into a supplemental indenture or like instrument as provided above.

**SECTION 5.11.&nbsp;&nbsp;&nbsp;&nbsp;Security.** Take, and cause each Qualifying Subsidiary to take, such steps (including the execution and recording of such instruments and documents) as CoBank may from time to time reasonably require in order to enable: (1) the Trustee to obtain, perfect and maintain its Lien on the Trust Estate; and (2) any Subsidiary Trustee to obtain, perfect and maintain its Lien on the Subsidiary Trust Estate; provided, however, that nothing contained herein shall obligate the Company to take steps which are in conflict with the requirements of the Indenture, any Qualifying Securities Indenture, or any contrary direction provided by the requisite Holders.

**SECTION 5.12.&nbsp;&nbsp;&nbsp;&nbsp;Condemnation.** In the event all or a material portion of the System is taken in a condemnation action or proceeding or in a like proceeding or is sold or otherwise transferred in lieu thereof or pursuant to any right of any governmental authority to direct the sale of transfer thereof, the Company shall apply the proceeds thereof to the redemption of the Obligations.

**ARTICLE 6** 

**NEGATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect:

**SECTION 6.01.**&nbsp;&nbsp;&nbsp;&nbsp;**Consolidations, Mergers and Corporate Reorganizations.** The Company shall not consolidate or merge with or into any other Person, or convey or transfer all or any material portion of its assets to any Person, or otherwise reorganize its corporate structure to transfer functions or any part of its assets to any other Person, or enter into a Restructuring Transaction.

**SECTION 6.02.&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts.** The Company will not: (A) enter any contract for the management or operation of all or any material portion of its assets; (B) breach or terminate any Wholesale Power Contract; or (C) amend, supplement, modify, or waive any provision of a Wholesale Power Contract, if the effect thereof could reasonably be expected to have a Material Adverse Effect.

**SECTION 6.03.&nbsp;&nbsp;&nbsp;&nbsp;Negative Pledge.** Except for Permitted Exceptions, the Company shall not, directly or indirectly create, incur, assume or permit to exist any Lien on the Trust Estate that is subordinated to the Lien of the Indenture, unless the instrument under which such Lien is created expressly states that: (i) it is subordinate to the Lien of the Indenture (whether or not duly recorded or perfected); and (ii) the holder thereof shall not have a right to foreclose on, or to exercise any other remedies with respect to, the property secured thereby, unless the Trustee shall then be pursuing like remedies; provided, however, that the Company shall not be required to comply with (ii) above if the Indenture provides that an Indenture Event of Default will arise upon the foreclosure of or the taking of any other action to enforce such subordinated Lien.

**SECTION 6.04.&nbsp;&nbsp;&nbsp;&nbsp;Defeasance.** The Company shall not defease the obligations evidenced by any Note: (A) with "Defeasance Securities" (as defined in the Indenture) of a type

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referred to in subparagraph (B) of the definition of Defeasance Securities; and (B) unless the opinion referred to in Section 7.1B(6) of the Indenture is of a nationally recognized firm and is unqualified.

**SECTION 6.05.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Restrictions.** Notwithstanding the provisions of the Indenture, the Company shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)&nbsp;&nbsp;&nbsp;&nbsp;**enter into a Supplemental Indenture pursuant to Section 12.1H of the Indenture if the effect thereof is to materially adversely affect the interests of the Holders of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)&nbsp;&nbsp;&nbsp;&nbsp;**enter into a Supplemental Indenture pursuant to Section 12.1C, 12.1D, 12.1I or 12.lK of the Indenture if (a) the Holders of the Obligations issued under such Supplemental Indenture are granted greater security rights in and to the Trust Estate than those security rights enjoyed by CoBank in its capacity as a Holder of Obligations under the Indenture, <u>provided</u>, <u>however</u>, that neither (I) the existence of Credit Enhancement nor (II) the creation and maintenance of debt service or similar funds for the payment of the principal and interest on Obligations issued under such Supplemental Indenture (to the extent such debt service or other similar funds are funded from the proceeds of the issuance of such Obligations or funded in connection with the refinancing of other debt by such Obligations), shall constitute greater security rights in and to the Trust Estate within the meaning of this Section; (b) the Holders of the Obligations issued under such Supplemental Indenture are given an independent right to accelerate repayment of such Obligations (whether directly or indirectly, including through a mandatory or optional redemption provision), unless such acceleration right is also given to CoBank <u>provided</u>, <u>however</u>, that: (I) rights to acceleration arising as a result of the fact that interest on Obligations (or other indebtedness secured by such Obligations) is not excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, shall not constitute the providing of an independent right to accelerate within the meaning of this Section; and (II) that acceleration and similar rights may be granted to any government authorities and trustees without first complying with this Section in connection with the issuance of Obligations (or other indebtedness secured by such Obligations) the interest on which is excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, if such acceleration and similar rights are substantially similar to those granted to Mercer County, North Dakota and The First National Bank of Chicago, as trustee, pursuant to the Trust Indenture dated as of November 1, 1984 authorizing $147,000,000 Adjustable/Fixed Rate Pollution Control Bonds (Basin Electric Power Cooperative Antelope Valley Station) prior to conversion of the interest on such Bonds to a long-term interest rate pursuant to the provisions of subsection 3 of Section 2.04 of such Indenture; or (c) modify or alter Section 8.7 of the Indenture or the obligation of the Trustee under the Indenture to hold the Trust Estate for the equal and proportionate benefit and security of the Holders, without any priority of any Obligation over any other Obligation.

**SECTION 6.06.&nbsp;&nbsp;&nbsp;&nbsp;Other Businesses, Fiscal Year, Etc.** The Company will not: (A) engage in any business that is substantially different from or unrelated to the business conducted by the Company on the date hereof; or (B) change its fiscal year; or (C) change any material provision of its articles or incorporation or bylaws.

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**ARTICLE 7**

**EVENTS OF DEFAULT**

Each of the following shall constitute an "Event of Default" hereunder:

**SECTION 7.01.&nbsp;&nbsp;&nbsp;&nbsp;Payment Default.** The Company should fail to make when due any payment to CoBank hereunder or under any Note, and such failure shall continue for five Business Days.

**SECTION 7.02.&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** An Indenture Event of Default shall have occurred and be continuing.

**SECTION 7.03.**&nbsp;&nbsp;&nbsp;&nbsp;**Representations and Warranties, Etc.** Any opinion, certificate or like document furnished to CoBank or the Trustee by or on behalf of the Company, or any representation or warranty made or deemed made by the Company herein or in any other Loan Document, shall prove to have been false or misleading in any material respect on or as of the date furnished, made or deemed made.

**SECTION 7.04.&nbsp;&nbsp;&nbsp;&nbsp;Covenants.** The Company should fail to perform or comply with any covenant set forth herein and such failure continues for 30 days after written notice thereof shall have been given by CoBank to the Company.

**SECTION 7.05.**&nbsp;&nbsp;&nbsp;&nbsp;**Change of Control.** The Company shall cease to be an electric generation and transmission cooperative owned by its members.

**ARTICLE 8**

**REMEDIES UPON DEFAULT**

**SECTION 8.01.&nbsp;&nbsp;&nbsp;&nbsp;Remedies.** Upon the occurrence and during the continuance of an Event of Default, CoBank may terminate the Commitment, take such action as may be permitted by the Indenture (including, to the extent permitted under the Indenture, to declare the unpaid principal balance of the Notes, all accrued interest thereon, and all other amounts payable under this Agreement, the Notes, and all other Loan Documents to be immediately due and payable), and take such other action as may be permitted by Law or in equity, including an action or proceeding to specifically enforce any covenant contained herein or to restrain the breach thereof. The Company hereby waives any defense to any such action that an adequate remedy at law exists.

**SECTION 8.02.&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of the Notes at the Default Rate.

**SECTION 8.03.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Each and every one of CoBank's 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 future or other 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

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collateral held by CoBank, or any other balances held by CoBank for the Company's account (whether or not such balances are then due).

**SECTION 8.04.&nbsp;&nbsp;&nbsp;&nbsp;Application of Funds.** Upon the occurrence and during the continuance of an Event of Default, 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; provided, however, that to the extent that the Indenture requires a specific application, such application shall control.

**ARTICLE 9**

**MISCELLANEOUS**

**SECTION 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Complete Agreement, Amendments, Etc.** The Loan Documents are intended by the parties to be a complete and final expression of their agreement. No amendment, modification, or waiver of any provision of the Loan Documents, 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.

**SECTION 9.02.&nbsp;&nbsp;&nbsp;&nbsp;Applicable Law, Jurisdiction.** Except to the extent governed by applicable federal Law, this Agreement and the Notes shall be governed by the Laws of the State of Colorado, without reference to choice of law doctrine. The parties agree to submit to the non-exclusive jurisdiction of any federal or state court sitting in Colorado for any action or proceeding arising out of or relating to this Agreement or any other Loan Document. The Company hereby waives any objection that it may have to any such action or proceeding on the basis of forum non-conveniens. IN **ADDITION, EACH OF THE PARTIES HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY** IN **ANY ACTION OR PROCEEDING ARISING FROM OR RELATING HERETO, WHETHER ANY SUCH ACTION OR PROCEEDING BE GROUNDED IN CONTRACT, TORT OR OTHERWISE.**

**SECTION 9.03.&nbsp;&nbsp;&nbsp;&nbsp;Notices.** All notices hereunder shall be in writing and shall be deemed to have been duly given upon delivery if personally delivered or sent by overnight mail or by facsimile or similar transmission, or three (3) days after mailing if sent by express, certified or registered mail, to the parties at the following addresses (or such other address as either party may specify by like notice):

If to CoBank, as follows:&nbsp;&nbsp;&nbsp;&nbsp;If to the Company, as follows:

CoBank,ACB&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

5500 South Quebec Street&nbsp;&nbsp;&nbsp;&nbsp;1717 East Interstate Avenue

Greenwood Village, Colorado 80111&nbsp;&nbsp;&nbsp;&nbsp;Bismarck, North Dakota 58503

Facsimile: (303) 740-4002&nbsp;&nbsp;&nbsp;&nbsp;Facsimile: (701) 224-5357

Attention: Energy Banking Group&nbsp;&nbsp;&nbsp;&nbsp;Attention: Senior Vice President & CFO

**SECTION 9.04.&nbsp;&nbsp;&nbsp;&nbsp;Costs, Expenses, and Taxes.** 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, interpretation, collection, and enforcement of this Agreement and the other Loan

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Documents, including, without limitation: (A) all costs and expenses incurred in determining compliance with the Company's obligations hereunder and the other Loan Documents; (B) all costs and expenses (including all court costs) incurred in connection with any action or proceeding brought by CoBank under the terms hereof; and (C) any stamp, intangible, transfer or like tax incurred in connection with this Agreement or any other Loan Document or the recording hereof or thereof.

**SECTION 9.05.&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness and Severability.** This Agreement shall continue in effect until all indebtedness and obligations of the Company under this Agreement and the Notes shall have been paid or satisfied. Any provision of this Agreement or the Notes which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof.

**SECTION 9.06.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.** This Agreement 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 or the other Loan Documents without the prior written consent of CoBank. Subject to Section 5.07(1) hereof, from time to time, CoBank may sell and assign its rights and/or participations in its rights under this Agreement, the Notes, and all instruments and documents executed in connection with, or relating hereto (collectively, "<u>Participations</u>"); provided, however, that: (1) no such sale shall alter CoBank's obligations hereunder; and (2) any agreement pursuant to which CoBank may sell a Participation: (a) shall provide that CoBank shall retain the responsibility to exercise CoBank's rights hereunder and under the Indenture and to enforce the obligations of the Company; and (b) may provide that the approval of CoBank and participants holding more than 50% of the aggregate amount of the Loans and Commitments (or, in the event CoBank holds more than 50%, CoBank and at least one other participant) shall be required in order to approve any amendment, modification or waiver of any provision of this Agreement or any other Loan Document or to take action to have the Loans declared due and payable pursuant to the terms of the Indenture; <u>provided</u>, <u>however</u>, that such agreement may provide that each of the participants may have rights to approve or disapprove: (i) any increase in the Commitments, or any reduction, modification or forgiveness in the principal amount, interest rates or prepayment premiums owing on the Loans; (ii) any change in the dates on which interest or principal is due; or (iii) the release of any material collateral for the Loans. In connection with the foregoing, CoBank may disclose information concerning the Company and its affiliates to all prospective purchasers.

**SECTION 9.07.&nbsp;&nbsp;&nbsp;&nbsp;Headings.&nbsp;&nbsp;&nbsp;&nbsp;**Captions and headings used in this Agreement are for reference and convenience of the parties only, and shall not constitute a part of this Agreement.

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

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| | | | |
|:---|:---|:---|:---|
| **CoBANK, ACB** | **CoBANK, ACB** | **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: | /s/ Robert B. Engel | By: | /s/ Ronald R Harper |
| Title: | President & CEO | Title: | CEO & GM |

---

## Exhibit 4.4

**Exhibit 4.4**

Term Loan No. D

**LOAN AGREEMENT**

THIS LOAN AGREEMENT (this "<u>Agreement</u>") is entered into as of March 31, 2016, by and between **BASIN ELECTRIC POWER COOPERATIVE**, a North Dakota cooperative (the "Company"), and **CoBANK, ACB**, a federally chartered instrumentality of the United States ("<u>CoBank</u>").

In consideration of the agreements herein and in the other "Loan Documents" (as hereinafter defined) and in reliance upon the representations and warranties set forth herein and therein, the parties agree as follows:

**ARTICLE 1**

**DEFINITIONS AND ACCOUNTING TERMS**

**SECTION 1.01.**&nbsp;&nbsp;&nbsp;&nbsp;**Definitions.** Capitalized terms used in the Agreement and defined in Exhibit A hereto shall have the meanings set forth in that Exhibit.

**SECTION 1.02.**&nbsp;&nbsp;&nbsp;&nbsp;**Rules of Interpretation.** The rules of interpretation set forth in Exhibit A shall apply to this Agreement.

**ARTICLE 2**

**AMOUNT AND TERMS OF LOAN**

**SECTION 2.01.**&nbsp;&nbsp;&nbsp;&nbsp;**Term Loan Commitment.** On the terms and subject to the conditions set forth in this Agreement, CoBank agrees to make a single term loan (the "Lo<u>an</u>") to the Company in the amount of $100,000,000 (the "<u>Commitment</u>"). CoBank's obligation to make the Loan shall expire at 12:00 Noon, Mountain Time, on April 1, 2016, or on such later date as CoBank may, in its sole discretion, authorize in writing. Under the Commitment, amounts borrowed and later repaid may not be re-borrowed.

**SECTION 2.02.**&nbsp;&nbsp;&nbsp;&nbsp;**Purpose.** The purpose of the Loan is to finance capital expenditures that will become part of the Trust Estate or for other general corporate purposes.

**SECTION 2.03**&nbsp;&nbsp;&nbsp;&nbsp;**Availability.** Subject to Article 3 hereof, the Loan will be made available on any Business Day upon the written request of the Company in the form attached hereto as Exhibit B (the "<u>Request for Loan</u>"). The Request for Loan must be: (A) duly executed and completed by the Company; and (B) unless otherwise agreed to in writing by CoBank, received by CoBank not later than 10:00 AM Mountain Time three Business Days before the date of the Loan. The Request for Loan shall be furnished by facsimile transmission to 303-740-4002, with a copy emailed to [\*\*\*]. The Loan will be made available by wire transfer of immediately available funds to such account or accounts as may be properly authorized by the Company on forms supplies or approved by CoBank.

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**SECTION 2.04.&nbsp;&nbsp;&nbsp;&nbsp;Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Interest Rate.** The Company agrees to pay interest on the unpaid principal balance of the Loan at a fixed rate equal to 4.48% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Calculation and Payment.** Interest shall be calculated on the basis of a year consisting of 360 days and twelve 30-day months. In calculating interest, the date the Loan is made shall be included and the date the Loan or each principal installment thereof is repaid shall, if received before 10:00 AM Mountain Time, be excluded. Interest shall be calculated and paid semi-annually in arrears on the last day of each September and March.

**SECTION 2.05.**&nbsp;&nbsp;&nbsp;&nbsp;**Repayment.** The principal amount of the Loan shall be repaid in 60 equal consecutive semi-annual installments of $1,666,667, each due on the last day of each March and September, with the first installment due on September 30, 2016, and the last installment due on March 30, 2046; provided, however, that the final installment shall be in an amount equal to the then unpaid principal balance of the Loan.

**SECTION 2.06.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment and Premium.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Voluntary.** The Company may prepay the Loan in whole or in part on any Business Day; provided, however, that in the case of partial prepayments, the minimum amount that may be prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Application of Partial Prepayments.** All partial prepayments shall be applied to principal installments owing on the Loan in the inverse order of their maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Premium.** The Company agrees that in the event the Loan is repaid prior to the final maturity date of the Loan (whether such payment is made voluntarily, as a result of a prepayment, as a result of an acceleration. or otherwise), the Company will pay to CoBank a premium in an amount calculated pursuant to Exhibit C hereto. Such premium shall be due and payable on the date such payment is made or at such other time as is contemplated herein.

**SECTION 2.07.&nbsp;&nbsp;&nbsp;&nbsp;Note.** The Company's obligation to repay the Loan shall: (A) until the Company's obligations are secured under the Indenture (as provided in Sections 2.08 and 5.11 hereof), be evidenced by a promissory note in substantially the form of Exhibit D-1 hereto (the "Initial Note"); and (B) on and after the date the Loan is secured under the Indenture, be evidenced by a promissory note in substantially the form attached hereto as Exhibit D-2 (the "Replacement Note").

**SECTION 2.08.&nbsp;&nbsp;&nbsp;&nbsp;Security.** The Company's obligations hereunder and under the Note shall be secured by a statutory first priority Lien on all equity which the Company may now own or hereafter acquire or be allocated in CoBank. In addition, the Company agrees that: (A) by December 31, 2016, it will cause the Replacement Note to be secured under the Indenture, equally and ratably with all other Obligations; and (B) in the event it is unable to do so by lune 30. 2016, the rate of interest charged hereunder shall be increased by 2.00% per annum until the Company is able to do so.

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**SECTION 2.09.&nbsp;&nbsp;&nbsp;&nbsp;Fees. [Intentionally Omitted]**

**SECTION 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Manner of Making Payments.** Notwithstanding the terms of the Indenture, the Company shall make, or cause its Paying Agent to make, all payments to CoBank under this Agreement and the Note by wire transfer of immediately available funds in accordance with the following wire transfer instructions (or in accordance with such other wire transfer instructions as CoBank may direct by notice pursuant to Section 9.03):

Name of Bank: COBANK

Location: Greenwood Village, CO

ABA No. [\*\*\*]

Reference: Basin Electric 2016 Term Loan

In addition, to the extent permitted under the Indenture, the Company agrees that CoBank need not present the Note as a condition to receiving payment thereon; provided, however, that CoBank agrees that it will not transfer the Note without having first complied with the requirements of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Late Payments.** In the event the Company fails to make any payment when due, then without limiting any other rights or remedies that CoBank may have for or on account of such failure, such payment shall be due and payable on demand and, at CoBank's option in each instance, shall accrue interest from the date due to the date paid at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Business Days.** In the event any day on which principal, interest, or premium is due and payable is not a Business Day, then such payment shall be made on the next Business Day and, notwithstanding the Indenture, interest shall continue to accrue during such period on the principal balance of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;**Records.** CoBank shall keep a record of the unpaid principal balance of the Loan, the interest accrued on the Loan, and all payments made with respect to the Loan, and such record shall, absent of proof of error, be conclusive evidence of the outstanding principal and interest on the Loan. At the request of the Trustee, CoBank shall certify such information to the Trustee, as well as the amount of any premium provided for herein, and the Company agrees that such certification shall, absent proof of error, be conclusive evidence of the amount so certified.

**ARTICLE 3**

**CONDITIONS PRECEDENT**

**SECTION 3.01. Conditions Precedent.** CoBank's obligation to make the Loan to the Company hereunder is subject to the following conditions precedent, which in the case of

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instruments and documents, must be in form and content specified herein or otherwise acceptable to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**This Agreement.** CoBank and the Company shall have duly executed and delivered this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Note.** CoBank shall have received an original Initial Note duly executed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Secretary's Certificate.** CoBank shall have received a certificate of the Secretary of the Company in form and content acceptable to CoBank, attaching and certifying as to each of the following (all of which must be in form and content acceptable to CoBank): (1) the resolutions of the Company's board of directors authorizing the transactions contemplated herein; (2) a certificate setting forth the names and true ink signatures of each of the officers of the Company authorized to sign the Loan Documents; (3) the articles of incorporation of the Company as amended to the date of closing; (4) the bylaws of the Company as amended to the date of closing; (5) a certificate of the Secretary of State of North Dakota dated within 30 days of the date hereto attesting to the due incorporation and good standing of the Company under the Laws of the State of North Dakota; and (6) a copy of the Indenture, including all amendments and supplements thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;**Consents and Approvals.** CoBank shall have received such evidence as CoBank may require that any required consents and approvals referred to in Section 4.05 hereof have been obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;**Insurance.** CoBank shall have received such evidence as CoBank may require that the Company is in compliance with Section 5.03 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;&nbsp;&nbsp;&nbsp;**Opinion of Counsel.** CoBank shall have received a duly executed original opinion of counsel to the Company in form and content, and from counsel, acceptable to CoBank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;&nbsp;&nbsp;&nbsp;**Fees and Charges.** CoBank shall have received all fees and charges provided for herein and billed prior to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)&nbsp;&nbsp;&nbsp;&nbsp;**Request for Loan.** CoBank shall have received a duly executed Request for Loan and all instruments and documents contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I)&nbsp;&nbsp;&nbsp;&nbsp;**Absence of Default.** No Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)&nbsp;&nbsp;&nbsp;&nbsp;**Representations and Warranties.** Each of the representations and warranties of the Company set forth herein and in all other Loan Documents shall be true and correct as of the date of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K)&nbsp;&nbsp;&nbsp;&nbsp;**Officer's Certificate.** CoBank shall have received a certificate of an officer of the Company in form and content, and from an officer, acceptable to CoBank, and each

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of the representations and warranties set forth therein shall be true and correct as of the date of the Loan.

**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES**

To induce CoBank to enter into the Agreement and make the Loan contemplated hereby, the Company represents and warrants that:

**SECTION 4.01.**&nbsp;&nbsp;&nbsp;&nbsp;**Organization, Etc.** The Company and each Subsidiary: (A) is a corporation duly organized, validly existing, and in good standing under the Laws of its jurisdiction of incorporation; (B) has all requisite power and authority to own and operate its properties and to carry on its business as now conducted and as presently proposed to be conducted; and (C) is duly licensed or qualified and is in good standing as a foreign corporation in each jurisdiction wherein the nature of the business transacted by it or the nature of the property owned or leased by it makes such licensing or qualification necessary.

**SECTION 4.02&nbsp;&nbsp;&nbsp;&nbsp;Licenses, Permits, Etc.** The Company and each Subsidiary has all licenses, permits, franchises, patents, copyrights, trademarks, tradenames, or rights thereto which are material to the conduct of its business or required by Law.

**SECTION 4.03.&nbsp;&nbsp;&nbsp;&nbsp;Authority.** The execution, delivery and performance by the Company of the Agreement and the other Loan Documents and the performance of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action, and do not violate any provision of any Law, Judgment, order or ruling of any court or other Governmental Authority, or of the articles of incorporation or bylaws of the Company, or results in a breach of, or constitute a default under, the Indenture or any other agreement to which the Company is a party or by which it may be bound.

**SECTION 4.04.&nbsp;&nbsp;&nbsp;&nbsp;Binding Agreement.** Each of the Loan Documents is, or when executed and delivered will be, the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, subject only to limitations on enforceability imposed in equity or by applicable bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally.

**SECTION 4.05.&nbsp;&nbsp;&nbsp;&nbsp;Consents.** No consent, permission, authorization, order, license of, or filing with any Governmental Authority or of any party to any agreement to which the Company is a party or by which it or any of its property may be bound or affected, is necessary in connection with the execution, delivery, or performance of the Loan Documents, except such as have been obtained are in full force and effect.

**SECTION 4.06.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws.** Neither the Company nor any Subsidiary is in violation of any Law to which it is subject, which violation could reasonably be expected to have a Material Adverse Effect.

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**SECTION 4.07.&nbsp;&nbsp;&nbsp;&nbsp;Pending Litigation.** Except as disclosed in the officer's certificate furnished under Section 3.01 (K) hereof, there are no actions, suits or proceedings pending, or to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary in any court or before any Governmental Authority, arbitration board or tribunal, mediator, or the like, which could, if adversely decided, have a Material Adverse Effect. Neither the Company nor any Subsidiary is in default with respect to any Judgment or any order of any court, Governmental Authority, arbitration board or tribunal, mediator or the like.

**SECTION 4.08.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements.** The Financial Statements are, in all material respects, complete and correct and fairly present the financial condition of the Company and its consolidated Subsidiaries as at the date thereof and the results of the operations of the Company and its consolidated Subsidiaries for the period covered by such statements, all in accordance with GAAP consistently applied, and as of the date hereof and as of the date of the Loan: (A) there has been no material adverse change in the condition (financial or otherwise), business or operations of the Company or any Subsidiary from that presented in the Financial Statements; and (B) except as may have arisen in the ordinary course or as may have been disclosed in the officers certificate submitted in connections herewith, there are no liabilities of the Company or any Subsidiary, fixed or contingent, which are herewith, there are no liabilities of the Company or any Subsidiary, fixed or contingent, which are materials but not reflected in the Financial Statements. Neither the Financial Statements nor this Agreement, the Indenture or any other written statement furnished by the Company to CoBank in connection herewith, contains any untrue statement of a material fact or omits a material fact necessary to make the statements contained therein or herein not misleading. There is no fact peculiar to the Company or its Subsidiaries which the Company has not disclosed to CoBank in writing which has had a Materials Adverse Effect not, so far as the Company can now foresee, will have a Material Adverse Effect on the Company and its Subsidiaries, taken as a whole.

**SECTION 4.09.&nbsp;&nbsp;&nbsp;&nbsp;Ownership and Subsidiaries.** The Company is an electric generation and transmission cooperative which is owned by its Members. Exhibit E hereto states, as of the date hereof, the name of each of the Company's Subsidiaries, its jurisdiction of incorporation, and the percentage of its voting stock owned by the Company and/or its Subsidiaries. The Company and each Subsidiary has good and marketable title to all of the shares or other equity interest that it purports to own in each Subsidiary free and clear in each case of any Lien (other that the Lien of the Indenture). All such shares or other interests have been duly issued and are fully paid and non-assessable.

**SECTION 4.10.&nbsp;&nbsp;&nbsp;&nbsp;No Defaults.** Neither the Company nor any Subsidiary is in default in the payment of principal or interest on any indebtedness for borrowed money, and no event has occurred and in continuing under the provisions of any instrument or document under and subject to which any indebtedness for borrowed money has been issued which constitutes or, with the lapse of time or the giving of notice, or both, would constitute an event of default thereunder. In addition, the Company is not in default under any Wholesale Power Contract or any other agreement which, if terminates, could have a Material Adverse Effect.

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**SECTION 4.11.&nbsp;&nbsp;&nbsp;&nbsp;Title to Properties.** The Company and each Subsidiary has good and marketable title in fee simple (or its equivalent under applicable Law) to all material parcels of real property and has by good title to all the other material items or property it purports to own, including that reflected in the Financial Statements, except as sold or otherwise disposed of in the ordinary course of business and except for the Lien of the Indenture and Permitted Exceptions.

**SECTION 4.12.&nbsp;&nbsp;&nbsp;&nbsp;Taxes.** To the knowledge of the Company, all tax returns required to be filed by the Company or any Subsidiary in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Company or any Subsidiary or upon any of their respective properties, income or franchises, which are shown to be due and payable in such returns have been paid. For all taxable years ending on or before December 31, 2012, the Federal income tax liability of the Company and its Subsidiaries has been satisfied and either the period of limitations on assessment of additional Federal income tax has expired or the Company and its Subsidiaries have entered into an agreement with the Internal Revenue Service closing conclusively the local tax liability for the taxable year. The Company is not under examination by the Internal Revenue Service nor any State Departments or Revenue. The Company does not know of any proposed material additional tax assessment against it, and no material controversy in respect of additional Federal or state income taxes due since said date is pending or to the knowledge of the Company threatened. The provisions for taxes on the books of the Company and each Subsidiary are adequate for all open years, and for its current fiscal period.

**SECTION 4.13.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Environmental Laws.** Neither the Company nor any Subsidiary is in material violation of any applicable Laws relating to public health, safety or the environment (including, without limitation, relating to releases, discharges, emissions or disposals to air, water, land or ground water, to the withdrawal or use of ground water, to the use, handling or disposal of polychlorinated biphenyls (PCB's), asbestos or urea formaldehyde, to the treatment, storage, disposal or management of hazardous substances (including, without limitation, petroleum, crude oil or any fraction thereof, or other hydrocarbons), pollutants or contaminants, to exposure to toxic, hazardous or rother controlled, prohibited or regulated substances), which violation could have a Material Adverse Effect. No investigation claim, litigation, proceedings, order, judgment, decree, settlement, Lien or the like with respect to any environmental matter is threatened or in existence with respect to the properties or operations of the Company or any Subsidiary under any federal, state or local environmental Law, including, without limitation, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.), or the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).

**SECTION 4.14.&nbsp;&nbsp;&nbsp;&nbsp;ERISA.** All ERISA Plans maintained by the Company or any ERISA Affiliate are, to the best knowledge of the Company, in substantial compliance with ERISA, the Code, and any other applicable Law, and none of such ERISA Plans is insolvent or in reorganization. Neither the Company nor any ERISA Affiliate has incurred any liability (including any contingent liability) to or on account of any such ERISA Plan, which would

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reasonably be expected to have a Material Adverse Effect. Except as disclosed in any officer's certificate or application submitted in connection with a Supplement, the present value of all accumulated benefit obligations under each ERISA Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the asset of such ERISA Plan by an amount which, if it were to become due, would cause a Material Adverse Effect, and the present value of all accumulated benefit obligations of all underfunded ERISA Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans by an amount which, if it were to become due, would cause a Material Adverse Effect. No proceedings have been instituted to terminate any Guaranteed Pension Plan. Neither the Company nor any ERISA Affiliate has received notice from a duly authorized representative of any Multiemployer or Multiple Employer Plan that the Plan is insolvent, in reorganization or that termination proceedings have been instituted or that the Company or ERISA Affiliate has incurred any liability (including any contingent liability) to or on account of any such Multiemployer or Multiple Employer Plan, which would reasonably be expected to have a Material Adverse Effect.

**SECTION 4.15.&nbsp;&nbsp;&nbsp;&nbsp;Conflicting Agreements.** None of the Loan Documents conflicts with, or constitutes (with or without the giving of notice and/or the passage of time and/or the occurrence of any other condition) a default, under, the Indenture or any other agreement to which the Company or any Subsidiary is or expects to become a party or by which the Company, and Subsidiary, or any of its or their properties may be bound or affected.

**SECTION 4.16.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Matters.** (A) The Company has the right, without obtaining any waiver or third party consent, to secure the Note under the Indenture equally and notably with all other Obligations; (B) without limiting (A) above, all financial and other tests required to be met in order for the Note to be secured under the Indenture equally and ratably with all other Obligations haw been met, and the Company has the right to secure the Note under the Indenture; (C) with the exception of Obligations issued pursuant to the Prairie Winds ND-I Indenture and Prairie Winds SD-I Indenture, as of the date hereof, the Company has not issued any Obligations upon the basis of Designated Qualifying Securities or designated any of its property as Excludable Property; (D) all real property owned by the Company has been included in the Trust Estate and has been correctly described thereunder, (E) all real property comprising the Trust Estate is located in the states and counties in which the Indenture has been recorded; (F) the Indenture is sufficient in form and content to grant to the Trustee, as security for all Obligations and all other sums secured by the Indenture, a valid and enforceable Lien against the Trust Estate having the priority contemplated in the Indenture; (G) the Indenture and one or more UCC-1 financing statements in proper form have been filed or recorded in all places required by Law in order to perfect the Lien of the Indenture on that part of the Trust Estate in which a Lien can be perfected by the filing or recording of a indenture, mortgage, deed of trust, security agreement, or UCC-1 financing statement; (F) all taxes and fees due and payable as a result of the execution of the Loan Documents, the Indenture, the debt secured thereby, or the recording thereof or of any related UCC-1 financing statement have been paid in full; (G) the Indenture accords the Trustee, as security for all Obligations and all other sums secured by the Indenture, a

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duly recorded and perfected Lien on that portion of the Trust Estate in which a Lien can be perfected by filing or recording an indenture, mortgage, deed of trust, security agreement, and a UCC-1 financing statement.

**SECTION 4.17.&nbsp;&nbsp;&nbsp;&nbsp;Compliance.** No Default or Event of Default exists.

**SECTION 4.18.&nbsp;&nbsp;&nbsp;&nbsp;Rate Matters.** The Company's rates have been approved by all Governmental Authorities having jurisdiction over its rates and by its board of directors, any required committee thereof, and, if required, by its Members.

**SECTION 4.19.&nbsp;&nbsp;&nbsp;&nbsp;Solvency.** After giving effect to the transactions contemplated herein, the Company and each of its Subsidiaries, individually and on a consolidated basis, is and will be Solvent.

**SECTION 4.20.&nbsp;&nbsp;&nbsp;&nbsp;Investment Company; Federal Power Act.** Neither the Company nor and Subsidiary is an *"investment company"* within the meaning of the Investment Company Act of 1940, as amended, or a *"registered holding company*", or an "*affiliate*" of a "*registered holding company*" or a "*Subsidiary company*" of a "*registered holding company*", within the meaning of the Public Utility Holding Company Act of 2005, as amended.

**SECTION 4.21.&nbsp;&nbsp;&nbsp;&nbsp;Margin Stock; Use of Proceeds.** Neither the Company nor any Subsidiary is engaged principally, or as one of its primary activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System). The Company will not use the proceeds of the Loan in a manner that violates any provision of Regulation U or X of the Board of Governors of the Federal Reserve System.

**SECTION 4.22.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** (A) The Company and each Subsidiary maintains insurance with such companies or associations, in such amounts, and covers such risks as required by Section 5.03 hereof; and (B) all policies insuring the Trust Estate meet the requirements of the Indenture, including any requirement to have an endorsement thereto naming the Trustee as loss payee/mortgagee.

**SECTION 4.23.&nbsp;&nbsp;&nbsp;&nbsp;Wholesale Power Contracts.** Set forth on Schedule 4.23 hereof is a complete list, as of the date hereof, of all Wholesale Power Contracts. Each of the Wholesale Power Contracts is in full force and effect and neither the Company nor any counterparty thereto is in material default of any of its obligations thereunder (Except to the extent any such failure to be in full force and effect or any such default would not constitute an Event of Default under Section 7.10 hereof). In addition, each Wholesale Power Contract is legal, valid, binding on, and enforceable against the Company and, to it knowledge, the counterparty thereto, subject only to the limitations on enforceability imposed by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws respecting creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or al law) and except that any such failure to be legal, valid, binding on, and enforceable against the Company or the counterparty thereto would not constitute an Event of Default under Section 7.10 hereof.

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**ARTICLE 5**

**AFFIRMATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the Company agrees to:

**SECTION 5.01.&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Existence, Etc.** Preserve and maintain its existence and good standing in the jurisdiction or its formation, qualify and remain qualified to transact business in all jurisdictions where the failure to be so qualified would reasonably be expected to have a Material Adverse Effect, and obtain and maintain all licenses, permits, franchises, patents, copyrights, trademarks, trade names, or rights thereto, the absence of which would reasonably be expected to have a Material Adverse Effect.

**SECTION 5.02.&nbsp;&nbsp;&nbsp;&nbsp;Compliance With Indenture and Laws.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Indenture.** Comply with all of the terms of the Indenture. Without limiting the foregoing, the Company will have for each fiscal year of the Company, a Margins for Interest Ratio of not less than 1.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Laws.** Comply in all material aspects, and cause each Subsidiary to comply in all material respects, with all applicable Laws (including all Laws relating to the environment and ERISA), which, if not complied with, could have a Material Adverse Effect. Without limiting the foregoing, the Company shall pay and cause each Subsidiary to pay all taxes, assessments or governmental charges lawfully levied or imposed on or against it and its properties prior to the time they become delinquent, except for any such taxes, assessments, or charges that: (1) are being contested in good faith and by appropriate proceedings; (2) for which reserves to the extent required by GAAP have been established and maintained on its books; and (3) in the event such taxes, assessments or charges are secured by a Lien, such Lien is stayed.

**SECTION 5.03.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** Maintain insurance with such companies, in such amounts, and covering such risks as is required to be maintained by the Company under the terms of the Indenture. In addition, the Company agrees to: (A) cause each Subsidiary to maintain insurance in such amounts and covering such risks as are usually carried by companies engaged in the same business and similarly situated; and (B) maintain and cause each Subsidiary to maintain flood insurance in such amounts as is required by the flood insurance laws applicable to loans by CoBank to its borrowers. The Company agrees to furnish to CoBank such proof of compliance with this Section as CoBank may from time to time reasonably require. All policies insuring the Trust Estate shall have lender or mortgage loss payable clauses or endorsements in favor of the Trustee in form and content, and as otherwise required by the Indenture.

**SECTION 5.04.&nbsp;&nbsp;&nbsp;&nbsp;Property Maintenance.** Maintain the System in accordance with Prudent Utility Practice.

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**SECTION 5.05.&nbsp;&nbsp;&nbsp;&nbsp;Books and Records.** Keep, and cause each Subsidiary to keep, adequate records and books of account in which complete entries will be made in accordance with Accounting Requirements.

**SECTION 5.06.&nbsp;&nbsp;&nbsp;&nbsp;Reports and Notices.** Furnish to CoBank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Annual Financial Statement.** As soon as available, but it 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 prepared in accordance with GAAP consistently applied. Such financial statements shall; (a) in the case of the consolidated statements, be audited by a firm of nationally recognized independent certified public accountants selected the Company; (b) in the case of the consolidated statements, be accompanied by a report of such accountants containing an opinion to the effect that the financial statements; (i) were audited in accordance with generally accepted auditing standards; and (ii) present fairly, in all material respects, the financial position of the Company and its consolidated Subsidiaries as at the end of the year and the results of its and their operations for the year then ended, in conformity with GAAP; (c) be prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of operations, a statement of changes in equity, a statement of cash flows, and all notes and scheduled (including consolidating schedules) relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Interim Financial Statements.** As soon as available, but in no event more than 60 days after the end of the first three fiscal quarters of the Company of each year occurring during the term hereof, a consolidated balance sheet of the Company and its consolidated Subsidiaries as of the end of such quarter and a consolidated statement of operations for the Company and its consolidated Subsidiaries for such period and fore the period year to date, all prepared in reasonable detail and in comparative form in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Officer's Certificate.** Together with each set of financial statements delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a certificate of the Chief Financial Officer of the Company (or other officer of the Company acceptable to CoBank) in the form attached hereto as Exhibit F: (1) stating the Margin for Interest Ratio achieved by the Company for the fiscal year covered by such financial statements and setting forth the calculations used in computing such Ratio (2) setting forth the Company's Credit Rating from each Rating Agency which is computing such Ratio (2) setting forth the Company's Credit Rating from each Rating Agency which has issued a Credit Rating and (3) certifying that, to the best knowledge of such officer, no Default or Event of Default occurred during the period covered by such statements or, if a Default or Event of Default did occur during such period, a statement as to the nature thereof, whether such Default or Event of Default s continuing, and if continuing, the action which is proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;**Budgets.** As soon as available, but in no event more than 60 days after each fiscal year end, annual budgets and forecasts of operations for the Company and its Subsidiaries for the ensuing year and for a ten year period, in such detail as CoBank may from time to time reasonably require.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Litigation, Material Matters, Etc.** Promptly after becoming aware thereof, notice of: (1) the commencement or any action, suit or proceeding against the Company or any Subsidiary before any court, Governmental Authority, arbitrator, mediator or the like which, if adversely decided, could reasonably be expected to have a Material Adverse Effect; (2) the receipt of any notice, indictment, pleading, or other communication alleging a condition that: (a) may require the Company or any Subsidiary to undertake or to contribute to a clean-up or other response under any environmental Law, or which seeks penalties, damages, injunctive relief, or other relief as a result of an alleged violation of any such Law, or which claims personal injury or property damage as a result of environmental factors or conditions; and (b) if true or proven, could reasonably be expected to have a Material Adverse Effect or result in criminal sanctions; (3) the occurrence of any ERISA Reportable Event that, alone or together with any other ERISA Reportable Events that have occurred, would reasonably be expected to result in liability of the Company or any ERISA Affiliate in an amount which would constitute a Material Adverse Effect; (4) the occurrence of any other event or matter (including the rendering of any order, judgment, ruling and the like) which could reasonably be expected to have a Material Adverse Effect ; (5) the occurrence of any event under the Indenture or any Qualifying Securities Indenture which would require the Trustee or any Subsidiary Trustee to resign; and (6) the breach by the Trustee or any Subsidiary Trustee of any provision of the Indenture or any Qualifying Securities Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Default.** Promptly after becoming aware thereof, notice of the occurrence of a Default, an Event of Default, a Qualifying Securities Indenture Default, or a Qualifying Securities Indenture Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Certain Events.** Notice of each of the following at least 30 days prior thereto: (1) any change in the name or structure of the Company; or (2) any change in the Trustee or any Subsidiary Trustee; (3) the sale by the Company or any Subsidiary of all or a portion of the equity interests held by the Company or any Subsidiary in a Subsidiary; and (4) the discontinuance of any material part of the operations of the Company or any Qualifying Subsidiary; provided, however, that the Company may not undertake any transaction contemplated in Subsections (1) and (2) hereof unless, prior thereto, it has taken all steps required by the Indenture or under Law in order to ensure that the Lien of the Indenture remains perfected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)&nbsp;&nbsp;&nbsp;&nbsp;**Ratings.** Promptly after receipt thereof by the Company, a copy of each Credit Rating received by the Company, together with all reports issued in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I)&nbsp;&nbsp;&nbsp;&nbsp;**Notices Regarding Wholesale Power Contracts.** Promptly after becoming Aware thereof, notice of: (1) any material modification to any Wholesale Power Contract (provided for purposes of clarification, the substitution and revision of rates by the Company's board of directors as contemplated in the Wholesale Power Contract is not a material modification thereof as long as such modification would not reasonably be expected to have a Material Adverse Effect); (2) a default in the performance of any Member or Members of its or their payment obligations under a Wholesale Power Contract where the aggregate principal amount of such default or defaults exceeds 3% of the Company's revenues for the previous fiscal

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year and such default or defaults have continued unremedied for thirty or more days beyond the applicable grace period, if any; (3) its receipt of a judicial or regulatory filing made by a Member of the Company (a) requesting to withdraw from, or any material modification to, any of its obligations under its Wholesale Power Contract; or (b) contesting the validity or enforceability or its Wholesale Power Contract; or (4) any release or termination of a Member's payment obligations under a Wholesale Power Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)&nbsp;&nbsp;&nbsp;&nbsp;**Supplemental Indentures.** Promptly after entering into same with the Trustee, a copy of all supplements to the Indenture amending the terms and provisions of the Indenture. In addition, promptly after each Qualifying Subsidiary enters into a Qualifying Securities Indenture or a supplement to the Indenture thereto amending the terms and provisions of a Qualifying Securities Indenture, a copy of same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K)&nbsp;&nbsp;&nbsp;&nbsp;**[Intentionally Omitted]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L)&nbsp;&nbsp;&nbsp;&nbsp;**Matters Regarding the Trustee.** Promptly after becoming aware thereof, notice of (1) the resignation of the Trustee, any Co-Trustee, or any Qualifying Securities Trustee; (2) any change in the address of the Trustee; (3) any conflict of interest of the Trustee or any Qualifying Securities Trustee that requires the Trustee or any Qualifying Securities Trustee to resign; and (4) any failure on the part of the Trustee or any Qualifying Securities Trustee to comply with the terms of the Indenture or any Qualifying Securities Indenture. In addition, the Company agrees to furnish notice to CoBank not less than 30 days prior to replacing the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M)&nbsp;&nbsp;&nbsp;&nbsp;**Opinion Concerning Perfection.** Within 45 days after a written request therefor (which request may only be made if a Default or Event of Default occurs), an opinion of counsel to the Company and any Qualifying Subsidiary (which counsel must be acceptable to CoBank) to the effect that the Trustee or any Qualifying Securities Trustee has a duly perfected Lien on the Trust Estate as and to the extent contemplated by the Indenture and any Qualifying Securities Trust Estate as and to the extent contemplated by the Qualifying Securities Indenture, and, if there are any other Liens on the Trust Estate or any Qualifying Securities Trust Estate, a list of those Liens, together with,, with respect to each Lien, a statement of whether it is a Permitted exception, a Prior Lien, a subordinate Lien, or a Lien that is not permitted under the terms of the Indenture or any Qualifying Securities Indenture. Nothing contained in this provision shall be construed as limiting CoBank's rights under Section 8.01 hereof or under any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N)&nbsp;&nbsp;&nbsp;&nbsp;**Other Information.** Such other information regarding the condition or operations, financial or otherwise, of the Company and its Subsidiaries as CoBank may from time to time reasonably request, including copies of all opinions furnished under Section 13.5 (A) and (B) of the Indenture and all pleadings, notices and communications referred to in Section 5.06(E) hereof.

**SECTION 5.07.**&nbsp;&nbsp;&nbsp;&nbsp;**Capital.** Acquire equity in CoBank in such amounts and at such times as CoBank may from time to time require in accordance with its bylaws and capital plan (as each may be amended from time to time), except that the maximum amount of equity that the Company may be require to purchase in connection with the Loan may not exceed the maximum

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amount permitted by the bylaws on the date of this Agreement. The rights and obligations of the parties with respect to such stock and any patronage or other distributions made by CoBank shall be governed by CoBank's bylaws and capital plan (as each may be amended from time to time).

**SECTION 5.08.**&nbsp;&nbsp;&nbsp;&nbsp;**Inspection.** Permit CoBank, its participants, or its or their agents, upon reasonable notice and during normal business hours or at such other times as the parties may agree, to examine the properties, books and records of the Company and its Subsidiaries, and to discuss its affairs, finances and accounts withs its officers, directors, and independent certified public accountants.

**SECTION 5.09.**&nbsp;&nbsp;&nbsp;&nbsp;**Ratings.** Maintain a Credit Rating with S&P or Moody's.

**SECTION 5.10.**&nbsp;&nbsp;&nbsp;&nbsp;**Excepted Property.** If an Event of Default or a Qualifying Securities Indenture Event of Default has occurred and is continuing and CoBank so requests in writing; (A) enter into a Supplemental Indenture with the Trustee and cause each Qualifying Subsidiary to enter into a supplemental indenture or like instrument with each Subsidiary Trustee (in form and content reasonably acceptable to the Trustee, the Subsidiary Trustee, and CoBank) adding to the Trust Estate or Subsidiary Trust Estate such Excepted Property as CoBank may designate in writing; and (B) promptly record the same in all places required by Law in order to accord the Trustee and the Subsidiary Trustee a duly perfected Lien on the designated Excepted Property; provided, however, that unless a Qualifying Securities Indenture Event of Default could reasonably be expected to have a Material Adverse Effect, the Company's obligations hereunder shall be limited to causing the Qualifying Subsidiary with respect to which the Qualifying Securities Indenture Event of Default has occurred, to enter into a supplemental indenture or like instrument as provided above.

**SECTION 5.11.&nbsp;&nbsp;&nbsp;&nbsp;Security.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Indenture.** By December 31, 2016, the Company will deliver to CoBank; (1) the original Replacement Note, duly executed by the Company and authenticated by the Trustee; (2) duly executed copies of the Supplemental Indenture and each of the instruments and documents required to be furnished to the Trustee under the Indenture in order to establish the Replacement Note as an Obligations secured under the Indenture, including, without limitation: (A) the Board Resolution required by Section 4.1 of the lndenture; (B) the Officer's Certificate required by Section 4.1 B of the lndenture; and (C) the Opinion of Counsel required by Section 4. l(C) of the Indenture, all of which must be in form and content reasonably acceptable to CoBank; and (3) an opinion of counsel to the Company (which counsel and opinion must be acceptable to CoBank) to the effect that: (a) the Replacement Note his been secured under the Indenture equally and ratably with all Obligations secured thereby; (h) the Supplemental lndenture has been recorded in each place where the lndenture has been recorded; (c) all taxes and fees arising in connection with the transaction contemplated hereby or the recording of the Supplemental Indenture have been paid in full; and (d) the lndenture accords the Trustee, as security for all Obligations (including the Company's obligations under the Replacement Note), a duly recorded and perfected first priority Lien (subject only to Permitted Exceptions that are entitled to priority as a matter of Law) on that part of the Trust Estate in which a Lien can be

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perfected by the filing of an indenture, mortgage, deed of trust, security agreement, or UCC-1 financing statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Further Assurances.** The Company shall take, and cause each Qualifying Subsidiary to take, such stops (including the execution and recording of such instruments and documents) as CoBank may from time to time reasonably require in order to enable: (1) the Trustee to obtain, perfect and maintain its Lien in the Trust Estate; and (2) any Subsidiary Trustee to obtain, perfect and maintain its Lien on the Subsidiary Trust Estate; provided, however, that nothing contained herein shall obligate the Company to take steps which are in conflict with the requirements of the Indenture, any Qualifying Securities Indenture, or any contrary direction provided by the requisite Holders.

**SECTION 5.12.&nbsp;&nbsp;&nbsp;&nbsp;Condemnation.** In the event all or a material portion of the System is taken in a condemnation action or proceeding or in a like proceeding or is sold or otherwise transferred in lieu thereof or pursuant to any right of any Governmental Authority to direct the sale of transfer thereof, the Company shall apply the proceeds thereof to the redemption of the Obligations.

**ARTICLE 6**

**NEGATIVE COVENANTS**

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect:

**SECTION 6.01.&nbsp;&nbsp;&nbsp;&nbsp;Consolidations, Mergers and Corporate Reorganizations.** The Company shall not consolidate or merge with or into any other Person, or convey or transfer all or any material portion of its assets to any Person, or otherwise reorganize its corporate structure to transfer functions or any part of its assets to any other Person, or enter into a ResturcturingT transaction.

**SECTION 6.02.&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts.** The Company will not: (A) enter any contract for the management or operation of all or any material portion of its assets; (B) breach or terminate any Wholesale Power Contract; or (C) amend, supplement, modify, or waive any provision of a Wholesale Power Contract, if the effect thereof could reasonably by expected to have a Material Adverse Effect.

**SECTION 6.03.&nbsp;&nbsp;&nbsp;&nbsp;Negative Pledge.** Except for Permitted Exceptions, the Company shall not, directly or indirectly create, incur, assume, or permit to exist any Lien on the Trust Estate that is subordinated to the Lien of the Indenture, unless the instrument under which such Lien is created expressly states that: (i) it is subordinate to the Lien of the Indenture (whether or not duly recorded or perfected); and (ii) the holder thereof shall not have a right to foreclose on, or to exercise any other remedies; provided, however, that the Company shall not be required to comply with (ii) above if the Indenture provides that an Indenture Event of Default will arise upon the foreclosure of or the taking of any other action to enforce such subordinated Lien.

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**SECTION 6.04.&nbsp;&nbsp;&nbsp;&nbsp;Indenture Restrictions.** Notwithstanding the provisions of the Indenture, the Company shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;enter into a Supplemental Indenture pursuant to Section 12.1I of the Indenture if the effect thereof is to materially adversely affect the interest of the Holders of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;enter into a Supplemental Indenture pursuant to Section 12.1C, 12.1D, 12.1I or 12.1K of the Indenture if (a) the holders of the Obligations issued under such Supplemental Indenture are granted greater security rights in and to the Trust Estate than those security rights enjoyed by CoBank in its capacity as a Holder of Obligations under the Indenture, <u>provided</u>, <u>however</u>, that neither (I) the existence of Credit Enhancement not (II) the creation and maintenance of debt service or similar funds for the payment of the principal and interest on Obligations issued under such Supplemental Indenture (to the extent such debt service or other similar funds are funded from the proceeds of the issuance of such Obligations or funded in connection with the refinancing of other debt by such Obligations), shall constitute greater security rights in and to the trust Estate within the meaning of this Section; (b) the Holders of the Obligations issued under such Supplemental Indenture are given an independent right to accelerate repayment of such Obligations (Whether directly or indirectly, including through a mandatory or optional redemption provision), unless such acceleration right is also given to CoBank <u>provided</u>, <u>however</u>, that: (I) rights to acceleration arising as a result of the fact that interest on Obligations (or others indebtedness secured by such Obligations) is not excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, shall not constitute the providing of an independent right to accelerate within the meaning of this Section; and (II) that acceleration and similar rights may be granted to any governmental authorities and trustees without first complying with this Section in connection with the issuance of Obligations (or other indebtedness secured by such Obligations) the interest on which is excludable from the gross income of the holder thereof pursuant to the Internal Revenue Code, as amended, if such acceleration and similar rights are substantially similar to those granted to Mercer County, North Dakota and The First National Bank of Chicago, as trustee, pursuant to the Trust Indenture dated as of November 1, 1984 authorizing $147,000,000 Adjustable/Fixed Rate Pollution Control Bonds (Basin Electric Power Cooperative Antelope Valley Station) prior to conversion of the interest on such Bonds to a long-term interest rate pursuant to the provisions of subsection 3 of Section 2.04 of such Indenture; or (c) modify or alter Section 8.7 of the Indenture or the obligation of the Trustee under the Indenture to hold the Trust Estate for the equal and proportionate benefit and security of the Holders, without any priority of any Obligation over any other Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Excluded Property.** Exercise its option under the Indenture or permit any Qualifying Subsidiary to exercise a like option under a Qualifying Securities Indenture to exclude property from the Lien of the Indenture or Qualifying Securities Indenture if foreclosure of such property would reasonably be expected to results in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;**Trustee.** Appoint a trustee or a Co-Trustee under the Indenture unless the Trustee or Co-Trustee: (A) is organized under the Laws of the United States or any state; (B) has

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its principal place of business in the United States; (C) has combined capital and surplus of not less than $500,000,000; and (D) would otherwise qualify to serve as a trustee under the provisions of the TIA. In addition, without the prior written consent of CoBank, the Company will not remove any Trustee while a Default or Event of Default shall have occurred and be continuing.

**SECTION 6.06&nbsp;&nbsp;&nbsp;&nbsp;Other Businesses, Fiscal Year, Etc.** The Company will not: (A) engage in any business that is substantially different from or unrelated to the business conducted by the Company on the date hereof; or (B) change its fiscal year.

**SECTION 6.07.&nbsp;&nbsp;&nbsp;&nbsp;Releases.** Apply to have any Wholesale Power Contract released from the Lien of the Indenture.

**SECTION 6.08.&nbsp;&nbsp;&nbsp;&nbsp;Organizational Documents.** Modify, supplement or waive any of the provisions of its articles of incorporation, bylaws or any other constituent document if the effect thereof, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

**SECTION 6.09.&nbsp;&nbsp;&nbsp;&nbsp;Transaction with Affiliates.** Enter into or permit any Qualifying Subsidiary to enter into any material transaction with any Affiliate or Member of the Company except any of the following: (A) transactions in the ordinary course of business at process and on terms and conditions not less favorable to the Company or such Qualifying Subsidiary than could be obtained on an arm's-length basis for any such transaction from unrelated or un-Affiliated third parties recognizing, if applicable, the not-for-profit, cooperative business of the Company and the Qualifying Subsidiary, (B) transactions that are priced at the Company's or such Qualifying Subsidiary's costs, and (C) transactions otherwise expressly permitted under this Agreement.

**SECTION 6.10.&nbsp;&nbsp;&nbsp;&nbsp;Distributions**. Declare or pay, directly or indirectly, any Distribution other than Distributions permitted by the Indenture, as same may be amended from time to time.

**SECTION 6.11.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment or Defeasance.** While any Indenture Default or Indenture Event of Default shall have occurred and be continuing, defease or prepay or permit any Qualifying Subsidiary to defease or prepay (directly or indirectly) any Obligation.

**SECTION 6.12.&nbsp;&nbsp;&nbsp;&nbsp;Wholesale Power Contracts.** Amend, waive or otherwise modify any Wholesale Power Contract in a manner which would not allow the Company to set rates thereunder to, when considered together with all other Wholesale Power Contracts, recover all costs and expenses (including all debt service) to the extent not covered by other moneys available to the Company.

**SECTION 6.13.&nbsp;&nbsp;&nbsp;&nbsp;Hedging Transaction.** Enter or permit any Qualifying Subsidiary to enter into any Hedging Transaction that is not related to its respective operations.

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**SECTION 6.14.&nbsp;&nbsp;&nbsp;&nbsp;Liens.** The Company shall not, directly or indirectly, and will not allow any Qualifying Subsidiary to, directly or indirectly, create, incur, assume or permit to exist any Lien on the Trust Estate or Qualifying Securities Trust Estate other than Liens permitted by the Indenture or Qualifying Securities Indenture. In addition, the Company shall not, directly or indirectly, and will not allow any Qualifying Subsidiary to, directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to an entire type or class of Excepted Property as a type or class.

**ARTICLE 7**

**EVENTS OF DEFAULT**

Each of the following shall constitute an "Event of Default" hereunder:

**SECTION 7.01.&nbsp;&nbsp;&nbsp;&nbsp;Payment Default.** The Company should fail to make when due any payment to CoBank hereunder or under the Note, and such failure shall continue for five Business Days.

**SECTION 7.02.&nbsp;&nbsp;&nbsp;&nbsp;Indenture.** An Indenture Event of Default shall have occurred and be continuing.

**SECTION 7.03.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties, Etc.** Any opinion, certificate or like document furnished to CoBank or the Trustee by or on behalf of the Company, or any representation or warranty made or deemed made by the Company herein or in any other Loan Document, shall prove to have been false or misleading in any material respect on or as of the date furnished, made or deemed made.

**SECTION 7.04.&nbsp;&nbsp;&nbsp;&nbsp;Covenants.** The Company should fail to perform or comply with: (A) Sections 5.06(F) or 5.11(A) hereof or (B) any other covenant or agreement set forth herein (other than a covenant or agreement reference in Subsection (A) hereof or any other Section of this Article 7) and, if curable, such failure continues for 30 days after written notice thereof shall have been given by CoBank to the Company.

**SECTION 7.05.&nbsp;&nbsp;&nbsp;&nbsp;Change of Control.** The Company shall cease to be an electric generation and transmission cooperative, a majority of which is owned by rural electric distribution cooperatives and rural electric generation and transmission cooperatives.

**SECTION 7.06.&nbsp;&nbsp;&nbsp;&nbsp;Insolvency, Etc.** The Company shall: (A) become insolvent or shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or (B) suspend its business operations or a material part thereof; or (C) apply for, consent to, or acquiesce in the appointment of a trustee, receiver, or other custodian for it or any of its property.

**SECTION 7.07.&nbsp;&nbsp;&nbsp;&nbsp;Trustee.** The Trustee ceases to be qualified to serve as Trustee under the provisions or the Indenture and the Company fails to remove the Trustee and appoint a new Trustee that so qualifies, within 90 days of the disqualification.

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**SECTION 7.08.&nbsp;&nbsp;&nbsp;&nbsp;ERISA.** Tho Company or any ERISA Affiliate incurs any liability to the PBGC or a Guaranteed Pension Phan pursuant to Title IV of ERISA in an aggregate amount exceeding $10,000,000, or the Company or any ERISA Affiliate is assessed withdrawal liability pursuant to Title IV of ERISA by a Multiemployer Plan requiring aggregate annual payments exceeding the lesser of $20,000,000 or 10% of aggregate margins and equities of the Company (determined in accordance with Accounting Requirements as of the Company's most recent fiscal quarter end), or any of the following occurs with respect to a Guaranteed Pension Plan; (i) an ERISA Reportable Event, or a failure to make a required installment or other payment (within the meaning of §303(k) of ERISA), provided that CoBank determines in its reasonable discretion that such event (A) could reasonably by expected to result in liability of the Company or any of its ERISA Affiliates to the PBGC or such Guaranteed Pension Plan in an aggregate amount exceeding $10,000,000 and (B) could constitute grounds for the termination of such Guaranteed Pension Plan by the PBGC, for the appointment by the appropriate United States District Court of a trustee to administer such Guaranteed Pension Pension Plan or for the imposition of a lien in favor of such Guaranteed Pension Plan; or (ii) the appointment by a United States District Court of a trustee to administer such Guaranteed Pension Plan; or (iii) the institution by the PBGC of proceedings to terminate such Guaranteed Pension Plan.

**SECTION 7.09.&nbsp;&nbsp;&nbsp;&nbsp;Foreclosure.** The holder of any Lien on assets which are material to the operation of the Company shall commence foreclosure (or exercise like remedies with respect to) such Lien.

**SECTION 7.10.&nbsp;&nbsp;&nbsp;&nbsp;Certain Member Events.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Any one or more Members of the Company shall at any one time default in the performance of any payment obligations under its or their Wholesale Power Contracts where the aggregate principal amount of such default shall constitute an Event of Default hereunder to the extent that the Company has extended credit terms to the applicable Member with respect to such payment obligations and such Member is in compliance with such credit terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;any one or more Members of the Company shall, during any Rolling Five Year Period, contest the validity or enforceability of its or their Wholesale Power Contracts representing 20% or more of the Company's Rolling Five Year Average Revenues by filing any judicial or regulatory action, suit or proceeding (with the Company's revenue base calculated as of the end of the Company's fiscal year immediately preceding any such filing) seeking as a remedy the declaration of the unenforceability or the material modification of its or their Wholesale Power Contracts, and such judicial or regulatory body shall have issued a final and non-appealable order (i) declaring all or a materials portion of such Wholesale Power Contract unenforceable, or (ii) modifying such Wholesale Power Contract in any material manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;one or more Wholesale Power Contracts which, individually or in the aggregate represent 20% or more of the Company's Rolling Five Year Average Revenues shall, during any Rolling Five Year Period, for any reason be terminated.

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**SECTION 7.11.&nbsp;&nbsp;&nbsp;&nbsp;Loan Documents.** Any of the Loan Documents shall cease to be legal, valid and binding agreements enforceable against the Company (or with respect to any Qualifying Securities Indenture, the Qualifying Subsidiary) or any such party's successors and assigns (as permitted under the Loan Documents) in accordance with the respective terms thereof or shall in any way be terminated (except in accordance with its terms or as may be agreed to by the parties thereto) or become or be declared ineffective or inoperative or shall in any way be challenged or contested by any party thereto (other than CoBank) or cease to give or provide the respective Liens, security interests, rights, titles, interests, remedies, powers or privileges intended to be created thereby.

**ARTICLE 8**

**REMEDIES UPON DEFAULT**

**SECTION 8.01.&nbsp;&nbsp;&nbsp;&nbsp;Remedies.** Upon the occurrence and during the continuance of an Event of Default, CoBank may terminate the Commitment, declare the unpaid principal balance of the Note, all accrued interest thereon, and all other amounts payable under this Agreement, the Note, and all other Loan Documents to be immediately due and payable, and take such other action as may be permitted by Law or in equity, including an action or proceeding to specifically enforce any covenant contained herein or to retrain the breach thereof; provided, however, that in the event the Note is secured under the Indenture, then CoBank shall only have the right to accelerate repayment of the Note if permitted by the Indenture. The Company hereby waives any defense to any such action that an adequate remedy at law exists.

**SECTION 8.02.&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.** Upon the occurrence and during the continuance of any Event of Default, CoBank may, at its option in each instance and automatically following an acceleration, charge interest on the unpaid principal balance of the Note at the Default Rate.

**SECTION 8.03.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.** Each and every one of CoBank's 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 future or other 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 and cash collateral held by CoBank, or any other balances held by CoBank for the Company's account (whether or not such balances are then due).

**SECTION 8.04.&nbsp;&nbsp;&nbsp;&nbsp;Application of Funds.** Upon the occurrence and during the continuance of an Event of Default, 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; provided, however, that to the extent that the Indenture requires a specific application, such application shall control.

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**ARTICLE 9**

**MISCELLANEOUS**

**SECTION 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Complete Agreement, Amendments, Etc.** The Loan Documents are intended by the parties to be a complete and final expression of their agreement. No Amendment, modification, or waiver of any provision of the Loan Documents, 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.

**SECTION 9.02.&nbsp;&nbsp;&nbsp;&nbsp;Applicable Law, Jurisdiction.** Except to the extent governed by applicable federal Law, this Agreement and the Note shall be governed by the Laws of the State of Colorado, without reference to choice of law doctrine. The parties agree to submit to the non-exclusive jurisdiction of any federal or state court sitting in Colorado for any action or proceeding arising out of or relating to this Agreement or any other Loan Document. The Company hereby waives any objection that it may have to any such action or proceeding on the basis of forum non-conveniens.

**SECTION 9.03. &nbsp;&nbsp;&nbsp;&nbsp;Notices.** All notices hereunder shall be in writing and shall be deemed to have been duly given upon delivery if personally delivered or sent by overnight mail or by facsimile or similar transmission, or three (3) days after mailing if sent by express, certified or registered mail, to the parties at the following addresses (or such other address as either party may specify by like notice):

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| | |
|:---|:---|
| If to CoBank, as follows: | If to the Company, as follows: |
| CoBank, ACB | Basin Electric Power Cooperative |
| 6340 S. Fiddlers Green Circle | 1717 East Interstate Avenue |
| Greenwood Village, Colorado 80111 | Bismarck, North Dakota 58503 |
| Facsimile: (303) 740-4002 | Facsimile: (701) 557-5357 |
| Attention: Power, Energy | Attention: Senior Vice President & CFO |
| And Utilities Division |  |

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**SECTION 9.04.&nbsp;&nbsp;&nbsp;&nbsp;Costs, Expenses, and Taxes.** 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, interpretation, collection, and enforcement of this Agreement and the other Loan Documents, including, without limitation: (A) all costs and expenses incurred in determining compliance with the Company's obligations hereunder and the other Loan Documents; (B) all costs and expenses (including all court costs) incurred in connection with any action or proceeding arising in connection herewith or any bankruptcy, reorganization or like proceeding involving the Company or any Subsidiary; and (C) any stamp, intangible, transfer or like tax incurred in connection with this Agreement or any other Loan Document or the recording hereof or thereof.

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**SECTION 9.05.&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness and Severability.** This Agreement shall continue in effect until all indebtedness and obligations of the Company under this Agreement and the Note shall have been paid or satisfied. Any provision of this Agreement or the Note which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof.

**SECTION 9.06.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.** This Agreement 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 or the other Loan Documents without the prior written consent of CoBank. From time to time, CoBank may sell and assign its rights and/or participations in its rights under this Agreement, the Note, and all instruments and documents executed in connection with, or relating hereto (Collectively, "<u>Participations</u>"); provided, however, that: (1) no such sale shall alter CoBank's obligations hereunder; and (2) any agreement pursuant to which CoBank may sell a Participation: (a) shall provide that CoBank shall retain the responsibility to exercise CoBank's rights hereunder and under the Indenture and to enforce the obligations of the Company; and (b) may provide that the approval of CoBank and participants holding more than 50% of the aggregate amount of the Loan and Commitment (or, in the event CoBank holds more than 50%, CoBank and at least one other participant) shall be required in order to approve any amendment, modification or waiver of any provision of this Agreement or any other Loan Document or to take action to have the Loan declared due and payable pursuant to the terms of the Indenture; <u>provided</u>, <u>however</u>, that such agreement may provide that each of the participants may have rights to approve or disapprove: (i) any increase in the Commitment, or any reduction, modification or forgiveness in the principal amount, interest rates or prepayment premiums owing on the Loan; (ii) any change in the dates on which interest or principal is due: or (iii) the release of any material collateral for the Loan. In connection with the foregoing, CoBank may disclose information concerning the Company and its affiliates to all prospective purchasers.

**SECTION 9.07.&nbsp;&nbsp;&nbsp;&nbsp;Headings.** Captions and headings used in this Agreement are for reference and convenience of the parties only, and shall not constitute a part of this Agreement.

**SECTION 9.08.&nbsp;&nbsp;&nbsp;&nbsp;Patriot Act Notice.** CoBank hereby notifies the Company that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the "<u>Patriot Act</u>"), it and its affiliates are required to obtain, verify and record information that identifies the Company, which information includes the name, address, tax identification number and other information regarding the Company that will allow CoBank to identify the Company in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective for CoBank and its affiliates.

**SECTION 9.09.&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Jury Trial.** EACH PARTY TO THIS AGREEMENT HEREBY WAIVES SEVERALLY ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE BETWEEN SUCH PARTIES IN CONNECTION WITH THIS AGREEMENT, THE NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR

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THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF COBANK RELATING TO THE ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE LOAN DOCUMENTS AND AGREES THAT IT WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTIONS IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. Except as prohibited by Law, each party to the Agreement hereby waives any right it may have to claim or recover in any litigation referred to in the preceding sentence any special, exemplary, punitive or consequential damages or any damages other than, or in addition to, actual damages. The Company certifies that no representative, agent or attorney of CoBank has represented, expressly or otherwise, that CoBank would not, in the event of litigation, seek to enforce the foregoing waivers. Each party to this Agreement acknowledges to the other that such other party has been induced to enter into this Agreement and the other Loan Documents, by, among other things, the waivers and certifications contained herein.

**SECTION 9.10.&nbsp;&nbsp;&nbsp;&nbsp;Taxes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;**Payments Free of Taxes.** Any and all payments by or on account of any obligation or the Company to CoBank under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law requires the deduction or withholding of any Tax from any such payment by the Company, then the Company shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Company shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 9.10(A)) CoBank receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;**Payment of Other Taxes by the Company.** The Company shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of CoBank timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;**Indemnification by the Company.** The Company shall indemnify CoBank, within ten days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by CoBank or required to be withheld or deducted from a payment to CoBank and any reasonable expenses arising therefrom or with respect thereto, whether or not such indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company by CoBank shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;**Evidence of Payments.** As soon as practicable after any payment of Taxes by the Company to a Governmental Authority pursuant to this Section 9.10, the Company

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shall deliver to CoBank the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to CoBank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;**Treatment of Certain Refunds.** If CoBank determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 9.10 (including by the payment of additional amounts pursuant to this Section 9.10), it shall pay to the company an amount equal to such refund (but only to the extent of indemnity payments made under this Section 9.10 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of CoBank and without interest (other than any interests paid by the relevant Governmental Authority with respect to such refund). The Company, upon the request of CoBank, shall repay to CoBank the amount paid over pursuant to this Section 9.10(E) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that CoBank is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this Section 9.10(E), in no event will CoBank be required to pay any amount to the Company pursuant to this Section 9.10(E) the payment of which would place CoBank in a less favorable net after-Tax position than CoBank would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This Section 9.10(E) shall not be construed to require CoBank to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Company or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;&nbsp;&nbsp;&nbsp;**Survival.** Each party's obligations under this Section 9.10 shall survive the prepayment, satisfaction or discharge of all obligations owing by the Company to CoBank hereunder and under any Loan Document.

**SECTION 9.11.&nbsp;&nbsp;&nbsp;&nbsp;Counterparts and Electronic Delivery.** This Agreement and any amendment hereto may be executed in counterparts (and by different parties in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single agreement. In addition, this Agreement and any amendment hereto may be delivered by electronic means.

(Signatures on Next Page(s))

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

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| | | | |
|:---|:---|:---|:---|
| **CoBANK, ACB** | **CoBANK, ACB** | **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: | /s/ John H. Kemper | By: | /s/ Paul M. Sukut |
|  | John H. Kemper |  | Paul M. Sukut |
| Title: | Vice President | Title: | CEO & G.M. |

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## Exhibit 4.5

**Exhibit 4.5**

**LOAN AGREEMENT**

**LOAN AGREEMENT** (the "Agreement") dated as of April 29, 2016, between BASIN ELECTRIC POWER COOPERATIVE (the "Borrower"), an electric cooperative corporation organized and existing under the laws of the State of North Dakota and NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION ("CFC"), a cooperative association organized and existing under the laws of the District of Columbia.

**RECITALS**

**WHEREAS**, the Borrower has applied to CFC for a loan for the purposes set forth in Schedule 1 hereto, and CFC is willing to make such a loan to the Borrower on the terms and conditions stated herein; and

**WHEREAS**, the Borrower has agreed to execute a promissory note to evidence an indebtedness in the aggregate principal amount of the Commitment (as hereinafter defined) authenticated and secured by the lien of the Indenture (as hereinafter defined).

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto agree and bind themselves as follows:

**ARTICLE I**

**DEFINITIONS**

**Section 1.01** The following capitalized terms shall have the following meanings (such definitions to be equally applicable to the singular and the plural form thereof). Capitalized terms that are not defined herein shall have the meanings as set forth in the Indenture (as hereinafter defined). Unless otherwise Indicated, all documents referred to herein shall be deemed to include all amendments, supplements, modifications, substitutions and restatements.

**"Accounting Requirements"** shall have the meaning ascribed to it in the Indenture.

**"Advance"** shall mean the Advance by CFC to the Borrower under the Note.

**"Affiliate"** shall mean, at any time, and with respect to any Person, any other Person that at such time directly or Indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. As used in this definition, "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an Affiliate is a reference to an Affiliate of the Company.

**"Amortization Basis Date"** shall mean the first calendar day of the month following the end of the Billing Cycle in which the Advance occurs, provided, however, that if the Advance is made on the first day of a Billing Cycle, and such day is a Business Day, then the Amortization Basis Date shall be the date of the Advance.

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**"Billing Cycle"** shall mean any three-month period ending on, and including, a Payment Date.

**"Business Day"** shall mean any day that both CFC and the depository institution CFC utilizes for funds transfers hereunder are open for business.

**"CFC Fixed Rate"** shall mean (i) the sum of (y) the percentage rate that expresses the yield to maturity on U.S. Treasury securities with a maturity of ten (10) years, as quoted by Bloomberg data services at 10:00 a.m., New York Time, on April 22, 2016 plus (z) one hundred eighty five (185) basis points per annum, as agreed in writing by the parties on or prior to the Closing Date or (ii) such other fixed rate as may be agreed to in writing by the parties.

**"CFC Fixed Rate Term"** shall mean the period from the Closing Date to the Maturity Date.

**"Capital Certificate"** shall mean a certificate, or book entry form of account, evidencing the Borrower's purchase of subordinated debt instruments issued by CFC from time to time. Such instruments may be denoted by CFC as "Loan Capital Term Certificates", "Member Capital Securities". "Subordinated Term Certificates", or other like designations.

**"Closing Date"** shall mean the date specified on Schedule 1.

**"Code"** shall mean the Internal Revenue Code of 1986, as amended.

**"Commitment"** shall have the meaning set forth on Schedule 1.

**"Default"** means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

**"Default Rate"** shall mean a rate per annum equal to the Interest rate in effect for an Advance plus two hundred (200) basis points.

**"ERISA"** shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

**"ERISA Affiliate"** shall mean any trade or business (whether or not incorporated) that is treated as a single employer together with the Borrower under section 414 of the Code.

**"Environmental Laws"** shall mean all applicable laws, rules and regulations promulgated by any Governmental Authority with which the Borrower Is required to comply, regarding the use, treatment, discharge, storage, management, handling, manufacture, generation, processing, recycling, distribution, transport, release of or exposure to any Hazardous Material.

**"Governmental Authority"** shall mean the government of the United States of America, any state or other political subdivision thereof, whether state or local, and any agency, authority,

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instrumentality, regulatory body, court or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

**"Hazardous Material"** shall mean any (a) petroleum or petroleum products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls, lead and radon gas, and (b) any other substance designated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law.

**"Indenture"** shall have the meaning as described in Schedule 1 hereto.

**"Indenture Supplement"** shall have the meaning as described In Schedule 1

**"Lien"** shall mean any statutory or common law consensual or non-consensual mortgage, pledge, security interest, encumbrance, lien, right of set off, claim or charge of any kind, Including, without limitation, any conditional sale or other title retention transaction, any lease transaction in the nature thereof and any secured transaction under the Uniform Commercial Code.

**"Loan Documents"** shall mean this Agreement, the Note, the Indenture, the Indenture Supplement and all other documents or instruments executed, delivered or executed and delivered by the Borrower and evidencing, securing, governing or otherwise pertaining to the credit facility provided and the Advance made by CFC hereunder.

**"Make-Whole Premium"** shall mean, with respect to any Prepaid Principal Amount, an amount calculated as set forth below. The Make-Whole Premium represents CFC's reinvestment loss resulting from making a fixed rate loan.

1)Compute the amount of interest ("Loan Interest") that would have been due on the Prepaid Principal Amount at the applicable CFC Fixed Rate for the period from the prepayment date through the end of the CFC Fixed Rate Term (such period is hereinafter referred to as the "Remaining Term"), calculated on the basis of a 30-day month/360-day year, adjusted to include any amortization of principal In accordance with the amortization schedule that would have been in effect for the Prepaid Principal Amount.

2)Compute the amount of interest ("Investment Interest") that would be earned on the Prepaid Principal Amount (adjusted to include any applicable amortization) if invested in a United States Treasury Note with a term equivalent to the Remaining Term, calculated on the basis of a 30-day month/360-day year. The yield used to determine the amount of Investment Interest shall be based upon United States Treasury Note yields as reported no more than two Business Days prior to the prepayment date in Federal Reserve statistical release H.15 (519), under the caption "U.S. Government Securities/Treasury Constant Maturities". If there is no United States Treasury Note under said caption with a term equivalent to the Remaining Term, then the yield shall be determined by interpolating between the terms of whole years nearest to the Remaining Term.

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3)Subtract the amount of Investment Interest from the amount of Loan Interest If the difference is zero or less, then the Make-Whole Premium is zero. If the difference is greater than zero, then the Make-Whole Premium is a sum equal to the present value of the difference, applying as the present value discount a rate equal to the yield utilized to determine Investment Interest.

**"Material"** shall mean material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.

**"Material Adverse Effect"** shall mean a material adverse change in or material adverse effect on (a) the business, assets, liabilities (actual or contingent), operations, or condition (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Agreement or any of the other Loan Documents, (c) the validity or enforceability of this Agreement the Note or the Indenture or (d) CFC's rights as a Holder of Obligations to exercise the remedies set forth in Article VII hereof or as set forth In Article VIII of the Indenture, in the manner and to the extent provided for by this Agreement and the Indenture, as applicable.

**"Maturity Date"** shall mean April 29, 2046.

**"Multiemployer Plan"** shall mean any Plan that Is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

**"Note"** shall mean the Secured First Mortgage Promissory Note, Series 2016 CFC Note 9004, dated April 29, 2016, payable to the order of CFC, executed by the Borrower, dated as of even date herewith, pursuant to this Agreement as identified on Schedule 1 hereto, and shell include all substitute, amended or replacement promissory notes.

**"Obligations"** shall mean any and all liabilities, obligations or indebtedness owing by the Borrower to CFC under the Loan Documents, of any kind or description, irrespective of whether for the payment of money, whether direct or Indirect. absolute or contingent, due or to become due, now existing or hereafter arising.

**"PBGC"** shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

**"Payment Date"** shall have the meaning set forth on <u>Schedule 1</u>.

**"Plan"** means an "employee benefit plan" (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Borrower or any ERISA Affiliate or with respect to which the Borrower or any ERISA Affiliate may have any liability.

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**"Prepaid Principal Amount"** shall mean all or any part of the outstanding principal of an Advance bearing Interest at the CFC Fixed Rate paid prior to the expiration of the CFC Fixed Rate Term applicable thereto.

**"Prepayment Fee"** shall mean an amount equal to 0.33% of the Prepaid Principal Amount of the Advance.

**"Responsible Officer"** shall mean any Senior Financial Officer and any other officer of the Borrower with responsibility for the administration of the relevant portion of this Agreement.

**"SEC"** shall mean the Securities and Exchange Commission of the United States, or any successor thereto.

**"Senior Financial Officer"** shall mean the chief financial officer, principal accounting officer, treasurer or comptroller of the Borrower.

**"Subsidiary"** as to the Borrower, shall mean a corporation, partnership, limited partnership, limited liability company or other entity of which shares of stock or other ownership Interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by the Borrower.

**"Treasury Note"** shall mean a U.S. Dollar-denominated senior debt security of the United States of America issued by the U.S. Treasury Department and backed by the full faith and credit of the United states of America.

**"Wholesale Power Contracts"** shall mean the wholesale power contracts between the Borrower and each of Its members providing for the sale of electric power and energy by the Borrower to such member.

**ARTICLE II**

**REPRESENTATIONS AND WARRANTIES**

**Section 2.01** The Borrower represents and warrants to CFC that as of the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Good Standing.** The Borrower is duly organized, validly existing and In good standing under the laws of the jurisdiction of Its incorporation or organization, and, except where the failure to do so individually or In the aggregate, would not reasonably be expected to result in a Material Adverse Effect, is duly qualified to do business and Is in good standing in those states in which it is required to be qualified to conduct Its business. The Borrower is a member in good standing of CFC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**Authority; Validity.** The Borrower has or had the power and authority to enter Into this Agreement, the Note and the Indenture; to make the borrowing contemplated hereunder; to

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execute and deliver all documents and Instruments required hereunder and to incur and perform the obligations provided for herein, In the Note and in the Indenture, au of which have been duly authorized by au necessary and proper action; and no consent or approval of any Person, including, as applicable and without limitation, members of the Borrower, which has not been obtained is required as a condition to the validity or enforceability hereof or thereof.

Each of this Agreement, the Note and the Indenture is, and when fully executed and delivered will be, valid and binding upon the Borrower and enforceable against the Borrower In accordance with its terms, subject to applicable bankruptcy, Insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**No Conflicting Agreements.** The execution and delivery of the Loan Documents and performance by the Borrower of the obligations hereunder and thereunder, and the transactions contemplated hereby or thereby, will not in any material respect: (i) violate any provision of law, any order, rule or regulation of any Governmental Authority, any award of any arbitrator, the articles of incorporation or by-laws of the Borrower, the Indenture or any material contract, agreement, mortgage, deed of trust or other Instrument to which the Borrower is a party or by which it or any of its property is bound; or (ii) be in conflict with, result in a breach of or constitute (with due notice and/or lapse of time) a default under, any such award, the Indenture or any such contract, agreement, mortgage, deed of trust or other instrument, or result in the creation or imposition of any Lien (other than contemplated by the Indenture) upon any material assets of the Borrower. The Borrower is not in default in any material respect under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;**Taxes.** The Borrower, and each of its Subsidiaries, has filed or caused to be filed an federal, state and local tax returns which are required to be filed and has paid or caused to be paid all federal, state and local taxes, assessments, and governmental charges and levies thereon, including interest and penalties to the extent that such taxes, assessments, and governmental charges and levies have become due, except (i) for such taxes, assessments, and governmental charges and levies which the Borrower or any Subsidiary is contesting in good faith by appropriate proceedings for which adequate reserves have been set aside, if such reserves are required by Accounting Requirements, or (ii) to the extent the failure to do so would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;**Licenses and Permits.** The Borrower has duly obtained and now holds all licenses, permits, certifications, approvals and the like necessary to own and operate its property and business that are required by Governmental Authorities and each remains valid and in full force and effect, except such failures to obtain or hold as would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;**Litigation**. There are no outstanding judgments, suits, claims, actions or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower, its Subsidiaries or any of their respective properties which, if adversely determined, either Individually or collectively, would reasonably be expected to have a Material Adverse Effect. The Borrower and Its Subsidiaries are not, to the Borrower's knowledge, in default or violation

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with respect to any judgment, order, writ, injunction, decree, rule or regulation of any Governmental Authority which would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements.** The balance sheet of the Borrower as at the date identified in <u>Schedule 1</u> hereto, the statement of operations of the Borrower for the period ending on said date, and the Interim financial statements of the Borrower as at the date identified in Schedule 1, all heretofore furnished to CFC, fairly present, in all material respects, the financial condition of the Borrower as at said dates and fairly reflect its operations for the period ending on said dates. There has been no change in the financial condition or operations of the Borrower from that set forth In said financial statements that would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;**Required Approvals.** The Borrower has obtained all licenses, consents or approvals of all Governmental Authorities that the Borrower is required to obtain in order for the Borrower to enter into and perform under this Agreement, the Note and the Indenture. Each such license, consent or approval is In full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;**Compliance With Laws.** The Borrower and each Subsidiary is in compliance with all applicable requirements of law and all applicable rules and regulations of each Governmental Authority, except for any such failures of compliance as would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;**Disclosure.** To the Borrower's knowledge, information and belief, neither this Agreement nor any document, certificate or financial statement furnished to CFC by or on behalf of the Borrower in connection herewith (all such documents, certificates and financial statements, taken as a whole) as of the date of delivery thereof, taken as a whole, and in the light of the circumstances under which they were made, contains any untrue statement of a material fact or omits to state any material fact necessary In order to make the statements contained herein and therein not materially misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;**No Other Liens.** As to the Trust Estate, the Borrower has not, without the prior written approval of CFC, executed or authenticated any security agreement or mortgage, or filed or authorized any financing statement to be filed, other than as provided for under the Indenture or as permitted by the Indenture, including Permitted Exceptions as permitted by the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;**Environmental Matters.** Except as to matters which individually or In the aggregate would not reasonably be expected to have a Material Adverse Effect, (i) the Borrower is in compliance with all Environmental Laws (including, but not limited to, having any required permits and licenses), (ii) to the best of the Borrower's knowledge, there have been no releases (other than releases remediated in compliance with applicable Environmental Laws) from any underground or aboveground storage tanks (or piping associated therewith) that are or were present at the Trust Estate, (iii) the Borrower has not received written notice or claim of any violation of any Environmental Law and failed to take appropriate action to remedy, cure, defend or otherwise affirmatively respond to the matter in order to comply with any Environmental Law that is the subject of such written notice or claim, (iv) to the best of the Borrower's knowledge, there is no pending investigation of the Borrower in regard to any Environmental Law, and (v) to

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the best of the Borrower's knowledge, there has not been any release or contamination (other than releases or contamination remediated in compliance with Environmental Laws) resulting from the presence of Hazardous Materials on property owned, leased or operated by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.&nbsp;&nbsp;&nbsp;&nbsp;**Wholesale Power Contracts.** The Wholesale Power Contracts are In full force and effect and are legal, valid and binding upon the Borrower and enforceable against the Borrower in accordance with their respective terms, subject only to limitations on enforceability imposed by general equitable principles or applicable bankruptcy, insolvency, reorganization moratorium, or similar laws respecting creditors' rights generally. To the best of the Borrower's knowledge, each Wholesale Power Contract is valid and binding and enforceable against each member party thereto, subject to limitations on enforceability Imposed by general equitable principles or applicable bankruptcy, insolvency, reorganization moratorium, or similar laws respecting creditors' rights generally.

**ARTICLE III**

**LOANS**

**Section 3.01 Advances**. CFC agrees to make the Advance under the Note on the Closing Date, for the purpose described on Schedule 1, in an aggregate principal amount which shall not exceed the Commitment.

**Section 3.02 Payment**. The Note shall be payable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Payments.** The Borrower shall make each payment required to be made by It hereunder or under the Note (whether of principal, interest or fees, or otherwise) on the date when due, in immediately available funds, without set-off or counterclaim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**Maturity**. The Note shall have the Maturity Date as set forth therein, provided, however, that if such date for any Note is not a Payment Date, then the Maturity Date shall be the Payment Date immediately preceding such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**Application of Payments**. Each payment shall be applied to the Obligations first to any fees, costs, expenses or charges other than interest or principal, second to interest accrued, and the balance to principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.**Invoice.** CFC will Invoice the Borrower at least ten (10) days before each Payment Date, provided, however, that CFC's failure to send an invoice shall not constitute a waiver by CFC or be deemed to relieve the Borrower of its obligation to make payments as and when due as provided for herein.

**Section 3.03 Amortization.** For each Advance, the Borrower shall promptly pay interest in the amount due on each Payment Date until the first Payment Date of the Billing Cycle in which the Amortization Basis Date occurs. On such Payment Date, and on each Payment Date thereafter, the Borrower shall promptly pay interest and principal in the amounts due. If not sooner paid, any amount due on account of the unpaid principal, interest accrued thereon and

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fees, if any, shall be due and payable on the Maturity Date. The principal amount of the Note shall amortize on a level principal payment basis from the Amortization Basis Date to the Maturity Date.

**Section 3.04 Interest Rate.** The Note will bear interest as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Interest Rate and Interest Rate Computation.** The Advance shall bear Interest at the CFC Fixed Rate and shall be in effect for the CFC Fixed Rate Term. Interest on the Advance shall be computed for the actual number of days elapsed on the basis of a year of 365 days, until the first day of the Billing Cycle in which the Amortization Basis Date occurs; interest shall then be computed on the basis of a 30-day month and 360-day year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;Default Rate.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;**Payment Default.** If Borrower defaults on its obligation to make a payment due hereunder by the applicable date payment is due, and such default continues for thirty (30) days thereafter, then beginning on the thirty-first (31<sup>st</sup>) day after the payment Is due and for so long as such default continues, the Advance shall bear interest at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;**Non-Payment Defaults.** Upon the occurrence of an Event of Default, other than a payment default as set forth In Section 3.04.B(i) above, the interest rate on the Advance shall be the Default Rate until such Event of Default is cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)&nbsp;&nbsp;&nbsp;&nbsp;No Multiples of Default Rate.** Notwithstanding anything to the contrary contained in this Section 3.04.B In the event that more than one Event of Default shall exist at any time, the aggregate interest rate applicable on the Advance pursuant to this Section 3.04.B shall be the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**Usury Savings Clause.** No provision of this Agreement or of any Note shall require the payment, or permit the collection, of interest in excess of the highest rate permitted by applicable law.

**Section 3.05 Mandatory Prepayment.** If the Borrower shall merge, consolidate or have all or substantially all of the assets of the Borrower acquired, then upon the effective date of such change, the Borrower shall prepay the outstanding principal balance of all Obligations, together with any accrued but unpaid Interest thereon, any unpaid costs or expenses provided for herein. the Prepayment Fee and a Make-Whole Premium, if any. Notwithstanding the foregoing, no prepayment shall be required under this Section 3.05 if, after giving effect to such change, the Borrower, or its successor in interest, is engaged in the furnishing of electric utility services to Its members and is organized as a cooperative. nonprofit corporation, public utility district, municipality, or other public governmental body and is or becomes a CFC member.

**Section 3.06 Optional Prepayment.** The Borrower may prepay all or any part of the outstanding principal of the Advance upon at least thirty (30) days prior written notice to CFC. If any principal of the Advance is prepaid (whether voluntarily by the Borrower, by acceleration or otherwise, and regardless of the source of prepayment), then on the prepayment date there shall

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be due and owing, and the Borrower shall pay on the amount of principal prepaid (i) all accrued but unpaid Interest, calculated up to the prepayment date, (ii) the Prepayment Fee and (iii) a Make-Whole Premium, if any.

**ARTICLE IV**

**CONDITIONS**

**Section 4.01 Conditions of Closing.** This Agreement shall become effective only upon the satisfaction of the following conditions in form and substance satisfactory to CFC as of the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Legal Matters.** All legal matters incident to the consummation of the transactions hereby contemplated shall be reasonably satisfactory to counsel for CFC and, as to all matters of local law, to such local counsel as counsel for CFC may retain. CFC's execution of this Agreement shall evidence satisfaction of this condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**Documents.** CFC shall have been furnished with (i) the executed Loan Documents, (ii) certified copies of all such organizational documents and proceedings of the Borrower authorizing the transactions hereby contemplated as CFC shall require, (iii) an opinion of counsel for the Borrower addressing such legal matters as CFC shall reasonably require, (iv) to the extent the Note is executed and delivered under any of Section 4.2, 4.3, 4.4, 4.5 or 4.11 of the Indenture, copies of au documents required to be delivered to the Trustee under such Sections relating thereto and (iv) all other such documents as CFC may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**Government Approvals.** The Borrower shall have furnished to CFC true and correct copies of all certificates, authorizations, consents, permits and licenses from Governmental Authorities necessary for the execution or delivery of the Loan Documents or performance by the Borrower of the obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;**Indenture Recordation.** The Borrower shall have provided evidence satisfactory to CFC that the Indenture (including the Indenture Supplement) shall have been duly filed, recorded or indexed in all jurisdictions necessary to provide the Trustee thereunder a perfected lien, subject only to Permitted Exceptions, on all of the Trust Estate, all in accordance with applicable law, and the Borrower shall have paid all applicable taxes, recording and filing fees and caused satisfactory evidence thereof to be furnished to CFC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;**UCC Filings.** The Borrower shall have provided evidence satisfactory to CFC that Uniform Commercial Code financing statements (Including any such financing statements relating to the Indenture Supplement) (and any continuation statements and other amendments thereto) shall have been duly filed, recorded or Indexed in au jurisdictions necessary (and in anyother jurisdiction that CFC shall have reasonably requested) to provide the Trustee a perfected security interest. subject to Permitted Exceptions, in the Trust Estate which may be perfected by the filing of a financing statement, all in accordance with all applicable laws, rules and regulations, and the Borrower shall have paid all applicable taxes, recording and filing fees and caused satisfactory evidence thereof to be furnished to CFC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.&nbsp;&nbsp;&nbsp;&nbsp;Defaults. No Default or Event of Default has occurred.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.&nbsp;&nbsp;&nbsp;&nbsp;Material Adverse Effect.** Since December 31, 2015, no event or condition has occurred that would result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.&nbsp;&nbsp;&nbsp;&nbsp;Note Authentication.** The Note shall have been duly authenticated by the Trustee as an Additional Obligation secured under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.&nbsp;&nbsp;&nbsp;&nbsp;Compliance.** The Borrower shall be in compliance with the Indenture and all other existing Material financial obligations.

**ARTICLE V**

**COVENANTS**

**Section 5.01 Affirmative Covenants.** The Borrower covenants and agrees with CFC that after the date hereof and until payment In full of the Note and performance of all obligations of the Borrower hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Use of Proceeds.** The Borrower shall use the proceeds of the Note solely for the purposes identified in Schedule 1 hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**Financial and Business Information.** The Borrower shall deliver to CFC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;**Quarterly Statements -** within 60 days after the end of each quarterly fiscal period In each fiscal year of the Borrower (other than the last quarterly fiscal period of each such fiscal year), copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a consolidated balance sheet of the Borrower and Its Subsidiaries as at the end of such quarter, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;consolidated statements of income and cash flows of the Borrower and its Subsidiaries, for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with Accounting Requirements applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;**Annual Statements -**within 120 days after the end of each fiscal year of the Borrower, copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a consolidated balance sheet of the Borrower and its Subsidiaries, as at the end of such year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;consolidated statements of income and cash flows of the Borrower and its Subsidiaries, for such year,

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setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with Accounting Requirements, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with Accounting Requirements, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion In the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii) SEC and Other Reports -** promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Borrower or any Subsidiary to Its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement that shall have become effective (without exhibits except as expressly requested by such holder), and each final prospectus and all amendments thereto filed by the Borrower or any Subsidiary with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv) Notice of Default or Event of Default -** promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Borrower is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)&nbsp;&nbsp;&nbsp;&nbsp;ERISA Matters -** promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Borrower or an ERISA Affiliate proposes to take with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;with respect to any Plan (other than any Multiemployer Plan) that is subject to Title IV of ERISA, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as In effect on the date hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the taking by the PBGC of steps to institute, or the threatening by the PBGC of the Institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such Plan, or the receipt by the Borrower or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any event, transaction or condition that could result in the incurrence of any liability by the Borrower or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or In the Imposition of any Lien on any of the rights, properties or assets of the Borrower or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax

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provisions, if such liability or Lien. taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**&nbsp;&nbsp;&nbsp;&nbsp;**Supplemental Indentures -** promptly, and in any event within five Business Days after the execution and delivery thereof, a copy of any indenture supplemental to the Indenture that the Borrower from time to time may hereafter execute and deliver which amends the Indenture in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**&nbsp;&nbsp;&nbsp;&nbsp;**Notices from Governmental Authority -** promptly, and In any event within 30 days of receipt thereof, copies of any notice to the Borrower or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**&nbsp;&nbsp;&nbsp;&nbsp;**Requested Information -** with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Borrower or any of its Subsidiaries (including, but without limitation, actual copies of the Borrower's Form 10-Q and Form 10-K, if the Borrower flies such forms with the SEC) or relating to the ability of the Borrower to perform its obligations under the Loan Documents; and

C.&nbsp;&nbsp;&nbsp;&nbsp;**Officer's Certificate.** Each set of financial statements delivered to CFC shall be accompanied by a certificate of a Senior Financial Officer setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)**Covenant Compliance -** (a) a statement as to whether the Borrower was in compliance with the requirements of Sections 13.6 and 13.15 of the Indenture during the quarterly or annual period covered by the statements then being furnished,(b) the information (including detailed calculations) required in order to establish whether the Borrower was in compliance with the requirements of Section 13.14 of the Indenture and (c) to the extent the Borrower issued Additional Obligations under the Indenture during the period covered by the statements being furnished, any calculations that the Borrower provided to the Trustee to show compliance with the Indenture in connection with the issuance of the Additional Obligations (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount. ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)**Default or Event of Default -** a statement that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Borrower and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Borrower shall have taken or proposes to take with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;**Visitation.** The Borrower shall permit CFC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;**No Default -** if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Borrower, to visit the principal executive office of the Borrower, to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with the Borrower's officers, and, with the consent of the Borrower (which consent will not be unreasonably withheld) to visit the other offices and properties of the Borrower and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;**Default -** If a Default or Event of Default then exists, at the expense of the Borrower to visit and Inspect any of the offices or properties of the Borrower or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom. and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Borrower authorizes said accountants to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries), all at such times and as often as may be requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;**Compliance with Law.** The Borrower will, and will cause each of Its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, Including, without limitation, ERISA, the USA Patriot Act, Environmental Laws and the other laws and regulations, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain In effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;**Insurance.** The Borrower will cause each of its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;**Maintenance of Properties.** The Borrower will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business earned on in connection therewith may be properly conducted at an times, provided that this Section shall not prevent any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Borrower and such Subsidiary have concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;**Payment of Taxes.** The Borrower will cause each of Its Subsidiaries to file all Income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become delinquent, provided that any Subsidiary does not need to pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity thereof is contested by the Borrower or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges and levies In the aggregate would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;**Corporate Existence, Etc.** The Borrower will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged Into the Borrower or a wholly-owned Subsidiary) and all rights and franchises of its Subsidiaries unless, in the good faith judgment of the Borrower or such Subsidiary, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;**Books and Records.** The Borrower will cause each of its Subsidiaries to maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over such Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;**Rate Covenant.** The Borrower shall comply with Section 13.14 of the Indenture.

**Section 5.02 Negative Covenants.** The Borrower covenants and agrees with CFC that after the date hereof and until payment in full of the Note and performance of all obligations of the Borrower hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.**Transactions with Affiliates.** The Borrower will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (Including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Borrower or any Subsidiary), except pursuant to the reasonable requirements of the Borrower's or such Subsidiary's business and upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than would be obtainable in a comparable arm's-length transaction with a Person not an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.**Line of Business.** The Borrower will not engage In any business If, as a result, the general nature of the business in which the Borrower and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Borrower and its Subsidiaries, taken as whole, are engaged on the date of this Agreement.

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**ARTICLE VI**

**EVENTS OF DEFAULT**

**Section 6.01** The following shall be Events of Default under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**Indenture Obligations.** An "Event of Default" under the Indenture, shall have occurred and be continuing.

**ARTICLE VII**

**REMEDIES**

**Section 7.01 General Remedies**. If any of the Events of Default listed in Article VI hereof shall occur after the date of this Agreement and shall not have been remedied within the applicable grace periods specified therein (if any), then CFC may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; exercise rights of setoff or recoupment and apply any and all amounts held, or hereby held, by CFC or owed to the Borrower or for the credit or account of the Borrower against any and all of the Obligations of the Borrower now or hereafter existing hereunder or under the Note, including, but not limited to, patronage capital allocations and retirements, money due to the Borrower from Capital Certificates, and any membership or other fees that would otherwise be returned to the Borrower. The rights of CFC under this Section 7.01 are in addition to any other rights and remedies (Including other rights of setoff or recoupment) which CFC may have. The Borrower waives all rights of setoff, deduction, recoupment or counterclaim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; pursue all rights and remedies available to CFC that are contemplated by the Indenture in the manner, upon the conditions, and with the effect provided In the Indenture, including, but not limited to, a suit for specific performance, injunctive relief or damages; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp; pursue any other rights and remedies available to CFC at law or in equity.

**Section 7.02 Concurrent Remedies.** Nothing herein shall limit the right of CFC to pursue all rights and remedies available to a creditor following the occurrence of an Event of Default. Each right, power and remedy of CFC shall be cumulative and concurrent, and recourse to one or more rights or remedies shall not constitute a waiver of any other right, power or remedy.

**ARTICLE VIII**

**MISCELLANEOUS**

**Section 8.01 Notices.** All notices, requests and other communications provided for herein Including, without limitation, any modifications of, or waivers, requests or consents under, this Agreement shall be given or made in writing and delivered to the Intended recipient at the

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"Address for Notices" specified below; or, as to any party, at such other address as shall be designated by such party in a notice to each other party (including by e-mail address). All such communications shall be deemed to have been duly given (i) when personally delivered including, without limitation, by overnight mail or courier service, or (ii) in the case of notice by United states mail, certified or registered, postage prepaid, return receipt requested, upon receipt thereof in each case given or addressed as provided for herein. The Address for Notices of each of the respective parties is as follows:

National Rural utilities Cooperative Finance Corporation 20701 Cooperative Way

Dulles, Virginia 20166

Attention: Senior Vice President - Member Services Fax # 866-230-5635

The Borrower:

The address set forth in

<u>Schedule 1</u> hereto

**Section 8.02 Expenses.** The Borrower shall reimburse CFC for any reasonable costs and out-of-pocket expenses paid or Incurred by CFC (including, without limitation, reasonable fees and expenses of outside attorneys, paralegals and consultants) for all actions CFC takes, (a) to enforce the payment of any Obligation hereunder or under the Note, to effect collection of any Trust Estate, or in preparation for such enforcement or collection, (b) to institute, maintain, preserve, enforce and foreclose on CFC's security interest in or lien on any of the Trust Estate, whether through judicial proceedings or otherwise, (c) to restructure any of the Obligations hereunder or under the Note, (d) to review, approve or grant any consents or waivers hereunder, (e) to prepare, negotiate, execute, deliver, review, amend or modify this Agreement, and (f) to prepare, negotiate, execute, deliver, review, amend or modify any other agreements, documents and instruments deemed necessary or appropriate by CFC in connection with any of the foregoing.

The amount of all such expenses identified in this Section 8.02 shall be payable upon demand, and If not paid, shall accrue interest at the then prevailing CFC Variable Rate plus 200 basis points.

**Section 8.03 Late Payments.** If payment of any amount due hereunder is not received at CFC's office in Dulles, Virginia, or such other location as CFC may designate to the Borrower within five (5) Business Days after the due date thereof, the Borrower will pay to CFC, in addition to all other amounts due under the terms of the Loan Documents, any late-payment charge as may be fixed by CFC from time to time pursuant to its policies of general application as In effect from time to time.

**Section 8.04 Non-Business Day Payments**. If any payment to be made by the Borrower hereunder shall become due on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shaft be included in computing any interest in respect of such payment.

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**Section 8.05 Filing Fees.** To the extent permitted by law, the Borrower agrees to pay all expenses of CFC (including the reasonable fees and expenses of its counsel) in connection with the filing, registration, recordation or perfection of the Indenture, including, without limitation, all documentary stamps, recordation and transfer taxes and other costs and taxes incident to execution, filing, registration or recordation of any document or Instrument in connection herewith. The Borrower agrees to save harmless and indemnify CFC from and against any liability resulting from the failure to pay any required documentary stamps, recordation and transfer taxes, recording costs, or any other expenses Incurred by CFC In connection with this Agreement. The provisions of this subsection shall survive the execution and delivery of this Agreement and the payment of all other amounts due under the Loan Documents.

**Section 8.06 Waiver; Modification.** No failure on the part of CFC to exercise, and no delay in exercising, any right or power hereunder or under the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise by CFC of any right hereunder, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No modification or waiver of any provision of this Agreement, the Note or the other Loan Documents and no consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be in writing by the party granting such modification, waiver or consent, and then such modification, waiver or consent shall be effective only in the specific instance and for the purpose for which given.

**SECTION 8.07** GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;THE PERFORMANCE ANO CONSTRUCTION OF THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY, ANO CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEAL TH OF VIRGINIA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;THE BORROWER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES COURTS LOCATED IN VIRGINIA AND OF ANY STATE COURT SO LOCATED FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE BORROWER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTIONS THAT IT MAY NOW OR HEREAFTER HAVE TO THE ESTABLISHING OF THE VENUE OF ANY SUCH PROCEEDINGS BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;THE BORROWER AND CFC EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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**SECTION 8.08 INDEMNIFICATION.** THE BORROWER HEREBY INDEMNIFIES AND AGREES TO HOLD HARMLESS, ANO DEFEND CFC AND ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS ANO REPRESENTATIVES (EACH AN "INDEMNITEE" FOR, FROM. AND AGAINST ALL CLAIMS, DAMAGES, LOSSES, LIABILITIES, COSTS, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, COSTS AND EXPENSES OF LITIGATION ANO REASONABLE ATTORNEYS' FEES) ARISING FROM ANY CLAIM OR DEMAND IN RESPECT OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, THE TRUST ESTATE, OR THE TRANSACTIONS DESCRIBED IN THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ANO ARISING AT ANY TIME, WHETHER BEFORE OR AFTER PAYMENT ANO PERFORMANCE OF ALL OBLIGATIONS UNDER THIS AGREEMENT ANO THE OTHER LOAN DOCUMENTS IN FULL, EXCEPTING ANY SUCH MATTERS ARISING SOLELY FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF CFC OR ANY INDEMNITEE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN

SECTION 8.10 HEREOF, THE OBLIGATIONS IMPOSED UPON THE BORROWER BY THIS SECTION SHALL SURVIVE THE REPAYMENT OF THE NOTE, THE TERMINATION OF THIS AGREEMENT AND THE TERMINATION OR RELEASE OF THE LIEN OF THE INDENTURE.

**Section 8.09 Complete Agreement** This Agreement, together with the schedules to this Agreement, the Note and the other Loan Documents, and the other agreements and matters referred to herein or by their terms referring hereto, Is intended by the parties as a final expression of their agreement with respect to the matters referenced herein and therein, and is further intended to be a complete statement of the terms and conditions of their agreement. As it relates to the interpretation and enforcement of this Agreement, in the event of any conflict in the terms and provisions of this Agreement and any other Loan Documents, the terms and provisions of this Agreement shall control.

**Section 8.10 Survival;** Successors and Assigns. All covenants, agreements, representations and warranties of the Borrower which are contained in this Agreement shall survive the execution and delivery to CFC of the Loan Documents and the making of the Advances and shall continue in full force and effect until an of the obligations under the Loan Documents have been paid in full. All covenants, agreements, representations and warranties of the Borrower which are contained in this Agreement shall Inure to the benefit of the successors and assigns of CFC. The Borrower shall not have the right to assign its rights or obligations under this Agreement without the prior written consent of CFC.

**Section 8.11 Use of Terms.** The use of the singular herein shall also refer to the plural, and vice versa.

**Section 8.12 Headings.** The headings and sub-headings contained in this Agreement are intended to be used for convenience only and do not constitute part of this Agreement

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**Section 8.13 Severability.** If any term, provision or condition, or any part thereof, of this Agreement, the Note or the other Loan Documents shall for any reason be found or held invalid or unenforceable by any governmental agency or court of competent jurisdiction, such Invalidity or unenforceability shall not affect the remainder of such term, provision or condition nor any other term, provision or condition, and this Agreement, the Note and the other Loan Documents shall survive and be construed as if such invalid or unenforceable term, provision or condition had not been contained therein.

**Section 8.14 Binding Effect.** This Agreement shall become effective when It shall have been executed by both the Borrower and CFC and thereafter shall be binding upon and inure to the benefit of the Borrower and CFC and their respective successors and assigns as provided in Section 8.10.

**Section 8.15 Counterparts.** This Agreement may be executed In one or more counterparts, each of which will be deemed an original and all of which together will constitute one and the same document Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document

**Section 8.16 Schedule.** <u>Schedule 1</u> is an integral part of this Agreement.

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**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) |  |  |
|  | By: | /s/ Paul M. Sukut |
|  |  | Paul M. Sukut |
|  | Title: | Chief Executive Officer & General Manager |

---

---

| | |
|:---|:---|
| NATIONAL RURAL UTILITIES | NATIONAL RURAL UTILITIES |
| COOPERATIVE FINANCE CORPORATION | COOPERATIVE FINANCE CORPORATION |
| By: | /s/ [illegible signature] |

---

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**<u>SCHEDULE 1</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The purpose of the Advance Is to refinance short-term indebtedness of the Borrower and/or to finance the Borrower's capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The aggregate CFC Commitment is $75,000,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Closing Date referred to in Section 1.01 is April 29, 2016 or on such other Business Day thereafter as may be agreed to by the Borrower and CFC, so long as all the conditions set forth in Section 4.01 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Indenture referred to in Section 1.01 is that certain Amended and Restated Indenture dated as of May 5, 2015, by and between Borrower, as Grantor and U.S. Bank National Association, as Trustee, as It may have been or shall be in the future be supplemented, amended, consolidated, or restated from time to time, including by the Indenture Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Indenture Supplement referred to in Section 1.01 is that certain Thirty-Fifth Supplemental Indenture, dated as of April 29, 2016, between the Borrower, as Grantor, to U.S. Bank National Association, as Trustee, as it may have been or shall be In the future be supplemented, amended, consolidated, or restated from time to time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The Note executed pursuant hereto is as follows:

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| | |
|:---|:---|
| LOAN NUMBER | AMOUNT |
| ND045-A-9004 | $75000000.00 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.The Payment Date referred to in Section 1.01 is the last day of each March, June, September and December.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.The date of the balance sheet and statement of operations referred to in Section 2.01.G is December 31, 2015.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.The address for notices to the Borrower referred to in Section 8.01 is 1717 East Interstate Avenue, Bismarck, ND 58503, Attn: Senior Vice President and Chief Financial Officer, Fax: (701)557-5357.

## Exhibit 4.6

**Exhibit 4.6**

<br>**$200,000,000**<br>**TERM LOAN AGREEMENT**<br>**dated as of**<br>**November 27, 2024**<br>**between**<br>**BASIN ELECTRIC POWER COOPERATIVE,**<br>**as Borrower**<br>**and**<br>**COBANK, ACB,** <br>**as Lender**<br>

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| **<u>Page</u>** | **<u>Page</u>** |
| ARTICLE I DEFINITIONS | 1 |
| SECTION 1.01. Defined Terms | 1 |
| SECTION 1.02. Terms Generally | 11 |
| SECTION 1.03. Accounting Terms; GAAP | 11 |
| ARTICLE II THE CREDITS | 12 |
| SECTION 2.01. Term Loan Commitment | 12 |
| SECTION 2.02. Requests for Loans | 12 |
| SECTION 2.03. Funding of Loans | 13 |
| SECTION 2.04. Interest | 13 |
| SECTION 2.05. Repayment of Loans; Obligation Register. | 13 |
| SECTION 2.06. Fees | 14 |
| SECTION 2.07. Increased Costs | 15 |
| SECTION 2.08. Taxes | 15 |
| SECTION 2.09. Payments Generally | 18 |
| SECTION 2.10. Mitigation Obligations | 18 |
| SECTION 2.11. Security | 18 |
| ARTICLE III REPRESENTATIONS AND WARRANTIES | 18 |
| SECTION 3.01. Organization; Power and Authority | 18 |
| SECTION 3.02. Authorization, Etc | 19 |
| SECTION 3.03. Disclosure | 19 |
| SECTION 3.04. Organization and Ownership of Shares of Subsidiaries | 19 |
| SECTION 3.05. Financial Statements; Material Liabilities | 20 |
| SECTION 3.06. Compliance with Laws, Other Instruments, Etc | 20 |
| SECTION 3.07. Governmental Authorizations, Etc | 20 |
| SECTION 3.08. Litigation; Observance of Statutes and Orders | 21 |
| SECTION 3.09. Taxes | 21 |
| SECTION 3.10. Title to Property; Leases | 21 |
| SECTION 3.11. Licenses, Permits, Etc | 21 |
| SECTION 3.12. Compliance with Employee Benefit Plans | 22 |
| SECTION 3.13. Use of Proceeds; Margin Regulations | 22 |
| SECTION 3.14. Existing Indebtedness | 23 |
| SECTION 3.15. Foreign Assets Control Regulations, Etc | 23 |
| SECTION 3.16. Status under Certain Statutes | 24 |
| SECTION 3.17. Lien of the Indenture | 24 |
| SECTION 3.18. Filings | 25 |
| SECTION 3.19. Beneficial Ownership Certification | 25 |
| ARTICLE IV CONDITIONS | 26 |
| SECTION 4.01. Conditions to Effective Date | 26 |

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| | |
|:---|:---|
| SECTION 4.02. Conditions to Each Loan | 26 |
| ARTICLE V AFFIRMATIVE COVENANTS | 28 |
| SECTION 5.01. Financial Statements and Business Information | 28 |
| SECTION 5.02. Compliance Certificates | 30 |
| SECTION 5.03. Visitation | 31 |
| SECTION 5.04. Compliance with Laws | 31 |
| SECTION 5.05. Insurance | 32 |
| SECTION 5.06. Maintenance of Properties | 32 |
| SECTION 5.07. Payment of Taxes | 32 |
| SECTION 5.08. Corporate Existence, Etc | 32 |
| SECTION 5.09. Books and Records | 32 |
| SECTION 5.10. CoBank Equity and Security | 33 |
| ARTICLE VI NEGATIVE COVENANTS | 34 |
| SECTION 6.01. Transactions with Affiliates | 34 |
| SECTION 6.02. Line of Business | 34 |
| SECTION 6.03. Economic Sanctions, Etc | 34 |
| ARTICLE VII [RESERVED] | 34 |
| ARTICLE VIII [RESERVED] | 34 |
| ARTICLE IX MISCELLANEOUS | 35 |
| SECTION 9.01. Notices | 35 |
| SECTION 9.02. Waivers; Amendments | 37 |
| SECTION 9.03. Expenses; Indemnity; Damage Waiver | 38 |
| SECTION 9.04. Successors and Assigns | 39 |
| SECTION 9.05. Survival | 40 |
| SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution | 41 |
| SECTION 9.07. Severability | 41 |
| SECTION 9.08. Right of Setoff | 41 |
| SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process | 42 |
| SECTION 9.10. WAIVER OF JURY TRIAL | 43 |
| SECTION 9.11. Headings | 43 |
| SECTION 9.12. Confidential Information | 43 |
| SECTION 9.13. USA PATRIOT Act | 44 |
| SECTION 9.14. No Fiduciary Duty | 44 |

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(ii) ------

<u>SCHEDULES</u>:

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| | |
|:---|:---|
| Schedule 1 | Information Relating to the Lender |
| Schedule 2.05(a)(i) | Repayment of Principal of Initial Term Loan |
| Schedule 2.05(a)(ii) | Repayment of Principal of Incremental Term Loan |
| Schedule 3.03(a) | Borrower Materials |
| Schedule 3.04 | Subsidiaries of the Borrower and Ownership of Subsidiary Stock |
| Schedule 3.05 | Financial Statements |
| Schedule 3.07 | Regulatory Approval |
| Schedule 3.08 | Litigation and Proceedings |
| Schedule 3.12 | ERISA Disclosure |
| Schedule 3.14(a) | Existing Indebtedness |
| Schedule 3.14(b) | Existing Loan Agreements |
| Schedule 3.18 | Collateral Filings |

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<u>EXHIBITS</u>:

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| | |
|:---|:---|
| Exhibit A | Form of Supplement |
| Exhibit B | Form of Loan Request |
| Exhibit C | Form of Opinion of Special Counsel for the Borrower  |
| Exhibit D | Form of Opinion of General Counsel for the Borrower |
| Exhibit E | Form of Opinion of Special Energy Regulatory Counsel for the Borrower |

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(iii) ------

TERM LOAN AGREEMENT, dated as of November 27, 2024, among BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota, as Borrower (the "<u>Borrower</u>"), and COBANK, ACB, a federally chartered instrumentality of the United States, as Lender (the "<u>Lender</u>").

The parties hereto agree as follows:

<u>ARTICLE I</u>

<u>DEFINITIONS</u>

SECTION 1.01. <u>Defined Terms</u>. As used in this Agreement, the following terms have the meanings specified below:

"<u>Accounting Requirements</u>" is defined in the Indenture.

"<u>Affiliate</u>" means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. Unless the context otherwise clearly requires, any reference to an "<u>Affiliate</u>" is a reference to an Affiliate of the Borrower.

"<u>Agreement</u>" means this Term Loan Agreement.

"<u>Anti-Corruption Laws</u>" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"<u>Anti-Money Laundering Laws</u>" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Blocked Person</u>" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America.

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"<u>Borrower Materials</u>" has the meaning assigned to such term in <u>Section 3.03(a)</u>.

"<u>Business Day</u>" means a day (other than a Saturday or Sunday) on which banks generally are open in New York City, New York for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system.

"<u>Capital Lease</u>" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with Accounting Requirements.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that, notwithstanding anything herein to the contrary, (x) the Dodd Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or, issued in connection therewith or in implementation thereof, and (y) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.

"<u>CoBank</u>" means CoBank, ACB, a federally chartered instrumentality of the United States.

"<u>CoBank Equities</u>" means any of Borrower's stock, patronage refunds issued in the form of stock or otherwise constituting allocated units, patronage surplus (including any such surplus accrued by CoBank for the account of Borrower) and other equities in CoBank acquired in connection with, or because of the existence of, Borrower's patronage loan from CoBank (or its affiliate), and the proceeds of any of the foregoing.

"<u>Code</u>" means the Internal Revenue Code of 1986, and the rules and regulations promulgated thereunder from time to time.

"<u>Collateral Filings</u>" is defined in Section 4.02(g).

"<u>Commitment</u>" means the commitment of the Lender to make Loans hereunder in the aggregate principal amount of $200,000,000.

"<u>Communications</u>" shall have the meaning set forth in <u>Section 9.01(e)(ii)</u>.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

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"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "Controlled" and "Controlling" shall have meanings correlative to the foregoing.

"<u>Controlled Entity</u>" means any of the Subsidiaries of the Borrower and any of their or the Borrower's respective Controlled Affiliates.

"<u>Default</u>" means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

<u>"Default Rate</u>" means, with respect to any Loan, that rate of interest per annum that is 2.00% above the Term Loan Rate applicable to such Loan.

"<u>dollars</u>" or "<u>$</u>" refers to lawful money of the United States of America.

"<u>Effective Date</u>" means the date on which the conditions specified in <u>Section 4.01</u> are satisfied (or waived in accordance with <u>Section 9.02</u>).

"<u>Electronic Signature</u>" means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

"<u>Electronic System</u>" means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Lender and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

"<u>Environmental Laws</u>" means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, and the rules and regulations promulgated thereunder from time to time in effect.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that is treated as a single employer together with the Borrower under section 414 of the Code.

"<u>Event of Default</u>" is defined in the Indenture.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to the Lender or required to be withheld or deducted from a payment to the Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of the Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction

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imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) Taxes attributable to the Lender's failure to comply with <u>Section 2.08(g)</u> and (c) any U.S. federal withholding Taxes imposed under FATCA.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

"<u>Fee Letters</u>" means the Mandate Letter dated as of August 23, 2024, the Amended and Restated Fee Letter dated as of September 24, 2024, and the letter confirming the agreement regarding the forward setting of the fixed rate dated October 31, 2024, each between the Borrower and the Lender.

"<u>Financial Officer</u>" means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

"<u>Funding Date</u>" is defined in <u>Section 2.01</u>.

"<u>GAAP</u>" means generally accepted accounting principles as in effect from time to time in the United States of America.

"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).

"<u>Governmental Official</u>" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

"<u>Guaranty</u>" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person: (a) to purchase such indebtedness or obligation or any property constituting security therefor; (b) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement

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condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation; (c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or (d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof. In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

"<u>Hazardous Materials</u>" means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

"<u>Incremental Term Loan</u>" is defined in <u>Section 2.01</u>.

"<u>Indebtedness</u>" with respect to any Person means, at any time, without duplication, (a) its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock; (b) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); (c) (i) all liabilities appearing on its balance sheet in accordance with Accounting Requirements in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with Accounting Requirements in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases; (d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); (e) all its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); and (f) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (e) hereof. Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (f) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under Accounting Requirements.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section 9.03(b)</u>.

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"<u>Indenture</u>" means that certain Amended and Restated Indenture, dated as of May 5, 2015, by and between the Borrower and U.S. Bank National Association, as trustee, as amended and supplemented from time to time.

"<u>Initial</u> <u>Funding Date</u>" is defined in <u>Section 2.01</u>.

"<u>Initial Term Loan</u>" is defined in <u>Section 2.01</u>.

"<u>Interest Rate Adjustment Event</u>" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower defaults in the performance of Section 5.01(a) or (b) or Section 5.02 of this Agreement; <u>provided</u> that, such Interest Rate Adjustment Event shall terminate immediately upon the performance thereof by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made in writing by or on behalf of the Borrower or by any officer of the Borrower in the Indenture or this Agreement or in any writing furnished in connection with the transactions contemplated by this Agreement or the Supplement proves to have been false or incorrect in any material respect on the date as of which made; <u>provided</u> that, such Interest Rate Adjustment Event shall terminate upon the Borrower providing accurate information in writing to the Lender correcting such false or incorrect representation or warranty; <u>provided</u>, further that with respect to any such false or incorrect representation or warranty, the underlying event or condition of which could reasonably be expected to result in a Material Adverse Effect, such Interest Rate Adjustment Event shall only terminate (i) upon such false or incorrect representation or warranty no longer being false or incorrect or (ii) if the underlying event or condition could no longer reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower fails to pay any portion of the principal, interest, Make-Whole Amount or premium when due and payable under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Borrower, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, or (ii) the Borrower is in default in the performance of or compliance with any other term of any bond, debenture, note or other evidence of indebtedness for money borrowed by the Borrower, including any Outstanding Secured Obligation, whether such indebtedness now exists or shall hereafter be created, in an aggregate outstanding principal amount of at least $25,000,000, and as a consequence of such default such indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of payment, without such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled within a period of ten (10) days after such acceleration; provided that, such Interest Rate Adjustment Event shall terminate upon such indebtedness having been discharged or such declaration of acceleration having been rescinded or annulled; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;unless such lien has been released in accordance with the provisions of the Indenture, any lien granted to the Trustee pursuant to the Indenture is invalid, void, unenforceable or, with respect to any collateral purported to be encumbered thereby, unperfected or ceases to have the first priority subject only to Permitted Exceptions or Prior Liens each as defined in and as permitted under Section 13.6 of the Indenture, or the Borrower or any other obligor shall have commenced any proceeding or taken other action to render any such lien invalid, or to avoid any such lien or to render any such lien unenforceable or unperfected or to challenge the priority of such lien; provided that, such Interest Rate Adjustment Event shall terminate upon the reinstatement or perfection of such lien or the Borrower or such other obligor terminating such proceeding or such other action.

<u>"Interest Rate Adjustment Event Rate</u>" means, with respect to any Loan, that rate of interest per annum that is 2.00% above the Term Loan Rate applicable to such Loan.

"<u>Lien</u>" means with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

"<u>Loan Documents</u>" means this Agreement (including the schedules and exhibits hereto), the Indenture, the Supplemental Indenture and the Notes.

"<u>Loan Request</u>" means a request for Loans substantially in the form of <u>Exhibit B</u>.

"<u>Loan</u>" is defined in <u>Section 2.01</u>.

"<u>Make-Whole Amount</u>" is defined in the Supplement.

"<u>Material</u>" means material in relation to the business, operations, affairs, financial condition, assets or properties of the Borrower and its Subsidiaries taken as a whole.

"<u>Material Adverse Effect</u>" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its obligations under this Agreement, any other Loan Document or the Indenture or (c) the validity or enforceability of this Agreement, any other Loan Document or the Indenture.

"<u>Maturity Date</u>" means (a) November 15, 2034 with respect to the Initial Term Loan and (b) May 15, 2035 with respect to the Incremental Term Loan.

"<u>Multiemployer Plan</u>" means any Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

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"<u>Non-U.S. Plan</u>" means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Borrower or any Subsidiary primarily for the benefit of employees of the Borrower or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.

"<u>Note</u>" has the meaning set forth in <u>Section 2.05(d)</u>.

"<u>Obligations</u>" means all Loans, advances, debts or liabilities owing by the Borrower to the Lender, any Affiliate of the Lender, or any Indemnitee, of any kind or nature, present or future, arising under this Agreement, the Notes or any other Loan Document, whether or not evidenced by any note, guaranty or other instrument, whether or not for the payment of money, whether arising by reason of an extension of credit, loan, guaranty, indemnification, or in any other manner. The term includes, without limitation, all interest, charges, expenses, fees, reasonable and documented external attorneys' fees and disbursements, reasonable and documented external paralegals' fees (in each case whether or not allowed), and any other sum chargeable to the Borrower under this Agreement or any other Loan Document.

"<u>OFAC</u>" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"<u>OFAC Sanctions Program</u>" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"<u>Officer's Certificate</u>" means a certificate of a Senior Financial Officer or of any other officer of the Borrower whose responsibilities extend to the subject matter of such certificate.

"<u>Other Applicable U.S. Tax Law</u>" means all regulations and other guidance issued by the IRS and any decisions of any federal court including the Tax Court, the Court of Federal Claims, the federal District Courts, the federal Circuit Courts and the Supreme Court.

"<u>Other Connection Taxes</u>" means Taxes imposed as a result of a present or former connection between the Lender and the jurisdiction imposing such Tax (other than connections arising from the Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection

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of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes.

"<u>Outstanding Secured Obligation</u>" is defined in the Indenture.

"<u>Participant</u>" has the meaning set forth in <u>Section 9.04(c)</u>.

"<u>Participant Register</u>" has the meaning set forth in <u>Section 9.04(c)</u>.

"<u>Patriot Act</u>" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

"<u>Person</u>" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

"<u>Plan</u>" means an "employee benefit plan" (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Borrower or any ERISA Affiliate or with respect to which the Borrower or any ERISA Affiliate may have any liability.

"<u>Preferred Stock</u>" means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

"<u>property</u>" or "<u>properties</u>" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Responsible Officer</u>" means any Senior Financial Officer and any other officer of the Borrower with responsibility for the administration of the relevant portion of this Agreement.

"<u>SEC</u>" means the Securities and Exchange Commission of the United States of America.

"<u>Securities Act</u>" means the Securities Act of 1933, and the rules and regulations promulgated thereunder from time to time in effect.

"<u>Senior Financial Officer</u>" means the chief financial officer, principal accounting officer, treasurer or comptroller of the Borrower.

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"<u>State Sanctions List</u>" means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

"<u>Subsidiary</u>" means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary of the Borrower.

"<u>Supplement</u>" has the meaning set forth in <u>Section 2.11</u>.

"<u>Synthetic Lease</u>" means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under Accounting Requirements and (b) in respect of which the lessee retains or obtains ownership of the property so leased for United States federal income tax purposes, other than any such lease under which such Person is the lessor.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges in the nature of taxes imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term Loan Rate</u>" means the rate per annum equal to (a) 6.11% with respect to the Initial Term Loan and (b) 6.16% with respect to the Incremental Term Loan.

"<u>Transactions</u>" means the execution, delivery and performance by the Borrower of the Loan Documents, the borrowing of Loans and the use of the proceeds thereof.

"<u>Trust Estate</u>" is defined in the Indenture.

"<u>Trustee</u>" means U.S. Bank National Association, as Trustee under the Indenture, and its successors and assigns thereto.

"<u>UCC</u>" means, the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to the Trust Estate.

"<u>United States Person</u>" has the meaning set forth in Section 7701(a)(30) of the Code.

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"<u>USA PATRIOT Act</u>" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, and the rules and regulations promulgated thereunder from time to time in effect.

"<u>U.S. Economic Sanctions Laws</u>" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

SECTION 1.02. <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". The word "law" shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.03. <u>Accounting Terms; GAAP</u>. Except as otherwise expressly provided herein, all terms of an accounting nature shall be construed in accordance with GAAP and all financial data submitted pursuant hereto shall be prepared in accordance with such principles, as in effect from time to time; <u>provided</u> that, if the Borrower notifies the Lender that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Lender notifies the Borrower that the Lender requests an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such

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change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at "fair value", as defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

<u>ARTICLE II</u>

<u>THE CREDITS</u>

SECTION 2.01. <u>Term Loan Commitment</u>. Subject to the terms and conditions set forth herein, the Lender agrees (a) to make a single term loan (the "<u>Initial Term Loan</u>") on or prior to December 13, 2024 (the "<u>Initial Funding Date</u>") in the principal amount of $100,000,000 and (b) to make an additional single term loan (the "<u>Incremental Term Loan</u>"; together with the Initial Term Loan, collectively the "<u>Loans</u>" and individually each a "<u>Loan</u>") on or prior to May 15, 2025 (the "<u>Incremental Funding Date</u>"; together with the Initial Funding Date, the "<u>Funding</u> <u>Dates</u>" and individually each a "<u>Funding Date</u>") in the principal amount of $100,000,000. The Commitment will terminate concurrently with the making of the Incremental Term Loan. For the avoidance of doubt, the aggregate Loans made hereunder shall not exceed the amount of the Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, amounts repaid or prepaid in respect of Loans may not be reborrowed.

SECTION 2.02. <u>Requests for Loans</u>. To request a Loan, the Borrower shall notify the Lender of such request by telephone not later than 11 a.m. (Mountain time) one (1) Business Day before the date of the proposed Loan. Each such telephonic Loan Request shall be irrevocable and shall be confirmed promptly by hand delivery or electronic communication to the Lender of a written Loan Request signed by the Borrower. Each such telephonic and written Loan Request shall specify the following information in compliance with <u>Section 2.01</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the amount of the requested Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Funding Date of such Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of <u>Section 2.03</u>.

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SECTION 2.03. <u>Funding of Loans</u>. The Lender shall make each Loan on the Funding Date thereof by wire transfer of immediately available funds by 12:00 noon (Mountain time) to the account of the Borrower designated in the applicable Loan Request.

SECTION 2.04. <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Rate: Term Loan Rate; Interest Rate Adjustment Event Rate;</u> <u>Default Rate.</u> The Borrower agrees to pay interest on the unpaid principal balance of each Loan at the applicable Term Loan Rate or, upon the occurrence and during the continuation of an Interest Rate Adjustment Event, the applicable Interest Rate Adjustment Event Rate. To the extent permitted by law, interest shall be paid on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the applicable Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Calculation of Interest and Payment.</u> Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. Interest on each Loan shall be: (A) calculated semi-annually in arrears and on the Maturity Date of such Loan and (B) payable semi-annually in arrears on the 15<sup>th</sup> day of each May and November and on the Maturity Date of such Loan; <u>provided</u> that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, and (ii) in the event of any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceleration.</u> Upon the Loans becoming due and payable as the result of an Event of Default under the Indenture, whether automatically or by declaration, the outstanding principal amount of the Loans will forthwith mature and such entire unpaid principal amount, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount, if any, shall all be immediately due and payable.

<u>SECTION 2.05. Repayment of Loans; Obligation Register.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Repayment of Principal.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The principal of the Initial Term Loan shall be repaid in the amounts and on the dates set forth on Schedule 2.05(a)(i), with the remaining unpaid principal balance of the Initial Term Loan due and payable in full, together with accrued but unpaid interest and all other sums owing under this Agreement, on the applicable Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The principal of the Incremental Term Loan shall be repaid in the amounts and on the dates set forth on Schedule 2.05(a)(ii), with the remaining unpaid principal balance of the Incremental Term Loan due and payable in full, together with accrued but unpaid interest and all other sums owing under this Agreement, on the applicable Maturity Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Amounts repaid pursuant to this Agreement may not be re-borrowed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Voluntary Prepayment.</u> The Borrower may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Loans, in an amount not less than $1,000,000 of the aggregate principal amount of then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Borrower will give the Lender written notice of each optional prepayment under this <u>Section 2.05</u> not less than 15 Business Days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Loans to be prepaid on such date, and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Borrower shall deliver to the Lender a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. So long as no Event of Default exists and is continuing under the Indenture, all partial prepayments pursuant to this <u>Section 2.05(b)</u> shall be applied to such installments of principal of the Initial Term Loan and the Incremental Term Loan as the Borrower shall designate. If an Event of Default exists and is continuing under the Indenture, all partial prepayments pursuant to this <u>Section 2.05(b)</u> shall be applied on a pro rata basis to the Initial Term Loan and the Incremental Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved].</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notes.</u> The Borrower's obligation to repay each Loan and all other obligations under this Agreement shall be evidenced by a promissory note (such note, a "<u>Note</u>") in substantially the form set forth in the Supplement (with such changes therein, if any, as shall be approved by the Lender), duly executed, dated the Funding Date and payable to the Lender. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to <u>Section 9.04</u>) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). The Borrower shall keep, or cause the Trustee to keep, an Obligation Register in accordance with Section 3.7 of the Indenture for the registration of the Notes.

SECTION 2.06. <u>Fees</u>. The Borrower agrees to pay to the Lender fees payable in the amounts and at the times as set forth in the Fee Letters. All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Lender. Fees paid shall not be refundable under any circumstances.

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SECTION 2.07. <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Costs Generally</u>. If any Change in Law shall subject the Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (C) Connection Income Taxes on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto), and the result of any of the foregoing shall be to increase the cost to the Lender of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any Loan, or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or any other amount) then, upon request of the Lender, the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificates for Reimbursement</u>. A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in paragraph (a) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Delay in Requests</u>. Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver of the Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs incurred or reductions suffered more than 270 days prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of the Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof).

SECTION 2.08. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. For purposes of this <u>Section 2.08</u>, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and

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withholdings applicable to additional sums payable under this Section) the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Lender timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this <u>Section 2.08</u>, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Status of Lender</u>. (i) If the Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document, the Lender shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed original documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, the Lender, if reasonably requested by the Borrower, shall deliver such other original documentation prescribed by applicable law or reasonably requested by the Borrower as will enable the Borrower to determine whether or not the Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such original documentation (other than such documentation set forth in <u>Section 2.08(f)(ii)</u> below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject the Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing, the Lender shall deliver to the Borrower on or prior to the Initial Funding Date (and from time to time thereafter upon the reasonable request of the Borrower), executed originals of IRS Form W-9 (or successor form) certifying that the Lender is exempt from U.S. federal backup withholding tax.

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If a payment made to the Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code or Other Applicable U.S. Tax Law, as applicable), the Lender shall deliver to the Borrower at the time or times prescribed by law and at such time or times reasonably requested by the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code or Other Applicable U.S. Tax Law) and such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with its obligations under FATCA and to determine that the Lender has complied with the Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this paragraph, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

The Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Treatment of Certain Refunds.</u> If the Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified pursuant to this <u>Section 2.08</u> (including by the payment of additional amounts pursuant to this <u>Section 2.08</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section 2.08</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this <u>Section 2.08</u> shall survive any assignment of rights by the Lender, the termination of the Commitment and the repayment, satisfaction or discharge of all obligations under any Loan Document.

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SECTION 2.09. <u>Payments Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees, or of amounts payable under <u>Section</u> <u>2.07</u> or <u>2.08</u>, or otherwise) prior to 3:00 p.m. (Mountain time), on the date when due, in immediately available funds, without set off or counterclaim, in accordance with the wire transfer instructions of the Lender set forth in Schedule 1. Any amounts received after such time on any date may, in the discretion of the Lender, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Lender in such manner and place as shall from time to time be specified by the Lender, except as otherwise expressly provided in the relevant Loan Document. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder or under any other Loan Document shall be made in dollars.

SECTION 2.10. <u>Mitigation Obligations</u>. If the Lender requests compensation under <u>Section 2.07</u>, or requires the Borrower to pay any Indemnified Taxes then the Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of the Lender, such designation or assignment (a) would eliminate or reduce amounts payable pursuant to <u>Section 2.07</u> or <u>2.08</u>, as the case may be, in the future, and (b) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by the Lender in connection with any such designation or assignment.

SECTION 2.11. <u>Security</u>. The Obligations shall be secured by the Indenture, as supplemented by the Forty-First Supplemental Indenture, to be dated on or around November 1, 2024 (such Forty-First Supplemental Indenture being referred to as the "<u>Supplement</u>"*),* which will be substantially in the form attached hereto as Exhibit A, with such changes therein, if any, as shall be approved by the Lender.

<u>ARTICLE III</u>

<u>REPRESENTATIONS AND WARRANTIES</u>

The Borrower represents and warrants to the Lender that:

SECTION 3.01. <u>Organization; Power and Authority</u>. The Borrower is an electric cooperative corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually

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or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Borrower has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver the Loan Documents and to perform the provisions hereof and thereof.

SECTION 3.02. <u>Authorization, Etc</u>. The Loan Documents have been duly authorized by all necessary corporate action on the part of the Borrower, and this Agreement, the Indenture and the Supplement constitute, and upon execution, authentication (in the case of the Notes) and delivery thereof, each Note and such other Loan Document will constitute, a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

SECTION 3.03. <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement (including the schedules and exhibits hereto), the financial statements listed in Schedule 3.05 and the documents, certificates or other writings delivered to the Lender by or on behalf of the Borrower in connection with the transactions contemplated hereby and identified on Schedule 3.03(a) (this Agreement and such documents, certificates or other writings and such financial statements delivered to the Lender being referred to, collectively, as the "<u>Borrower Materials</u>"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made; provided, that with respect to any future projections or forward-looking statements made by the Borrower and contained in the Borrower Materials, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of the preparation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as disclosed in the Borrower Materials, since December 31, 2023, there has been no change in the financial condition, operations, business, or properties of the Borrower or any Subsidiary except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

SECTION 3.04. <u>Organization and Ownership of Shares of Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Schedule 3.04 is (except as noted therein) a complete and correct list of the Borrower's Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Borrower and each other Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 3.04 as being owned by the Borrower and its Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by

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the Borrower or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 3.04).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Subsidiary is a corporation or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.

SECTION 3.05. <u>Financial Statements; Material Liabilities</u>. The Borrower has delivered to the Lender copies of the consolidated financial statements of the Borrower and its Subsidiaries listed on Schedule 3.05. All of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Borrower and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Borrower and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Borrower Materials.

SECTION 3.06. <u>Compliance with Laws, Other Instruments, Etc</u>. The execution, delivery and performance by the Borrower of the Loan Documents will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien, other than the Lien created under the Indenture, in respect of any property of the Borrower or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other Material agreement or instrument to which the Borrower or any Subsidiary is bound or by which the Borrower or any Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Borrower or any Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Borrower or any Subsidiary.

SECTION 3.07. <u>Governmental Authorizations, Etc</u>. Except for the Collateral Filings contemplated by Section 3.11 and the regulatory approval listed in Schedule 3.07, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Borrower of the Loan Documents.

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SECTION 3.08. <u>Litigation; Observance of Statutes and Orders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth on Schedule 3.08, there are no actions, suits, investigations or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any Subsidiary or any property of the Borrower or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor any Subsidiary is (i) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (ii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 3.16), which violation would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

SECTION 3.09. <u>Taxes</u>. The Borrower and its Subsidiaries have or caused to be filed all income tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments payable by them, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Borrower or a Subsidiary, as the case may be, has established adequate reserves in accordance with Accounting Requirements. The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate in all material respects. The U.S. federal income tax liabilities of the Borrower and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2020.

SECTION 3.10. <u>Title to Property; Leases</u>. The Borrower and its Subsidiaries have good and sufficient title to their respective Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 3.05 or purported to have been acquired by the Borrower or any Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens (other than the Lien created under the Indenture) prohibited by this Agreement or the Indenture, except for those defects in title and Liens that, individually or in the aggregate, would not have a Material Adverse Effect. All Material leases are valid and subsisting and are in full force and effect in all material respects.

SECTION 3.11. <u>Licenses, Permits, Etc</u>. The Borrower and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that are Material, without known

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conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have a Material Adverse Effect.

SECTION 3.12. <u>Compliance with Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and each ERISA Affiliate have operated and administered each Plan (other than any Multiemployer Plan) in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Borrower nor any ERISA Affiliate has incurred any liability, other than such liabilities as would not be individually or in the aggregate Material, pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to "employee benefit plans" (as defined in section 3(3) of ERISA); and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Borrower or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Borrower or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) or section 401(a)(29) of the Code or to such penalty or excise tax provisions or to section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan's most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan's most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $26,000,000 in the case of any single Plan and by more than $26,000,000 in the aggregate for all Plans. The term "<u>benefit liabilities</u>" has the meaning specified in section 4001 of ERISA and the terms "<u>current value</u>" and "<u>present value</u>" have the meanings specified in section 3 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The expected postretirement benefit obligation (determined as of the last day of the Borrower's most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Borrower and its Subsidiaries is set forth in Schedule 3.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and its Subsidiaries do not have any Non-U.S. Plans.

SECTION 3.13. <u>Use of Proceeds; Margin Regulations</u>. The Borrower will apply the proceeds of the sale of the Loans to refinance existing Indebtedness, fund capital expenditures, and for general corporate purposes in compliance with all laws referenced in Section 3.15. No

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part of the proceeds from the sale of the Loans hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Borrower in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 1% of the value of the consolidated assets of the Borrower and its Subsidiaries and the Borrower does not have any present intention that margin stock will constitute more than 1% of the value of such assets. As used in this Section, the terms "<u>margin stock</u>" and "<u>purpose of</u> <u>buying or carrying</u>" shall have the meanings assigned to them in said Regulation U.

SECTION 3.14. <u>Existing Indebtedness</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;There has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Borrower or its Subsidiaries from the Indebtedness set forth in the Borrower's unaudited consolidated balance sheets for the quarter ended June 30, 2024, other than as set forth on Schedule 3.14(a). Such unaudited balance sheets as amended and supplemented by Schedule 3.14(a) set forth a complete and correct list of all outstanding Indebtedness that, individually, exceeds $1,000,000 in principal amount of the Borrower and its Subsidiaries as of June 30, 2024 (including descriptions of the principal amounts outstanding, any collateral therefor and any Guaranty thereof). Neither the Borrower nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Borrower or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Borrower or any Subsidiary the outstanding principal amount of which exceeds $25,000,000 that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Borrower or such Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness in respect of the Loans, except as disclosed in Schedule 3.14(b).

SECTION 3.15. <u>Foreign Assets Control Regulations, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic

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Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Borrower's knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No part of the proceeds from the Loans hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Borrower or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person in violation of applicable law, (B) for any purpose that would cause the Lender to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;will be used, directly or indirectly, in violation of, or cause the Lender to be in violation of, any applicable Anti-Money Laundering Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause the Lender to be in violation of, any applicable Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower has taken reasonable measures appropriate to the circumstances (in any event as required by applicable law) to ensure that the Borrower and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.

SECTION 3.16. <u>Status under Certain Statutes</u>. Neither the Borrower nor any Subsidiary is subject to regulation (a) as an "investment company" within the meaning of the Investment Company Act of 1940, as amended, (b) as a "holding company" under the Public Utility Holding Company Act of 2005, or (c) the ICC Termination Act of 1995, as amended. The Borrower is a "public utility" and a "transmitting utility" under the Federal Power Act, as amended, and is not in violation of or in default under any regulations and orders of the Federal Energy Regulatory Commission applicable to the Borrower or its assets the effect of which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

SECTION 3.17. <u>Lien of the Indenture</u>. The Indenture (excluding the Supplement) constitutes, and when the Supplement is executed and delivered by the Borrower and the Trustee and filed and recorded, the Indenture will constitute, a direct and valid lien upon all of the properties and assets of the Borrower specifically or generally described or referred to in the Indenture as being subject to the lien thereof, subject only to the exceptions referred to or permitted in the Indenture, and will create a similar lien upon all properties and assets acquired by the Borrower after the date hereof which are required to be subjected to the lien of the

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Indenture, when acquired by the Borrower, subject only to the exceptions referred to in the Indenture and free from all other prior liens, charges and encumbrances and subject, further, as to real property, to the recordation of a supplement to the Indenture describing such after-acquired property; the descriptions of all such properties and assets contained in the granting clauses of the Indenture are correct and adequate for the purposes of the Indenture; the Indenture (excluding the Supplement) has been duly recorded as a mortgage and deed of trust of real estate, and any required filings (other than with respect to filing the Supplement) with respect to personal property and fixtures subject to the lien of the Indenture have been duly made in each place in which such recording or filing is required to protect, preserve and perfect the lien of the Indenture; all taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Indenture, the filing of financing statements related thereto and similar documents and the Loans (other than with respect to filing the Supplement) have been paid; and the Supplement will be duly recorded or filed on or prior to the Initial Funding Date in the real and personal property records in each place in which the Indenture (excluding the Supplement) has been recorded or filed and in all other places required to protect, preserve and perfect the lien of the Indenture, and all taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Supplement will be paid.

As of the date hereof, the Borrower has no "Excludable Property" as defined in the Indenture.

SECTION 3.18. <u>Filings</u>. No action, including any filings, registration or notice, is necessary or advisable in North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa and Nebraska or any other jurisdictions to ensure the legality, validity, enforceability, priority, perfection or admissibility into evidence of the Loan Documents except for the Collateral Filings set forth in Schedule 3.18, which have been filed on or prior to the Initial Funding Date. No action, including any filing, registration or notice, is necessary or advisable in North Dakota, South Dakota, Wyoming, Colorado, Montana, Iowa or Nebraska or any other jurisdiction to establish or protect for the benefit of the Trustee and the Lender, the security interest and Liens purported to be created under the Indenture and the other Loan Documents, except in each case for the Collateral Filings (and the filing of continuation statements with respect to any Collateral Filing at the time and in the manner provided under applicable law).

SECTION 3.19. <u>Beneficial Ownership Certification</u>. As of the Effective Date, the information included in any Beneficial Ownership Certification is true, correct and complete in all respects.

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ARTICLE IV

<u>CONDITIONS</u>

SECTION 4.01. <u>Conditions to Effective Date</u>. The obligations of the Lender to make Loans hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with <u>Section 9.02</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Lender (or its counsel) shall have received from the Borrower either (i) a counterpart of this Agreement signed by the Borrower or (ii) written evidence satisfactory to the Lender (which may include electronic transmission of a signed signature page of this Agreement) that the Borrower has signed a counterpart of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall have delivered to any applicable Lender a Beneficial Ownership Certification in relation to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;CoBank shall have received evidence that the Borrower has made a minimum equity investment of $1,000 in CoBank; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the Lender shall have received all documentation and other information required by Governmental Authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act.

SECTION 4.02. <u>Conditions to Each Loan</u>. The obligation of the Lender to make a Loan on each applicable Funding Date is subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties.</u> The representations and warranties of the Borrower in this Agreement shall be correct when made and on the Funding Date (other than those representations and warranties that specifically refer to an earlier date, in which case such representations and warranties shall have been correct as of such earlier date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance; No Default.</u> The Borrower shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or on the Funding Date. Before and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by <u>Section 3.13</u>), no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance Certificates</u>. The Borrower shall have performed and complied with all agreements and conditions contained in the Indenture which are

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required to be performed or complied with by the Borrower for the incurrence of the Loans. In addition, the Borrower shall have delivered the following certificates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Officer's Certificate.</u> The Borrower shall have delivered to the Lender (A) an Officer's Certificate certifying that the conditions specified in <u>Sections 4.02(a), (b) and (f)</u> of this Agreement have been fulfilled, and (B) copies of all certificates and opinions required to be delivered to the Trustee under the Indenture in connection with the incurrence of the Loan under the Indenture, in each case, dated the Funding Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Secretary's Certificate.</u> The Borrower shall have delivered to the Lender a certificate of its Secretary or Assistant Secretary, dated the Funding Date, certifying as to the articles of incorporation, bylaws and resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of this Agreement, the Supplemental Indenture and the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Opinions of Counsel.</u> The Lender shall have received opinions in form and substance satisfactory to the Lender, dated the Funding Date (i) from (A) Orrick, Herrington & Sutcliffe LLP, counsel for the Borrower, (B) Mark D. Foss, Esq., General Counsel to the Borrower, and (C) special energy regulatory counsel to the Borrower covering the matters set forth in Exhibits C, D and E, respectively, and covering such other matters incident to the transactions contemplated hereby as the Lender or its counsel may reasonably request (and the Borrower hereby instructs its counsel to deliver such opinions to the Lender) and (ii) from Greenberg Traurig, LLP, the Lenders' special counsel in connection with such transactions, covering such matters incident to such transactions as the Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Special Counsel Fees.</u> Without limiting the provisions of Section 9.03, the Borrower shall have paid on or before the Funding Date the fees, charges and disbursements of the Lender's special counsel referred to in <u>Section</u> <u>4.02(d)(ii)</u> to the extent reflected in a statement of such counsel rendered to the Borrower at least one Business Day prior to the Funding Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Corporate Structure.</u> The Borrower shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity at any time following the date of the most recent financial statements referred to in Schedule 3.05.

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Indenture and which can be perfected by filing the Indenture, the Supplement or a UCC financing statement under the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Note.</u> The Lender shall have received a Note with respect to such Loan, signed on behalf of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Lender Fees and Expenses.</u> The Borrower shall have paid all fees and reimbursed all expenses as the Borrower shall have agreed to pay to the Lender on or prior to the Funding Date in connection with the negotiation, preparation, execution and delivery of this Agreement and the other Loan Documents and the extensions of credit hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Proceedings and Documents.</u> All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to the Lender and its special counsel, and the Lender and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as the Lender or such special counsel may reasonably request. The Lender shall have received a copy of the Indenture (together with all amendments and supplements thereto), certified by the Borrower as of the Funding Date.

Each such Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

<u>ARTICLE V</u>

<u>AFFIRMATIVE COVENANTS</u>

Until the Commitment has expired or been terminated and the principal of and interest on each Loan and all amounts payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lender that:

SECTION 5.01. <u>Financial Statements and Business Information</u>. The Borrower will furnish to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Quarterly Statements</u> — within 60 days after the end of each quarterly fiscal period in each fiscal year of the Borrower (other than the last quarterly fiscal period of each such fiscal year), copies of, (i) a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such quarter, and (ii) consolidated statements of income and cash flows of the Borrower and its Subsidiaries, for the portion of the fiscal year ending with such quarter, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Statements</u> — within 120 days after the end of each fiscal year of the Borrower, copies of, (i) a consolidated balance sheet of the Borrower and its Subsidiaries, as at the end of such year, and (ii) consolidated statements of income and cash flows of the Borrower and its Subsidiaries, for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>SEC and Other Reports</u> — promptly upon their becoming available, to the extent not otherwise publicly available and not otherwise required to be furnished to the Lender pursuant to this Agreement, one copy of (i) each financial statement, report, notice or, proxy statement sent by the Borrower or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement that shall have become effective (without exhibits except as expressly requested by the Lender), and each final prospectus and all amendments thereto filed by the Borrower or any Subsidiary with the SEC, if the Borrower or any Subsidiary files any such documents with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Default or Event of Default</u> — promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Borrower is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Benefit Matters</u> — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Borrower or an ERISA Affiliate proposes to take with respect thereto: (i) with respect to any Plan (other than any Multiemployer Plan) that is subject to Title IV of ERISA, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; (ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such Plan, or the receipt by the Borrower or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or (iii) any event, transaction or condition that could result in the incurrence of any liability by the Borrower or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or

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excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Borrower or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Supplemental Indentures</u> — promptly, and in any event within five Business Days after the execution and delivery thereof, a copy of any indenture supplemental to the Indenture that the Borrower from time to time may hereafter execute and deliver which amends the Indenture in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices from Governmental Authority</u> — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Borrower or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Requested Information</u> — with reasonable promptness following any request therefor, (i) such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Borrower or any of its Subsidiaries (including actual copies of the Borrower's Form 10-Q and Form 10-K, if the Borrower files such forms with the SEC) or relating to the ability of the Borrower to perform its obligations under any Loan Document, as the Lender may reasonably request, and (ii) such other information with documentation required by Governmental Authorities under applicable "know your customer" and anti-money laundering rules and regulations (including the Patriot Act and the Beneficial Ownership Regulation), as from time to time may be reasonably requested by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Interest Rate Adjustment Event</u> — promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Interest Rate Adjustment Event, a written notice specifying the nature and period of existence thereof and what action the Borrower is taking or proposes to take with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Beneficial Ownership Certification</u> — any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in part (c) or (d) of such certification.

SECTION 5.02. <u>Compliance Certificates</u>. Each set of financial statements delivered to the Lender pursuant to Section 5.01(a) or Section 5.01(b) shall be accompanied by a certificate of a Senior Financial Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Covenant Compliance</u> — setting forth (i) a statement as to whether the Borrower was in compliance with the requirements of Sections 13.6 and 13.15 of the Indenture during the quarterly or annual period covered by the statements then being furnished, (ii) solely in connection with the delivery of financial statements pursuant to

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Section 5.01(b), the information (including detailed calculations) required in order to establish whether the Borrower was in compliance with the requirements of Section 13.14 of the Indenture and (iii) to the extent the Borrower issued Additional Obligations under the Indenture during the period covered by the statements being furnished, any calculations that the Borrower provided to the Trustee to show compliance with the Indenture in connection with the issuance of the Additional Obligations (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Default or Event of Default</u> — certifying that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Borrower and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Borrower shall have taken or proposes to take with respect thereto.

SECTION 5.03. <u>Visitation</u>. The Borrower shall permit the representatives of the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Default</u> — if no Default or Event of Default then exists, at the expense of the Lender and upon reasonable prior notice to the Borrower, to visit the principal executive office of the Borrower, to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with the Borrower's officers, and (with the consent of the Borrower, which consent will not be unreasonably withheld) to visit the other offices and properties of the Borrower and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Default</u> — if a Default or Event of Default then exists, at the expense of the Borrower to visit and inspect any of the offices or properties of the Borrower or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Borrower authorizes said accountants to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries), all at such times and as often as may be requested.

SECTION 5.04. <u>Compliance with Laws</u>. Without limiting Section 6.03, the Borrower will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject (including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 3.15) and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the

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conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

SECTION 5.05. <u>Insurance</u>. The Borrower will cause each of its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

SECTION 5.06. <u>Maintenance of Properties</u>. The Borrower will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section 5.06. shall not prevent any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Borrower and such Subsidiary have concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

SECTION 5.07. <u>Payment of Taxes</u>. The Borrower will cause each of its Subsidiaries to file all income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become delinquent, provided that any Subsidiary does not need to pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity thereof is contested by the Borrower or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges and levies in the aggregate would not reasonably be expected to have a Material Adverse Effect.

SECTION 5.08. <u>Corporate Existence, Etc</u>. The Borrower will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Borrower or a wholly-owned Subsidiary) and all rights and franchises of its Subsidiaries unless, in the good faith judgment of the Borrower or such Subsidiary, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

SECTION 5.09. <u>Books and Records</u>. The Borrower will cause each of its Subsidiaries to maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over such Subsidiary.

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SECTION 5.10. <u>CoBank Equity and Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as CoBank (or its affiliate) is a Lender hereunder, the Borrower shall (i) maintain its status as an entity eligible to borrow from CoBank (or its affiliate) and (ii) acquire equity in CoBank in such amounts and at such times as CoBank may require in accordance with CoBank's Bylaws and Capital Plan (as each may be amended from time to time), except that the maximum amount of equity that the Borrower may be required to purchase in CoBank in connection with the Loans made by CoBank (or its affiliate) may not exceed the maximum amount permitted by CoBank's Bylaws and Capital Plan at the time this Agreement is entered into. The Borrower acknowledges receipt of a copy of (x) CoBank's most recent annual report, and if more recent, CoBank's latest quarterly report, (y) CoBank's Notice to Prospective Stockholders and (z) CoBank's Bylaws and Capital Plan, which describe the nature of all of the CoBank Equities as well as capitalization requirements, and agrees to be bound by the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each party hereto acknowledges that CoBank's Bylaws and Capital Plan (as each may be amended from time to time) shall govern (i) the rights and obligations of the parties with respect to the CoBank Equities and any patronage refunds or other distributions made on account thereof or on account of the Borrower's patronage with CoBank, (ii) the Borrower's eligibility for patronage distributions from CoBank (in the form of CoBank Equities and cash) and (iii) patronage distributions, if any, in the event of a sale of a participation interest. CoBank reserves the right to assign or sell participations in all or any part of its (or its affiliate's) Commitment or outstanding Loans hereunder on a non-patronage basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein or in any other Loan Document, each party hereto acknowledges that: (i) CoBank has a statutory first Lien pursuant to the Farm Credit Act of 1971 (as amended from time to time) on all CoBank Equities that the Borrower may now own or hereafter acquire, which statutory Lien shall be for CoBank's (or its affiliate's) sole and exclusive benefit; (ii) during the existence of any Event of Default, CoBank may at its sole discretion, but shall not be required to, foreclose on its statutory first Lien on the CoBank Equities and/or set off the value thereof or of any cash patronage against the Obligations; (iii) during the existence of any Event of Default, CoBank may at its sole discretion, but shall not be required to, without notice except as required by applicable law, retire and cancel all or part of the CoBank Equities owned by or allocated to the Borrower in accordance with the Farm Credit Act of 1971 (as amended from time to time) and any regulations promulgated pursuant thereto in total or partial liquidation of the Obligations for such value as may be required pursuant applicable law and CoBank's Bylaws and Capital Plan (as each may be amended from time to time); (iv) the CoBank Equities shall not constitute security for the Obligations due to any other party; (v) to the extent that any of the Loan Documents create a Lien on the CoBank Equities, such Lien shall be for CoBank's (or its affiliate's) sole and exclusive benefit and shall not be subject to pro rata sharing hereunder; (vi) any setoff effectuated pursuant to the preceding clauses (ii) or (iii) may be undertaken whether or not the Obligations are currently due and payable; and (vii) CoBank shall have no obligation to retire the CoBank Equities upon any Event of Default, Default or any other default by the Borrower, or at any other time, either for application to the Obligations or otherwise. The Borrower acknowledges that any corresponding

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tax liability associated with CoBank's application of the value of the CoBank Equities to any portion of the Obligations is the sole responsibility of the Borrower.

<u>ARTICLE VI</u>

<u>NEGATIVE COVENANTS</u>

Until the Commitment has expired or terminated and the principal of and interest on each Loan and all amounts payable hereunder have been paid in full, the Borrower covenants and agrees with the Lender that:

SECTION 6.01. <u>Transactions with Affiliates</u>. The Borrower will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Borrower or any Subsidiary), except pursuant to the reasonable requirements of the Borrower's or such Subsidiary's business and upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than would be obtainable in a comparable arm's-length transaction with a Person not an Affiliate.

SECTION 6.02. <u>Line of Business</u>. The Borrower will not engage in any business if, as a result, the general nature of the business in which the Borrower and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Borrower and its Subsidiaries, taken as whole, are engaged on the date of this Agreement.

SECTION 6.03. <u>Economic Sanctions, Etc</u>. The Borrower will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of any Loan) with any Person if such investment, dealing or transaction (i) would cause the Lender or any affiliate of the Lender to be in violation of, or subject to sanctions under, any law or regulation applicable to the Lender, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

<u>ARTICLE VII</u>

<u>[RESERVED]</u>

ARTICLE VIII

[<u>RESERVED</u>]

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<u>ARTICLE IX</u>

<u>MISCELLANEOUS</u>

SECTION 9.01. <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by electronic communication, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if to the Borrower, to it at 1717 East Interstate Avenue, Bismarck, North Dakota 58503, Attention of Christopher Johnson, Senior Vice President and Chief Financial Officer (Telephone No. (701) 557-5330, Email Address: [\*\*\*]), with a copy to Sarah Scherm, Vice President and Treasurer, (Telephone No. (701) 557-5331, Email Address: [\*\*\*]);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;if to the Lender, to the Lender at the address specified for such communications in Schedule 1, or at such other address as the Lender shall have specified to the Borrower in writing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;if to the Trustee, to the Trustee at its address set forth in Section 1.3 of the Indenture or at such other address as the Trustee shall have specified to the Borrower and each other party hereto in writing.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through Electronic Systems, to the extent provided in paragraph (c) below, shall be effective as provided in said paragraph (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Change of Address, etc</u>. Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Communications</u>. Notices and other communications to the Lender hereunder may be delivered or furnished by using Electronic Systems pursuant to procedures approved by the Lender; <u>provided</u> that the foregoing does not apply to notices pursuant to <u>Article</u> <u>II</u>. The Borrower and, except as stated in this paragraph, the Lender agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

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Unless the Lender prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; <u>provided</u> that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Delivery of Information</u>. Financial statements, opinions of independent certified public accountants, other information and Compliance Certificates that are required to be delivered by the Borrower pursuant to <u>Sections 5.01 and 5.02</u> shall be deemed to have been delivered if (i) the Borrower delivers such documents to the Lender by e-mail at the e-mail address designated by the Lender from time to time and communicated to the Lender in accordance with this <u>Section 9.01</u>, (ii) such documents are timely posted by or on behalf of the Borrower on a website to which the Lender is entitled to delivery hereunder has free access, or (iii) the Borrower or any Subsidiary shall have filed reports containing the information required by <u>Section 5.01(a), 5.01(b) or 5.01(c)</u> with the SEC as if it were subject to Section 13 or Section 15(d) of the Exchange Act (regardless of whether it was actually then subject to Section 13 or 15(d) of the Exchange Act), <u>provided</u> that the Borrower shall continue to deliver the Compliance Certificate(s) satisfying the requirements of <u>Section 5.02</u> in the manner permitted by this Agreement; <u>provided however</u>, that in no case shall access to such financial statements, Compliance Certificates and other documents be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with <u>Section 9.12</u>); <u>provided, further</u>, that the Borrower shall have given the Lender prior written notice, which may be by e-mail, by notification from Intralinks® or similar website or in accordance with <u>Section</u> <u>9.01</u>, (x) in the case of clause (ii), of such posting in connection with each delivery, and (y) in the case of clause (iii), that the Borrower or such Subsidiary has commenced filing reports with the SEC and that they will be available via the SEC's EDGAR portal; <u>provided further</u>, that upon request of the Lender to receive paper copies of such documents or to receive them by e-mail, the Borrower will promptly e-mail them or deliver such paper copies, as the case may be, to the Lender. Delivery of any such documents to the Lender pursuant to this <u>Section 9.01(d)</u> shall be deemed effective under this Agreement notwithstanding any contrary delivery instructions set forth herein, unless the Lender notifies the Borrower otherwise prior to the Borrower's delivery of such documents under this <u>Section 9.01(d).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Systems</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower agrees that the Lender may, but shall not be obligated to, make the Communications (as defined below) available to any Participant by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a substantially similar Electronic System.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any Electronic System used by the Lender is provided "as is" and "as available." Neither the Lender nor any of its Related Parties warrants the adequacy of such Electronic System and expressly disclaims liability for errors or omissions in the Communications not resulting from its gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and non-appealable judgment. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by the Lender and any of its Related Parties in connection with the Communications or any Electronic System. In no event shall the Lender or any of its Related Parties have any liability to the Borrower or any other Person for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's or the Lender's transmission of Communications through an Electronic System. "<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Lender by means of electronic communications pursuant to this Section, including through an Electronic System.

SECTION 9.02. <u>Waivers; Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No failure or delay by the Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Lender hereunder are cumulative and are not exclusive of any rights or remedies that the Lender would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Event of Default, regardless of whether the Lender may have had notice or knowledge of such Event of Default at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No provision of this Agreement or any other Loan Document may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any entity that is a member of the Farm Credit System that (a) has purchased a participation in the Loans in the minimum amount of $5,000,000 after the date hereof and (b) is, by written notice to the Borrower, designated as being entitled to be accorded the rights of a voting participant (each a "<u>Voting Participan</u>t"), shall be

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entitled to vote (and the voting rights of the Lender shall be correspondingly reduced), on a dollar for dollar basis, as if such Voting Participant were a Lender, on any matter requiring or allowing a Lender to provide or withhold its consent, or to otherwise vote on any proposed action.

SECTION 9.03. <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Costs and Expenses</u>. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Lender and its Affiliates, including the reasonable fees, charges and disbursements of outside counsel for the Lender in connection with the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out-of-pocket expenses incurred by the Lender, including the fees, charges and disbursements of any outside counsel for the Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Lender and each of its Related Parties (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all loss, liability and expense (including reasonable external attorneys' fees) arising from any misrepresentation or nonfulfillment of any undertaking on the part of the Borrower under this Agreement; <u>provided</u> that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, in each case, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>Section 9.03(b)</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved].</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments</u>. All amounts due under this Section shall be payable not later than fifteen (15) days after receipt of written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

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SECTION 9.04. <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except pursuant to a transaction permitted by Article XI of the Indenture, the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder or under any Note without the prior written consent of the Lender. Except as provided below, the Lender may not assign or delegate any of its rights or duties under any of the Loan Documents without the written consent of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Lender Assignment and Delegation.</u> The Lender may assign or delegate all of its rights and duties under the Loan Documents to another lender reasonably approved by the Borrower (<u>provided</u> that the Borrower shall not have the right to approve such lender if a Default or an Event of Default then exists); <u>provided</u> that such assignment (i) shall not be made to any Person that is not a "United States Person" within the meaning of Section 7701(a)(30) of the Code and (ii) shall transfer all of the Lender's rights and duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations</u>. The Lender may at any time, without the consent of, or notice to, the Borrower sell participations to one or more banks or other entities (each, a "<u>Participant</u>") in all or a portion of the Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that (i) the Lender's obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender's rights and obligations under this Agreement. For the avoidance of doubt, the Lender shall be responsible for the indemnity under <u>Section 9.03(c)</u> with respect to any payments made by the Lender to its Participant(s).

Any agreement or instrument pursuant to which the Lender sells such a participation shall provide that the Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that the Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to <u>Section 9.02(b)</u> that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Sections 2.07</u> and <u>2.08</u> (subject to the requirements and limitations therein, including the requirements under <u>Section 2.08(g)</u> (it being understood that the documentation required under <u>Section</u> <u>2.08(g)</u> shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; <u>provided</u> that such Participant (A) agrees to be subject to the provisions of <u>Section 2.10</u> as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under <u>Sections 2.07</u> or <u>2.08</u>, with respect to

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any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section 9.08</u> as though it were a Lender. If the Lender sells a participation, the Lender shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that the Lender shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

The Lender may, in connection with any participation or proposed participation pursuant to this <u>Section 9.04</u>, disclose to the Participant or proposed Participant any information relating to the Borrower furnished to the Lender by or on behalf of the Borrower; <u>provided</u> that, prior to any such disclosure of information designated by the Borrower as confidential, each such Participant or proposed Participant shall execute an agreement whereby such participant shall agree (subject to customary exceptions) to preserve the confidentiality of such confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Pledges</u>. The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of the Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central banking authority having jurisdiction over the Lender, and this Section shall not apply to any such pledge or assignment of a security interest; <u>provided</u> that no such pledge or assignment of a security interest shall release the Lender from any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto.

SECTION 9.05. <u>Survival</u>. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the Lender and shall survive the execution and delivery of this Agreement and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any

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other amount payable under this Agreement is outstanding and unpaid and so long as the Commitment has not expired or terminated. The provisions of <u>Sections 2.07</u>, <u>2.08</u> and <u>9.03</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Commitment or the termination of this Agreement or any provision hereof.

SECTION 9.06. <u>Counterparts; Integration; Effectiveness; Electronic Execution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Lender constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have received a counterpart hereof from the Borrower, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 9.07. <u>Severability</u>. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 9.08. <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by the Lender or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations

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of the Borrower now or hereafter existing under this Agreement or any other Loan Document to the Lender or such Affiliates, irrespective of whether or not the Lender or such Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of the Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness. The rights of the Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that the Lender or its Affiliates may have. The Lender agrees to notify the Borrower promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

SECTION 9.09. <u>Governing Law; Jurisdiction; Consent to Service of Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Jurisdiction</u>. The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County, and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Venue</u>. The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section 9.01</u>. Nothing in this Agreement will

------

affect the right of any party hereto to serve process in any other manner permitted by applicable law.

SECTION 9.10. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 9.11. <u>Headings</u>. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 9.12. <u>Confidential Information</u>. For the purposes of this <u>Section 9.12</u>, "<u>Confidential Information</u>" means information delivered to the Lender by or on behalf of the Borrower or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by the Lender as being confidential information of the Borrower or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to the Lender prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by the Lender or any person acting on the Lender's behalf, (c) otherwise becomes known to the Lender other than through disclosure by the Lender or any Subsidiary or (d) constitutes financial statements delivered to the Lender under <u>Section 5.01</u> of this Agreement that are otherwise publicly available. The Lender will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by the Lender in good faith to protect confidential information of third parties delivered to the Lender, provided that the Lender may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by the Loans), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this <u>Section 9.12</u>, (iii) the Trustee, (iv) any Person from which it offers to purchase any security of the Borrower (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this <u>Section 9.12</u>), (v) any federal or state or provincial regulatory authority having jurisdiction over the Lender, (vi) any nationally recognized rating agency that requires access to information about the Lender's investment portfolio, or (vii) any other Person to which such

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delivery or disclosure may be necessary or appropriate (1) to effect compliance with any law, rule, regulation or order applicable to the Lender, (2) in response to any subpoena or other legal process, (3) in connection with any litigation to which the Lender is a party or (4) if an Event of Default has occurred and is continuing, to the extent the Lender may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under any Loan Document; <u>provided</u> that in the case of (v), (vi) or (vii) (other than subclause (4) thereof), the Lender shall exercise commercially reasonable efforts to notify the Borrower of such disclosure unless such notification is prohibited by law; <u>provided</u>, further, that any failure by the Lender to exercise such commercially reasonable efforts or to provide such notice shall not constitute a breach of this <u>Section 9.12</u>. Each Participant will be deemed to have agreed to be bound by and to be entitled to the benefits of this <u>Section 9.12</u> as though it were a party to this Agreement.

In the event that as a condition to receiving access to information relating to the Borrower or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement or the other Loan Documents, the Lender is required to agree to a confidentiality undertaking (whether through Intralinks®, another secure website, a secure virtual workspace or otherwise) that is different from this <u>Section 9.12</u>, this <u>Section 9.12</u> shall not be amended thereby and, as between the Lender and the Borrower, this <u>Section 9.12</u> shall supersede any such other confidentiality undertaking.

SECTION 9.13. <u>USA PATRIOT Act</u>. The Lender hereby notifies the Borrower that, pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the USA PATRIOT Act.

SECTION 9.14. <u>No Fiduciary Duty</u>. The Borrower agrees that in connection with all aspects of the transactions contemplated hereby and any communications in connection therewith, the Borrower and its Affiliates, on the one hand, and the Lender and its Affiliates, on the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on the Lender and its Affiliates, and no such duty will be deemed to have arisen in connection with any such transactions or communications. The Borrower acknowledges that the Lender and its Affiliates may be providing financing, equity capital, financial advisory and/or other services to parties whose interests conflict with the Borrower's interests.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers or representatives as of the day and year first above written.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Todd Brickhouse |
| Name: Todd Brickhouse | Name: Todd Brickhouse |
| Title: Chief Executive Officer and General Manager | Title: Chief Executive Officer and General Manager |
| COBANK, ACB, as Lender | COBANK, ACB, as Lender |
| By | /s/ Jared A. Greene |
| Name: Jared A. Greene | Name: Jared A. Greene |
| Title: Assistant Corporate Secretary | Title: Assistant Corporate Secretary |

---

Signature Page to Term Loan Agreement

Basin Electric Power Cooperative

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SCHEDULE 2.05(a)(i)

REPAYMENT OF PRINCIPAL OF INITIAL TERM LOAN

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| | |
|:---|:---|
| **Payment Date** | **Principal Amount** |
| 5/15/2029 | $4286659.00 |
| 11/15/2029 | $4286659.00 |
| 5/15/2030 | $7104065.00 |
| 11/15/2030 | $7104065.00 |
| 5/15/2031 | $10824146.00 |
| 11/15/2031 | $10824146.00 |
| 5/15/2032 | $1666667.00 |
| 11/15/2032 | $1666667.00 |
| 5/15/2033 | $7792040.00 |
| 11/15/2033 | $7792040.00 |
| 5/15/2034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| 11/15/2034\* | $36652846.00 |
|  | **$100000000.00** |

---

\*Maturity Date

------

SCHEDULE 2.05(a)(ii)

REPAYMENT OF PRINCIPAL OF INCREMENTAL TERM LOAN

---

| | |
|:---|:---|
| **Payment Date** | **Principal Amount** |
| 5/15/2029 | $4286659.00 |
| 11/15/2029 | $4286659.00 |
| 5/15/2030 | $7104065.00 |
| 11/15/2030 | $7104065.00 |
| 5/15/2031 | $10824146.00 |
| 11/15/2031 | $10824146.00 |
| 5/15/2032 | $1666667.00 |
| 11/15/2032 | $1666667.00 |
| 5/15/2033 | $7792040.00 |
| 11/15/2033 | $7792040.00 |
| 5/15/2034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| 11/15/2034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| 5/15/2035\* | $36652846.00 |
|  | **$100000000.00** |

---

\*Maturity Date

## Exhibit 4.7

**Exhibit 4.7**

**Deal CUSIP Number: 07010HAQ8**

**Revolving Facility CUSIP Number: 07010HAR6**

**CREDIT AGREEMENT**

**dated as of**

**May 1, 2025**

**among**

**BASIN ELECTRIC POWER COOPERATIVE, as Borrower, The Lenders Party Hereto, U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent, COBANK, ACB,** 

**as Syndication Agent, BMO BANK N.A., NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, PNC BANK, NATIONAL ASSOCIATION, ROYAL BANK OF CANADA and WELLS FARGO BANK, N.A., as Co-Documentation Agents, U.S. BANK NATIONAL ASSOCIATION**

**and**

**COBANK, ACB, as Joint Lead Arrangers and Active Bookrunners**

**and**

**BMO BANK N.A., NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, PNC CAPITAL MARKETS LLC, ROYAL BANK OF CANADA, WELLS FARGO BANK, N.A., BANK OF AMERICA, N.A., THE HUNTINGTON NATIONAL BANK and REGIONS BANK, as Joint Lead Arrangers and Bookrunners**

------

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| **<u>Page</u>** | **<u>Page</u>** |
| ARTICLE I DEFINITIONS | 1 |
| SECTION 1.01. Defined Terms | 1 |
| SECTION 1.02. Classification of Loans and Borrowings | 24 |
| SECTION 1.03. Terms Generally | 24 |
| SECTION 1.04. Accounting Terms; GAAP | 24 |
| SECTION 1.05. Rates | 25 |
| SECTION 1.06. Divisions | 25 |
| ARTICLE II THE CREDITS | 26 |
| SECTION 2.01. Commitments | 26 |
| SECTION 2.02. Loans and Borrowings | 26 |
| SECTION 2.03. Requests for Revolving Borrowings | 27 |
| SECTION 2.04. Swingline Loans | 27 |
| SECTION 2.05. Letters of Credit | 29 |
| SECTION 2.06. Funding of Borrowings | 35 |
| SECTION 2.07. Interest Elections | 36 |
| SECTION 2.08. Termination and Reduction of Commitments | 37 |
| SECTION 2.09. Increase in Commitments | 38 |
| SECTION 2.10. Repayment of Loans; Evidence of Debt | 39 |
| SECTION 2.11. Prepayment of Loans | 40 |
| SECTION 2.12. Fees | 41 |
| SECTION 2.13. Interest | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.14. Availability of Types of Borrowings; Adequacy of Interest Rate;<br>Benchmark Replacement | 42 |
| SECTION 2.15. Increased Costs | 45 |
| SECTION 2.16. Break Funding Payments | 46 |
| SECTION 2.17. Taxes | 46 |
| SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 50 |
| SECTION 2.19. Mitigation Obligations; Replacement of Lenders | 52 |
| SECTION 2.20. Defaulting Lenders | 54 |
| ARTICLE III REPRESENTATIONS AND WARRANTIES | 57 |
| SECTION 3.01. Organization; Powers | 57 |
| SECTION 3.02. Authorization; Enforceability | 57 |
| SECTION 3.03. Investment Company Act Status | 58 |
| SECTION 3.04. Margin Regulations | 58 |
| SECTION 3.05. Governmental Approvals; No Conflicts | 58 |
| SECTION 3.06. Financial Condition | 58 |
| SECTION 3.07. Properties | 58 |
| SECTION 3.08. Compliance with Laws | 58 |
| SECTION 3.09. Taxes | 59 |
| SECTION 3.10. ERISA | 59 |
| SECTION 3.11. Insurance | 59 |
| SECTION 3.12. Corporate Structure | 59 |
| SECTION 3.13. No Material Adverse Change | 59 |
| SECTION 3.14. Wholesale Power Contracts | 59 |
| SECTION 3.15. Environmental Matters | 59 |

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Basin Electric Power Cooperative Credit Agreement

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| | |
|:---|:---|
| SECTION 3.16. Litigation | 59 |
| SECTION 3.17. Disclosure | 60 |
| SECTION 3.18. Defaults | 60 |
| SECTION 3.19. Anti-Corruption Laws and Sanctions | 60 |
| SECTION 3.20. Affected Financial Institution | 60 |
| SECTION 3.21. Benefit Plans | 61 |
| ARTICLE IV CONDITIONS | 61 |
| SECTION 4.01. Conditions to Effective Date | 61 |
| SECTION 4.02. Conditions to Each Loan or Letter of Credit. | 63 |
| ARTICLE V AFFIRMATIVE COVENANTS | 63 |
| SECTION 5.01. Financial Statements; Ratings Change and Other Information | 63 |
| SECTION 5.02. Notices of Material Events | 65 |
| SECTION 5.03. Existence; Conduct of Business | 66 |
| SECTION 5.04. Payment of Obligations | 66 |
| SECTION 5.05. Reserved | 66 |
| SECTION 5.06. Books and Records; Inspection Rights | 66 |
| SECTION 5.07. Compliance with Laws | 66 |
| SECTION 5.08. Use of Proceeds | 66 |
| SECTION 5.09. Margins for Interest Ratio | 67 |
| SECTION 5.10. Indenture Covenants | 67 |
| SECTION 5.11. Equity Balance | 67 |
| SECTION 5.12. CoBank Equity and Security | 67 |
| ARTICLE VI NEGATIVE COVENANTS | 68 |
| SECTION 6.01. Indebtedness | 68 |
| SECTION 6.02. Liens | 69 |
| SECTION 6.03. Fundamental Changes | 69 |
| SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions | 70 |
| SECTION 6.05. Transactions with Affiliates | 70 |
| SECTION 6.06. Termination of Wholesale Power Contracts | 70 |
| SECTION 6.07. Indenture Covenants | 71 |
| SECTION 6.08. Swap Agreements | 71 |
| ARTICLE VII EVENTS OF DEFAULT | 71 |
| SECTION 7.01. Events of Default | 71 |
| SECTION 7.02. Allocation of Proceeds | 73 |
| ARTICLE VIII THE ADMINISTRATIVE AGENT | 74 |
| SECTION 8.01. Appointment and Authority | 74 |
| SECTION 8.02. Rights as a Lender. | 74 |
| SECTION 8.03. Exculpatory Provisions | 74 |
| SECTION 8.04. Reliance by Administrative Agent | 75 |
| SECTION 8.05. Delegation of Duties | 76 |
| SECTION 8.06. Resignation of Administrative Agent | 76 |
| SECTION 8.07. Non-Reliance on Administrative Agent and Other Lenders | 77 |
| SECTION 8.08. No Other Duties, etc | 77 |
| SECTION 8.09. Administrative Agent May File Proofs of Claim | 78 |
| SECTION 8.10. Indemnity | 78 |
| SECTION 8.11. Additional ERISA Matters | 79 |

---

(ii) Basin Electric Power Cooperative Credit Agreement

------

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| | |
|:---|:---|
| SECTION 8.12. Erroneous Payments | 81 |
| ARTICLE IX MISCELLANEOUS | 82 |
| SECTION 9.01. Notices | 82 |
| SECTION 9.02. Waivers; Amendments | 84 |
| SECTION 9.03. Expenses; Indemnity; Damage Waiver | 85 |
| SECTION 9.04. Successors and Assigns | 87 |
| SECTION 9.05. Survival | 91 |
| SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution | 92 |
| SECTION 9.07. Severability | 92 |
| SECTION 9.08. Right of Setoff. | 92 |
| SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process | 93 |
| SECTION 9.10. WAIVER OF JURY TRIAL | 94 |
| SECTION 9.11. Headings | 94 |
| SECTION 9.12. Interest Rate Limitation | 94 |
| SECTION 9.13. USA PATRIOT Act | 95 |
| SECTION 9.14. No Advisory or Fiduciary Responsibility | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.15. Acknowledgement and Consent to Bail-In of Affected Financial <br>Institutions | 95 |
| SECTION 9.16. Governmental Regulation | 96 |

---

(iii) Basin Electric Power Cooperative Credit Agreement

------

<u>SCHEDULES</u>:

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| | |
|:---|:---|
| Schedule I | Commitments |
| Schedule 3.14 | Wholesale Power Contracts |
| Schedule 3.15 | Disclosed Matters – Environmental |
| Schedule 3.16 | Disclosed Matters – Litigation |

---

<u>EXHIBITS</u>:

---

| | |
|:---|:---|
| Exhibit A | Form of Assignment and Assumption |
| Exhibit B | Form of Borrowing Request |
| Exhibit C | Form of Interest Election Request |
| Exhibit D | Form of Note |
| Exhibit E-1 | Form of U.S. Tax Compliance Certificate (For Foreign Lenders <br>That Are Not Partnerships For U.S. Federal Income Tax <br>Purposes) |
| Exhibit E-2 | Form of U.S. Tax Compliance Certificate (For Foreign <br>Participants That Are Not Partnerships For U.S. Federal Income <br>Tax Purposes) |
| Exhibit E-3 | Form of U.S. Tax Compliance Certificate (For Foreign <br>Participants That Are Partnerships For U.S. Federal Income Tax <br>Purposes) |
| Exhibit E-4 | Form of U.S. Tax Compliance Certificate (For Foreign Lenders <br>That Are Partnerships For U.S. Federal Income Tax Purposes) |

---

(iv) Basin Electric Power Cooperative Credit Agreement

------

CREDIT AGREEMENT, dated as of May 1, 2025, among BASIN ELECTRIC POWER COOPERATIVE, the LENDERS party hereto, the other Agents party hereto, and U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent.

The parties hereto agree as follows:

ARTICLE I

<u>DEFINITIONS</u>

SECTION 1.01. <u>Defined Terms</u>. As used in this Agreement, the following terms have the meanings specified below:

"<u>ABR</u>", when used in reference to any Loan or Borrowing, refers to such Loan, or the Loans comprising such Borrowing, which bear interest at the Alternate Base Rate.

"<u>Act</u>" has the meaning set forth in <u>Section 9.13</u>.

"<u>Administrative Agent</u>" means U.S. Bank in its capacity as administrative agent for the Lenders hereunder.

"<u>Administrative Agent Fee Letter</u>" means that certain letter agreement dated April 9, 2025, between the Borrower and the Administrative Agent.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form supplied by the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Agent Parties</u>" means the Administrative Agent and its Related Parties.

"<u>Agents</u>" means, collectively, the Administrative Agent, the Co-Documentation Agents and the Syndication Agent.

"<u>Agreement</u>" means this Credit Agreement.

"<u>Alternate Base Rate</u>" means, for any day, a rate of interest per annum equal to the highest of (a) zero, (b) the Prime Rate for such day, (c) the sum of the Federal Funds Effective Rate for such day *plus* 0.50% per annum, and (d) the Term SOFR Base Rate for a one-month Interest Period on such day (taking into account any Term SOFR floor set forth in the definition of "Term SOFR Base Rate") *plus* 1.00%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate, or the Term SOFR Base Rate shall be effective from the effective date of such change. If the Alternate Base Rate is being used when Term SOFR

Basin Electric Power Cooperative Credit Agreement

------

Borrowings are unavailable pursuant to <u>Section 2.13(c)</u> or <u>2.14</u>, then the Alternate Base Rate shall be the highest of clauses (a), (b) and (c) above, without reference to clause (d) above.

"<u>Anti-Corruption Laws</u>" means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to anti-money laundering, bribery or corruption.

"<u>Applicable Margin</u>" means, for any day, with respect to (a) ABR Borrowings, the percentage set forth in the following table under the heading "ABR Margin", (b) with respect to Term SOFR Borrowings, the percentage set forth in the following table under the heading "Term SOFR Margin", (c) with respect to any participation fee for any Letter of Credit in accordance with <u>Section 2.12(b)</u>, the percentage set forth in the following table under the heading "Term SOFR Margin" and (d) with respect to the Facility Fee, the percentage set forth in the following table under the heading "Facility Fee", in each case based upon the Ratings by the Major Rating Agencies applicable on such date to the Index Debt:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Ratings Group** | **Moody's** | **S&P** | **Fitch** | **ABR Margin** | **Term <br>SOFR <br>Margin** | **Facility <br>Fee** |
| I | <u>></u> A1 | <u>></u> A+ | <u>></u> A+ | 0.050% | 0.850% | 0.150% |
| II | <u>></u> A2 | <u>></u> A | <u>></u> A | 0.075% | 1.075% | 0.175% |
| III | <u>></u> A3 | <u>></u> A- | <u>></u> A- | 0.175% | 1.175% | 0.200% |
| IV | <u>></u> Baa1 | <u>></u> BBB+ | <u>></u> BBB+ | 0.275% | 1.275% | 0.225% |
| V | <u><</u> Baa2 | <u><</u> BBB | <u><</u> BBB | 0.350% | 1.350% | 0.275% |

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For purposes of the foregoing, if the Ratings fall within different Ratings Groups, the Applicable Margin shall be determined by reference to: (a) if Ratings are provided by only two of the Major Rating Agencies, the Ratings Group next above the lower of the two Ratings shall apply, (b) if Ratings are provided by all three of such Major Rating Agencies and (i) two of such Ratings are in the same Ratings Group, such Ratings Group shall apply or (ii) if each of the Ratings is in a different Ratings Group, the Ratings Group next above that of the lowest of the three Ratings shall apply, and (c) if a Rating is provided by only one such Major Rating Agency, the Ratings Group applicable to such rating shall apply. In the event that there is not at least one rating from the Major Rating Agencies, then Ratings Group V shall apply. If the Ratings by one or more Major Rating Agencies shall change (other than as a result of a change in the rating system of such Major Rating Agency or Agencies), such change shall be effective as of the date on which it is first announced by such Major Rating Agency, irrespective of when notice of such change shall have been furnished by the Borrower to the Administrative Agent and the Lenders pursuant to <u>Section 5.01(g)</u> or otherwise. Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the rating system of any such Major Rating Agency shall change, or if any such Major Rating Agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of Ratings from such Major Rating Agency and, pending the effectiveness of any such amendment, the Applicable

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Margin shall be determined by reference to the Ratings Group most recently in effect prior to such change or cessation.

"<u>Applicable Percentage</u>" means, with respect to any Lender, the percentage of the total Commitments represented by such Lender's Commitment as of the day of calculation; <u>provided</u> that, in the case of <u>Section 2.20</u> when a Defaulting Lender shall exist, "<u>Applicable</u> <u>Percentage</u>" shall be calculated as the percentage of the total Commitments (disregarding any Defaulting Lender's Commitment). If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments pursuant an Assignment and Assumption in accordance with <u>Section 9.04</u>.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section 9.04</u>), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent.

"<u>Availability Period</u>" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest Period or (y) otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, pursuant to this Agreement as of such date.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Benchmark</u>" means, initially, Term SOFR; provided that if a replacement of the Benchmark has occurred pursuant to <u>Section 2.14(b)</u>, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has become effective pursuant to <u>Section 2.14(b)</u>.

"<u>Benchmark Replacement</u>" means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Daily Simple SOFR; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with a Benchmark Replacement pursuant to clause (2) of the definition of "Benchmark Replacement" for any applicable Interest Period and Available Tenor for any setting of such Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Borrowing," "Term SOFR Borrowing," the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Benchmark Replacement Date</u>" means the earlier to occur of the following events with respect to the then-current Benchmark:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (3) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative; provided, that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), a Relevant Governmental Body, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by any of the entities referenced in clause (2) above announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark in accordance with <u>Section 2.14(b)</u>, and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark in accordance with <u>Section 2.14(b)</u>.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America.

"<u>Borrower</u>" means Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the State of North Dakota.

"<u>Borrower Materials</u>" has the meaning assigned to such term in <u>Section 5.02</u>.

"<u>Borrowing</u>" means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Term SOFR Loans, as to which a single Interest Period is in effect or (b) a Swingline Loan.

"<u>Borrowing Request</u>" means a request for Loans substantially in the form of <u>Exhibit B</u>, or in such other form as shall be acceptable to the Administrative Agent.

"<u>Business Day</u>" means a day (other than a Saturday or Sunday) on which banks generally are open in New York City, New York for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system; <u>provided</u> that, when used in connection with SOFR, Term SOFR, Term SOFR Base Rate or Term SOFR Rate, the term "Business Day" excludes any day on which the Securities Industry and

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Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>Cash Collateralize</u>" means, to deposit in a Controlled Account or to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more of the LC Issuers or Lenders, as collateral for LC Exposure or obligations of Lenders to fund participations in respect of LC Exposure, cash or deposit account balances or, if the Administrative Agent and each applicable LC Issuer shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to the Administrative Agent and each applicable LC Issuer. "<u>Cash Collateral</u>" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"<u>CFC</u>" means National Rural Utilities Cooperative Finance Corporation.

"<u>CFC Facility</u>" means the credit facility evidenced by that certain Credit Agreement, dated as of March 16, 2018, between the Borrower and CFC as administrative agent and lender thereunder, or any successor unsecured credit facility or facilities in replacement thereof.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement (or with respect to any Lender, if later, the date on which such Lender becomes a Lender), of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u>, that notwithstanding anything herein to the contrary, (x) the Dodd Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or, issued in connection therewith or in implementation thereof, and (y) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.

"<u>Charges</u>" shall have the meaning set forth in <u>Section 9.12</u>.

"<u>Class</u>", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

"<u>Co-Documentation Agents</u>" means, in such capacity, BMO Bank N.A., National Rural Utilities Cooperative Finance Corporation, PNC Bank, National Association, Royal Bank of Canada and Wells Fargo Bank, N.A.

"<u>CoBank</u>" means CoBank, ACB, a federally chartered instrumentality of the United States.

"<u>CoBank Equities</u>" means any of Borrower's stock, patronage refunds issued in the form of stock or otherwise constituting allocated units, patronage surplus (including any such

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surplus accrued by CoBank for the account of Borrower) and other equities in CoBank acquired in connection with, or because of the existence of, Borrower's patronage loan from CoBank (or its affiliate), and the proceeds of any of the foregoing.

"<u>CoBank Fee Letter</u>" means, that certain fee letter, dated as of April 9, 2025, by and between the Borrower and CoBank, in its capacity as a Joint Lead Arranger and Active Bookrunner.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time.

"<u>Commitment</u>" means, with respect to each Lender, the commitment of such Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Credit Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant to <u>Sections 2.08</u> and <u>2.09</u> and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to <u>Section 9.04</u>. The initial amount of each Lender's Commitment is set forth on <u>Schedule I</u>, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the Lenders' Commitments is $1,250,000,000.

"<u>Communications</u>" shall have the meaning set forth in <u>Section 9.01(d)(ii)</u>.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"<u>Controlled Account</u>" means each deposit account and securities account that is subject to an account control agreement in form and substance satisfactory to the Administrative Agent and each applicable LC Issuer.

"<u>Corresponding Tenor</u>" with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

"<u>Credit Exposure</u>" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Revolving Loans, Swingline Loans for which it is the Swingline Lender and has not been reimbursed, participations in Swingline Loans and LC Exposure at such time.

"<u>Daily Simple SOFR</u>" means for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the

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Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>Default</u>" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"<u>Defaulting Lender</u>" means, subject to <u>Section 2.20</u>, any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) have not been satisfied, or (ii) pay to the Administrative Agent, any LC Issuer, the Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any LC Issuer or the Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's good faith determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder, <u>provided</u> that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law or Bail-In Action, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section 2.20(b)</u>) upon delivery of written notice of such determination to the Borrower, each LC Issuer, the Swingline Lender and each Lender.

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"<u>Disclosed Matters</u>" means the environmental matters or the actions, suits and proceedings disclosed in <u>Schedules 3.15</u> and <u>3.16</u>, respectively.

"<u>dollars</u>" or "<u>$</u>" refers to lawful money of the United States of America.

"<u>E-SIGN</u>" means the Federal Electronic Signatures in Global and National Commerce Act, as amended from time to time, and any successor statute, and any regulations promulgated thereunder from time to time.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means the date on which the conditions specified in <u>Section 4.01</u> are satisfied (or waived in accordance with <u>Section 9.02</u>).

"<u>Electronic System</u>" means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent or any LC Issuer and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under <u>Section 9.04(b)(iii)</u>, <u>(v)</u> and <u>(vi)</u> (subject to such consents, if any, as may be required under <u>Section 9.04(b)(iii)</u>).

"<u>Environmental Laws</u>" means all applicable laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.

"<u>Environmental Liability</u>" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Significant Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any

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contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

"<u>Equity Balance</u>" means, as of the last day of any fiscal quarter, total members' patronage capital or other equity of the Borrower and the Significant Subsidiaries (without giving effect to other comprehensive income whether positive or negative) less goodwill, as determined without duplication on a consolidated basis in accordance with GAAP. Equity Balance shall be determined without giving effect to non-cash adjustments required to be made pursuant to ASC 815 and ASC 321.

"<u>Equity Interests</u>" means all shares, interests or other equivalents, however designated, of or in a corporation, limited liability company, or partnership, whether or not voting, including but not limited to common stock, member interests, partnership interests, warrants, preferred stock, convertible debentures, and all agreements, instruments and documents convertible, in whole or in part, into any one or more of the foregoing.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

"<u>ERISA Event</u>" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the thirty (30) day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(a) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

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"<u>Erroneous Payment</u>" is defined in <u>Section 8.12(a)</u>.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" has the meaning assigned to such term in <u>Article VII</u>.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section 2.19(b)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section 2.17</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender acquired the applicable interest in the Loan or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with <u>Section 2.17(g)</u> and (d) any U.S. federal withholding Taxes imposed under FATCA.

"<u>Facility</u>" means the credit facility provided hereunder.

"<u>Facility Fee</u>" has the meaning assigned to such term in <u>Section 2.12(a)</u>.

"<u>Farm Credit Lender</u>" means any lending institution chartered or otherwise organized and existing pursuant to the provisions of the Farm Credit Act of 1971 and under the regulation of the Farm Credit Administration.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

"<u>Federal Funds Effective Rate</u>" means, for any day, the greater of (a) zero percent (0.0%) and (b) the rate per annum calculated by the Federal Reserve Bank of New York based on such day's federal funds transactions by depository institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate.

"<u>Fee Letters</u>" means the Administrative Agent Fee Letter and the CoBank Fee Letter.

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"<u>Financial Officer</u>" means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

"<u>Fitch</u>" means Fitch Ratings Ltd. or any successor thereto.

"<u>Fitch Rating</u>" means, as of any date of determination thereof, the Rating most recently published by Fitch relating to the Index Debt.

"<u>Floor</u>" means the benchmark rate floor, if any provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the Term SOFR Base Rate.

"<u>Foreign Lender</u>" means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender, (a) with respect to any LC Issuer, such Defaulting Lender's Applicable Percentage of the outstanding LC Exposure with respect to Letters of Credit issued by such LC Issuer other than LC Exposure as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline Lender, such Defaulting Lender's Applicable Percentage of outstanding Swingline Loans made by the Swingline Lender other than Swingline Loans as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States of America.

"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).

"<u>Guarantee</u>" of or by any Person (the "guarantor") means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or

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other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; <u>provided</u> that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

"<u>Hazardous Materials</u>" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

"<u>Indebtedness</u>" of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business and capital leases), (f) all direct guarantees by such Person of Indebtedness of others, (g) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, and (h) all obligations, contingent or otherwise, of such Person in respect of banker's acceptances. The Indebtedness of the Borrower shall not include obligations of the Borrower or any other Person (i) under Swap Agreements, (ii) relating to non-capital lease obligations (as determined in accordance with accounting requirements as in effect on the date of this Agreement), (iii) to make payment for power, energy, transmission, fuel or other goods and services, whether or not such items are received, (iv) imposed by a Governmental Authority (other than RUS or CoBank), (v) under commodities trading or purchase arrangements, (vi) under surety, indemnity, performance, release and appeal bonds and guarantees thereof incurred in the ordinary course of the Borrower's business, (vii) relating to reclamation or decommissioning obligations (and guarantees thereof), (viii) which have been legally or economically defeased, (ix) relating to trade payables incurred in the ordinary course of business, or (x) relating to indemnification and reimbursement obligations with respect to the monetization of tax credits available under Section 45Q of the Code for the capture and sequestration of carbon dioxide pursuant to the Transaction Agreement, dated October 18, 2023, by and among certain investors party thereto, Dakota Gasification Company and the Borrower.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section 9.03(b)</u>.

"<u>Indenture</u>" means that certain Amended and Restated Indenture, dated as of May 5, 2015, by and between the Borrower and U.S. Bank National Association, as trustee, as amended and supplemented from time to time.

"<u>Index Debt</u>" means senior unsecured indebtedness of the Borrower that is not subject to any credit enhancement, <u>provided</u> that if a Major Rating Agency does not provide such

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a Rating on the Index Debt, such Major Rating Agency's rating shall be deemed to be that rating which is one (1) notch below the Rating by such Major Rating Agency of the Borrower's senior secured indebtedness for borrowed money that is not subject to any other credit enhancement.

"<u>Ineligible Institution</u>" has the meaning assigned to such term in Section 9.04(b).

"<u>Information Materials</u>" means the Confidential Information Memorandum, dated July 13, 2022, relating to the Borrower and the Transactions.

"<u>Interest Election Request</u>" means a request by the Borrower to convert or continue a Borrowing substantially in the form of <u>Exhibit C</u>, or in such other form as shall be acceptable to the Administrative Agent.

"<u>Interest Payment Date</u>" means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June, September and December and the date on which such Loan is repaid, (b) with respect to any Term SOFR Loan, the last day of each Interest Period therefor and, in the case of a Term SOFR Loan with an Interest Period of more than three (3) months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three (3) months' duration after the first day of such Interest Period, (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid and (d) with respect to all Loans, the Maturity Date.

"<u>Interest Period</u>" means, with respect to a Term SOFR Borrowing, a period of one, three or six months (in each case, subject to the availability thereof) commencing on a Business Day selected by the Borrower pursuant to this Agreement and ending on the day that corresponds numerically to such date one, three or six months thereafter; provided that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such succeeding Business Day falls in a new calendar month, in which case such Interest Period shall end on the immediately preceding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;no Interest Period shall extend beyond the Maturity Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;no tenor that has been removed from this definition pursuant to Section 2.14(b)(iv) may be available for selection by the Borrower.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>ISP</u>" means the International Standby Practices, International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time).

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"<u>Issuance Notice</u>" means a notice, in writing, specifying the beneficiary, the proposed date of issuance (or modification) and the expiry date of the applicable Letter of Credit, and describing the proposed terms of such Letter of Credit and the nature of the transactions proposed to be supported thereby, and otherwise in form and substance satisfactory to the Administrative Agent and each applicable LC Issuer.

"<u>Joint Lead Arrangers</u>" means collectively, in the indicated capacities, (a) U.S. Bank and CoBank, as Joint Lead Arrangers and Active Bookrunners, and (b) BMO Bank N.A., National Rural Utilities Cooperative Finance Corporation, PNC Capital Markets LLC, Royal Bank of Canada, Wells Fargo Bank, N.A., Bank of America, N.A., The Huntington National Bank and Regions Bank, as Joint Lead Arrangers and Bookrunners.

"<u>LC Commitment</u>" shall mean the commitment of an LC Issuer to issue Letters of Credit hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such LC Issuer pursuant to Section 9.04. The initial amount of each LC Issuer's LC Commitment is set forth on Schedule I, or in the Assignment and Assumption pursuant to which such LC Issuer shall have assumed its LC Commitment, as applicable. The initial aggregate amount of the LC Issuers' LC Commitments is $50,000,000.

"<u>LC Disbursement</u>" means a payment made by any LC Issuer pursuant to a Letter of Credit.

"<u>LC Exposure</u>" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time, determined without regard to whether any conditions to drawing could be met at that time, plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Article 29(a) of the UCP, Rule 3.13 or 3.14 of the ISP, or similar terms in the governing rules or laws or of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be "outstanding" and "undrawn" in the amount so remaining available to be paid, and the obligations of the Borrower and each Lender shall remain in full force and effect until the LC Issuer and the Lenders have no further obligations to make any payments or disbursements under any circumstances with respect to such Letter of Credit.

"<u>LC Facility Fee</u>" means, with respect to any Letter of Credit, a fronting fee which shall accrue at the rate of 0.175% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) under such Letter of Credit that is held by the applicable LC Issuer.

"<u>LC Issuers</u>" means CoBank and U.S. Bank National Association, each in its capacity as issuer of Letters of Credit hereunder, and such other Lenders as the Borrower may designate as LC Issuers from time to time with the consent of the Administrative Agent and such designated Lender.

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"<u>Lender Party</u>" is defined in <u>Section 8.12(a)</u>.

"<u>Lenders</u>" means the Persons listed on <u>Schedule I</u> and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption or <u>Section</u> <u>2.19</u> or <u>2.20</u>. Unless the context requires otherwise, the term "Lenders" includes the Swingline Lender.

"<u>Letter of Credit</u>" means any letter of credit issued pursuant to this Agreement.

"<u>Letter of Credit Documents</u>" means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements, instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit or (b) any collateral security for any of such obligations, each as the same may be modified and supplemented and in effect from time to time.

"<u>Lien</u>" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

"<u>Loan Documents</u>" means this Agreement, the Notes, if any, the Letter of Credit Documents, the Fee Letters, and any other agreements, documents, certificates, notices, or instruments entered into in connection therewith.

"<u>Loans</u>" means the loans made by the Lenders to the Borrower pursuant to this Agreement.

"<u>Major Rating Agency</u>" means Fitch, Moody's and S&P, individually or collectively as the context may require.

"<u>Material Adverse Change</u>" means a material adverse change in the (i) business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) of the Borrower and its Significant Subsidiaries taken as a whole, (ii) ability of the Borrower to perform its obligations under this Agreement or any other Loan Document, or (iii) rights of any Lender or the Administrative Agent under this Agreement or any other Loan Document.

"<u>Material Indebtedness</u>" means Indebtedness (other than the Loans and Letters of Credit) of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $25,000,000.

"<u>Maturity Date</u>" means May 1, 2030.

"<u>Maximum Rate</u>" has the meaning set forth in <u>Section 9.12</u>.

"<u>Member</u>" means each holder of a membership interest in the Borrower.

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"<u>Minimum Collateral Amount</u>" means, at any time, Cash Collateral consisting of cash or deposit account balances equal to the Fronting Exposure of all LC Issuers with respect to Letters of Credit issued and outstanding at such time.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Moody's Rating</u>" means, as of any date of determination thereof, the Rating most recently published by Moody's relating to the Index Debt.

"<u>Multiemployer Plan</u>" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of <u>Section 9.02</u> and (b) has been approved by the Required Lenders.

"<u>Non-Defaulting Lender</u>" means, at any time, each Lender that is not a Defaulting Lender at such time.

"<u>Note</u>" has the meaning set forth in <u>Section 2.10(e)</u>.

"<u>Noticing Lender</u>" has the meaning set forth in <u>Section 2.19(d)</u>.

"<u>Obligations</u>" means all Loans, LC Disbursements, advances, debts or liabilities owing by the Borrower to the Administrative Agent, the Arranger, any Lender, any LC Issuer, the Swingline Lender, any Affiliate of the Administrative Agent, any Joint Lead Arranger, the Syndication Agent, the Co-Documentation Agents or any Indemnitee, of any kind or nature, present or future, arising under this Agreement, the Notes or any other Loan Document, whether or not evidenced by any note, guaranty or other instrument, whether or not for the payment of money, whether arising by reason of an extension of credit, loan, guaranty, indemnification, or in any other manner. The term includes, without limitation, all interest, charges, expenses, fees, attorneys' fees and disbursements, paralegals' fees (in each case whether or not allowed), and any other sum chargeable to the Borrower under this Agreement or any other Loan Document.

"<u>OFAC</u>" means the Office of Foreign Assets Control of the U.S. Department of Treasury.

"<u>Other Applicable U.S. Tax Law</u>" means all regulations and other guidance issued by the IRS and any decisions of any federal court including the Tax Court, the Court of Federal Claims, the federal District Courts, the federal Circuit Courts and the Supreme Court.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

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"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes.

"<u>Participant</u>" has the meaning set forth in <u>Section 9.04(d)</u>.

"<u>Participant Register</u>" has the meaning specified in clause (d) of <u>Section 9.04</u>.

"<u>Patriot Act</u>" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

"<u>Payment Recipient</u>" is defined in <u>Section 8.12(a)</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

"<u>Platform</u>" means Debt Domain, Intralinks, Syndtrak, DebtX or a substantially similar electronic transmission system.

"<u>Prime Rate</u>" means a rate per annum equal to the prime rate of interest announced from time to time by U.S. Bank or its parent (which is not necessarily the lowest rate charged to any customer); changing when and as said prime rate changes.

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Rating</u>" means the Moody's Rating, the S&P Rating or the Fitch Rating, as applicable.

"<u>Recipient</u>" means (a) the Administrative Agent, (b) any Lender and (c) any LC Issuer, as applicable.

"<u>Reference Time</u>" with respect to any setting of the then-current Benchmark means (1) if such Benchmark is Term SOFR, 10:00 a.m. (Central time) on the day that is two Business Days before the date of such setting, and (2) if such Benchmark is not Term SOFR, the time determined by the Administrative Agent in its reasonable discretion.

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"<u>Register</u>" has the meaning set forth in <u>Section 9.04(c)</u>.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Governmental Body</u>" means the Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Required Lenders</u>" means, at any time, Lenders having Credit Exposures and unused Commitments representing more than 50% of the sum of the total of the Credit Exposures and unused Commitments of all Lenders; <u>provided</u> that, at all times when two or more non-Affiliate Lenders (excluding Defaulting Lenders) are party to this Agreement, the term "Required Lenders" shall in no event mean less than two non-Affiliate Lenders. The Credit Exposure and unused Commitments of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Revolving Loan</u>" means a Loan made pursuant to Section 2.01.

"<u>RUS</u>" means the Rural Utilities Service, an agency of the United States Department of Agriculture, or any agency or other governmental body succeeding to the functions thereof.

"<u>S&P</u>" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business.

"<u>S&P Rating</u>" means, as of any date of determination thereof, the Rating most recently published by S&P relating to the Index Debt.

"<u>Sanctioned Country</u>" means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Belarus, Cuba, Iran, North Korea, the Crimea region of Ukraine, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, Russia and Syria).

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons or (d) any Person otherwise the subject of any Sanctions.

"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council,

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the European Union, any EU member state, His Majesty's Treasury of the United Kingdom or any other Governmental Authority.

"<u>Screen</u>" has the meaning provided in the definition of Term SOFR Base Rate.

"<u>Significant Subsidiary</u>" means, at any time, Dakota Gasification Company, a North Dakota corporation, and Dakota Coal Company, a North Dakota corporation, in each case of the foregoing entities, solely if such entity constitutes a "Subsidiary" under this Agreement at such time.

"<u>SOFR</u>" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Administrator's Website</u>" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>subsidiary</u>" means, with respect to any Person (the "parent") at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

"<u>Subsidiary</u>" means any subsidiary of the Borrower.

"<u>Swap Agreement</u>" means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.

"<u>Swingline Borrowing</u>" means a Borrowing made pursuant to Section 2.04.

"<u>Swingline Lender</u>" means U.S. Bank, in its capacity as lender of Swingline Loans hereunder.

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"<u>Swingline Loan</u>" means a Loan made pursuant to Section 2.04.

"<u>Syndication Agent</u>" means, in such capacity, CoBank.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges in the nature of taxes imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term SOFR</u>" means the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Ltd. (or a successor administrator of Term SOFR).

"<u>Term&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SOFR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Website</u>"&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; means https://www.cmegroup.com/market-data/cme-group-benchmark-administration/term-sofr, or any successor source for Term SOFR identified as such by the Term SOFR Administrator from time to time.

"<u>Term SOFR Base Rate</u>" means, for the relevant Interest Period, the greater of (a) zero and (b) the Term SOFR rate quoted by the Administrative Agent from the Term SOFR Administrator's Website or the applicable Bloomberg screen (or other commercially available source providing such quotations as may be selected by the Administrative Agent from time to time) (the "<u>Screen</u>") for such Interest Period, which shall be the Term SOFR rate published two Business Days before the first day of such Interest Period (such Business Day, the "<u>Determination Date</u>"). If as of 5:00 p.m. (New York City time) on any Determination Date, the Term SOFR rate has not been published by the Term SOFR Administrator or on the Screen, then the rate used will be that as published by the Term SOFR Administrator or on the Screen for the first preceding Business Day for which such rate was published on such Screen so long as such first preceding Business Day is not more than three (3) Business Days prior to such Determination Date.

"<u>Term SOFR Borrowing</u>" means a Borrowing that, except as otherwise provided in <u>Section 2.13(b)</u>, bears interest at the applicable Term SOFR Rate.

"<u>Term SOFR Loan</u>" means a Loan that, except as otherwise provided in <u>Section</u> <u>2.13(b)</u>, bears interest at the applicable Term SOFR Rate other than pursuant to clause (d) of the definition of Alternate Base Rate.

"<u>Term SOFR Rate</u>" means, for the relevant Interest Period, the sum of (a) the Term SOFR Base Rate applicable to such Interest Period, plus (b) the Applicable Margin, plus (c) 0.10%.

"<u>Transactions</u>" means the execution, delivery and performance by the Borrower of the Loan Documents, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.

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"<u>Type</u>", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Term SOFR or the Alternate Base Rate.

"<u>U.S. Bank</u>" means U.S. Bank National Association.

"<u>U.S. Borrower</u>" means any Borrower that is a U.S. Person.

"<u>U.S. Person</u>" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code or Other Applicable U.S. Tax Law.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning assigned to such term in <u>Section 2.17(g)</u>.

"<u>UCP</u>" means the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time).

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Wholesale Power Contracts</u>" means, collectively, (a) contracts and agreements (together with amendments and supplements thereto) identified on <u>Schedule 3.14</u> together with each successor or replacement thereof, (b) each other contract or agreement of substantially similar terms and conditions from time to time entered into between the Borrower and each of its nineteen (19) Class A Members holding a cooperative interests in the Borrower providing for the sale of electric power and energy by the Borrower to such Member, and (c) each other contract or agreement from time to time entered into between the Borrower and a Significant Subsidiary providing for the sale of electric power and energy by the Borrower to such Significant Subsidiary.

"<u>Withdrawal Liability</u>" means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

"<u>Withholding Agent</u>" means the Borrower and the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority

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from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

SECTION 1.02. <u>Classification of Loans and Borrowings</u>. For purposes of this Agreement, Loans may be classified and referred to by Class (<u>e.g</u>., a "Revolving Loan") or by Type (<u>e.g</u>., a "Term SOFR Loan") or by Class and Type (<u>e.g</u>., a "Term SOFR Revolving Loan"). Borrowings also may be classified and referred to by Class (<u>e.g</u>., a "Revolving Borrowing") or by Type (<u>e.g</u>., a "Term SOFR Borrowing") or by Class and Type (<u>e.g</u>., a "Term SOFR Revolving Borrowing").

SECTION 1.03. <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". The word "law" shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.04. <u>Accounting Terms; GAAP</u>. Except as otherwise expressly provided herein, all terms of an accounting nature shall be construed in accordance with GAAP and all financial data submitted pursuant hereto shall be prepared in accordance with such principles, as in effect from time to time; <u>provided</u> that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such

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provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at "fair value", as defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

SECTION 1.05. <u>Rates</u>. The Term SOFR Rate is determined by reference to the Term SOFR Base Rate, which is derived from SOFR and Term SOFR, respectively. <u>Section</u> <u>2.14(b)</u> provides a mechanism for (a) determining an alternative rate of interest of a Benchmark is no longer available or in the other circumstances set forth in <u>Section 2.14(b)</u> and (b) modifying this Agreement to give effect to such alternative rate of interest. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission, or any other matter related to SOFR or Term SOFR or other rates in the definition of "Term SOFR Base Rate" or with respect to any alternative or successor rate thereto, or replacement rate thereof (including any Benchmark Replacement), including without limitation whether any such alternative, successor, or replacement reference rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to <u>Section 2.14(b)</u>, will have the same value as, or be economically equivalent to the replaced Benchmark. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of Alternate Base Rate, SOFR, Term SOFR, and any alternative, successor or replacement rates (including any Benchmark Replacement), or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Alternate Base Rate, SOFR, Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

SECTION 1.06. <u>Divisions</u>. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes

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into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

ARTICLE II

<u>THE CREDITS</u>

SECTION 2.01. <u>Commitments</u>. Subject to the terms and conditions set forth herein, each Lender (severally and not jointly) agrees to make Revolving Loans in dollars to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender's Credit Exposure exceeding such Lender's Commitment or (b) the sum of the total Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

SECTION 2.02. <u>Loans and Borrowings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; <u>provided</u> that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender's failure to make Loans as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 2.18</u>, each Revolving Borrowing shall be comprised entirely of ABR Loans or Term SOFR Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at its option may make any Term SOFR Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; <u>provided</u> that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;At the commencement of each Interest Period for any Term SOFR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $5,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $5,000,000; <u>provided</u> that an ABR Borrowing may be in an aggregate amount (i) that is equal to the entire unused balance of the total Commitments or (ii) that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Borrowings of more than one Type and Class may be outstanding at the same time; <u>provided</u> that there shall not at any time be more than a total of ten (10) Term SOFR Borrowings outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

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SECTION 2.03. <u>Requests for Revolving Borrowings</u>. To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Term SOFR Borrowing, not later than 1:00 p.m. (New York City time) three (3) Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, on not less than three (3) hours' notice before the time of the proposed Borrowing but in no event later than 1:00 p.m. (New York City time) on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or electronic communication to the Administrative Agent of a written Borrowing Request signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate amount of the requested Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the date of such Borrowing, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;whether such Borrowing is to be an ABR Borrowing or a Term SOFR Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Term SOFR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;the location and number of the Borrower's account to which funds are to be disbursed which shall comply with the requirements of Section 2.06.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Term SOFR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing. For Borrowings pursuant to Section <u>2.05(f)</u>, the Borrower shall not be required to provide such notice.

SECTION 2.04. <u>Swingline Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement to Make Swingline Loans</u>. Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Borrower from time to time during the Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $75,000,000 or (ii) the aggregate Credit Exposures exceeding the total Commitments; <u>provided</u> that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans. Each Swingline Loan shall be in an amount equal to $5,000,000 or a larger multiple of $500,000 or in an amount equal to the entire remaining available amount of Swingline Loan capacity so long as the aggregate principal amount of Swingline Loans that may be outstanding at any one time, as more fully set forth above, is not exceeded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Swingline Loans by the Borrower</u>. To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by hand delivery, by electronic communication or by telephone (confirmed by electronic communication) of a Borrowing Request, not later than 1:30 p.m. (New York City time) on the day of a proposed Swingline Loan. Each such Borrowing Request shall be irrevocable and shall specify the requested date (which shall be a Business Day), the amount of the requested Swingline Loan, and either (i) the account of the Borrower or its designee to which the funds are to be disbursed or (ii) the LC Issuer whose LC Disbursement is to be reimbursed as provided in Section 2.05(f). The Administrative Agent will promptly advise the Swingline Lender of any such Borrowing Request received from the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by 2:30 p.m. (New York City time) on the requested date of such Swingline Loan by means of a credit to the account of the Borrower specified by the Borrower to the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(f)**,** by remittance to the LC Issuer having made such LC Disbursement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations by Lenders in Swingline Loans</u>. The Swingline Lender may, by written notice given to the Administrative Agent not later than 10:00 a.m. (New York City time) on any Business Day, require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such notice to the Administrative Agent shall specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender's Applicable Percentage of such Swingline Loan or Swingline Loans. Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above in this paragraph, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender's Applicable Percentage of such Swingline Loan or Swingline Loans. Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this Section 2.04(c) is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, <u>mutatis mutandis,</u> to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear. The purchase of

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participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any liability for the repayment of such Swingline Loan.

SECTION 2.05. <u>Letters of Credit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. Subject to the terms and conditions set forth herein, in addition to the Loans provided for in Section 2.01, the Borrower may request an LC Issuer to, and such LC Issuer shall, issue, at any time and from time to time during the Availability Period, Letters of Credit for its own account in such form as is acceptable to such LC Issuer in its reasonable determination. Each Letter of Credit issued hereunder shall constitute utilization of the Commitments in an amount equal to the LC Exposure relating to such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Issuance, Amendment, Renewal or Extension</u>. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the LC Issuer) to such LC Issuer and the Administrative Agent (five (5) Business Days (or such shorter period as the applicable LC Issuer shall agree) in advance of the requested date of issuance, amendment, renewal or extension) an Issuance Notice signed by the Borrower. If requested by such LC Issuer, the Borrower also shall submit a letter of credit application on such LC Issuer's standard form in connection with any request for a Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any such letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, such LC Issuer relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the aggregate LC Exposure of the LC Issuers (determined for these purposes without giving effect to the participations therein of the Lenders pursuant to Section 2.05(e)) shall not exceed $50,000,000, (ii) the aggregate Credit Exposures shall not exceed the total Commitments and (iii) no LC Issuer's LC Exposure shall exceed the lesser of (A) its Commitment or (B) its LC Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;An LC Issuer shall not be under any obligation to issue any Letter of Credit if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) (1) any order, judgment or decree of any Governmental Authority or arbitrator by its terms purports to enjoin or restrain such LC Issuer from issuing such Letter of Credit or requests that such LC Issuer refrain from issuing such Letter of Credit, (2) any Law applicable to such LC Issuer prohibits the issuance of letters of credit generally or such Letter

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of Credit in particular, or (3) any such order, judgment, decree, or Law imposes upon such LC Issuer with respect to such Letter of Credit any restriction, reserve or capital or liquidity requirement (for which such LC Issuer is not otherwise compensated hereunder) not in effect on date such LC Issuer became an LC Issuer, or imposes upon such LC Issuer any unreimbursed loss, cost or expense that was not applicable on the date such LC Issuer became an LC Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the issuance of such Letter of Credit would violate one or more policies of such LC Issuer applicable to letters of credit generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;An LC Issuer shall be under no obligation to issue any amendment to any Letter of Credit if such LC Issuer would have no obligation at such time to issue the Letter of Credit in its amended form under the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Expiration Date</u>. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after the then-current expiration date of such Letter of Credit, so long as such renewal or extension occurs during the three months before such then-current expiration date) and (ii) the date that is five (5) Business Days prior to the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations</u>. By the issuance of a Letter of Credit (or any amendment, renewal or extension of a Letter of Credit) by an LC Issuer, and without any further action on the part of such LC Issuer or the Lenders, such LC Issuer hereby grants to each Lender, and each Lender hereby acquires from such LC Issuer, a participation in such Letter of Credit equal to such Lender's Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments.

In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for account of such LC Issuer, such Lender's Applicable Percentage of each LC Disbursement made by such LC Issuer that has not been timely reimbursed by the Borrower promptly upon the request of such LC Issuer at any time until such LC Disbursement is reimbursed by the Borrower or at any time after any reimbursement payment is required to be refunded to the Borrower for any reason. Such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each such payment shall be made in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, <u>mutatis mutandis</u>, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to such LC Issuer the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to Section 2.05(f), the Administrative Agent shall distribute such payment to such LC Issuer or, to the extent that the Lenders have made payments pursuant to this paragraph to reimburse such LC Issuer, then to such Lenders and such LC Issuer as their interests may appear.

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Any payment made by a Lender pursuant to this paragraph to reimburse such LC Issuer for any LC Disbursement shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement</u>. If an LC Issuer shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Issuer in respect of such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon (New York City time) on (i) the Business Day that the Borrower receives notice of such LC Disbursement, if such notice is received prior to 10:00 a.m. (New York City time) or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time, <u>provided</u> that the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or, if a Swingline Loan in the amount of such LC Disbursement will not cause the aggregate amount of outstanding Swingline Loans to exceed the amount that may be outstanding at any one time pursuant to Section 2.04(a), that such payment be financed with an ABR Borrowing or a Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower's obligation to make such payment in reimbursement of the LC Disbursement shall be discharged and replaced by the resulting ABR Borrowing or Swingline Loan.

If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender's Applicable Percentage thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations Absolute</u>. The Borrower's obligation to reimburse LC Disbursements as provided in Section 2.05(f) shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the LC Issuer under a Letter of Credit against presentation of a draft or other document that does not comply strictly with the terms of such Letter of Credit, and (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower's obligations hereunder.

Neither the Administrative Agent, the Lenders nor any LC Issuer, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of such LC Issuer; <u>provided</u> that the foregoing shall not be construed to excuse such LC Issuer from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by

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the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such LC Issuer's gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable judgment) when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;each LC Issuer may replace a purportedly lost, stolen, or destroyed original Letter of Credit or amendment thereto with a replacement marked as such or waive a requirement for its presentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;in the absence of gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and non-appealable judgment, an LC Issuer may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;an LC Issuer shall have the right, in its sole discretion, to decline to accept such documents and to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit.

This Section 2.05(g) shall establish the standard of care to be exercised by an LC Issuer when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted by applicable law, any standard of care stricter than the foregoing). Without limiting the foregoing, none of the Administrative Agent, the Lenders, the LC Issuers, and their respective Related Parties shall have any liability or responsibility by reason of (x) any presentation that includes forged or fraudulent documents or that is otherwise affected by the fraudulent, bad faith, or illegal conduct of the beneficiary or any other Person, (y) an LC Issuer declining to take up documents and make payment (A) against documents that are fraudulent or forged or for other reasons by which the LC Issuer is entitled not to honor a Letter of Credit or (B) following the Borrower's waiver of discrepancies with respect to such documents or request for honor of such documents, or (z) an LC Issuer retaining proceeds of a Letter of Credit based on an apparently applicable attachment order, blocking regulation, or third-party claim notified to such LC Issuer. No LC Issuer shall be responsible to the Borrower for, and no LC Issuer's rights and remedies against the Borrower shall be impaired by, any action or inaction of such LC Issuer required or permitted under any Law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including (I) the Laws or any order of a jurisdiction where such LC Issuer or the beneficiary is located or (II) the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements, or official commentary of the International Chamber of Commerce Banking Commission, the Bankers Association for Finance and Trade (BAFT), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such Laws or practice rules.

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Each LC Issuer shall have all of the benefits and immunities (but not the obligations) provided to the Administrative Agent in Article VIII with respect to any acts taken or omissions suffered by such LC Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Letter of Credit Documents pertaining to such Letters of Credit as fully as if the term "Administrative Agent" as used in Article VIII included such LC Issuer with respect to such acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Disbursement Procedures</u>. The LC Issuer shall promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The LC Issuer shall promptly after such examination notify the Administrative Agent and the Borrower by telephone (confirmed by electronic communication) of such demand for payment and whether the LC Issuer has made or will make an LC Disbursement thereunder; <u>provided</u> that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the LC Issuer and the Lenders with respect to any such LC Disbursement; <u>provided</u> <u>further</u> that no LC Issuer may issue a Letter of Credit unless, on or before the proposed date of issuance, such LC Issuer receives notice from the Administrative Agent that the conditions and requirements of Section 2.05(c) have been satisfied with respect to such proposed issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interim Interest</u>. If the LC Issuer shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the Alternate Base Rate <u>plus</u> the Applicable Margin; <u>provided</u> that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to Section 2.05(f), then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be for account of the LC Issuer, except that interest accrued on and after the date of payment by any Lender pursuant to Section 2.05(f) to reimburse the LC Issuer shall be for account of such Lender to the extent of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Collateralization</u>. To the extent not prohibited by the terms of the Indenture or any agreement with RUS pursuant to which the Borrower participates in a RUS loan or guarantee program and to the extent the consent of RUS is not required, if any of (i) an Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing more than 50% of the total LC Exposure) demanding the deposit of Cash Collateral pursuant to this paragraph (provided that no notice or demand shall be required upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII), or (ii) at any time there shall exist a Defaulting Lender, then (A) in the case of clause (i) above, the Borrower shall immediately Cash Collateralize in an amount equal to, in the case of clause (i) above, the LC Exposure as of such date plus any accrued and unpaid interest thereon), and (B) in the case of clause (ii) above, within one Business Day following the written request of the Administrative Agent or any LC Issuer (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the LC Issuers' Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Sections 2.19 and 2.20

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and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Grant of Security Interest</u>. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the LC Issuers and the Lenders, and agrees to maintain, a first priority security interest in all such Cash Collateral (including, without limitation, any associated deposit or security account and any financial assets (as defined in the Uniform Commercial Code as in effect from time to time in the State of New York) or other property held therein) as security for the LC Exposure under this Agreement or the Defaulting Lenders' obligation to fund participations in respect of Fronting Exposure, to be applied pursuant to clause (ii) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the LC Issuers as herein provided, or that the total amount of such Cash Collateral is less than the amount required by this Section 2.05(j), the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 2.05(j) in respect of Letters of Credit shall be applied to the satisfaction of the LC Exposure or the Defaulting Lender's obligation to fund participations in respect of Fronting Exposure (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein. Such Cash Collateral shall be applied, first, to any such LC Exposure or Fronting Exposure held by the LC Issuers as a result of acting in such capacities, pro rata among the LC Issuers, and second, to any LC Exposure held by each other Lender on a pro rata basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Requirement</u>. Cash Collateral provided upon an Event of Default shall no longer be required to be held as Cash Collateral pursuant to this Section 2.05(j) following the earlier of the satisfaction, waiver or cure of all Events of Default or the termination of all outstanding Letters of Credit, as applicable. Cash Collateral (or the appropriate portion thereof) provided to reduce any LC Issuer's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 2.05(j) following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) there exists Cash Collateral in excess of the Minimum Collateral Amount; <u>provided</u> that, the Person providing Cash Collateral and each LC Issuer may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations. In such case, any collateral provided hereunder shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived or earlier termination of all obligations to fund under all undrawn Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment</u>. The Administrative Agent shall invest the Cash Collateral from time to time held by it in such overnight U.S. treasury or similar short-term instruments as

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are selected by the Borrower and approved by the Administrative Agent, and shall maintain records adequate to determine the interest from time to time earned thereon. The Administrative Agent shall have no responsibility for any loss on any investments made by it with respect to the Cash Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>LC Issuer Agreements</u>. Unless otherwise requested by the Administrative Agent, each LC Issuer shall report in writing to the Administrative Agent (i) on the first Business Day of each calendar month, the daily activity (set forth by day) in respect of Letters of Credit during the immediately preceding week, including all issuances, extensions, amendments and renewals, all expirations and cancellations and all disbursements and reimbursements, (ii) on or prior to each Business Day on which such LC Issuer expects to issue, amend, renew or extend any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount of the Letters of Credit to be issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), it being understood that such LC Issuer shall not permit any issuance, renewal, extension or amendment resulting in an increase in the amount of any Letter of Credit to occur, (iii) on each Business Day on which such LC Issuer makes any LC Disbursement, the date of such LC Disbursement and the amount of such LC Disbursement, (iv) on any Business Day on which the Borrower fails to reimburse an LC Disbursement required to be reimbursed to such LC Issuer on such day, the date of such failure and the amount and currency of such LC Disbursement and (v) on any other Business Day, such other information as the Administrative Agent shall reasonably request.

SECTION 2.06. <u>Funding of Borrowings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding by Lenders</u>. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m. (New York City time) for Term SOFR Loans and by 2:30 p.m. (New York City time) for ABR Loans to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent and designated by the Borrower in the applicable Borrowing Request; <u>provided</u> that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent to such LC Issuer. Additionally, each Lender shall acquire participations in Swingline Loans as provided in Section 2.04(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender (x) in the case of ABR Loans, three (3) hours prior to the proposed time of such Borrowing and (y) otherwise, prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with this <u>Section</u> <u>2.06</u> and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender

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and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of a payment to be made by the Borrower, the interest rate applicable to ABR Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

SECTION 2.07. <u>Interest Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Term SOFR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Term SOFR Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to Swingline Borrowings, which may not be converted or continued. To make an election pursuant to this Section, the Borrower shall deliver to the Administrative Agent a signed Interest Election Request (or notify the Administrative Agent by telephone, each such telephonic Interest Election Request shall be irrevocable, and shall promptly be confirmed by delivery to the Administrative Agent of a signed Interest Election Request) by the time that a Borrowing Request would be required under <u>Section 2.03</u> if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or electronic communication to the Administrative Agent of a written Interest Election Request signed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each telephonic and written Interest Election Request shall specify the following information in compliance with <u>Section 2.02</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;whether the resulting Borrowing is to be an ABR Borrowing or a Term SOFR Borrowing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;if the resulting Borrowing is a Term SOFR Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period".

If any such Interest Election Request requests a Term SOFR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's duration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each resulting Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If the Borrower fails to deliver a timely Interest Election Request with respect to a Term SOFR Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Term SOFR Borrowing and (ii) unless repaid, each Term SOFR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

SECTION 2.08. <u>Termination and Reduction of Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Unless previously terminated, the Commitments shall terminate on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower may at any time terminate, or from time to time reduce, the Commitments; <u>provided</u> that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $10,000,000, (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with <u>Section 2.11</u>, the sum of the Credit Exposures would exceed the total Commitments and (iii) any reduction of the Commitments to an amount below the LC Commitments shall automatically reduce the LC Commitments on a dollar for dollar basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least five (5) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice

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delivered by the Borrower pursuant to this Section shall be irrevocable; <u>provided</u> that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Except as provided in <u>Sections</u> <u>2.19(c) and 2.20(c)</u>, each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

SECTION 2.09. <u>Increase in Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have the right at any time to increase the aggregate Commitments hereunder to an amount not in excess of the difference between $1,500,000,000 <u>minus</u> the aggregate amount of voluntary reductions in the total Commitments pursuant to <u>Section 2.08(b)</u>), and in a minimum amount of $25,000,000, by adding to this Agreement one or more other lenders (which may include any Lender, with the consent of such Lender, each such lender an "<u>Additional Lender</u>") with the approval of the Administrative Agent (which approval shall not be unreasonably withheld), each of which Additional Lenders shall be an Eligible Assignee and shall have entered into an agreement substantially in the form of <u>Exhibit A</u> and pursuant to which such Additional Lender shall undertake a Commitment (if any such Additional Lender is a Lender, its Commitment shall be in addition to such Lender's Commitment hereunder) which such Commitment shall be in an amount at least equal to $25,000,000 or a larger multiple of $1,000,000, and upon the effectiveness of such agreement (the date of the effectiveness of any such agreement being hereinafter referred to as the "<u>Increased</u> <u>Commitment Date</u>") such Additional Lender shall thereupon become a "Lender" for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the increase in the aggregate Commitments hereunder pursuant to this <u>Section 2.09</u> shall not be effective unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall have given the Administrative Agent notice of any such increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;no Default shall have occurred and be continuing as of the date of the notice referred to in the foregoing clause (i) or on the Increased Commitment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;if any Loans or Letters of Credit shall be outstanding hereunder, the Borrower shall have borrowed from each of the Additional Lenders, and the Additional Lenders shall have made, Loans to the Borrower (in the case of Term SOFR Loans, with Interest Period(s) ending on the date(s) of any then outstanding Interest Period(s)), the Additional Lenders shall have participated in the outstanding Letters of Credit and (notwithstanding the provisions of <u>Section 2.18</u> hereof requiring that borrowings and prepayments be made ratably in accordance with the principal amounts of the Loans held by the Lenders and notwithstanding the provisions of <u>Section 2.11</u>) the Borrower shall have prepaid the Loans held by

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the other Lenders in such amounts as may be necessary, so that after giving effect to such Loans and prepayments, the Loans (and Interest Period(s) of Term SOFR Loan(s)) shall be held by the Lenders pro rata in accordance with the respective amounts of their Commitments (as so increased); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;with respect to any Additional Lender that is a Foreign Lender, the Administrative Agent shall have received an opinion of counsel as to the enforceability of this Agreement under the law of the applicable jurisdiction of such Foreign Lender, in form and substance satisfactory to the Administrative Agent.

Each Lender may, but shall not have any right or obligation to, participate in any such increase. Promptly following any increase of Commitments pursuant to this Section, the Administrative Agent shall provide notice thereof to each of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;After giving effect to any such increase in the Commitments, the outstanding Loans, LC Exposure and Swingline Loans may not be held pro rata in accordance with the new Commitment. In order to remedy the foregoing, on each Increased Commitment Date, the Lenders (including any Additional Lenders) shall reallocate the Loans, LC Exposure and Swingline Loans owed to them among themselves so that, after giving effect thereto, the Loans will be held by the Lenders (including any Additional Lenders) on a pro rata basis in accordance with their respective Applicable Percentages (after giving effect to such increase in the Commitments). Each Lender agrees to wire immediately available funds to the Administrative Agent in accordance with this Agreement as may be required by the Administrative Agent in connection with the foregoing, and to execute any documents reasonably requested by the Administrative Agent to effectuate such changes. Notwithstanding the provisions of Sections 9.04(a) and (b), the reallocations so made by each Lender whose Applicable Percentage has increased shall be deemed to be a purchase of a corresponding amount of the Loans of the Lender or Lenders whose Applicable Percentage have decreased and shall not be considered an assignment for purposes of Sections 9.04(a) and (b).

SECTION 2.10. <u>Repayment of Loans; Evidence of Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date, and (ii) to the Administrative Agent for the account of the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the fifth day after such Swingline Loan is made; <u>provided</u> that on each date that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then outstanding. Unless otherwise specified herein, all Loans shall be due and payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender and the amount of any sum received by such Lender for the account of such Lender from time to time hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; <u>provided</u> that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement; <u>provided</u>, <u>further</u>, that in the event of a conflict between the records of the Lenders and the Administrative Agent, the Administrative Agent's records shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may request that Loans made by it be evidenced by a promissory note (such note, a "<u>Note</u>"). In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in the form of Exhibit D hereto or another form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to <u>Section 9.04</u>) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

SECTION 2.11. <u>Prepayment of Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall notify the Administrative Agent by telephone (confirmed by electronic communication) of any prepayment hereunder (i) in the case of prepayment of a Term SOFR Borrowing, not later than 11:00 a.m. (New York City time) three Business Days before the date of prepayment which shall be a Business Day, (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m. (New York City time) on the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 11:00 a.m. (New York City time) on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; <u>provided</u> that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by <u>Section 2.08,</u> then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with <u>Section 2.08</u>. Promptly following receipt of any such notice relating to a Borrowing or Swingline Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing or Swingline Borrowing shall be in an amount that would be permitted in the case of an advance of such Borrowing of the same Type as provided in

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<u>Section 2.02</u>. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by <u>Section 2.13</u> and, if applicable, any amounts required under <u>Section 2.16</u>.

SECTION 2.12. <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Facility Fees</u>. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a facility fee (the "<u>Facility Fee</u>"), which shall accrue at rate per annum equal to the Applicable Margin on the daily amount of the Commitment of each Lender (regardless of usage) during the period from and including the Effective Date to but excluding the date on which such Commitment terminates, <u>provided</u> that, if such Lender continues to have any Credit Exposure after its Commitment terminates, then the Facility Fee shall continue to accrue on the daily amount of such Lender's Credit Exposure from and including the date on which such Lender's Commitment terminates to but excluding the date on which such Lender ceases to have any Credit Exposure. Accrued Facility Fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof, <u>provided</u> that Facility Fees accruing after the termination of the Commitments shall be payable on demand. All Facility Fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>LC Issuer Fees</u>. The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender (including, without limitation, each LC Issuer) a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Margin used to determine the interest rate applicable to Term SOFR Loans on the average daily amount of such Lender's LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender's Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each LC Issuer, the LC Facility Fee during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which such LC Issuer ceases to have any LC Exposure, as well as such LC Issuer's standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and LC Facility Fees accrued and unpaid through and including the last day of March, June, September and December of each year shall be payable in arrears on such last day of such month, commencing on the first such date to occur after the Effective Date and on the Maturity Date; <u>provided</u> that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand. Any other fees payable to any LC Issuer pursuant to this paragraph shall be payable within ten (10) days after demand. All participation fees and LC Facility Fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Fee Letters</u>. The Borrower agrees to pay the Administrative Agent and the Joint Lead Arrangers, for their respective own accounts fees payable in the amounts and at the times as set forth in the Fee Letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Fees</u>. The Borrower agrees to pay such other fees (including upfront fees for the Lenders) as provided in the CoBank Fee Letter for the account of each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>In General</u>. All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the applicable LC Issuer, in case of fees payable to it) for distribution, in the case of the Facility Fee and LC Facility Fees, to the Lenders. Fees paid shall not be refundable under any circumstances.

SECTION 2.13. <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate <u>plus</u> the Applicable Margin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Loans comprising each Term SOFR Borrowing shall bear interest at the Term SOFR Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% <u>plus</u> the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% <u>plus</u> the rate applicable to ABR Loans as provided in paragraph (a) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the Commitments; <u>provided</u> that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Term SOFR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day (if payment is received prior to 12:00 noon, New York City time)). The applicable Alternate Base Rate or Term SOFR Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

SECTION 2.14. <u>Availability of Types of Borrowings; Adequacy of Interest Rate;</u> <u>Benchmark Replacement</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unavailability of SOFR</u>. Notwithstanding anything to the contrary in this Agreement or any other Loan Document, but subject to <u>Section 2.14(b)</u>, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Required Lenders notify the Administrative Agent that the Required Lenders have determined, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;for any reason in connection with any request for a Term SOFR Borrowing or a conversion or continuation thereof, that the applicable Benchmark with respect to such Term SOFR Borrowing does not adequately and fairly reflect the cost to such Lenders of the funding such Loans, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the interest rate applicable to any Term SOFR Borrowing is not ascertainable or available (including, without limitation, because the applicable Screen (or on any successor or substitute page on such screen) is unavailable) and such inability to ascertain or unavailability is not expected to be permanent,

then the Administrative Agent shall suspend the availability of the affected Term SOFR Borrowings and require any affected Term SOFR Borrowings to be repaid or converted to ABR Borrowings, subject to the payment of any funding indemnification amounts required by <u>Section</u> <u>2.16</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Transition Event</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (2) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth Business Day after the date notice of such Benchmark Replacement is provided by the Administrative Agent to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any

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amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, (B) the implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark Replacement Conforming Changes, (D) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (v) below and (E) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section 2.14(b)</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>2.14(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove any tenor of such Benchmark that is unavailable or non-representative for any Benchmark settings and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Unavailability Period</u>. Upon notice to the Borrower by the Administrative Agent in accordance with <u>Section 9.01</u> of the commencement of a Benchmark Unavailability Period with respect to Term SOFR and until a Benchmark Replacement is determined in accordance with this <u>Section 2.14(b)</u>, the Borrower may revoke any request for a Term SOFR Borrowing, or any request for the conversion or continuation of a Term SOFR Borrowing to be made, converted or continued during any Benchmark Unavailability Period at the end of the applicable Interest Period, and, failing that, the Borrower will be deemed to have converted any such request at the end of the

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applicable Interest Period into a request for an ABR Borrowing or conversion to an ABR Borrowing. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Alternate Base Rate.

SECTION 2.15. <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Term SOFR Rate) or any LC Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;subject any Recipient to any Taxes (other than (A) Indemnified Taxes , (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (C) Connection Income Taxes on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;impose on any Lender or any LC Issuer or any applicable interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation thereunder;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit or Swingline Loan), or to reduce the amount of any sum received or receivable by such Lender or such other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or such other Recipient, the Borrower will pay to such Lender or such other Recipient such additional amount or amounts as will compensate such Lender or such other Recipient for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Requirements</u>. If any Lender or LC Issuer determines that any Change in Law affecting such Lender or LC Issuer or any lending office of such Lender or such Lender's or LC Issuer's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or LC Issuer's capital or on the capital of such Lender's or LC Issuer's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by any LC Issuer, to a level below that which such Lender or LC Issuer or such Lender's or LC Issuer's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or LC Issuer's policies

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and the policies of such Lender's or LC Issuer's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or LC Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or LC Issuer or such Lender's or LC Issuer's or holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificates for Reimbursement</u>. A certificate of a Lender or LC Issuer setting forth the amount or amounts necessary to compensate such Lender or LC Issuer or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender or LC Issuer, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Delay in Requests</u>. Failure or delay on the part of any Lender or LC Issuer to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or LC Issuer's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender or LC Issuer pursuant to this Section for any increased costs incurred or reductions suffered more than 270 days prior to the date that such Lender or LC Issuer, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's or LC Issuer's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof).

SECTION 2.16. <u>Break Funding Payments</u>. In the event of (a) the payment or prepayment (voluntary or otherwise) of any principal of any Term SOFR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Term SOFR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Term SOFR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under <u>Section 2.11(b)</u> and is revoked in accordance therewith), or (d) the assignment of any Term SOFR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to <u>Section 2.19</u>, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

SECTION 2.17. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. For purposes of this <u>Section 2.17</u>, the term "applicable law" includes FATCA and the term "Lender" includes any LC Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as

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determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Lenders</u>. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 9.04(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.17, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting

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such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Status of Lenders</u>. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed original documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other original documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such original documentation (other than such documentation set forth in this Section 2.17(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 (or successor form) certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;any Foreign Lender shall, to the extent that it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E (or successor form) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E (or successor form) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;executed originals of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code or Other Applicable U.S. Tax Law, (x) a certificate substantially in the form of Exhibit B-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code or Other Applicable U.S. Tax Law, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code or Other Applicable U.S. Tax Law, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code or Other Applicable U.S. Tax Law (a "<u>U.S. Tax Compliance</u> <u>Certificate</u>") and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E (or successor form); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E (or, in each case, applicable successor forms), a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-2 or Exhibit B-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable in each case, evidencing an exemption from, or reduction of, U.S. federal withholding Tax; <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-4, together with executed original copies of the forms referenced therein, on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code or Other Applicable U.S. Tax Law, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code or Other Applicable U.S. Tax Law) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be

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necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Treatment of Certain Refunds.</u> If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified pursuant to Section 2.15 or this Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under Section 2.15 or this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this Section 2.17 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.18. <u>Payments Generally; Pro Rata Treatment; Sharing of Set-offs</u>. <u>Payments</u> <u>Generally</u>. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under <u>Section 2.15</u>, <u>2.16</u> or <u>2.17</u>, or otherwise) prior to 12:00 noon (New York City time) on the date when due, in immediately available funds, without set off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its office at Agency Services, 800 Nicollet Mall, Minneapolis, MN 55402, or such other office as to which the Administrative Agent

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may notify the other parties hereto, except payments to be made directly to any LC Issuer or Swingline Lender as expressly provided for herein and except that payments pursuant to <u>Sections</u> <u>2.15</u>, <u>2.16</u>, <u>2.17</u> and <u>9.03</u> shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Pro Rata Treatment</u>. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Sharing of Set-offs</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the provisions of this paragraph shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. This Section 2.18(c) shall not apply to any action taken

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by CoBank with respect to any CoBank Equities held by the Borrower or any cash patronage, whether on account of foreclosure of any Lien thereon, retirement and cancellation of the same, exercise of setoff rights or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments by Borrower; Presumptions by the Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the LC Issuers hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the LC Issuers, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the LC Issuers, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or LC Issuer with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;If any Lender shall fail to make any payment required to be made by it pursuant to <u>Section 2.02(c)</u>, <u>2.04(b)</u> or <u>(e)</u>, <u>2.05</u>, <u>2.18(d)</u> or <u>9.03(c)</u>, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender's obligations under such Sections until all such unsatisfied obligations are fully paid.

SECTION 2.19. <u>Mitigation Obligations; Replacement of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Designation of a Different Lending Office</u>. If any Lender gives notice pursuant to <u>Section 2.14(b)</u>, requests compensation under <u>Section 2.15</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section 2.17</u> then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section 2.15</u> or <u>2.17</u>, as the case may be, in the future, (ii) would eliminate the circumstance under which such notice pursuant to <u>Section 2.14(b)</u> was necessitated, and (iii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Replacement of Lenders</u>. If (i) any Lender gives a notice pursuant to <u>Section 2.14(b)</u> that results in the imposition of the Alternate Base Rate as set forth therein, (ii) any Lender requests compensation under <u>Section 2.15</u>, (iii) if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section 2.17</u> and, in each case, such

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Lender has declined or is unable to designate a different lending office in accordance with <u>Section 2.19(a)</u>, or (iv) if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, <u>Section 9.04</u>), all of its interests, rights (other than its existing rights to payments pursuant to <u>Section 2.15</u> or <u>Section 2.17</u>) and obligations (including, if applicable, obligations as an LC Issuer) under this Agreement and the related Loan Documents to an Eligible Assignee selected by Borrower that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall have received the prior written consent of the Administrative Agent (and if a Commitment is being assigned, each LC Issuer and the Swingline Lender, which consent shall not be unreasonably withheld) and the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in <u>Section 9.04</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under <u>Section 2.16</u>) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;in the case of any such assignment resulting from a claim for compensation under <u>Section 2.15</u> or payments required to be made pursuant to <u>Section 2.17</u>, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;such assignment does not conflict with applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If any Lender fails to maintain a short term rating of at least A-1 or equivalent from each Major Rating Agency providing a short term rating to such Lender, then the Borrower may, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in <u>Section 9.04</u>), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that (i) no Event of Default shall have occurred and be continuing, (ii) the Borrower shall have received the prior

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written consent of the Administrative Agent (and if a Commitment is being assigned, each LC Issuer and the Swingline Lender), which consent shall not unreasonably be withheld and (iii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Noticing Lender Commitment Decrease</u>. In addition to the rights of the Borrower set forth in <u>Section 2.19(b)</u>, if (i) any Lender requests compensation under <u>Section 2.15</u>, or (ii) if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section 2.17</u> and, in each case, such Lender (the "<u>Noticing Lender</u>") has declined or is unable to designate a different lending office in accordance with <u>Section 2.19(a)</u>, the Borrower may terminate the unused amount of the Commitment of any Noticing Lender upon not less than five (5) Business Days' prior notice to the Administrative Agent (which shall promptly notify the Lenders thereof). Immediately after giving effect to any such Commitment decrease, the Lenders, including the Noticing Lender, shall reallocate the Loans and Fronting Exposure owed to them among themselves so that, after giving effect thereto, the Loans will be held by the Lenders on a pro rata basis in accordance with their respective Applicable Percentages (calculated without regard to such Noticing Lender's Commitment). Each Lender agrees to wire immediately available funds to the Administrative Agent in accordance with this Agreement as may be required by the Administrative Agent in connection with the foregoing (such that the Noticing Lender shall have received payment of an amount equal to the outstanding principal of its reallocated Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder (including any amounts under <u>Section 2.16</u>) from the other Lenders (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts)), and to execute any documents reasonably requested by the Administrative Agent to effectuate such changes; <u>provided</u> that (i) no Event of Default shall have occurred and be continuing, (ii) such termination shall not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, any LC Issuer, the Swingline Lender or any Lender may have against the Noticing Lender or of the Noticing Lender against the Borrower with respect to the period prior to the termination of its Commitment (including with respect to amounts claimed by such Noticing Lender under <u>Sections 2.15</u> or <u>2.17</u>), and (iii) such reallocation does not cause the aggregate Credit Exposure of any Lender to exceed such Lender's Commitment.

SECTION 2.20. <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any LC Issuer or Swingline Lender hereunder; *third*, to Cash Collateralize the LC Issuers' Fronting Exposure with respect to such Defaulting Lender in accordance with Section 2.05; *fourth*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *fifth*, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the LC Issuers' future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 2.05; *sixth*, to the payment of any amounts owing to the Lenders, the LC Issuers or Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the LC Issuers or Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *seventh*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *eighth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the applicable conditions set forth in Article IV were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in LC Exposure and Swingline Loans are held by the Lenders pro rata in accordance with the Commitments without giving effect to Section 2.20(a)(iv). Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.20(a)(ii)

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shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Fees</u>. Each Defaulting Lender shall be entitled to receive a Facility Fee for any period during which that Lender is a Defaulting Lender only to extent allocable to the outstanding principal amount of the Loans funded by it plus its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 2.05. With respect to any Facility Fees not required to be paid to any Defaulting Lender pursuant to this clause (iii), the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in LC Exposure or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to each LC Issuer and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such LC Issuer's or Swingline Lender's Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such Facility Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reallocation of Participations to Reduce Fronting Exposure</u>. All or any part of such Defaulting Lender's LC Exposure and participation in Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lender's Commitment) but only to the extent that (x) the applicable conditions set forth in Article IV are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender's Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Collateral, Repayment of Swingline Loans</u>. If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Lender's Fronting Exposure and (y) second, Cash Collateralize the LC Issuers' Fronting Exposure in accordance with the procedures set forth in Section 2.05.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Cure</u>. If the Borrower, the Administrative Agent and each Swingline Lender and LC Issuer agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other

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Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable Facility (without giving effect to Section 2.20(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>New Swingline Loans/Letters of Credit</u>. So long as any Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) no LC Issuer shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Defaulting Lender</u>. The Borrower may terminate the unused amount of the Commitment of any Lender that is a Defaulting Lender upon not less than sixty (60) days' prior written notice to the Administrative Agent (which shall promptly notify the Lenders thereof), and in such event the provisions of <u>Section</u> <u>2.20(a)(ii)</u> will apply to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); <u>provided</u> that (i) no Event of Default shall have occurred and be continuing, and (ii) such termination shall not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, any LC Issuer, the Swingline Lender or any Lender may have against such Defaulting Lender.

ARTICLE III

<u>REPRESENTATIONS AND WARRANTIES</u>

The Borrower represents and warrants to the Lenders that:

SECTION 3.01. <u>Organization; Powers</u>. Each of the Borrower and its Significant Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.

SECTION 3.02. <u>Authorization; Enforceability</u>. The Transactions are within the Borrower's corporate powers and have been duly authorized by all necessary corporate and, if required, Member action. This Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other

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laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

SECTION 3.03. <u>Investment Company Act Status</u>. Neither the Borrower nor any of its Significant Subsidiaries is an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

SECTION 3.04. <u>Margin Regulations</u>. Neither the Borrower nor any Significant Subsidiary is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" as such terms are defined in Regulation U of the Board as now and from time to time hereafter in effect (such securities being referred to herein as "<u>Margin Stock</u>"). None of the proceeds of the Loans or other extensions of credit under this Agreement has been used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any of the Loans or other extensions of credit under this Agreement to be considered a "purpose credit" within the meaning of Regulations T, U or X of the Board. Neither the Borrower nor any Significant Subsidiary will take or permit to be taken any action that might cause any Loan Document to violate any regulation of the Board.

SECTION 3.05. <u>Governmental Approvals; No Conflicts</u>. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Significant Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under the Indenture or any other material agreement binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Significant Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any material asset of the Borrower or any of its Significant Subsidiaries (other than as contemplated by this Agreement).

SECTION 3.06. <u>Financial Condition</u>. The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, Members equity and cash flows as of and for the fiscal year ended December 31, 2024, reported on by Deloitte and Touche LLP, independent public accountants, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP.

SECTION 3.07. <u>Properties</u>. Each of the Borrower and its Significant Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for defects in title that do not interfere with their ability to conduct their businesses taken as a whole as currently conducted or to utilize such properties for their intended purposes.

SECTION 3.08. <u>Compliance with Laws</u>. Each of the Borrower and its Significant Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority

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(excluding employment laws and laws otherwise addressed in this Article but including the Patriot Act) applicable to it or its property, except (other than in the case of the Patriot Act) as could not reasonably be expected to result in a Material Adverse Change.

SECTION 3.09. <u>Taxes</u>. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Change.

SECTION 3.10. <u>ERISA</u>. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Change.

SECTION 3.11. <u>Insurance</u>. The Borrower has and each of its Significant Subsidiaries has adequate insurance coverage which is prudent and customary to the industry and location of the Borrower and its Significant Subsidiaries.

SECTION 3.12. <u>Corporate Structure</u>. All of the issued and outstanding ownership interests of each Significant Subsidiary are owned by the Borrower. There are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which Borrower or any Significant Subsidiary may be required to issue, sell, repurchase or redeem any of its ownership interests or other equity securities or any ownership interests or other equity securities of its subsidiaries.

SECTION 3.13. <u>No Material Adverse Change</u>. Since December 31, 2024, there has been no Material Adverse Change.

SECTION 3.14. <u>Wholesale Power Contracts</u>. No senior officer of the Borrower has any actual knowledge of a payment default by any Member under a Wholesale Power Contract that has occurred and is continuing. The Borrower has provided the Administrative Agent with true and correct copies of the Wholesale Power Contracts and such Wholesale Power Contracts are valid, binding and enforceable against the Borrower.

SECTION 3.15. <u>Environmental Matters</u>. Except for the Disclosed Matters or except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, neither the Borrower nor any of its Subsidiaries (i) is in violation of any Environmental Law or has failed to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) is subject to any Environmental Liability, (iii) has received notice of any claim with respect to any unresolved Environmental Liability or (iv) no senior officer of the Borrower has any knowledge of any basis for any unresolved Environmental Liability.

SECTION 3.16. <u>Litigation</u>. Except for the Disclosed Matters, there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against and no senior officer of the Borrower has knowledge of any actions, suits or proceedings by or before any arbiter or threatened against or affecting the Borrower or any of its Significant Subsidiaries (i) that

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could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Change (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions.

SECTION 3.17. <u>Disclosure</u>. (a) Neither the Information Materials nor any of the other reports, financial statements, certificates or other information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) as of the date of delivery thereof, taken as a whole, and in light of the circumstances under which such statements were made, contains any untrue statement of material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading; <u>provided</u> that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time; <u>provided</u> further, that no representation or warranty is made with respect to any information provided or supplied by the Administrative Agent or any Lender in the Information Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No senior officer of the Borrower has knowledge of any event that has occurred since December 31, 2024, or exists which could reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, the information included in any Beneficial Ownership Certification is true, correct and complete in all respects.

SECTION 3.18. <u>Defaults</u>. (a) No Default has occurred and is continuing, and (b) no "Event of Default" (as defined in the Indenture or in the debt instruments related to Material Indebtedness) has occurred and is continuing under the Indenture or any other Material Indebtedness.

SECTION 3.19. <u>Anti-Corruption Laws and Sanctions</u>. The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, proceeds thereof or other Transactions has been or is intended to be used (i) for the purpose of violating any Anti-Corruption Laws or (ii) in violation of applicable Sanctions. References in this Section 3.19 are to directors, officers, employees and agents only to the extent that any such individual is acting within the scope of his or her relationship with the Borrower or one of its Subsidiaries.

SECTION 3.20. <u>Affected Financial Institution</u>. The Borrower is not an Affected Financial Institution.

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SECTION 3.21. <u>Benefit Plans</u>. As of the Effective Date, the Borrower is not and will not be using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans or the Commitments.

ARTICLE IV

<u>CONDITIONS</u>

SECTION 4.01. <u>Conditions to Effective Date</u>. The obligations of the Lenders to make Loans and of any LC Issuer to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with <u>Section 9.02</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Mark D. Foss, Esq., Senior Vice President and General Counsel of the Borrower and Orrick, Herrington & Sutcliffe LLP, counsel for the Borrower, in form and substance reasonably satisfactory to the Administrative Agent, and covering such other matters relating to the Borrower, this Agreement or the Transactions as the Required Lenders shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received a Note for each Lender that shall have requested one, signed on behalf of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Borrower, the authorization of the Transactions and any other legal matters relating to the Borrower, the Loan Documents or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Receipt and satisfactory review by the Administrative Agent and the Lenders of such financial information including audited financial statements for fiscal years ended 2024, 2023 and 2022, and financial information, regarding the Borrower and its Subsidiaries, as the Lenders may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the Chief Executive Officer and General Manager, a Vice President or a Financial Officer of the Borrower, confirming (i) the representations and warranties of the Borrower set forth in this Agreement shall be true and correct on and as of the Effective Date and (ii) no Default shall have occurred and be continuing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The absence of any action, suit, investigation or proceeding pending or, to the knowledge of a senior officer of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;The absence of any material adverse change since December 31, 2024, in the condition, financial condition, business, assets, liabilities (actual and contingent) or operations of the Borrower and its Significant Subsidiaries, taken as whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall be in compliance with all existing material financial obligations and all obligations under each Wholesale Power Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;If requested by the Administrative Agent, receipt by the Administrative Agent of copies of the Wholesale Power Contracts, each of which shall be certified by the Borrower to be true and complete and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received a copy of Borrower's investment policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have paid all fees and reimbursed all expenses as the Borrower shall have agreed to pay to any Lender or the Administrative Agent on or prior to the Effective Date in connection with the negotiation, preparation, execution and delivery of this Agreement and the other Loan Documents and the extensions of credit hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;The Lenders shall have received all documentation and other information required by Governmental Authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;The Lenders shall have completed and be reasonably satisfied with such due diligence as the Lenders decide to conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Borrower of the Loan Documents (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for such as have been obtained or made and are in full force and effect, (ii) will not violate any applicable law or regulation or the organizational documents of the Borrower or any order of any Governmental Authority, and (iii) will not result in the creation or imposition of any Lien on any asset of the Borrower (other than Liens permitted under <u>Section 6.02</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;At least two days prior to the Effective Date, if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall have delivered to any applicable Lender a Beneficial Ownership Certification in relation to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received evidence that the commitments under (i) that certain Amended and Restated Credit Agreement dated as of September 30, 2021, by and among the Borrower, the lenders party thereto and U.S. Bank

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National Association, as administrative agent and (ii) that certain Amended and Restated Credit Agreement dated as of August 9, 2022, by and among the Borrower, the lenders party thereto and U.S. Bank National Association as administrative agent, in each case, have been terminated and all loans outstanding thereunder together with accrued and unpaid interest thereon and accrued and unpaid fees and other amounts thereunder have been paid.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of any LC Issuer to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section 9.02</u>) at or prior to 1:00 p.m. (New York City time) on May 31, 2025 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

SECTION 4.02. <u>Conditions to Each Loan or Letter of Credit</u>. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of any LC Issuer to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Borrower set forth in this Agreement (other than, in the case of a Borrowing made after the Effective Date, the representations and warranties in <u>Sections 3.13</u>, <u>3.14</u>, <u>3.15</u>, <u>3.16</u>, <u>3.17</u> and <u>3.18(b)</u>) shall be true and correct on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, <u>provided</u> that <u>Section 3.08</u> shall be deemed to be true and correct unless any material non-compliance of the type referred to therein has resulted in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing.

Each such Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

ARTICLE V

<u>AFFIRMATIVE COVENANTS</u>

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

SECTION 5.01. <u>Financial Statements; Ratings Change and Other Information</u>. The Borrower will furnish to the Administrative Agent and each Lender:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;within one hundred and twenty (120) days after the end of each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2025), the audited consolidated balance sheet and related statements of operations, changes in equity and cash flows of the Borrower and its Subsidiaries as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Deloitte & Touche LLP or other independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ending March 31, 2025), the consolidated balance sheet and related statements of operations, changes in equity and cash flows of the Borrower and its Subsidiaries as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Sections 5.10</u> and <u>5.11</u> (and, in the case of a certificate delivered with the financial statements under clause (a) above, Section 5.09) and (iii) stating whether any change in the critical accounting policies of the Borrower or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section 3.06</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower and within one hundred and twenty (120) days after the end of each fiscal year of the Borrower, a certificate of a Financial Officer listing the aggregate value of any collateral posted by the Borrower and its Significant Subsidiaries pursuant to any Swap Agreement or other derivative instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;promptly after Moody's, Fitch or S&P shall have announced a change in the rating established for the Index Debt, written notice of such rating change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon becoming available, copies of any RUS Form 12a (or equivalent RUS filing) filed by the Borrower or any of its Significant Subsidiaries with the United States Government;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Borrower or any Significant Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request and (ii) such other information with documentation required by Governmental Authorities under applicable "know your customer" and anti money laundering rules and regulations (including the Patriot Act and the Beneficial Ownership Regulation), as from time to time may be reasonably requested by the Administrative Agent or such Lender.

SECTION 5.02. <u>Notices of Material Events</u>. The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate thereof that could reasonably be expected to result in a Material Adverse Change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any new Wholesale Power Contract, or any material adverse change to or termination of any Wholesale Power Contract, the Borrower's investment policy or the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any change in the Borrower's fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in parts (c) or (d) of such certification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any other development that results in, or could reasonably be expected to result in, a Material Adverse Change; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon receipt of any default notices under the Indenture, a copy of such default notice.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

In addition to other methods of delivery available to the Borrower hereunder, information required to be delivered pursuant to <u>Section 5.01</u> or <u>5.02</u> shall be deemed to have been delivered if such information shall have been posted by the Administrative Agent on DebtX, IntraLinks, Syndtrak or similar Electronic System to which each Lender has been granted access. Information delivered pursuant to <u>Section 5.01</u> or <u>5.02</u> may also be delivered by electronic communications

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pursuant to procedures approved by the Administrative Agent. The Borrower hereby acknowledges that the Administrative Agent and/or the Joint Lead Arrangers will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, "<u>Borrower Materials</u>") by posting the Borrower Materials on such Electronic System, in each case subject to the confidentiality obligations of the Lenders set forth herein.

SECTION 5.03. <u>Existence; Conduct of Business</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change; <u>provided</u> that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under <u>Section 6.03</u>.

SECTION 5.04. <u>Payment of Obligations</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could reasonably be expected to result in a Material Adverse Change, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Significant Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Change.

SECTION 5.05. <u>Reserved</u>.

SECTION 5.06. <u>Books and Records; Inspection Rights</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each of its Significant Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.

SECTION 5.07. <u>Compliance with Laws</u>. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. References in this Section 5.07 are to directors, officers, employees and agents only to the extent that any such individual is acting within the scope of his or her relationship with the Borrower or one of its Subsidiaries.

SECTION 5.08. <u>Use of Proceeds</u>. The proceeds of the Loans will be used for working capital and other general corporate purposes. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X. The Borrower will not request any Borrowing or

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Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees, agents shall not use, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

SECTION 5.09. <u>Margins for Interest Ratio</u>. The Borrower will maintain a Margins for Interest ratio (as defined in the Indenture) for each fiscal year of at least 1.10:1.00 calculated in accordance with Section 13.14 of the Indenture.

SECTION 5.10. <u>Indenture Covenants</u>. The Borrower will comply with the covenants of Article XIII of the Indenture (except, for avoidance of doubt, the covenants in Section 13.14 of the Indenture), <u>provided</u> that if the Indenture ceases to be in effect at any time, unless and until the Borrower and Required Lenders agree in writing to the contrary, the provisions in the Indenture immediately prior to its ceasing to be in effect shall govern. Each waiver or amendment of an Indenture covenant and each cure of a breach of an Indenture covenant by the parties to the Indenture shall be binding on the parties hereto and the Indenture covenants shall be deemed to be waived or amended to the same extent, or the breach thereof shall be deemed cured to the same extent as under the Indenture.

SECTION 5.11. <u>Equity Balance</u>. The Borrower will maintain a minimum Equity Balance as of the end of each fiscal quarter, beginning with the fiscal quarter ending December 31, 2024, in an amount no less than the greater of (a) 85% of the Equity Balance at the end of the next preceding fiscal year and (b) $1 billion.

SECTION 5.12. <u>CoBank Equity and Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as CoBank (or its affiliate) is a Lender hereunder, the Borrower will (i) maintain its status as an entity eligible to borrow from CoBank (or its affiliate) and (ii) acquire equity in CoBank in such amounts and at such times as CoBank may require in accordance with CoBank's Bylaws and Capital Plan (as each may be amended from time to time), except that the maximum amount of equity that the Borrower may be required to purchase in CoBank in connection with the Loans made by CoBank (or its affiliate) may not exceed the maximum amount permitted by the Bylaws and the Capital Plan at the time this Agreement is entered into. The Borrower acknowledges receipt of a copy of (x) CoBank's most recent annual report, and if more recent, CoBank's latest quarterly report, (y) CoBank's Notice to Prospective Stockholders and (iii) CoBank's Bylaws and Capital Plan, which describe the nature of all of the CoBank Equities as well as capitalization requirements, and agrees to be bound by the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each party hereto acknowledges that CoBank's Bylaws and Capital Plan (as each may be amended from time to time) shall govern (i) the rights and obligations of the parties with respect to the CoBank Equities and any patronage refunds or other distributions made on account thereof or on account of the Borrower's patronage with CoBank, (ii) the Borrower's eligibility for patronage distributions from CoBank (in the form of CoBank Equities and cash) and (iii) patronage distributions, if any, in the event of a sale of a participation interest. CoBank reserves the right to

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assign or sell participations in all or any part of its (or its affiliate's) Commitments or outstanding Loans hereunder on a non-patronage basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein or in any other Loan Document, each party hereto acknowledges that: (i) CoBank has a statutory first Lien pursuant to the Farm Credit Act of 1971 (as amended from time to time) on all CoBank Equities that the Borrower may now own or hereafter acquire, which statutory Lien shall be for CoBank's (or its affiliate's) sole and exclusive benefit; (ii) during the existence of any Event of Default, CoBank may at its sole discretion, but shall not be required to, foreclose on its statutory first Lien on the CoBank Equities and/or set off the value thereof or of any cash patronage against the Obligations; (iii) during the existence of any Event of Default, CoBank may at its sole discretion, but shall not be required to, without notice except as required by applicable law, retire and cancel all or part of the CoBank Equities owned by or allocated to the Borrower in accordance with the Farm Credit Act of 1971 (as amended from time to time) and any regulations promulgated pursuant thereto in total or partial liquidation of the Obligations for such value as may be required pursuant applicable law and CoBank's Bylaws and Capital Plan (as each may be amended from time to time); (iv) the CoBank Equities shall not constitute security for the Obligations due to the Administrative Agent, any Lender or any other Lender Party; (v) to the extent that any of the Loan Documents create a Lien on the CoBank Equities, such Lien shall be for CoBank's (or its affiliate's) sole and exclusive benefit and shall not be subject to pro rata sharing hereunder; (vi) any setoff effectuated pursuant to the preceding clauses (ii) or (iii) may be undertaken whether or not the Obligations are currently due and payable; and (vii) CoBank shall have no obligation to retire the CoBank Equities upon any Event of Default, Default or any other default by the Borrower, or at any other time, either for application to the Obligations or otherwise. The Borrower acknowledges that any corresponding tax liability associated with CoBank's application of the value of the CoBank Equities to any portion of the Obligations is the sole responsibility of the Borrower.

ARTICLE VI

<u>NEGATIVE COVENANTS</u>

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

SECTION 6.01. <u>Indebtedness</u>. The Borrower will not create, incur, assume or permit to exist any Indebtedness, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness created hereunder (or any successor unsecured credit facility or facilities primarily intended for general corporate purposes, including commercial paper back up, in replacement thereof), or commercial paper in respect of which the Borrower shall have conditional liquidity available in the event of a failed placement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness of the Borrower to any wholly-owned Subsidiary or guarantees by the Borrower of any Indebtedness of any wholly-owned Subsidiary owing to any other wholly-owned Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;unsecured Indebtedness, including (i) Indebtedness created under the CFC Facility or commercial paper backed by the CFC Facility and (ii) Indebtedness to any Farm Credit Lender or relating to Indebtedness to Members, in an amount which, together with Indebtedness under clause (b)(ii) shall not exceed $1,500,000,000 in the aggregate, other than Indebtedness permitted under clauses (a), (c) or (e) of this Section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;reimbursement under any surety, indemnity, performance, release and appeal bonds and guarantees thereof and letters of credit, in each case, required in the ordinary course of business or in connection with the enforcement of rights or claims of the Borrower or any wholly-owned Subsidiary.

The Borrower will not incur Indebtedness (including without limitation Indebtedness created hereunder) in excess of the amount authorized under then-current approvals from the Federal Energy Regulatory Commission to the extent the incurrence of such Indebtedness is subject thereto.

SECTION 6.02. <u>Liens</u>. The Borrower will not create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except Liens of the Indenture, Liens not prohibited by the Indenture and CoBank's Liens (including the right of setoff) in the CoBank Equities and in any cash patronage in respect thereof.

SECTION 6.03. <u>Fundamental Changes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not, and will not permit any Significant Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets, or all or substantially all of the stock or ownership interests of any of its Significant Subsidiaries, or liquidate or dissolve (each of such transactions, a "<u>Fundamental Transaction</u>"), except that, (x) if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing (i) any Person may merge into the Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Person (other than the Borrower) may merge into any Significant Subsidiary in a transaction in which the surviving entity is a Significant Subsidiary, (iii) any Significant Subsidiary may sell, transfer, lease or otherwise dispose of

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its assets to the Borrower or to another Significant Subsidiary and (iv) any Significant Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower, and (y) if at the time thereof and immediately after giving effect thereto (A) no Default shall have occurred and be continuing, and (B) the Borrower shall be in compliance with the covenants set forth in <u>Sections 5.09</u>, <u>5.10</u> and <u>5.11</u>, in each case calculated on a pro forma basis after giving effect to the applicable Fundamental Transaction as if such Fundamental Transaction occurred on the first date of the applicable testing period, any Significant Subsidiary may consummate any Fundamental Transaction if the Borrower (or such Significant Subsidiary if it remains a Significant Subsidiary) receives fair market value in consideration therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not, and will not permit any of its Significant Subsidiaries to, engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Significant Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not make or permit any modification, supplement or waiver of any of the provisions of its charter, bylaws or any other organizational document of the Borrower or any of its Significant Subsidiaries that could reasonably be expected to be adverse to the Lenders.

SECTION 6.04. <u>Investments, Loans, Advances, Guarantees and Acquisitions</u>. The Borrower will not purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of Indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except (i) investments by the Borrower consistent with its investment policy or as otherwise approved by the Board of Directors, (ii) investments permitted under <u>Section 6.03</u>, (iii) any Guarantees permitted under Section 6.01, or (iv) the CoBank Equities and any other stock or securities of, or investments in, CoBank or its investment services or programs.

SECTION 6.05. <u>Transactions with Affiliates</u>. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates (other than any wholly-owned Subsidiary), except (a) loans and sales of tangible assets to such Affiliates for arm's length, market-based compensation are permitted along with other transactions that, in the opinion of a senior officer of the Borrower, have a substantial business purpose, and equity contributions to such Affiliates reflected as such on the Borrower's balance sheet will be permitted or (b) transactions at prices and on terms no less favorable to the Borrower than could be obtained at an arm's length basis from unrelated third parties will be permitted.

SECTION 6.06. <u>Termination of Wholesale Power Contracts</u>. The Borrower will not terminate Wholesale Power Contracts that at the time represent, individually or in the aggregate, more than 25% of the Borrower's prior year's revenue.

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SECTION 6.07. <u>Indenture Covenants</u>. The Borrower will not violate any covenant in Article XIII of the Indenture.

SECTION 6.08. <u>Swap Agreements</u>. The Borrower will not, and will not permit its Significant Subsidiaries to, enter into any Swap Agreement for speculative purposes.

ARTICLE VII

<u>EVENTS OF DEFAULT</u>

SECTION 7.01. <u>Events of Default</u>. If any of the following events ("<u>Events of Default</u>") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise, or (ii) the Borrower shall fail to pay any interest on any Loan when and as the same shall become due and payable and such failure under this clause (a)(ii) shall continue unremedied for a period of five (5) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to pay any fee or any other amount (other than an amount referred to in clause (a) of this Section 7.01) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made or deemed made by or on behalf of the Borrower in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to observe or perform any covenant, condition or agreement contained in <u>Section 5.02(a)</u>, <u>(b)</u> or <u>(d)</u>, <u>5.03</u> (with respect to the Borrower's existence), <u>5.08</u>, <u>5.09</u>, or <u>5.11</u> or in <u>Article VI</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Section 7.01), and such failure shall continue unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or, if remedial action has been taken and the Borrower is diligently pursuing a cure, sixty (60) days after notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower or any Significant Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable and such failure shall continue after the expiration of any grace period with respect thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any non-monetary default occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity, or results in the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf causing any Material Indebtedness to become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Significant Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrate, conservator or similar official for the Borrower or any Significant Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower or any Significant Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 7.01, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Significant Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;this Agreement shall at any time for any reason cease to be valid and binding or in full force and effect (other than upon expiration in accordance with the terms hereof) or performance of any material obligation hereunder of the Borrower shall become unlawful, or the Borrower shall so assert in writing or contest the validity or enforceability hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;one or more judgments for the payment of money (which judgments are not, within thirty (30) days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay) in excess, individually or in the aggregate, of lesser of (a) 15% of the Borrower's prior fiscal year ending Equity Balance and (b) $25,000,000**;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall have breached, willfully or grossly negligently, its obligation to promptly copy the Administrative Agent on any default notices that it sends to, or receives from, the holder of any debt under the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;if any one or more Members of the Borrower representing more than 25% of the Borrower's prior year's revenue shall (a) default in the performance of any payment obligations under its or their Wholesale Power Contracts where the aggregate principal amount of such default or defaults exceeds, individually or in the aggregate, $25,000,000 and such default or defaults have continued five (5) days beyond any applicable cure and notice period with respect thereto, or (b) obtain a final order or judgment from a court or regulatory agency of competent jurisdiction, which judgment or order either (i) declares invalid or unenforceable all or a material part of its or their Wholesale Power Contracts, or (ii) results in the release or discharge, in whole or in part, of its or their payment obligations thereunder;

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately; and (ii) declare the Loans to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

SECTION 7.02. <u>Allocation of Proceeds</u>. If an Event of Default has occurred and not been waived, and the maturity of the Loans has been accelerated pursuant to this Article VII, all payments received by the Administrative Agent hereunder in respect of any principal of or interest on the obligations of the Borrower hereunder, or any other amounts payable by the Borrower hereunder, shall be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;first, to amounts due to the Administrative Agent pursuant to Sections 2.12 and 9.03;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;second, to amounts due to the Lenders pursuant to Sections 2.12 and 9.03, to be applied for the ratable benefit of the Lenders (based on the amounts owing to each Lender at such time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;third, to payments of interest on Loans, to be applied for the ratable benefit of the Lenders (based on the amounts accrued for the account of each Lender at such time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;fourth, to payments of principal of Loans, to be applied for the ratable benefit of the Lenders (based on the amounts owing to each Lender at such time);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;fifth, to payments of all other amounts due by the Borrower under any of the Loan Documents, if any, to be applied for the ratable benefit of the parties entitled thereto (based on the amounts owing to such parties at such time); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;last, any surplus remaining after application as provided for herein, to the Borrower or otherwise as may be required by applicable law.

ARTICLE VIII

<u>THE ADMINISTRATIVE AGENT</u>

SECTION 8.01. <u>Appointment and Authority</u>. Each of the Lenders and the LC Issuers hereby irrevocably appoints U.S. Bank to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the LC Issuers, and the Borrower shall not have rights as a third-party beneficiary of or obligations under any of such provisions, except as otherwise provided herein. It is understood and agreed that the use of the term "agent" herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

SECTION 8.02. <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

SECTION 8.03. <u>Exculpatory Provisions</u>. (a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage

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of the Lenders as shall be expressly provided for herein or in the other Loan Documents); <u>provided</u> that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section 9.02</u> and <u>Article VII</u>), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, a Lender or an LC Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in <u>Article IV</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

SECTION 8.04. <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an LC Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or LC Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or LC Issuer prior to the making of such Loan or

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the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

SECTION 8.05. <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Facilities as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable judgment) in the selection of such sub-agents.

SECTION 8.06. <u>Resignation of Administrative Agent</u>. (a)&nbsp;&nbsp;&nbsp;&nbsp; The Administrative Agent may at any time give notice of its resignation to the Lenders, the LC Issuers and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Resignation Effective Date</u>"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders and the LC Issuers, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the Administrative Agent receives written notice from the Required Lenders of any such removal (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Removal</u> <u>Effective Date</u>"), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the LC Issuers under any of the Loan Documents, the retiring or removed

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Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and LC Issuer directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Administrative Agent's resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and <u>Section 9.03</u> shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

SECTION 8.07. <u>Non-Reliance on Administrative Agent and Other Lenders</u>. Each Lender and LC Issuer acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of credit and not investments in a business enterprise or securities. Each Lender further represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and LC Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

SECTION 8.08. <u>No Other Duties, etc.</u> Anything herein to the contrary notwithstanding, none of the Joint Lead Arrangers, Co-Documentation Agents or Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender or an LC Issuer hereunder. The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender. The Administrative Agent shall have the exclusive right on behalf of the Lenders to enforce the payment of the principal of an interest on any Loan after the date such principal or interest has become due and payable pursuant to the terms of this Agreement.

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SECTION 8.09. <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan or payments in respect of any LC Exposure shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Exposure and all other obligations under the Loan Documents that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the LC Issuers and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the LC Issuers and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the LC Issuers and the Administrative Agent under <u>Sections 2.12</u> and <u>9.03</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and LC Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and LC Issuers, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Sections 2.10</u> and <u>9.03</u>.

SECTION 8.10. <u>Indemnity</u>. Each Lender severally agrees to indemnify the Administrative Agent (to the extent not promptly reimbursed by the Borrower) from and against such Lender's Applicable Percentage of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of the Loan Documents or any action taken or omitted by the Administrative Agent under the Loan Documents (collectively, the "<u>Indemnified Costs</u>"); <u>provided</u>, however, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments' suits, costs, expenses or disbursements resulting from the Administrative Agent's gross negligence or willful misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any costs and expenses (including fees and expenses of counsel) payable by the Borrower under Section 9.03, to the extent that the Administrative Agent is not promptly reimbursed for such costs and expenses by the Borrower. In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this <u>Article VIII</u> applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person.

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SECTION 8.11. <u>Additional ERISA Matters</u>. (a)&nbsp;&nbsp;&nbsp;&nbsp; Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Joint Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans or the Commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each Joint Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;none of the Administrative Agent or any Joint Lead Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Commitments and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;no fee or other compensation is being paid directly to the Administrative Agent or any Joint Lead Arranger or any of their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Commitments or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent and each Joint Lead Arranger hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Commitments and this Agreement, (ii) may recognize a gain if it extended the Loans, or the Commitments for an amount less than the amount being paid for an interest in the Loans, or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out

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premiums, banker's acceptance fees, breakage or other early termination fees or fees similar to the foregoing.

SECTION 8.12. <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; If the Administrative Agent notifies a Lender or other holder of any Obligations (each, a "<u>Lender Party</u>"), or any Person who has received funds on behalf of a Lender Party (any such Lender Party or other recipient, a "<u>Payment Recipient</u>"), that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under <u>Section 8.12(b)</u>) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously received by, such Payment Recipient (whether or not such error is known to any Payment Recipient) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous</u> <u>Payment</u>") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Payment Recipient shall promptly, but in no event later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting <u>Section 8.12(a)</u>, if any Payment Recipient receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) that (x) is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) such Payment Recipient otherwise becomes aware was transmitted, or received, in error (in whole or in part):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of immediately preceding clause (x) or (y), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) in the case of immediately preceding clause (z), an error has been made, in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;such Payment Recipient shall promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section</u> <u>8.12(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Lender Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender Party from any source, against any amount due to the Administrative Agent under <u>Section</u> <u>8.12(a)</u> or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;An Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations, except to the extent such Erroneous Payment comprises funds received by the Administrative Agent from the Borrower for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted by applicable law, each Payment Recipient hereby agrees not to assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment, including without limitation any defense based on "discharge for value" or any similar doctrine, with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Each party's agreements under this <u>Section 8.12</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments, or the repayment, satisfaction or discharge of any or all Obligations.

ARTICLE IX

<u>MISCELLANEOUS</u>

SECTION 9.01. <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or by electronic communication, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if to the Borrower, to it at 1717 East Interstate Avenue, Bismarck, North Dakota 58503, Attention of Chris Johnson, Senior Vice President and Chief Financial Officer (Telephone No. (701) 557-5075, Email Address: christopherj@bepc.com, with a copy to Sarah Scherm, Vice President and Treasurer, (Telephone No. (701) 557-5331, Email Address: [\*\*\*]);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;if to the Administrative Agent, to U.S. Bank National Association, Lunken Operations Center, 5065 Wooster Road, Cincinnati, OH 45226; Attention of: Catherine M. Day, Commercial Banking Client Representative, (Telephone No. (513) 277-5458, Email Address: [\*\*\*]), with a copy to U.S. Bank Agency Services at 800 Nicollet Mall, Minneapolis, MN 55402; Attention of:

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NSLS Agented Admin Team (Email Address: [\*\*\*]); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;if to any LC Issuer, to it at the address of such LC Issuer (or facsimile or e-mail address) set forth in its Administrative Questionnaire; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;if to any other Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Communications</u>. Notices and other communications to the Lenders and the LC Issuers hereunder may be delivered or furnished by electronic communication (including via e-mail and internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u> that the foregoing shall not apply to notices pursuant to <u>Article II</u> unless otherwise agreed by the Administrative Agent and the applicable Lender or LC Issuer. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; <u>provided</u> that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Change of Address, etc</u>. Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower agrees that the Administrative Agent may, but is not obligated to, make the Communications (as defined below) available to the LC Issuers and the Lenders by posting the Communications on the Platform..

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Platform is provided "as is" and "as available." The Agent Parties do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied, or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Agent Parties have any liability to the Borrower, any Lender, any LC Issuer, or any other Person for damages of any kind, including direct or indirect, special, incidental, or consequential damages, losses, or expenses (whether in tort, contract or otherwise) arising out of the Borrower's or the Administrative Agent's transmission of communications through the Platform. "<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent, any Lender or any LC Issuer by means of electronic communications pursuant to this Section 9.01, including through the Platform.

SECTION 9.02.&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers; Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No failure or delay by the Administrative Agent, any Lender or any LC Issuer in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Lenders and the LC Issuers hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any LC Issuer may have had notice or knowledge of such Default at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Section 2.09(c) with respect to any increase in the Commitments, neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; <u>provided</u> that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder or otherwise release the Borrower from any amount due and then payable under any Loan Document, without the written consent of each Lender adversely affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the

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scheduled date of expiration of any Commitment, without the written consent of each Lender adversely affected thereby, (iv) change <u>Sections 2.08(c)</u>*<u>,</u>* <u>2.11(b)</u>, <u>2.18(b)</u>, <u>2.18(c)</u> or <u>7.02</u> in a manner that alters the pro rata sharing of payments or pro rata reduction of Commitments, as applicable, required thereby, or any provision affecting the priority of payments, without the written consent of each Lender, (v) subordinate any Obligations in right of payment to any other Indebtedness in any transaction or series of related transactions without the written consent of each Lender directly and adversely affected thereby or (vi) change any of the provisions of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; <u>provided further</u> that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, the Swingline Lender or any LC Issuer hereunder without the prior written consent of the Administrative Agent, the Swingline Lender or such LC Issuer, as the case may be (it being understood that any change to Section 2.20 shall require the consent of the Administrative Agent, any LC Issuer and the Swingline Lender). Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification.

SECTION 9.03.&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Costs and Expenses</u>. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Joint Lead Arrangers, the Co-Documentation Agents and the Syndication Agent and their respective Affiliates, including the reasonable fees, charges and disbursements of external counsel for the Administrative Agent, the Joint Lead Arrangers and their respective affiliates in connection with the syndication and distribution (including via the internet or through a service such as Intralinks) of the credit facilities provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by any LC Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, the Joint Lead Arrangers, the Co-Documentation Agents, the Syndication Agent, any LC Issuer or any Lender, including the fees, charges and disbursements of any external counsel for the Administrative Agent, the Joint Lead Arrangers, the Co-Documentation Agents, the Syndication Agent or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Administrative Agent, the Joint Lead Arrangers, the Co-Documentation Agents, the

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Syndication Agent, each LC Issuer and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by any LC Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any of its Subsidiaries, and regardless of whether any Indemnitee is a party thereto; <u>provided</u> that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, in each case, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This <u>Section 9.03(b)</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement by Lenders</u>. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the Joint Lead Arrangers, the Co-Documentation Agents, the Syndication Agent, any LC Issuer, the Swingline Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Joint Lead Arrangers, the Co-Documentation Agents, the Syndication Agent, such LC Issuer, the Swingline Lender or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's share of the Credit Exposure and unused Commitments at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); <u>provided</u> that with respect to such unpaid amounts owed to any LC Issuer or Swingline Lender solely in its capacity as such, only the Lenders shall be required to pay such unpaid amounts, such payment to be made severally among them based on such Lenders' Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) (it being understood that the Borrower's failure to pay any such amount shall not relieve the Borrower of any default in the payment thereof); <u>provided</u>, <u>further</u>, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was

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incurred by or asserted against the Administrative Agent (or any such sub-agent), such LC Issuer or the Swingline Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Joint Lead Arrangers, the Co-Documentation Agents, the Syndication Agent, such LC Issuer or any Swingline Lender in connection with such capacity. The obligations of the Lenders under this paragraph (c) are subject to the provisions of <u>Section 2.02(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Consequential Damages, Etc.</u> To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit, or the use of the proceeds thereof. To the extent permitted by applicable law, the Administrative Agent and each Lender shall not assert, and shall cause its Related Parties not to assert, and hereby waives, and shall cause its Related Parties to waive, any claim against the Borrower, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, any breach by the Borrower of any payment obligation under the Loan Documents as to reimbursement of any amount paid under any Letter of Credit, the principal or interest owed in respect of any loans or any fees payable under this Agreement; <u>provided</u>, <u>however</u>, that the foregoing shall not be construed to limit or obviate in any manner the indemnification provisions set forth in paragraph (b) above or any obligation of the Borrower to pay fees, costs or other payments expressly provided for in this Agreement, such as default interest and break funding costs. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments</u>. All amounts due under this Section shall be payable not later than fifteen (15) days after receipt of written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

SECTION 9.04.&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of

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a security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the LC Issuers and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignments by Lenders</u>. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); <u>provided</u> that (in each case with respect to the Facility) any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and/or the Loans at the time owing to it (in each case with respect to the Facility) or an assignment to a Lender or an Affiliate of a Lender, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the outstanding principal balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "<u>Trade Date</u>" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $10,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender or an Affiliate of a Lender; <u>provided</u> that the Borrower shall be deemed to have consented to any such

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assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender or an Affiliate of any Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;the consent of each LC Issuer and Swingline Lender (such consents not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment and Assumption</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; <u>provided</u> that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment**.** The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Assignment to Certain Persons</u>. No such assignment shall be made to (A) the Borrower or any of the Borrower's Affiliates or Subsidiaries, (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), (C) unless an Event of Default shall have occurred and be continuing, to any Person having a short-term rating of less than A-1 or equivalent from each Major Rating Agency providing a short term rating to such Person or (D) a natural person or a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof (each of the foregoing, an "<u>Ineligible Institution</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Additional Payments</u>. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, each LC Issuer, each Swingline Lender and each other Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of

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this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date</u>. The effective date of any assignment (the "<u>Assignment Effective Date</u>") shall be the date the Assignment and Assumption is delivered to the Administrative Agent.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the Assignment Effective Date, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Sections 2.15</u>, <u>2.16</u>, <u>2.17</u> and <u>9.03</u> with respect to facts and circumstances occurring prior to the Assignment Effective Date; <u>provided</u>, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Register</u>. The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in Minneapolis, Minnesota a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than an Ineligible Institution of the type described in clause (A), (B), or (D) of the definition thereof) (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Lenders and the LC Issuers shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section 9.03(c)</u> with respect to any payments made by such Lender to its Participant(s).

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Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to <u>Section 9.02(b)</u> that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Sections 2.15</u>, <u>2.16</u> and <u>2.17</u> (subject to the requirements and limitations therein, including the requirements under <u>Section 2.17(g)</u> (it being understood that the documentation required under <u>Section 2.17(g)</u> shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; <u>provided</u> that such Participant (A) agrees to be subject to the provisions of <u>Section 2.19</u> as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections <u>2.15</u> or <u>2.17</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section 2.19(b)</u> with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section 9.08</u> as though it were a Lender; <u>provided</u> that such Participant agrees to be subject to <u>Section 2.18(c)</u> as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central banking authority having jurisdiction over such Lender, and this Section shall not apply to any such pledge or assignment of a security interest; <u>provided</u> that no such pledge or assignment of a security interest shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 9.05.&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties

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hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any LC Issuer or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of <u>Sections</u> <u>2.15</u>, <u>2.16</u>, <u>2.17</u> and <u>9.03</u> and <u>Article VIII</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof.

SECTION 9.06.&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts; Integration; Effectiveness; Electronic Execution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and the Fee Letters constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in <u>Section 4.01</u>, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including E-SIGN, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 9.07.&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 9.08.&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, each Lender, each LC Issuer and each of its Affiliates is hereby authorized at any time

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and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender, such LC Issuer or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender, such LC Issuer or its Affiliates, irrespective of whether or not such Lender, LC Issuer or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender or such LC Issuer different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; <u>provided</u> that in the event that any Defaulting Lender shall exercise any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section 2.20</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the LC Issuers and the Lenders, and (b) such Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, each LC Issuer and its Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such LC Issuer or its Affiliates may have. Each Lender and LC Issuer agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

SECTION 9.09.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law; Jurisdiction; Consent to Service of Process</u>. <u>Governing</u> <u>Law</u>. This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Jurisdiction</u>. The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County, and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Lender or any LC Issuer may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts of any jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Venue</u>. The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section 9.01</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

SECTION 9.10.&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 9.11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 9.12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Rate Limitation</u>. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the "<u>Charges</u>"), shall exceed the maximum lawful rate (the "<u>Maximum Rate</u>") which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

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SECTION 9.13.&nbsp;&nbsp;&nbsp;&nbsp;<u>USA PATRIOT Act</u>. Each Lender that is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>") hereby notifies the Borrower that, pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act.

SECTION 9.14.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Advisory or Fiduciary Responsibility</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that (a)(i) no fiduciary, advisory or agency relationship between the Borrower and its Subsidiaries and any Joint Lead Arranger, the Agents, any LC Issuer, the Swingline Lender or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether any Joint Lead Arranger, any Agent, any LC Issuer, the Swingline Lender or any Lender has advised or is advising the Borrower or any Subsidiary on other matters, (ii) the arranging and other services regarding this Agreement provided by the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders are arm's-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders, on the other hand, (iii) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate and (iv) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b)(i) each of the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person; (ii) none of the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders and their respective branches and Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders has any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by Law, the Borrower hereby waives and releases any claims that it may have against any of the Joint Lead Arrangers, the Agents, the LC Issuers, the Swingline Lender and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

SECTION 9.15.&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgement and Consent to Bail-In of Affected Financial</u> <u>Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the application of any Write-Down and Conversion Powers by an the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any the applicable Resolution Authority.

SECTION 9.16.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governmental Regulation</u>. Anything in this Agreement to the contrary notwithstanding, no LC Issuer or Lender shall be obligated to extend credit to the Borrower in violation of any limitation or prohibition provided by any applicable statute or regulation.

**<u>[</u>**Signature Pages Follow**<u>]</u>**

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers or representatives as of the day and year first above written.

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|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Todd Brickhouse |
| Name: Todd Brickhouse | Name: Todd Brickhouse |
| Title: Chief Executive Officer and General Manager | Title: Chief Executive Officer and General Manager |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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|:---|:---|:---|
| U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent, Swingline Lender, an LC Issuer and a Lender | U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent, Swingline Lender, an LC Issuer and a Lender | U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent, Swingline Lender, an LC Issuer and a Lender |
| By | /s/ Kevin S. Murphy | /s/ Kevin S. Murphy |
| Name: | Name: | Kevin S. Murphy |
| Title: | | Senior Vice President |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | | |
|:---|:---|:---|:---|
| COBANK, ACB, as Syndication Agent, an LC Issuer and a Lender | COBANK, ACB, as Syndication Agent, an LC Issuer and a Lender | COBANK, ACB, as Syndication Agent, an LC Issuer and a Lender | COBANK, ACB, as Syndication Agent, an LC Issuer and a Lender |
| By | /s/ Kelli Cholas | /s/ Kelli Cholas | /s/ Kelli Cholas |
| Name: | Name: | | Kelli Cholas |
| Title: | Title: | Assistant Corporate Secretary | Assistant Corporate Secretary |

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| | | | |
|:---|:---|:---|:---|
| BMO Bank N.A., as a Lender | BMO Bank N.A., as a Lender | BMO Bank N.A., as a Lender | BMO Bank N.A., as a Lender |
| By | /s/ Scott Ackerman | /s/ Scott Ackerman | /s/ Scott Ackerman |
| Name: | Name: | Name: | Scott Ackerman |
| Title: | Title: | Managing Director | Managing Director |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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|:---|:---|
| NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, as a Lender | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, as a Lender |
| By | /s/ Paige C. Miller |
| Name: Paige C. Miller | Name: Paige C. Miller |
| Title: Assistant Secretary-Treasurer | Title: Assistant Secretary-Treasurer |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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|:---|:---|:---|
| PNC BANK, NATIONAL ASSOCIATION, as a Lender | PNC BANK, NATIONAL ASSOCIATION, as a Lender | PNC BANK, NATIONAL ASSOCIATION, as a Lender |
| By | /s/ Joseph McElhinny | /s/ Joseph McElhinny |
| Name: | Name: | Joseph McElhinny |
| Title: | Title: | Senior Vice President |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| **ROYAL BANK OF CANADA,** as a Lender | **ROYAL BANK OF CANADA,** as a Lender | **ROYAL BANK OF CANADA,** as a Lender |
| By | /s/ Shireen Fathi | /s/ Shireen Fathi |
| Name: | Name: | Shireen Fathi |
| Title: | Title: | Authorized Signatory |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| WELLS FARGO BANK, N.A., as a Lender | WELLS FARGO BANK, N.A., as a Lender | WELLS FARGO BANK, N.A., as a Lender |
| By | /s/ Jason Pollack | /s/ Jason Pollack |
| Name: | Name: | JASON POLLACK |
| Title: | Title: | EXECUTIVE DIRECTOR |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By | /s/ Michael J. Haas | /s/ Michael J. Haas |
| Name: | Name: | Michael J. Haas |
| Title: | Title: | Sr. Vice President |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | |
|:---|:---|
| THE HUNTINGTON NATIONAL BANK, as a Lender | THE HUNTINGTON NATIONAL BANK, as a Lender |
| By: | /s/ Ryan T. Hamilton |
| Name: Ryan T. Hamilton | Name: Ryan T. Hamilton |
| Title: Senior Vice President | Title: Senior Vice President |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By | /s/ Lawrence P. Sullivan | /s/ Lawrence P. Sullivan |
| Name: | Name: | Lawrence P. Sullivan |
| Title: | Title: | Managing Director |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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|:---|:---|:---|
| MORGAN STANLEY BANK, N.A. as a Lender | MORGAN STANLEY BANK, N.A. as a Lender | MORGAN STANLEY BANK, N.A. as a Lender |
| By | /s/ Christopher Cost | /s/ Christopher Cost |
| Name: | Name: | Christopher Cost |
| Title: | Title: | Authorized Signatory |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| Old National Bank, as a Lender | Old National Bank, as a Lender | Old National Bank, as a Lender |
| By | /s/ Josh Herbold | /s/ Josh Herbold |
| Name: | Name: | Josh Herbold |
| Title: | Title: | Senior Vice President |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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| | | |
|:---|:---|:---|
| GOLDMAN SACH BANK USA, as a Lender | GOLDMAN SACH BANK USA, as a Lender | GOLDMAN SACH BANK USA, as a Lender |
| By | /s/ Andrew B. Vernon | /s/ Andrew B. Vernon |
| Name: | Name: | Andrew Vernon |
| Title: | Title: | Authorized Signatory |

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Signature Page to Credit Agreement

Basin Electric Power Cooperative

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SCHEDULE I

to

Credit Agreement

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| | | | |
|:---|:---|:---|:---|
| **<u>Lender</u>** | **<u>Commitment</u>** | **<u>Applicable<br>Percentage</u>** | **<u>LC<br>Commitment</u>** |
| <br>U.S. Bank National Association | $137500000.00 | 11.00% | $25000000.00 |
| CoBank, ACB | $137500000.00 | 11.00% | $25000000.00 |
| BMO Bank N.A. | $112000000.00 | 8.96% | $0.00 |
| National Rural Utilities Cooperative Finance Corporation | $112000000.00 | 8.96% | $0.00 |
| PNC Bank, National Association | $112000000.00 | 8.96% | $0.00 |
| Royal Bank of Canada | $112000000.00 | 8.96% | $0.00 |
| Wells Fargo Bank, N.A. | $112000000.00 | 8.96% | $0.00 |
| Bank of America, N.A. | $100000000.00 | 8.00% | $0.00 |
| The Huntington National Bank | $100000000.00 | 8.00% | $0.00 |
| Regions Bank | $100000000.00 | 8.00% | $0.00 |
| Morgan Stanley Bank, N.A. | $50000000.00 | 4.00% | $0.00 |
| Old National Bank | $40000000.00 | 3.20% | $0.00 |
| Goldman Sachs Bank USA | $25000000.00 | 2.00% | $0.00 |
| **Total** | **$1250000000.00** | **100.00%** | **$50000000.00** |

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**BASIN ELECTRIC EXHIBIT A**

**<u>FORM OF ASSIGNMENT AND ASSUMPTION</u>**

This Assignment and Assumption (the "<u>Assignment and Assumption</u>") is dated as of the Effective Date set forth below and is entered into by and between **<u>[</u>the<u>][</u>each<u>]</u>**<sup>1</sup> Assignor identified in item 1 below (**<u>[</u>the<u>][</u>each, an<u>]</u>** "<u>Assignor</u>") and **<u>[</u>the<u>][</u>each<u>]</u>**<sup>2</sup> Assignee identified in item 2 below (**<u>[</u>the<u>][</u>each, an<u>]</u>** "<u>Assignee</u>"). **<u>[</u>It is understood and agreed that the rights and obligations of <u>[</u>the Assignors<u>][</u>the Assignees<u>]</u>**<sup>3</sup> **hereunder are several and not joint.<u>]</u>**<sup>4</sup> Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the "<u>Credit Agreement</u>"), receipt of a copy of which is hereby acknowledged by **<u>[</u>the<u>][</u>each<u>]</u>** Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, **<u>[</u>the<u>][</u>each<u>]</u>** Assignor hereby irrevocably sells and assigns to **<u>[</u>the Assignee<u>][</u>the respective Assignees<u>]</u>**, and **<u>[</u>the<u>][</u>each<u>]</u>** Assignee hereby irrevocably purchases and assumes from **<u>[</u>the Assignor<u>][</u>the respective Assignors<u>]</u>**, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of **<u>[</u>the Assignor's<u>][</u>the respective Assignors'<u>]</u>** rights and obligations in **<u>[</u>its capacity as a Lender<u>][</u>their respective capacities as Lenders<u>]</u>** under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of **<u>[</u>the Assignor<u>][</u>the respective Assignors<u>]</u>** under the respective facilities identified below (including without limitation any Letters of Credit, guarantees, and Swingline Loans included in such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of **<u>[</u>the Assignor (in its capacity as a Lender)<u>][</u>the respective Assignors (in their respective capacities as Lenders)<u>]</u>** against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by **<u>[</u>the<u>][</u>any<u>]</u>** Assignor to **<u>[</u>the<u>][</u>any<u>]</u>** Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as **<u>[</u>the<u>][</u>an<u>]</u>** "<u>Assigned Interest</u>"). Each such sale and assignment is without recourse to **<u>[</u>the<u>][</u>any<u>]</u>** 

<sup>1</sup> For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

<sup>2</sup> For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

<sup>3</sup> Select as appropriate.

<sup>4</sup> Include bracketed language if there are either multiple Assignors or multiple Assignees.

Basin Electric Power Cooperative Assignment and Assumption

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Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by **<u>[</u>the<u>][</u>any<u>]</u>** Assignor.

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| | |
|:---|:---|
| 1. | Assignor**<u>[s]</u>:** |
| | **<u>[</u>Assignor <u>[</u>is<u>]</u> <u>[</u>is not<u>]</u> a Defaulting Lender<u>]</u>** |
| 2. | Assignee**<u>[s]</u>:** |
| | **<u>[</u>for each Assignee, indicate <u>[</u>Affiliate<u>]</u> of <u>[</u>identify Lender<u>]</u>** |

---

3.&nbsp;&nbsp;&nbsp;&nbsp;Borrower: Basin Electric Power Cooperative

4.&nbsp;&nbsp;&nbsp;&nbsp;Administrative Agent: U.S. Bank National Association, as the administrative agent under the Credit Agreement

5.&nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement:&nbsp;&nbsp;&nbsp;&nbsp; The Credit Agreement, dated as of May 1, 2025, among Basin Electric Power Cooperative, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent.

6.&nbsp;&nbsp;&nbsp;&nbsp;Assigned Interest:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Assignor**[s]**<sup>5</sup> | Assignee**[s**<br>**]**<sup>6</sup> | Aggregate Amount of Commitment/<br>Loans for all Lenders<sup>7</sup> | Percentage Assigned of Commitment/<br>Loans<sup>8</sup> | CUSIP Number |
|  |  | $ | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |
|  |  | $ | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |
|  |  | $ | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |

---

---

| | | |
|:---|:---|:---|
| **<u>[</u>7.** | **Trade Date:** | ___________ ]<sup>9</sup> |

---

<sup>5</sup> List each Assignor, as appropriate.

<sup>6</sup> List each Assignee, as appropriate.

<sup>7</sup> Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

<sup>8</sup> Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

<sup>9</sup> To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date.

- 2 –

Basin Electric Power Cooperative Assignment and Assumption

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Effective Date: _____________ ___, 20___ ___ **<u>[</u>TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE DATE THIS ASSIGNMENT AND ASSUMPTION IS DELIVERED TO THE ADMINISTRATIVE AGENT.<u>]</u>**

The terms set forth in this Assignment and Assumption are hereby agreed to:

---

| |
|:---|
| <u>ASSIGNOR</u>**<u>[S]</u>** <sup>10</sup> |
| **<u>[</u>NAME OF ASSIGNOR<u>]</u>** |
| By: |
| &nbsp;&nbsp;Title: |
| **<u>[</u>NAME OF ASSIGNOR<u>]</u>** |
| By: |
| &nbsp;&nbsp;Title: |
| <u>ASSIGNEE</u>**<u>[S]</u>** <sup>11</sup> |
| **<u>[</u>NAME OF ASSIGNEE<u>]</u>** |
| By: |
| &nbsp;&nbsp;Title: |
| **<u>[</u>NAME OF ASSIGNEE<u>]</u>** |
| By: |
| &nbsp;&nbsp;Title: |

---

<sup>10</sup> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

<sup>11</sup>Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

- 3 –

Basin Electric Power Cooperative Assignment and Assumption

------

---

| | |
|:---|:---|
| Consented to and Accepted: | Consented to and Accepted: |
| U.S. BANK NATIONAL ASSOCIATION, as | U.S. BANK NATIONAL ASSOCIATION, as |
| Administrative Agent | Administrative Agent |
| By |  |
|  | Title: |
| <u>[</u>Consented to:<u>]</u> <sup>12</sup> | <u>[</u>Consented to:<u>]</u> <sup>12</sup> |
| COBANK, ACB, as an LC Issuer | COBANK, ACB, as an LC Issuer |
| By |  |
|  | Title: |
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By |  |
|  | Title: |

---

<sup>12</sup> To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, LC Issuer) is required by the terms of the Credit Agreement.

- 4 –

Basin Electric Power Cooperative Assignment and Assumption

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ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignor</u>**<u>[s]</u>**. **<u>[</u>The<u>][</u>Each<u>]</u>** Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of **<u>[</u>the<u>][</u>the relevant<u>]</u>** Assigned Interest, (ii) **<u>[</u>the<u>][</u>such<u>]</u>** Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is **<u>[</u>not<u>]</u>** a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document<sup>13</sup>, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignee</u>**<u>[s]</u>**. **<u>[</u>The<u>][</u>Each<u>]</u>** Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 9.04(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 9.04(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of **<u>[</u>the<u>][</u>the relevant<u>]</u>** Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **<u>[</u>the<u>][</u>such<u>]</u>** Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **<u>[</u>the<u>][</u>such<u>]</u>** Assigned Interest, and (vii) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by **<u>[</u>the<u>][</u>such<u>]</u>** Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, **<u>[</u>the<u>][</u>any<u>]</u>** Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan

<sup>13</sup> The term "Loan Document" should be conformed to that used in the Credit Agreement.

Basin Electric Power Cooperative Assignment and Assumption

------

Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments</u>. From and after the Effective Date, the Administrative Agent shall make all payments in respect of **<u>[</u>the<u>][</u>each<u>]</u>** Assigned Interest (including payments of principal, interest, fees and other amounts) to **<u>[</u>the<u>][</u>the relevant<u>]</u>** Assignor for amounts which have accrued to but excluding the Effective Date and to **<u>[</u>the<u>][</u>the relevant<u>]</u>** Assignee for amounts which have accrued from and after the Effective Date.<sup>14</sup> Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to **<u>[</u>the<u>][</u>the relevant<u>]</u>** Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>General Provisions</u>. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Electronic System shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

<sup>14</sup> The Administrative Agent should consider whether this method conforms to its systems. In some circumstances, the following alternative language may be appropriate:

"From and after the Effective Date, the Administrative Agent shall make all payments in respect of **<u>[</u>**the**<u>][</u>**each**<u>]</u>** Assigned Interest (including payments of principal, interest, fees and other amounts) to **<u>[</u>**the**<u>][</u>**the relevant**<u>]</u>** Assignee whether such amounts have accrued prior to, on or after the Effective Date. The Assignor**<u>[</u>**s**<u>]</u>** and the Assignee**<u>[</u>**s**<u>]</u>** shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves."

Basin Electric Power Cooperative Assignment and Assumption

------

**BASIN ELECTRIC EXHIBIT B**

**<u>FORM OF BORROWING REQUEST</u>**

**<u>[</u>**Date**<u>]</u>**

U.S. Bank National Association, as Administrative Agent

Lunken Operations Center

5065 Wooster Road

Cincinnati, OH 45226

Attention: Catherine M. Day

U.S. Bank National Association, as Administrative Agent

Agency Services Group

800 Nicollet Mall, 3<sup>rd</sup> Floor

Minneapolis, Minnesota 55402

Email: [\*\*\*]

Reference is made to the Credit Agreement dated as of May 1, 2025, among Basin Electric Power Cooperative (the "<u>Borrower</u>"), the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent, (in such capacity, the "<u>Administrative Agent</u>") (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms used herein that are defined in the Credit Agreement shall have the meanings therein defined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to <u>Section 2.03</u> of the Credit Agreement, the Borrower hereby gives notice of its intention to borrow Term SOFR Borrowings in an aggregate principal amount of $_______ on ______ __, 20__, which Term SOFR Borrowing(s) shall consist of the following:

---

| | |
|:---|:---|
| <u>Amount</u> | Interest Period for Term SOFR Borrowings |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to <u>Section 2.03</u> **<u>[</u>**and <u>Section 2.04</u>**<u>]</u>**<sup>15</sup> of the Credit Agreement, the Borrower hereby gives notice of its intention to borrow ABR Borrowings in an aggregate principal amount of $_______ on ______ __, 20__.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby certifies that on the date hereof and as of the date of each Borrowing set forth above, and after giving effect to the Borrowing requested hereby, each of its representations and warranties set forth in the Credit Agreement (other than the

<sup>15</sup> Include if applicable.

Basin Electric Power Cooperative Borrowing Request

------

representations and warranties in <u>Sections 3.13</u>, <u>3.14</u>, <u>3.15</u>, <u>3.16</u>, <u>3.17</u> and <u>3.18(b)</u> of the Credit Agreement) are true and correct; <u>provided</u> that <u>Section 3.08</u> of the Credit Agreement shall be deemed to be true and correct unless any material non-compliance of the type referred to therein has resulted in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby certifies that on the date hereof and immediately after giving effect to such Borrowing, no Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The location and number of the Borrower's account to which funds are to be disbursed is as follows: **<u>[</u>**Insert Wire Instructions**<u>]</u>**

IN WITNESS WHEREOF, the Borrower has caused this Borrowing Request to be executed as of the date and year first written above.

---

| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: |
| Name: |
| Title: |

---

- 2 –

Basin Electric Power Cooperative Borrowing Request

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**BASIN ELECTRIC EXHIBIT C**

**<u>FORM OF INTEREST ELECTION REQUEST</u>**

**<u>[</u>**Date**<u>]</u>**

U.S. Bank National Association, as Administrative Agent

Lunken Operations Center

5065 Wooster Road

Cincinnati, OH 45226

Attention: Catherine M. Day

U.S. Bank National Association, as Administrative Agent

Agency Services Group

800 Nicollet Mall, 3<sup>rd</sup> Floor

Minneapolis, Minnesota 55402

Email: [\*\*\*]

Reference is made to the Credit Agreement dated as of May 1, 2025, among Basin Electric Power Cooperative (the "<u>Borrower</u>"), the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent, (in such capacity, the "<u>Administrative Agent</u>") (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms used herein that are defined in the Credit Agreement shall have the meanings therein defined.

Pursuant to Section 2.07 of the Credit Agreement, the Borrower hereby gives notice of its intention to convert or continue Borrowings, as set forth below<sup>1</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;on **<u>[</u>**Date**<u>]</u>**, to convert $_______ in principal amount of now outstanding Term SOFR Borrowings having an Interest Period that expires on **<u>[</u>**Date**<u>]</u>** to ABR Borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;on **<u>[</u>**Date**<u>]</u>**, to continue $_______ in principal amount of now outstanding Term SOFR Borrowings having an Interest Period that expires on **<u>[</u>**Date**<u>]</u>** as new Term SOFR Borrowings that have an Interest Period of __ month(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;on **<u>[</u>**Date**<u>]</u>**, to convert $_______ in principal amount of now outstanding ABR Borrowings to Term SOFR Borrowings that have an Interest Period of __ month(s).

<sup>1</sup> Delete inapplicable paragraphs.

Basin Electric Power Cooperative Interest Election Request

------

IN WITNESS WHEREOF, the Borrower has caused this Interest Election Notice to be executed as of the date and year first written above.

---

| |
|:---|
| BASIN ELECTRIC POWER COOPERATIVE |
| By: |
| Name: |
| Title: |

---

Basin Electric Power Cooperative Interest Election Request

------

**BASIN ELECTRIC EXHIBIT D**

**<u>FORM OF NOTE</u>**

New York, New York

**<u>[</u>_____ __,<u>]</u>** 2025

FOR VALUE RECEIVED, the undersigned, BASIN ELECTRIC POWER COOPERATIVE, an electric cooperative corporation existing under the laws of the State of North Dakota (the "<u>Borrower</u>"), hereby promises to pay to _________________ or its registered assigns (the "<u>Lender</u>") the unpaid principal amount of the Loans made by the Lender to the Borrower, in the amounts and at the times set forth in the Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>") and to pay interest from the date hereof on the principal balance of such Loans from time to time outstanding at the rate or rates and at the times set forth in the Credit Agreement, in each case at the office of the Administrative Agent located at Agency Services, 800 Nicollet Mall, Minneapolis, MN 55402, or at such other place as the Administrative Agent may specify from time to time, in lawful money of the United States in immediately available funds. Terms not otherwise defined herein but defined in the Credit Agreement are used herein with the same meanings.

The Loans evidenced by this Note are prepayable in the amounts, and under the circumstances, and their respective maturities are subject to acceleration upon the terms, set forth in the Credit Agreement. This Note is subject to, and shall be construed in accordance with, the provisions of the Credit Agreement.

Except as specifically otherwise provided in the Credit Agreement, the Borrower hereby waives presentment, demand, notice of dishonor, protest, notice of protest and all other demands, protests and notices in connection with the execution, delivery, performance, collection and enforcement of this Note.

Whenever in this Note either party hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. The Borrower shall not have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be void), except as expressly permitted by the Loan Documents. No failure or delay of the Lender in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. Neither this Note nor any provision hereof may be waived, amended or modified, nor shall any departure therefrom be consented to, except pursuant to a written agreement entered into between the Borrower and the Lender with respect to which such waiver, amendment, modification or consent is to apply, subject to any consent required in accordance with <u>Section 9.02</u> of the Credit Agreement.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Basin Electric Power Cooperative Form of Note

------

All communications and notices hereunder shall be in writing and given as provided in <u>Section 9.01</u> of the Credit Agreement.

The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United States District Court for the Southern District of New York and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Note or the other Loan Documents, or for recognition or enforcement of any judgment, and the Borrower hereby irrevocably and unconditionally agrees that, to the extent permitted by applicable law, all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such Federal court. The Borrower, and by accepting this Note, the Lender, agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Note shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Note or the other Loan Documents against the Borrower, or any of its property, in the courts of any jurisdiction.

The Borrower, and by accepting this Note, the Lender, hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note or the other Loan Documents in any court referred to in the preceding paragraph hereof. The Borrower, and by accepting this Note, the Lender, hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

The Borrower, and by accepting this Note, the Lender, irrevocably consents to service of process in the manner provided for notices herein. Nothing herein will affect the right of the Lender to serve process in any other manner permitted by law.

**THE BORROWER, AND BY ACCEPTING THIS NOTE, THE LENDER, EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT SUCH LENDER HAS BEEN INDUCED TO ACCEPT THIS NOTE AND ENTER INTO THE LOAN DOCUMENTS TO WHICH IT IS A PARTY BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.**

- 2 –

Basin Electric Power Cooperative Form of Note

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| |
|:---|
| BASIN ELECTRIC POWER<br>COOPERATIVE |
| By: |
| Name: |
| Title: |

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- 3 –

Basin Electric Power Cooperative Form of Note

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**BASIN ELECTRIC EXHIBIT E-1**

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE**

**(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)**

Reference is hereby made to the Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>").

Pursuant to the provisions of <u>Section 2.17</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code or Other Applicable U.S. Tax Law, (iii) it is not a ten percent (10.0%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code or Other Applicable U.S. Tax Law and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code or Other Applicable U.S. Tax Law.

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| **<u>[</u>**NAME OF LENDER**<u>]</u>** |
| By: __________________________ |
| Name: |
| Title: |
| Date: ______ __, 20__ |

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Basin Electric Power Cooperative Form U.S. Tax Compliance Certificate

------

**BASIN ELECTRIC EXHIBIT E-2**

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE**

**(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)**

Reference is hereby made to the Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>").

Pursuant to the provisions of <u>Section 2.17</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code or Other Applicable U.S. Tax Law, (iii) it is not a ten percent (10.0%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code or Other Applicable U.S. Tax Law, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code or Other Applicable U.S. Tax Law.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| **<u>[</u>**NAME OF PARTICIPANT**<u>]</u>** |
| By: __________________________ |
| Name: |
| Title: |
| Date: ______ __, 20__ |

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Basin Electric Power Cooperative Form U.S. Tax Compliance Certificate

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**BASIN ELECTRIC EXHIBIT E-3**

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE**

**(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)**

Reference is hereby made to the Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>").

Pursuant to the provisions of <u>Section 2.17</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code or Other Applicable U.S. Tax Law, (iv) none of its direct or indirect partners/members is a ten percent (10.0%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code or Other Applicable U.S. Tax Law and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code or Other Applicable U.S. Tax Law.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| **<u>[</u>**NAME OF PARTICIPANT**<u>]</u>** |
| By: __________________________ |
| Name: |
| Title: |
| Date: ______ __, 20__ |

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Basin Electric Power Cooperative Form U.S. Tax Compliance Certificate

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**BASIN ELECTRIC EXHIBIT E-4**

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE**

**(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)**

Reference is hereby made to the Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>").

Pursuant to the provisions of <u>Section 2.17</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code or Other Applicable U.S. Tax Law, (iv) none of its direct or indirect partners/members is a ten percent (10.0%) shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code or Other Applicable U.S. Tax Law and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code or Other Applicable U.S. Tax Law.

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| **<u>[</u>**NAME OF LENDER**<u>]</u>** |
| By: __________________________ |
| Name: |
| Title: |
| Date: ______ __, 20__ |

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Basin Electric Power Cooperative Form U.S. Tax Compliance Certificate

## Exhibit 4.8

**Exhibit 4.8**

**TERM LOAN AGREEMENT**

dated as of

December 10, 2025,

by and between

**BASIN ELECTRIC POWER COOPERATIVE**,

as Borrower,

and

**ROYAL BANK OF CANADA**,

as Lender

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| | | |
|:---|:---|:---|
| ARTICLE I | ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS | DEFINITIONS |
| Section 1.01. | Defined Terms | 1 |
| Section 1.02. | Terms Generally | 16 |
| Section 1.03. | Accounting Terms; GAAP | 17 |
| Section 1.04. | Rates | 17 |
| Section 1.05. | Divisions | 18 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| TERM LOAN | TERM LOAN | TERM LOAN |
| Section 2.01. | Term Loan | 18 |
| Section 2.02. | Repayment of Term Loan; Evidence of Debt | 18 |
| Section 2.03. | Prepayment of Term Loan | 18 |
| Section 2.04. | Interest | 19 |
| Section 2.05. | Changed Circumstances | 19 |
| Section 2.06. | Increased Costs | 22 |
| Section 2.07. | Taxes | 23 |
| Section 2.08. | Payments | 24 |
| Section 2.09. | Mitigation Obligations | 25 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES |
| Section 3.01. | Organization; Powers | 25 |
| Section 3.02. | Authorization; Enforceability | 25 |
| Section 3.03. | Investment Company Act Status | 25 |
| Section 3.04. | Margin Regulations | 26 |
| Section 3.05. | Governmental Approvals; No Conflicts | 26 |
| Section 3.06. | Financial Condition | 26 |
| Section 3.07. | Properties | 26 |
| Section 3.08. | Compliance with Laws | 26 |
| Section 3.09. | Taxes | 27 |
| Section 3.10. | ERISA | 27 |
| Section 3.11. | Insurance | 27 |
| Section 3.12. | Corporate Structure | 27 |
| Section 3.13. | No Material Adverse Change | 27 |
| Section 3.14. | Wholesale Power Contracts | 27 |
| Section 3.15. | Environmental Matters | 27 |
| Section 3.16. | Litigation | 27 |
| Section 3.17. | Disclosure | 28 |
| Section 3.18. | Defaults | 28 |
| Section 3.19. | Anti-Corruption Laws and Sanctions | 28 |
| Section 3.20. | Benefit Plans | 28 |

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i

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| | | |
|:---|:---|:---|
| ARTICLE IV | ARTICLE IV | ARTICLE IV |
| CONDITIONS | CONDITIONS | CONDITIONS |
| Section 4.01. | Conditions to Effective Date | 29 |
| ARTICLE V | ARTICLE V | ARTICLE V |
| AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS |
| Section 5.01. | Financial Statements: Ratings Change and Other Information | 31 |
| Section 5.02. | Notices of Material Events | 32 |
| Section 5.03. | Existence; Conduct of Business | 33 |
| Section 5.04. | Payment of Obligations | 33 |
| Section 5.05. | Books and Records; Inspection Rights | 33 |
| Section 5.06. | Compliance with Laws | 33 |
| Section 5.07. | Use of Proceeds | 33 |
| Section 5.08. | Margins for Interest Ratio | 34 |
| Section 5.09. | Indenture Covenants | 34 |
| Section 5.10. | Equity Balance | 34 |
| ARTICLE VI | ARTICLE VI | ARTICLE VI |
| NEGATIVE COVENANTS | NEGATIVE COVENANTS | NEGATIVE COVENANTS |
| Section 6.01. | Indebtedness | 34 |
| Section 6.02. | Liens | 35 |
| Section 6.03. | Fundamental Changes | 35 |
| Section 6.04. | Investments, Loans, Advances, Guarantees and Acquisitions | 36 |
| Section 6.05. | Transactions with Affiliates | 36 |
| Section 6.06. | Termination of Wholesale Power Contracts | 36 |
| Section 6.07. | Indenture Covenants | 37 |
| Section 6.08. | Swap Agreements | 37 |
| ARTICLE VII | ARTICLE VII | ARTICLE VII |
| EVENTS OF DEFAULT | EVENTS OF DEFAULT | EVENTS OF DEFAULT |
| Section 7.01. | Events of Default | 37 |
| ARTICLE VIII | ARTICLE VIII | ARTICLE VIII |
| RESERVED | RESERVED | 39 |
| ARTICLE IX | ARTICLE IX | ARTICLE IX |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
| Section 9.01. | Notices | 39 |
| Section 9.02. | Waivers; Amendments | 41 |

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ii

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---

| | | |
|:---|:---|:---|
| Section 9.03. | Expenses; Indemnity; Damage Waiver | 42 |
| Section 9.04. | Successors and Assigns | 43 |
| Section 9.05. | Survival | 45 |
| Section 9.06. | Counterparts; Integration; Effectiveness; Electronic Execution | 45 |
| Section 9.07. | Severability | 45 |
| Section 9.08. | Right of Setoff | 46 |
| Section 9.09. | Governing Law; Jurisdiction; Consent to Service of Process | 46 |
| Section 9.10. | WAIVER OF JURY TRIAL | 47 |
| Section 9.11. | Headings | 47 |
| Section 9.12. | Interest Rate Limitation | 47 |
| Section 9.13. | USA PATRIOT Act | 48 |
| Section 9.14. | No Advisory or Fiduciary Responsibility | 48 |
| Section 9.15. | Governmental Regulation | 48 |
| Section 9.16. | EMMA Posting | 48 |

---

<u>SCHEDULES</u>:

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| | |
|:---|:---|
| Schedule 3.14 | Wholesale Power Contracts |
| Schedule 3.15 | Disclosed Matters – Environmental |
| Schedule 3.16 | Disclosed Matters – Litigation |

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<u>EXHIBITS</u>:

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| | |
|:---|:---|
| Exhibit A | Form of Term Note |
| Exhibit B | Form of Notice of Prepayment |
| Exhibit C | Form of Compliance Certificate |

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iii

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This **TERM LOAN AGREEMENT** is dated as of December 10, 2025, by and between **BASIN ELECTRIC POWER COOPERATIVE**, an electric cooperative corporation existing under the laws of the State of North Dakota (the "<u>Borrower</u>") and **ROYAL BANK OF CANADA**, acting through a branch located at 200 Vesey Street, New York, New York (the "<u>Lender</u>"). All capitalized terms used herein and not otherwise defined shall have the meanings assigned in Section 1.01.

**RECITALS**

WHEREAS, the Borrower has requested that the Lender extend credit to the Borrower as described below, and the Lender has agreed to provide such credit to the Borrower on the terms and conditions contained herein.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Borrower and the Lender hereby agree as follows:

**ARTICLE I**

**<u>DEFINITIONS</u>**

Section I.01.&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. As used in this Agreement, the following terms have the meanings specified below:

"<u>Act</u>" has the meaning set forth in Section 9.13.

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Agreement</u>" means this Term Loan Agreement.

"<u>Alternate Base Rate</u>" means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1.00% and (c) Daily Simple SOFR in effect on such day (or, if such day is not a Business Day, the immediately preceding Business Day) plus 1.50%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or Daily Simple SOFR will be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or Daily Simple SOFR, as the case may be.

"<u>Anti-Corruption Laws</u>" means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to anti-money laundering, bribery or corruption.

"<u>Applicable Margin</u>" means, for any day, the percentage set forth in the following table under the heading "Applicable Margin" based upon the Ratings by the Major Rating Agencies applicable on such date to the Index Debt:

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| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Ratings Group</u>** | **<u>Moody's</u>** | **<u>S&P</u>** | **<u>Fitch</u>** | **<u>Applicable Margin</u>** |
| I | <u>></u> A1 | <u>></u> A+ | <u>></u> A+ | 1.10% |
| II | A2 | A | A | 1.35% |
| III | A3 | A- | A- | 1.475% |
| IV | Baa1 | BBB+ | BBB+ | 1.60% |
| V | <u><</u> Baa2 | <u><</u> BBB | <u><</u> BBB | 1.725% |

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For purposes of the foregoing, if the Ratings fall within different Ratings Groups, the Applicable Margin shall be determined by reference to: (a) if Ratings are provided by only two of the Major Rating Agencies, the Ratings Group next above the lower of the two Ratings shall apply, (b) if Ratings are provided by all three of such Major Rating Agencies and (i) two of such Ratings are in the same Ratings Group, such Ratings Group shall apply or (ii) if each of the Ratings is in a different Ratings Group, the Ratings Group next above that of the lowest of the three Ratings shall apply, and (c) if a Rating is provided by only one such Major Rating Agency, the Ratings Group applicable to such rating shall apply. In the event that there is not at least one rating from the Major Rating Agencies, then Ratings Group V shall apply. If the Ratings by one or more Major Rating Agencies shall change (other than as a result of a change in the rating system of such Major Rating Agency or Agencies), such change shall be effective as of the date on which it is first announced by such Major Rating Agency, irrespective of when notice of such change shall have been furnished by the Borrower to the Lender pursuant to Section 5.01(e) or otherwise. Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the rating system of any such Major Rating Agency shall change, or if any such Major Rating Agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lender shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of Ratings from such Major Rating Agency and, pending the effectiveness of any such amendment, the Applicable Margin shall be determined by reference to the Ratings Group most recently in effect prior to such change or cessation. The Borrower and the Lender agree that as of the Effective Date, the Applicable Margin is in Ratings Group III.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an "Interest Period" or (y) otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, pursuant to this Agreement as of such date.

"<u>Benchmark</u>" means, initially, Daily Simple SOFR; provided that if a Benchmark Transition Event has occurred with respect to Daily Simple SOFR, or the applicable then-current Benchmark, pursuant to Section 2.05(c), then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has become effective pursuant to Section 2.05(c).

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"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, for any Available Tenor, the sum of: (a) the alternate benchmark rate that has been selected by the Lender and the Borrower as the replacement for the then-current Benchmark giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated bilateral credit facilities at such time in the United States and (b) the related Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as determined above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Lender and the Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated bilateral credit facilities.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to either the use or administration of Daily Simple SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Lender decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Lender in a manner substantially consistent with market practice (or, if the Lender decides that adoption of any portion of such market practice is not administratively feasible or if the Lender determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Lender decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Benchmark Replacement Date</u>" means with respect to any Benchmark, the earlier to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information

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referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (3) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative; provided, that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, if the applicable then-current Benchmark has any Available Tenors, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), a Relevant Governmental Body, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by any of the entities referenced in clause (2) above announcing that all Available Tenors of such Benchmark

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(or such component thereof) are no longer, or as of a specified future date will no longer be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark in accordance with Section 2.05(c), and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark in accordance with Section 2.05(c).

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America.

"<u>Borrower</u>" means Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the State of North Dakota.

"<u>Business Day</u>" shall mean any day other than a Saturday or a Sunday or a legal holiday on which commercial banks are authorized or required by law to be closed for business in New York, New York; provided that, when used in connection with SOFR or Daily Simple SOFR, the term "Business Day" means any day that is only a U.S. Government Securities Business Day.

"<u>CFC</u>" means National Rural Utilities Cooperative Finance Corporation.

"<u>CFC Facility</u>" means the credit facility evidenced by that certain Credit Agreement, dated as of March 16, 2018, between the Borrower and CFC as administrative agent and lender thereunder, or any successor unsecured credit facility or facilities in replacement thereof.

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"<u>Change in Law</u>" means the occurrence, after the Effective Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided, that notwithstanding anything herein to the contrary, (x) the Dodd Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or, issued in connection therewith or in implementation thereof, and (y) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.

"<u>Charges</u>" shall have the meaning set forth in Section 9.12.

"<u>CoBank</u>" means CoBank, ACB, a federally chartered instrumentality of the United States.

"<u>CoBank Equities</u>" means any of Borrower's stock, patronage refunds issued in the form of stock or otherwise constituting allocated units, patronage surplus (including any such surplus accrued by CoBank for the account of Borrower) and other equities in CoBank acquired in connection with, or because of the existence of, Borrower's patronage loan from CoBank (or its affiliate), and the proceeds of any of the foregoing.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time.

"<u>Confidential Information</u>" means any sensitive or confidential information regarding the Lender or any Affiliate of the Lender including, without limitation, address and account information, e-mail addresses, telephone numbers, facsimile numbers, names and signatures of officers, employees and signatories.

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"<u>Daily Simple SOFR</u>" means, for any day (a "<u>SOFR Rate Day</u>"), a rate per annum equal to SOFR for the day (such day, a "<u>SOFR Determination Day</u>") that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding

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such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website; provided, however, that if as of 5:00 p.m. (New York City time) on any SOFR Determination Day Daily Simple SOFR for the applicable tenor has not been published by the SOFR Administrator and a Benchmark Replacement Date with respect to Daily Simple SOFR has not occurred, then Daily Simple SOFR will be Daily Simple SOFR as published by the SOFR Administrator on the first preceding U.S. Government Securities Business Day for which Daily Simple SOFR was published by the SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such SOFR Determination Day; provided, that to the extent such rate as determined above shall, at any time, be less than the Floor, such rate shall be deemed to be the Floor for all purposes herein.

"<u>Default</u>" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"<u>Dakota Gasification Company</u>" means Dakota Gasification Company, a corporation existing under the laws of the State of North Dakota and a wholly owned subsidiary of the Borrower.

"<u>Disclosed Matters</u>" means the environmental matters or the actions, suits and proceedings disclosed in Schedules 3.15 and 3.16, respectively.

"<u>dollars</u>" or "<u>$</u>" refers to lawful money of the United States of America.

"<u>E-SIGN</u>" means the Federal Electronic Signatures in Global and National Commerce Act, as amended from time to time, and any successor statute, and any regulations promulgated thereunder from time to time.

"<u>Effective Date</u>" means December 10, 2025, the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

"<u>EMMA</u>" means the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system or any service or services established by the Municipal Securities Rulemaking Board (or any of its successors) as a successor to the Electronic Municipal Market Access system.

"<u>EMMA Posting</u>" has the meaning set forth in Section 9.16.

"<u>Environmental Laws</u>" means all applicable laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.

"<u>Environmental Liability</u>" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the

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Borrower or any Significant Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

"<u>Equity Balance</u>" means, as of the last day of any fiscal quarter, total members' patronage capital or other equity of the Borrower and the Significant Subsidiaries (without giving effect to other comprehensive income whether positive or negative) less goodwill, as determined without duplication on a consolidated basis in accordance with GAAP. Equity Balance shall be determined without giving effect to non-cash adjustments required to be made pursuant to ASC 815 and ASC 321.

"<u>Equity Interests</u>" means all shares, interests or other equivalents, however designated, of or in a corporation, limited liability company, or partnership, whether or not voting, including but not limited to common stock, member interests, partnership interests, warrants, preferred stock, convertible debentures, and all agreements, instruments and documents convertible, in whole or in part, into any one or more of the foregoing.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

"<u>ERISA Event</u>" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the thirty (30) day notice period is waived); (b) the existence with respect to any Plan or Multiemployer Plan of an "accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived (or, for years in which funding requirements are governed by the Pension Protection Act of 2006, any failure to satisfy the applicable minimum funding standards under Section 412(a) of the Code or Section 302(a) of ERISA, whether or not waived); (c) the filing pursuant to Section 412(d) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan or Multiemployer Plan (or, for years in which the Pension Protection Act of 2006 applies to any Plan or any Multiemployer Plan, Section 412(c) of the Code or Section 302(c) of ERISA); (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan or Multiemployer Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any

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Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or the termination of a Multiemployer Plan under Section 4041A of ERISA.

"<u>Event of Default</u>" has the meaning assigned to such term in Article VII.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to the Lender or required to be withheld or deducted from a payment to the Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of the Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of the Lender with respect to an applicable interest in the Term Loan pursuant to a law in effect on the date on which (i) the Lender acquires such interest in the Term Loan or (ii) the Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.07, amounts with respect to such Taxes were payable either to the Lender's assignor immediately before the Lender acquired the applicable interest in the Term Loan or to the Lender immediately before it changed its lending office, and (c) any U.S. federal withholding Taxes imposed under FATCA.

"<u>Farm Credit Lender</u>" means any lending institution chartered or otherwise organized and existing pursuant to the provisions of the Farm Credit Act of 1971 and under the regulation of the Farm Credit Administration.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

"<u>Federal Funds Effective Rate</u>" means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided, (i) if such day is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be the average rate charged to the Lender on such day on such transactions as determined by the Lender; provided that if the Federal Funds Effective Rate as so determined would be less than 0.00%, such rate shall be deemed to be 0.00% for the purposes of this Agreement.

"<u>Financial Officer</u>" means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

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"<u>Fitch</u>" means Fitch Ratings Ltd. or any successor thereto.

"<u>Fitch Rating</u>" means, as of any date of determination thereof, the Rating most recently published by Fitch relating to the Index Debt.

"<u>Floor</u>" means the benchmark rate floor, if any provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to Daily Simple SOFR. For the avoidance of doubt, the initial Floor for Daily Simple SOFR shall be 0.00%.

"<u>Fundamental Transaction</u>" has the meaning set forth in Section 6.03(a).

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States of America.

"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).

"<u>Guarantee</u>" of or by any Person (the "guarantor") means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

"<u>Hazardous Materials</u>" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

"<u>Illegality Notice</u>" has the meaning set forth in Section 2.05(b).

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"<u>Indebtedness</u>" of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business and capital leases), (f) all direct guarantees by such Person of Indebtedness of others, (g) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, and (h) all obligations, contingent or otherwise, of such Person in respect of banker's acceptances. The Indebtedness of the Borrower shall not include obligations of the Borrower or any other Person (i) under Swap Agreements, (ii) relating to non-capital lease obligations (as determined in accordance with accounting requirements as in effect on the date of this Agreement), (iii) to make payment for power, energy, transmission, fuel or other goods and services, whether or not such items are received, (iv) imposed by a Governmental Authority (other than RUS or CoBank), (v) under commodities trading or purchase arrangements, (vi) under surety, indemnity, performance, release and appeal bonds and guarantees thereof incurred in the ordinary course of the Borrower's business, (vii) relating to reclamation or decommissioning obligations (and guarantees thereof), (viii) which have been legally or economically defeased, (ix) relating to trade payables incurred in the ordinary course of business, or (x) relating to indemnification and reimbursement obligations with respect to the monetization of tax credits available under Section 45Q of the Code for the capture and sequestration of carbon dioxide pursuant to the Transaction Agreement, dated October 18, 2023, by and among certain investors party thereto, Dakota Gasification Company and the Borrower.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in Section 9.03(b).

"<u>Indenture</u>" means that certain Amended and Restated Indenture, dated as of May 5, 2015, by and between the Borrower and U.S. Bank National Association, as trustee, as amended and supplemented from time to time.

"<u>Index Debt</u>" means senior unsecured indebtedness of the Borrower that is not subject to any credit enhancement, provided that if a Major Rating Agency does not provide such a Rating on the Index Debt, such Major Rating Agency's rating shall be deemed to be that rating which is one (1) notch below (taking into account "+" and "-" and numerical modifiers) the Rating by such Major Rating Agency of the Borrower's senior secured indebtedness for borrowed money that is not subject to any other credit enhancement.

"<u>Interest Payment Date</u>" means the first Business Day of each calendar month, commencing on January 2, 2026, and the Maturity Date.

"<u>Lender</u>" means Royal Bank of Canada, together with its successors and assigns.

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"<u>Lien</u>" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

"<u>Loan Documents</u>" means this Agreement, the Note and any other agreements, documents, certificates, notices, or instruments entered into in connection therewith.

"<u>Major Rating Agency</u>" means Fitch, Moody's and S&P, individually or collectively as the context may require.

"<u>Margin Stock</u>" has the meaning set forth in Section 3.04.

"<u>Material Adverse Change</u>" means a material adverse change in the (i) business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) of the Borrower and its Significant Subsidiaries taken as a whole, (ii) ability of the Borrower to perform its obligations under this Agreement or any other Loan Document, or (iii) rights of the Lender under this Agreement or any other Loan Document.

"<u>Material Indebtedness</u>" means Indebtedness (other than the Term Loan) of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $25,000,000.

"<u>Maturity Date</u>" means October 31, 2026.

"<u>Maximum Rate</u>" has the meaning set forth in Section 9.12.

"<u>Member</u>" means each holder of a membership interest in the Borrower.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Moody's Rating</u>" means, as of any date of determination thereof, the Rating most recently published by Moody's relating to the Index Debt.

"<u>Multiemployer Plan</u>" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"<u>Note</u>" means that Term Note dated the Effective Date delivered by the Borrower to the Lender in substantially the form attached as Exhibit A to this Agreement.

"<u>Notice of Prepayment</u>" has the meaning set forth in Section 2.03.

"<u>Obligations</u>" means the Term Loan and all other advances, debts or liabilities owing by the Borrower to the Lender, any Affiliate of the Lender or any Indemnitee, of any kind or nature, present or future, arising under this Agreement, the Note or any other Loan Document, whether

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or not evidenced by any note, guaranty or other instrument, whether or not for the payment of money, whether arising by reason of an extension of credit, loan, guaranty, indemnification, or in any other manner. The term includes, without limitation, all interest, charges, expenses, fees, attorneys' fees and disbursements, paralegals' fees (in each case whether or not allowed), and any other sum chargeable to the Borrower under this Agreement or any other Loan Document.

"<u>OFAC</u>" means the Office of Foreign Assets Control of the U.S. Department of Treasury.

"<u>Other Connection Taxes</u>" means, with respect to the Lender, Taxes imposed as a result of a present or former connection between the Lender and the jurisdiction imposing such Tax (other than connections arising from the Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in the Term Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes.

"<u>Participant</u>" has the meaning set forth in Section 9.04(b).

"<u>Participant Register</u>" has the meaning set forth in Section 9.04(b).

"<u>Patriot Act</u>" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

"<u>Prime Rate</u>" shall mean the rate of interest per annum publicly determined by the Lender from time to time as its prime commercial lending rate for United States Dollar loans in the United States for such day. The Prime Rate is not necessarily the lowest rate that the Lender is charging any corporate customer.

"<u>Rating</u>" means the Moody's Rating, the S&P Rating or the Fitch Rating, as applicable.

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"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Governmental Body</u>" means the Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Rule</u>" has the meaning set forth in Section 9.16.

"<u>RUS</u>" means the Rural Utilities Service, an agency of the United States Department of Agriculture, or any agency or other governmental body succeeding to the functions thereof.

"<u>S&P</u>" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business.

"<u>S&P Rating</u>" means, as of any date of determination thereof, the Rating most recently published by S&P relating to the Index Debt.

"<u>Sanctioned Country</u>" means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Belarus, Cuba, Iran, North Korea, the Crimea region of Ukraine, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, Russia and Syria).

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons or (d) any Person otherwise the subject of any Sanctions.

"<u>Sanctions</u>" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, any European Union member state, His Majesty's Treasury of the United Kingdom or any other Governmental Authority.

"<u>Significant Subsidiary</u>" means, at any time, Dakota Gasification Company, a North Dakota corporation, and Dakota Coal Company, a North Dakota corporation, in each case of the foregoing entities, solely if such entity constitutes a "Subsidiary" under this Agreement at such time.

"<u>SOFR</u>" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

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"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Administrator's Website</u>" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>SOFR Determination Day</u>" has the meaning specified in the definition of "Daily Simple SOFR".

"<u>SOFR Rate Day</u>" has the meaning specified in the definition of "Daily Simple SOFR".

"<u>subsidiary</u>" means, with respect to any Person (the "parent") at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

"<u>Subsidiary</u>" means any subsidiary of the Borrower.

"<u>Swap Agreement</u>" means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or any Subsidiary shall be a Swap Agreement.

"<u>Syndicated Credit Agreement</u>" means that Credit Agreement dated as of May 1, 2025, among the Borrower, the Lenders party thereto, the other Agents party thereto and U.S. Bank National Association, as Administrative Agent, as amended, supplemented or otherwise modified from time to time.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges in the nature of taxes imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term Loan</u>" has the meaning set forth in Section 2.01.

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"<u>Transactions</u>" means the execution, delivery and performance by the Borrower of the Loan Documents, the borrowing of the Term Loan and the use of the proceeds thereof.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>Wholesale Power Contracts</u>" means, collectively, (a) the contracts and agreements (together with amendments and supplements thereto) identified on Schedule 3.14 together with each successor or replacement thereof, (b) each other contract or agreement of substantially similar terms and conditions from time to time entered into between the Borrower and each of its nineteen (19) Class A Members holding a cooperative interests in the Borrower providing for the sale of electric power and energy by the Borrower to such Member, and (c) each other contract or agreement from time to time entered into between the Borrower and a Significant Subsidiary providing for the sale of electric power and energy by the Borrower to such Significant Subsidiary.

"<u>Withdrawal Liability</u>" means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

**Section 1.02** <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". The word "law" shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended,

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modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

**Section 1.03**. <u>Accounting Terms; GAAP</u>. Except as otherwise expressly provided herein, all terms of an accounting nature shall be construed in accordance with GAAP and all financial data submitted pursuant hereto shall be prepared in accordance with such principles, as in effect from time to time; provided that, if the Borrower notifies the Lender that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Lender notifies the Borrower that the Lender requests an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at "fair value", as defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof.

**Section 1.04**. <u>Rates</u>. The interest rate on the Term Loan is determined by reference to the SOFR and Daily Simple SOFR, respectively. Section 2.05(c) provides a mechanism for (a) determining an alternative rate of interest of a Benchmark is no longer available or in the other circumstances set forth in Section 2.05(c) and (b) modifying this Agreement to give effect to such alternative rate of interest. The Lender does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission, or any other matter related to SOFR or Daily Simple SOFR or with respect to any alternative or successor rate thereto, or replacement rate thereof (including any Benchmark Replacement), including without limitation whether any such alternative, successor, or replacement reference rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to Section 2.05(c), will have the same value as, or be economically equivalent to the replaced Benchmark. The Lender and its Affiliates or other related entities may engage in transactions that affect the calculation of the Alternate Base Rate, SOFR, Daily Simple SOFR, and any alternative, successor or replacement rates (including any Benchmark Replacement), or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Lender may select information sources or services in its reasonable discretion to ascertain the Alternate Base Rate, SOFR, Daily Simple SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower or any other person or entity for damages of any kind, including

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direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**Section 1.05.** <u>Divisions</u>. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

**ARTICLE II**

**<u>TERM LOAN</u>**

**Section 2.01.** <u>Term Loan</u>. Subject to the terms and conditions set forth herein, the Lender agrees to make, on the Effective Date, a loan to the Borrower in the principal amount of Three Hundred Seventy-Five Million and No/100 Dollars ($375,000,000.00) (the "<u>Term Loan</u>"), the proceeds of which shall be used to repay certain outstanding Indebtedness of Dakota Gasification Company and for other general corporate purposes. Any amount borrowed under this Section and subsequently repaid or prepaid may not be reborrowed.

**Section 2.02.** <u>Repayment of Term Loan; Evidence of Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby unconditionally promises to pay to the Lender the then unpaid principal amount of the Term Loan in full on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to the Lender resulting from the Term Loan made by the Lender, including the amounts of principal and interest payable and paid to the Lender from time to time hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The entries made in the accounts maintained pursuant to paragraph (b) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of the Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Term Loan in accordance with the terms of this Agreement.

**Section 2.03.** <u>Prepayment of Term Loan</u>. The Borrower shall have the right at any time and from time to time, without premium or penalty, to prepay the Term Loan, in whole or in part, upon delivery to the Lender of an irrevocable prior written notice substantially in the form attached as Exhibit B (a "<u>Notice of Prepayment</u>") not later than 11:00 a.m. (New York City time) at least five (5) U.S. Government Securities Business Days before, specifying the date and principal amount of the prepayment. Each prepayment of the Term Loan hereunder shall be in an aggregate principal amount of at least $5,000,000 or any whole multiple of $1,000,000 in excess

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thereof (or, if less, the remaining outstanding principal amount thereof). A Notice of Prepayment received after 11:00 a.m. shall be deemed received on the next Business Day or U.S. Government Securities Business Day, as applicable.

**Section 2.04.**&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Rate.</u> Subject to the provisions of this Section, the Term Loan shall bear interest at Daily Simple SOFR plus the Applicable Margin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Default Interest</u>. Notwithstanding the foregoing, if any principal of or interest on the Term Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to 2% plus the Alternate Base Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Interest</u>. Accrued interest on the Term Loan shall be payable in arrears on each Interest Payment Date; provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand, and (ii) in the event of any repayment or prepayment of the Term Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Conforming Changes</u>. In connection with the use or administration of any Benchmark, the Lender will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Lender will promptly notify the Borrower of the effectiveness of any Benchmark Replacement Conforming Changes in connection with the use or administration of any Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Computation of Interest and Fees</u>. Interest and fees hereunder shall be computed on the basis of a year of three hundred sixty (360) days and for the actual number of days elapsed. If any payment to be made hereunder becomes due and payable on a day other than a Business Day, the due date thereof shall be extended to the next succeeding Business Day and interest thereon shall be payable at the applicable rate of interest during such extension.

**Section 2.05.** <u>Changed Circumstances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Circumstances Affecting Benchmark Availability</u>. Subject to clause (c) below, if for any reason (i) the Lender shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for ascertaining Daily Simple SOFR pursuant to the definition thereof, or (ii) the Lender shall determine (which determination shall be conclusive and binding absent manifest error) that Daily Simple SOFR does not adequately and fairly reflect the cost to the Lender of making or maintaining the Term Loan, then, in each case, the Lender shall

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promptly give notice thereof to the Borrower. Upon receipt of such notice, the Term Loan will be deemed to have immediately converted to accrue interest at the Alternate Base Rate (without regard to subpart (c) of such definition). Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Laws Affecting SOFR Availability</u>. If, after the date hereof, the introduction of, or any change in, any applicable law 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 compliance by the Lender with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for the Lender to honor its obligations hereunder to make or maintain the Term Loan as a loan bearing interest at a rate based on SOFR or Daily Simple SOFR, or to determine or charge interest based upon SOFR or Daily Simple SOFR, the Lender shall promptly give notice to the Borrower (an "<u>Illegality Notice</u>"). Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such illegality, upon demand from the Lender, prepay or, if applicable, convert the Term Loan to accrue interest at the Alternate Base Rate (without regard to subpart (c) of such definition) on the next succeeding Interest Payment Date therefor, if the Lender may lawfully continue to maintain the Term Loan as a loan bearing interest at a rate based on SOFR or Daily Simple SOFR to such day, or immediately, if the Lender may not lawfully continue to maintain the Term Loan as a loan bearing interest at a rate based on SOFR or Daily Simple SOFR to such day. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event with respect to any Benchmark, the Lender and the Borrower may amend this Agreement to replace such Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Lender has posted such proposed amendment to the Borrower. No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 2.05(c)(i)(A) will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;No Swap Agreement shall be deemed to be a "Loan Document" for purposes of this Section 2.05(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the implementation of a Benchmark Replacement, the Lender will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document,

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any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Lender will promptly notify the Borrower of (A) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, (B) the implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark Replacement Conforming Changes, (D) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (v) below and (E) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Lender pursuant to this Section 2.05(c), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.05(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Lender in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Lender may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove any tenor of such Benchmark that is unavailable or non-representative for any Benchmark settings and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Lender may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Unavailability Period</u>. Upon notice to the Borrower by the Lender in accordance with Section 9.01 of the commencement of a Benchmark Unavailability Period with respect to a given Benchmark and until a Benchmark Replacement is determined in accordance with this Section 2.05(c), the Term Loan

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will be deemed to have immediately converted to accrue interest at the Alternate Base Rate (without regard to subpart (c) of such definition).

**Section 2.06.** <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended or participated in by, the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;subject the Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;impose on the Lender or any applicable interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or the Term Loan made by the Lender or participation thereunder;

and the result of any of the foregoing shall be to increase the cost to the Lender of making or maintaining the Term Loan, or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or any other amount) then, upon request of the Lender, the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Requirements</u>. If the Lender determines that any Change in Law affecting the Lender or any lending office of the Lender or the Lender's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on the Lender's capital or on the capital of the Lender's holding company, if any, as a consequence of this Agreement or the Term Loan made by the Lender, to a level below that which the Lender or the Lender's holding company could have achieved but for such Change in Law (taking into consideration the Lender's policies and the policies of the Lender's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender or the Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay the Lender

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the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Delay in Requests</u>. Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver of the Lender's right to demand such compensation; provided that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs incurred or reductions suffered more than 270 days prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of the Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof).

**Section 2.07.** &nbsp;&nbsp;&nbsp;&nbsp; <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. For purposes of this Section 2.07, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of the Borrower) requires the deduction or withholding of any Tax from any such payment by the Borrower, then the Borrower shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Lender timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.07, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified pursuant to Section 2.06 or this Section 2.07 (including by the payment of additional amounts pursuant to this Section 2.07), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under Section 2.06 or this Section 2.07 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (f) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (f), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (f) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this Section 2.07 shall survive any assignment of rights by, or the replacement of, the Lender, and the repayment, satisfaction or discharge of all obligations under any Loan Document.

**Section 2.08.** <u>Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Generally</u>. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or of amounts payable under Section 2.06 or 2.07, or otherwise) prior to 12:00 noon (New York City time) on the date when due, in immediately available funds, without set off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Lender, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Lender by wire transfer to JPMorgan Chase Bank, N.A., New York, ABA # [\*\*\*], for the account of Royal Bank of Canada, New York, Account # [\*\*\*], FFC to Account # [\*\*\*], FFC Account Name, Global Loan Administration, Ref.: Basin Electric Term Loan, or such other account as to which the Lender may notify the Borrower. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next

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succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Payments</u>. If at any time insufficient funds are received by and available to the Lender to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, and (ii) second, towards payment of principal then due hereunder.

**Section 2.09.** <u>Mitigation Obligations</u>. If the Lender requests compensation under Sections 2.06 or 2.07, or the Borrower is otherwise required to pay amounts thereunder, the Lender shall use reasonable efforts to designate a different lending office for holding the Term Loan hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the reasonable judgment of the Lender such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Sections 2.06 or 2.07, as the case may be, in the future and (ii) would not subject the Lender to any material unreimbursed cost or expense and would not otherwise be disadvantageous in any material respect to the Lender, it being understood that Borrower shall be given a reasonable opportunity to agree to reimburse such material costs and/or expenses.

**ARTICLE III**

**<u>REPRESENTATIONS AND WARRANTIES</u>**

The Borrower represents and warrants to the Lender that:

**Section 3.01**. <u>Organization; Powers</u>. Each of the Borrower and its Significant Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.

**Section 3.02.** <u>Authorization; Enforceability</u>. The Transactions are within the Borrower's corporate powers and have been duly authorized by all necessary corporate and, if required, Member action. This Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 3.03.** <u>Investment Company Act Status</u>. Neither the Borrower nor any of its Significant Subsidiaries is an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

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**Section 3.04.** &nbsp;&nbsp;&nbsp;&nbsp;<u>Margin Regulations</u>. Neither the Borrower nor any Significant Subsidiary is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" as such terms are defined in Regulation U of the Board as now and from time to time hereafter in effect (such securities being referred to herein as "<u>Margin Stock</u>"). None of the proceeds of the Term Loan or other extensions of credit under this Agreement has been used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any of the Term Loan or other extensions of credit under this Agreement to be considered a "purpose credit" within the meaning of Regulations T, U or X of the Board. Neither the Borrower nor any Significant Subsidiary will take or permit to be taken any action that might cause any Loan Document to violate any regulation of the Board.

**Section 3.05.** &nbsp;&nbsp;&nbsp;&nbsp; <u>Governmental Approvals; No Conflicts</u>. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Significant Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under the Indenture or any other material agreement binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Significant Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any material asset of the Borrower or any of its Significant Subsidiaries (other than as contemplated by this Agreement).

**Section 3.06.** &nbsp;&nbsp;&nbsp;&nbsp; <u>Financial Condition</u>. The Borrower has heretofore furnished to the Lender its consolidated balance sheet and statements of income, Members equity and cash flows (i) as of and for the fiscal year ended December 31, 2024, reported on by Deloitte & Touche LLP, independent public accountants, and (ii) as of and for the portion of the fiscal year ended September 30, 2025, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.

**Section 3.07&nbsp;&nbsp;&nbsp;&nbsp;** <u>Properties</u>. Each of the Borrower and its Significant Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for defects in title that do not interfere with their ability to conduct their businesses taken as a whole as currently conducted or to utilize such properties for their intended purposes.

**Section 3.08.** <u>Compliance with Laws</u>. Each of the Borrower and its Significant Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority (excluding employment laws and laws otherwise addressed in this Article but including the Patriot Act) applicable to it or its property, except (other than in the case of the Patriot Act) as could not reasonably be expected to result in a Material Adverse Change.

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**Section 3.09.** &nbsp;&nbsp;&nbsp;&nbsp; <u>Taxes</u>. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Change.

**Section 3.10.** <u>ERISA</u>. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Change.

**Section 3.11.** &nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. The Borrower has and each of its Significant Subsidiaries has adequate insurance coverage which is prudent and customary to the industry and location of the Borrower and its Significant Subsidiaries.

**Section 3.12**. <u>Corporate Structure</u>. All of the issued and outstanding ownership interests of each Significant Subsidiary are owned by the Borrower. There are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which Borrower or any Significant Subsidiary may be required to issue, sell, repurchase or redeem any of its ownership interests or other equity securities or any ownership interests or other equity securities of its subsidiaries.

**Section 3.13.** <u>No Material Adverse Change</u>. Since December 31, 2024, there has been no Material Adverse Change.

**Section 3.14.** <u>Wholesale Power Contracts</u>. No senior officer of the Borrower has any actual knowledge of a payment default by any Member under a Wholesale Power Contract that has occurred and is continuing. The Borrower has provided the Lender with true and correct copies of the Wholesale Power Contracts and such Wholesale Power Contracts are valid, binding and enforceable against the Borrower.

**Section 3.15.** <u>Environmental Matters</u>. Except for the Disclosed Matters or except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, neither the Borrower nor any of its Subsidiaries (i) is in violation of any Environmental Law or has failed to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) is subject to any Environmental Liability, (iii) has received notice of any claim with respect to any unresolved Environmental Liability or (iv) no senior officer of the Borrower has any knowledge of any basis for any unresolved Environmental Liability.

**Section 3.16.** <u>Litigation</u>. Except for the Disclosed Matters, there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against and no senior officer of the Borrower has knowledge of any actions, suits or proceedings by or before any arbiter or threatened against or affecting the Borrower or any of its Significant Subsidiaries (i) that could reasonably be expected, individually or in the aggregate, to result in a Material

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Adverse Change (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions.

**Section 3.17.** <u>Disclosure</u>. (a) No reports, financial statements, certificates or other information furnished by or on behalf of the Borrower to the Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) as of the date of delivery thereof, taken as a whole, and in light of the circumstances under which such statements were made, contains any untrue statement of material fact or omits to state a material fact necessary in order to make the statements contained therein not materially misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No senior officer of the Borrower has knowledge of any event that has occurred since December 31, 2024, or exists which could reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, the information included in any Beneficial Ownership Certification is true, correct and complete in all respects.

**Section 3.18.** <u>Defaults</u>. (a) No Default has occurred and is continuing, and (b) no "Event of Default" (as defined in the Indenture or in the debt instruments related to Material Indebtedness) has occurred and is continuing under the Indenture or any other Material Indebtedness.

**Section 3.19.** <u>Anti-Corruption Laws and Sanctions</u>. The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the Term Loan, is a Sanctioned Person. None of the Term Loan, the proceeds thereof or other Transactions have been or is intended to be used (i) for the purpose of violating any Anti-Corruption Laws or (ii) in violation of applicable Sanctions. References in this Section 3.19 are to directors, officers, employees and agents only to the extent that any such individual is acting within the scope of his or her relationship with the Borrower or one of its Subsidiaries.

**Section 3.20** <u>Benefit Plans</u>. As of the Effective Date, the Borrower is not and will not be using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Term Loan.

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**ARTICLE IV**

**<u>CONDITIONS</u>**

**Section 4.01.** <u>Conditions to Effective Date</u>. The obligation of the Lender to make the Term Loan hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Lender (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Lender (which may include electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a favorable written opinion (addressed to the Lender and dated the Effective Date) of James Horan, Esq., Senior Vice President and General Counsel of the Borrower, in form and substance reasonably satisfactory to the Lender, and covering such other matters relating to the Borrower, this Agreement or the Transactions as the Lender shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received the Note signed on behalf of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received such documents and certificates as the Lender or its counsel may reasonably request relating to the organization, existence and good standing of the Borrower, the authorization of the Transactions and any other legal matters relating to the Borrower, the Loan Documents or the Transactions, all in form and substance satisfactory to the Lender and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Receipt and satisfactory review by the Lender of such financial information including audited financial statements for fiscal years ended 2024, 2023 and 2022, financial statements for the nine months ended September 30, 2025, and financial information, regarding the Borrower and its Subsidiaries, as the Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a certificate, dated the Effective Date and signed by the Chief Executive Officer and General Manager, a Vice President or a Financial Officer of the Borrower, confirming (i) the representations and warranties of the Borrower set forth in this Agreement shall be true and correct on and as of the Effective Date and (ii) no Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The absence of any action, suit, investigation or proceeding pending or, to the knowledge of a senior officer of the Borrower, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to result in a Material Adverse Change.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;The absence of any material adverse change since December 31, 2024, in the condition, financial condition, business, assets, liabilities (actual and contingent) or operations of the Borrower and its Significant Subsidiaries, taken as whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall be in compliance with all existing material financial obligations and all obligations under each Wholesale Power Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;If requested by the Lender, receipt by the Lender of copies of the Wholesale Power Contracts, each of which shall be certified by the Borrower to be true and complete and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a copy of Borrower's investment policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have paid all fees and reimbursed all expenses as the Borrower shall have agreed to pay to the Lender on or prior to the Effective Date in connection with the negotiation, preparation, execution and delivery of this Agreement and the other Loan Documents and the extensions of credit hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received all documentation and other information required by Governmental Authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have completed and be reasonably satisfied with such due diligence as the Lender decide to conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Borrower of the Loan Documents (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for such as have been obtained or made and are in full force and effect, (ii) will not violate any applicable law or regulation or the organizational documents of the Borrower or any order of any Governmental Authority, and (iii) will not result in the creation or imposition of any Lien on any asset of the Borrower (other than Liens permitted under Section 6.02).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;At least two days prior to the Effective Date, if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall have delivered to the Lender a Beneficial Ownership Certification in relation to the Borrower.

The Lender shall notify the Borrower of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lender to make the Term Loan hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 1:00 p.m. (New York City time) on the Effective Date (and, in the event such conditions are not so satisfied or waived, the obligation of the Lender to make the Term Loan shall terminate at such time).

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**ARTICLE V**

**<u>AFFIRMATIVE COVENANTS</u>**

Until the principal of and interest on the Term Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lender that:

**Section 5.01.** <u>Financial Statements: Ratings Change and Other Information</u>. The Borrower will furnish to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;within one hundred and twenty (120) days after the end of each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2025), the audited consolidated balance sheet and related statements of operations, changes in equity and cash flows of the Borrower and its Subsidiaries as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Deloitte & Touche LLP or other independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ending March 31, 2026), the consolidated balance sheet and related statements of operations, changes in equity and cash flows of the Borrower and its Subsidiaries as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower in the form of Exhibit C (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Sections 5.09 and 5.10 (and, in the case of a certificate delivered with the financial statements under clause (a) above, Section 5.08) and (iii) stating whether any change in the critical accounting policies of the Borrower or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.06 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;within sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Borrower and within one hundred and twenty (120) days after the end of each fiscal year of the Borrower, a certificate of a Financial Officer listing the aggregate value of any collateral posted by the Borrower and its Significant Subsidiaries pursuant to any Swap Agreement or other derivative instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;promptly after Moody's, Fitch or S&P shall have announced a change in the rating established for the Index Debt, written notice of such rating change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon becoming available, copies of any RUS Financial and Operating Report Electric Power Supply (or equivalent RUS filing) filed by the Borrower or any of its Significant Subsidiaries with the United States Government; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Borrower or any Significant Subsidiary, or compliance with the terms of this Agreement, as the Lender may reasonably request and (ii) such other information with documentation required by Governmental Authorities under applicable "know your customer" and anti-money laundering rules and regulations (including the Patriot Act and the Beneficial Ownership Regulation), as from time to time may be reasonably requested by the Lender.

**Section 5.02**. <u>Notices of Material Events</u>. The Borrower will furnish to the Lender prompt written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate thereof that could reasonably be expected to result in a Material Adverse Change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any new Wholesale Power Contract, or any material adverse change to or termination of any Wholesale Power Contract, the Borrower's investment policy or the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any change in the Borrower's fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in parts (c) or (d) of such certification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any other development that results in, or could reasonably be expected to result in, a Material Adverse Change; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon receipt of any default notices under the Indenture, a copy of such default notice.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 5.03.** <u>Existence; Conduct of Business</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.

**Section 5.04.** <u>Payment of Obligations</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could reasonably be expected to result in a Material Adverse Change, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Significant Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Change.

**Section 5.05.** <u>Books and Records; Inspection Rights</u>. The Borrower will, and will cause each of its Significant Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each of its Significant Subsidiaries to, permit any representatives designated by the Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.

**Section 5.06.** <u>Compliance with Laws</u>. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. References in this Section 5.06 are to directors, officers, employees and agents only to the extent that any such individual is acting within the scope of his or her relationship with the Borrower or one of its Subsidiaries.

**Section 5.07.** <u>Use of Proceeds</u>. The proceeds of the Term Loan will be used to repay certain outstanding Indebtedness of Dakota Gasification Company and for other general corporate purposes. No part of the proceeds of the Term Loan will be used, whether directly or

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indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X. The Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees, agents shall not use, the proceeds of the Term Loan (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 5.08.** <u>Margins for Interest Ratio</u>. The Borrower will maintain a Margins for Interest ratio (as defined in the Indenture) for each fiscal year of at least 1.10:1.00 calculated in accordance with Section 13.14 of the Indenture.

**Section 5.09.** <u>Indenture Covenants</u>. The Borrower will comply with the covenants of Article XIII of the Indenture (except, for avoidance of doubt, the covenants in Section 13.14 of the Indenture), provided that if the Indenture ceases to be in effect at any time, unless and until the Borrower and Lender agree in writing to the contrary, the provisions in the Indenture immediately prior to its ceasing to be in effect shall govern. Each waiver or amendment of an Indenture covenant and each cure of a breach of an Indenture covenant by the parties to the Indenture shall be binding on the parties hereto and the Indenture covenants shall be deemed to be waived or amended to the same extent, or the breach thereof shall be deemed cured to the same extent as under the Indenture.

**Section 5.10.** <u>Equity Balance</u>. The Borrower will maintain a minimum Equity Balance as of the end of each fiscal quarter, beginning with the fiscal quarter ending December 31, 2025, in an amount no less than the greater of (a) 85% of the Equity Balance at the end of the next preceding fiscal year and (b) $1 billion.

**ARTICLE VI**

**<u>NEGATIVE COVENANTS</u>**

Until the principal of and interest on the Term Loan and all fees payable hereunder have been paid in full, the Borrower covenants and agrees with the Lender that:

**Section 6.01.** <u>Indebtedness</u>. The Borrower will not create, incur, assume or permit to exist any Indebtedness, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness created hereunder or under the Syndicated Credit Agreement (or any successor unsecured credit facility or facilities primarily intended for general corporate purposes, including commercial paper back up, in replacement thereof), or commercial paper in respect of which the Borrower shall have conditional liquidity available in the event of a failed placement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness of the Borrower to any wholly-owned Subsidiary or guarantees by the Borrower of any Indebtedness of any wholly-owned Subsidiary owing to any other wholly-owned Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;unsecured Indebtedness, including (i) Indebtedness created under the CFC Facility or commercial paper backed by the CFC Facility and (ii) Indebtedness to any Farm Credit Lender or relating to Indebtedness to Members, in an amount which, together with Indebtedness under clause (b)(ii) shall not exceed $1,500,000,000 in the aggregate, other than Indebtedness permitted under clauses (a), (c) or (e) of this Section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;reimbursement under any surety, indemnity, performance, release and appeal bonds and guarantees thereof and letters of credit, in each case, required in the ordinary course of business or in connection with the enforcement of rights or claims of the Borrower or any wholly-owned Subsidiary.

**Section 6.02.** <u>Liens</u>. The Borrower will not create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except Liens of the Indenture, Liens not prohibited by the Indenture and CoBank's Liens (including the right of setoff) in the CoBank Equities and in any cash patronage in respect thereof.

**Section 6.03.** <u>Fundamental Changes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not, and will not permit any Significant Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets, or all or substantially all of the stock or ownership interests of any of its Significant Subsidiaries, or liquidate or dissolve (each of such transactions, a "<u>Fundamental Transaction</u>"), except that, (x) if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing (i) any Person may merge into the Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Person (other than the Borrower) may merge into any Significant Subsidiary in a transaction in which the surviving entity is a Significant Subsidiary, (iii) any Significant Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to another Significant Subsidiary and (iv) any Significant Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower, and (y) if at the time thereof and immediately after giving effect thereto (A) no

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Default shall have occurred and be continuing, and (B) the Borrower shall be in compliance with the covenants set forth in Sections 5.08, 5.09 and 5.10, in each case calculated on a pro forma basis after giving effect to the applicable Fundamental Transaction as if such Fundamental Transaction occurred on the first date of the applicable testing period, any Significant Subsidiary may consummate any Fundamental Transaction if the Borrower (or such Significant Subsidiary if it remains a Significant Subsidiary) receives fair market value in consideration therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not, and will not permit any of its Significant Subsidiaries to, engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Significant Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not make or permit any modification, supplement or waiver of any of the provisions of its charter, bylaws or any other organizational document of the Borrower or any of its Significant Subsidiaries that could reasonably be expected to be adverse to the Lender.

**Section 6.04.** <u>Investments, Loans, Advances, Guarantees and Acquisitions</u>. The Borrower will not purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any capital stock, evidences of Indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except (i) investments by the Borrower consistent with its investment policy or as otherwise approved by the Board of Directors, (ii) investments permitted under Section 6.03, (iii) any Guarantees permitted under Section 6.01, or (iv) the CoBank Equities and any other stock or securities of, or investments in, CoBank or its investment services or programs.

**Section 6.05.** <u>Transactions with Affiliates</u>. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates (other than any wholly-owned Subsidiary), except (a) loans and sales of tangible assets to such Affiliates for arm's length, market-based compensation are permitted along with other transactions that, in the opinion of a senior officer of the Borrower, have a substantial business purpose, and equity contributions to such Affiliates reflected as such on the Borrower's balance sheet will be permitted or (b) transactions at prices and on terms no less favorable to the Borrower than could be obtained at an arm's length basis from unrelated third parties will be permitted.

**Section 6.06.** <u>Termination of Wholesale Power Contracts</u>. The Borrower will not terminate Wholesale Power Contracts that at the time represent, individually or in the aggregate, more than 25% of the Borrower's prior year's revenue.

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**<u>Section 6.07.</u>** <u>Indenture Covenants</u>. The Borrower will not violate any covenant in Article XIII of the Indenture.

**Section 6.08.** <u>Swap Agreements</u>. The Borrower will not, and will not permit its Significant Subsidiaries to, enter into any Swap Agreement for speculative purposes.

**ARTICLE VII**

**<u>EVENTS OF DEFAULT</u>**

**Section 7.01.** <u>Events of Default</u>. If any of the following events (each an "<u>Event of</u> <u>Default</u>") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall fail to pay any principal of the Term Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise, or (ii) the Borrower shall fail to pay any interest on the Term Loan when and as the same shall become due and payable and such failure under this clause (a)(ii) shall continue unremedied for a period of five (5) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to pay any fee or any other amount (other than an amount referred to in clause (a) of this Section 7.01) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made or deemed made by or on behalf of the Borrower in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), (b) or (d), 5.03 (with respect to the Borrower's existence), 5.07, 5.08, or 5.10 or in Article VI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Section 7.01), and such failure shall continue unremedied for a period of thirty (30) days after notice thereof from the Lender to the Borrower or, if remedial action has been taken and the Borrower is diligently pursuing a cure, sixty (60) days after notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower or any Significant Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable and such failure shall continue after the expiration of any grace period with respect thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any non-monetary default occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity, or results in the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf causing any Material Indebtedness to become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Significant Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrate, conservator or similar official for the Borrower or any Significant Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower or any Significant Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 7.01, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Significant Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;this Agreement shall at any time for any reason cease to be valid and binding or in full force and effect (other than upon expiration in accordance with the terms hereof) or performance of any material obligation hereunder of the Borrower shall become unlawful, or the Borrower shall so assert in writing or contest the validity or enforceability hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;one or more judgments for the payment of money (which judgments are not, within thirty (30) days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay) in excess, individually or in the aggregate, of the lesser of (a) 15% of the Borrower's prior fiscal year ending Equity Balance and (b) $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall have breached, willfully or grossly negligently, its obligation to promptly copy the Lender on any default notices that it sends to, or receives from, the holder of any debt under the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;an ERISA Event shall have occurred that, in the opinion of the Lender, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;if any one or more Members of the Borrower representing more than 25% of the Borrower's prior year's revenue shall (a) default in the performance of any payment obligations under its or their Wholesale Power Contracts where the aggregate principal amount of such default or defaults exceeds, individually or in the aggregate, $25,000,000 and such default or defaults have continued five (5) days beyond any applicable cure and notice period with respect thereto, or (b) obtain a final order or judgment from a court or regulatory agency of competent jurisdiction, which judgment or order either (i) declares invalid or unenforceable all or a material part of its or their Wholesale Power Contracts, or (ii) results in the release or discharge, in whole or in part, of its or their payment obligations thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;an "Event of Default" shall have occurred under the Syndicated Credit Agreement.

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Section 7.01), and at any time thereafter during the continuance of such event, the Lender may, by notice to the Borrower, declare the Term Loan to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Term Loan so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Section 7.01, the principal of the Term Loan then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

**ARTICLE VIII**

**<u>RESERVED</u>**

**ARTICLE IX**

**<u>MISCELLANEOUS</u>**

**Section 9.01.** <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be

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delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or by electronic communication, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; if to the Borrower, to it at:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, North Dakota 58503

Attention: &nbsp;&nbsp;&nbsp;&nbsp; Chris Johnson, Senior Vice President and Chief

Financial Officer

Telephone: &nbsp;&nbsp;&nbsp;&nbsp; (701) 557-5075

Email: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; christopherj@bepc.com

with a copy to:

Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, North Dakota 58503

Attention: &nbsp;&nbsp;&nbsp;&nbsp; Sarah Scherm, Vice President and Treasurer

Telephone: &nbsp;&nbsp;&nbsp;&nbsp; (701) 557-5331

Email: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if to the Lender, to it at:

Royal Bank of Canada

Three World Financial Center

200 Vesey Street

New York, NY 10281

Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shireen Fathi, Vice President

Telephone: &nbsp;&nbsp;&nbsp;&nbsp; (212) 618-3676

E-mail:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

with a copy to:

Royal Bank of Canada

200 Bay Street

Royal Bank Plaza, 12th Floor, South Tower

Toronto, ON M5J 2J5

Attention: &nbsp;&nbsp;&nbsp;&nbsp; Manager, Compliance Credit and Transaction

Management

Email:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [\*\*\*]

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business

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day for the recipient). Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Communications</u>. Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communication (including via e-mail and internet or intranet websites) pursuant to procedures approved by the Lender, provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Lender. The Lender or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

Unless the Lender prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Change of Address, etc</u>. Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

**Section 9.02.** <u>Waivers; Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No failure or delay by the Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Lender hereunder are cumulative and are not exclusive of any rights or remedies that it would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of the Term Loan shall not be construed as a waiver of any Default, regardless of whether the Lender may have had notice or knowledge of such Default at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Lender.

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**Section 9.03.** <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Costs and Expenses</u>. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Lender and its respective Affiliates, including the reasonable fees, charges and disbursements of external counsel for the Lender and its respective Affiliates in connection with the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by the Lender, including the fees, charges and disbursements of any external counsel for the Lender, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Term Loan made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Term Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Lender and each Related Party of the Lender (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) the Term Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any of its Subsidiaries, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, in each case, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Consequential Damages, Etc</u>. To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as

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a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Term Loan, or the use of the proceeds thereof. To the extent permitted by applicable law, the Lender shall not assert, and shall cause its Related Parties not to assert, and hereby waives, and shall cause its Related Parties to waive, any claim against the Borrower, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, any breach by the Borrower of any payment obligation under the Loan Documents with respect to the principal or interest owed in respect of the Term Loan or any fees payable under this Agreement; provided, however, that the foregoing shall not be construed to limit or obviate in any manner the indemnification provisions set forth in paragraph (b) above or any obligation of the Borrower to pay fees, costs or other payments expressly provided for in this Agreement, such as default interest and break funding costs. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments.</u> All amounts due under this Section shall be payable not later than fifteen (15) days after receipt of written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

**Section 9.04.** <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender, and the Lender may not assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee with the prior written consent of the Borrower; provided, however, that the Lender will not be required to obtain such consent in connection with any assignment or transfer to an Affiliate of the Lender or, in connection with any assignment or transfer that occurs while an Event of Default is continuing, (ii) by way of participation in accordance with the provisions of paragraph (b) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (c) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (b) of this Section and, to the extent expressly contemplated hereby, the Related Parties of the Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, the Borrower, sell participations to any Person (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of the Term Loan owing to it); provided that (i) the Lender's obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the Borrower for the performance of such obligations, and (iii) the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender's rights and obligations under this Agreement. For the avoidance of doubt, the Lender shall be responsible for the indemnity under Section 9.03(c) with respect to any payments made by the Lender to its Participant(s).

Any agreement or instrument pursuant to which the Lender sells such a participation shall provide that the Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that the Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.06 and 2.07 (subject to the requirements and limitations therein) to the same extent as if it were the Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 2.09 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.06 or 2.07, with respect to any participation, than the Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. The Lender agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.09 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were the Lender. The Lender shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Term Loan or other obligations under the Loan Documents (the "<u>Participant Register</u>"); provided that the Lender shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Pledges</u>. The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal

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Reserve Bank or any other central banking authority having jurisdiction over the Lender, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release the Lender from any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto.

**Section 9.05.** <u>Survival</u>. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of the Term Loan, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on the Term Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid. The provisions of Sections 2.06, 2.07 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Term Loan or the termination of this Agreement or any provision hereof.

**Section 9.06.** <u>Counterparts; Integration; Effectiveness; Electronic Execution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the Note and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including E-SIGN, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

**Section 9.07.** <u>Severability</u>. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such

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invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

**Section 9.08.** <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by the Lender or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to the Lender or its Affiliates, irrespective of whether or not the Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness. The rights of the Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that the Lender or its Affiliates may have. The Lender agrees to notify the Borrower promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.

**Section 9.09.** <u>Governing Law; Jurisdiction; Consent to Service of Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Jurisdiction</u>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County, and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts of any jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Venue</u>. The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

**Section 9.10.** <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

**Section 9.11.** <u>Headings</u>. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

**Section 9.12.** <u>Interest Rate Limitation</u>. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to the Term Loan, together with all fees, charges and other amounts which are treated as interest on the Term Loan under applicable law (collectively the "<u>Charges</u>"), shall exceed the maximum lawful rate (the "<u>Maximum Rate</u>") which may be contracted for, charged, taken, received or reserved by the Lender in accordance with applicable law, the rate of interest payable in respect of the Term Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of the Term Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to the Lender in respect of the Term Loan or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by the Lender.

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**Section 9.13.** <u>USA PATRIOT Act</u>. The Lender is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>Act</u>") and hereby notifies the Borrower that, pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Act.

**Section 9.14.** <u>No Advisory or Fiduciary Responsibility</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that (a)(i) no fiduciary, advisory or agency relationship between the Borrower and its Subsidiaries and the Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Lender has advised or is advising the Borrower or any Subsidiary on other matters, (ii) the arranging and other services regarding this Agreement provided by the Lender are arm's-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Lender, on the other hand, (iii) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate and (iv) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b)(i) the Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person; (ii) the Lender does not have any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Lender and its respective branches and Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and the Lender does not have any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by applicable law, the Borrower hereby waives and releases any claims that it may have against the Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

**Section 9.15.** <u>Governmental Regulation</u>. Anything in this Agreement to the contrary notwithstanding, the Lender shall not be obligated to extend credit to the Borrower in violation of any limitation or prohibition provided by any applicable statute or regulation.

**Section 9.16.** <u>EMMA Posting</u>. In the event the Borrower files with EMMA, this Agreement, any other Loan Document or any description of the material terms thereof or notice of any agreement to covenants, events of default, remedies, priority rights or other similar terms, either voluntarily or as required pursuant to a continuing disclosure agreement or Rule 15c2-12 promulgated pursuant to the Securities and Exchange Act of 1934, as amended (the "<u>Rule</u>") (each such posting, an "<u>EMMA Posting</u>"), the Borrower shall (i) provide the Lender with a copy of each EMMA Posting prior to submitting or posting on EMMA and (ii) shall not file or permit the filing of any EMMA Posting that includes Confidential Information. The Borrower

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acknowledges and agrees that although the Lender may request review, edits or redactions of such materials prior to filing, the Lender is not responsible for the Borrower's or any other entity's (including, but not limited to, any broker dealer's) compliance or noncompliance (or any claims, losses or liabilities arising therefrom) with any continuing disclosure agreement or any applicable securities or other laws, including, but not limited to, those relating to the Rule.

[Remainder of Page Intentionally Left Blank; Signature Pages Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Term Loan Agreement to be duly executed by their respective authorized officers or representatives as of the day and year first above written.

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| | |
|:---|:---|
| **BASIN ELECTRIC POWER COOPERATIVE**, <br>as Borrower | **BASIN ELECTRIC POWER COOPERATIVE**, <br>as Borrower |
| By | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Todd Brickhouse |
| Name: Todd Brickhouse | Name: Todd Brickhouse |
| Title: Chief Executive Officer and General Manager | Title: Chief Executive Officer and General Manager |

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[Signatures Continued on Next Page]

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[Signature Page to Term Loan Agreement]

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| | |
|:---|:---|
| **ROYAL BANK OF CANADA**, <br>as Lender | **ROYAL BANK OF CANADA**, <br>as Lender |
| By | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Shireen Fathi |
| Name: Shireen Fathi | Name: Shireen Fathi |
| Title: Authorized Signatory | Title: Authorized Signatory |

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**EXHIBIT A**

**<u>FORM OF TERM NOTE</u>**

**TERM NOTE**

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| | |
|:---|:---|
| $375000000.00 | New York, New York |
|  | December 10, 2025 |

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FOR VALUE RECEIVED, the undersigned, **BASIN ELECTRIC POWER COOPERATIVE**, an electric cooperative corporation existing under the laws of the State of North Dakota (the "<u>Borrower</u>"), hereby promises to pay to **ROYAL BANK OF CANADA** or its registered assigns (the "<u>Lender</u>") the principal sum of Three Hundred and Seventy Five Million and No/100 Dollars ($375,000,000.00) or, if less, the aggregate unpaid principal amount of the Term Loan made by the Lender to the Borrower, in the amounts and at the times set forth in the Term Loan Agreement dated as of December 10, 2025, by and between the Borrower and the Lender (as the same may be amended, supplemented or otherwise modified from time to time, the "<u>Term Loan Agreement</u>") and to pay interest from the date hereof on the principal balance of the Term Loan from time to time outstanding at the times, place and rate or rates set forth in the Term Loan Agreement, in lawful money of the United States in immediately available funds. Terms not otherwise defined herein but defined in the Term Loan Agreement are used herein with the same meanings.

The Term Loan evidenced by this Term Note is prepayable in the amounts, and under the circumstances, and its maturity is subject to acceleration upon the terms, set forth in the Term Loan Agreement. This Term Note is subject to, and shall be construed in accordance with, the provisions of the Term Loan Agreement.

Except as specifically otherwise provided in the Term Loan Agreement, the Borrower hereby waives presentment, demand, notice of dishonor, protest, notice of protest and all other demands, protests and notices in connection with the execution, delivery, performance, collection and enforcement of this Term Note.

Whenever in this Term Note either party hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. The Borrower shall not have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be void), except as expressly permitted by the Loan Documents. No failure or delay of the Lender in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. Neither this Term Note nor any provision hereof may be waived, amended or modified, nor shall any departure therefrom be consented to, except pursuant to a written agreement entered into between the Borrower and the Lender with

Exhibit A-1

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respect to which such waiver, amendment, modification or consent is to apply, subject to any consent required in accordance with Section 9.02 of the Term Loan Agreement.

THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

All communications and notices hereunder shall be in writing and given as provided in Section 9.01 of the Term Loan Agreement.

The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United States District Court for the Southern District of New York and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Term Note or the other Loan Documents, or for recognition or enforcement of any judgment, and the Borrower hereby irrevocably and unconditionally agrees that, to the extent permitted by applicable law, all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such Federal court. The Borrower, and by accepting this Term Note, the Lender, agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Term Note shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Term Note or the other Loan Documents against the Borrower, or any of its property, in the courts of any jurisdiction.

The Borrower, and by accepting this Term Note, the Lender, hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Term Note or the other Loan Documents in any court referred to in the preceding paragraph hereof. The Borrower, and by accepting this Term Note, the Lender, hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

The Borrower, and by accepting this Term Note, the Lender, irrevocably consents to service of process in the manner provided for notices in the Term Loan Agreement. Nothing herein will affect the right of the Lender to serve process in any other manner permitted by law.

**THE BORROWER, AND BY ACCEPTING THIS TERM NOTE, THE LENDER, EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS TERM NOTE OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE** 

Exhibit A-2

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**FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT SUCH LENDER HAS BEEN INDUCED TO ACCEPT THIS TERM NOTE AND ENTER INTO THE LOAN DOCUMENTS TO WHICH IT IS A PARTY BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.**

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

Exhibit A-3

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[Signature Page to Term Note]

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| |
|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** |
| By: |
| Name: Todd Brickhouse |
| Title: Chief Executive Officer and General Manager |

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Exhibit A-4

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**EXHIBIT B**

**<u>FORM OF NOTICE OF PREPAYMENT</u>**

NOTICE OF PREPAYMENT

Dated as of: _____________

Royal Bank of Canada

Three World Financial Center

200 Vesey Street

New York, NY 10281

Attention: Shireen Fathi, Vice President

E-mail: [\*\*\*]

Ladies and Gentlemen:

This irrevocable Notice of Prepayment is delivered to you pursuant to Section 2.03 of the Term Loan Agreement dated as of December 10, 2025 (the "<u>Agreement</u>"), by and between Basin Electric Power Cooperative, an electric cooperative corporation existing under the laws of the State of North Dakota (the "<u>Borrower</u>"), and Royal Bank of Canada (the "<u>Lender</u>"). Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower hereby provides notice to the Lender that it shall optionally repay the Term Loan in the following amount: _____________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall repay the above-referenced Term Loan amount on the following Business Day: _______________.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

Exhibit B-1

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IN WITNESS WHEREOF, the undersigned has executed this Notice of Prepayment as of the day and year first written above.

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| |
|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** |
| By |
| Name: |
| Title: |

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Exhibit B-2

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**EXHIBIT C**

**<u>FORM OF COMPLIANCE CERTIFICATE</u>**

COMPLIANCE CERTIFICATE

The undersigned, [___________]<sup>1</sup> of Basin Electric Power Cooperative, a corporation existing under the laws of the State of North Dakota (the "<u>Borrower</u>"), hereby deliver this certificate pursuant to Section 5.01(c) of the Term Loan Agreement, dated as of December 10, 2025 (as amended and in effect from time to time, the "<u>Agreement</u>"), by and between the Borrower and Royal Bank of Canada (the "<u>Lender</u>"). Capitalized terms used herein but not defined herein shall have the respective meanings assigned to such terms in the Agreement. The undersigned hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;The financial statements provided in connection herewith provide the information required by Section 5.01 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;The information required to establish that the Borrower was in compliance with the requirements of Sections 5.08 and 5.10 of the Agreement during the period covered by the financial statements being furnished in connection herewith is as follows:

[INSERT SUCH INFORMATION, INCLUDING DETAILED CALCULATIONS]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;[State whether there has been any change in the critical accounting policies of the Borrower since December 31, 2024 and, if so, specify the effect of such change on the financial statements accompanying this Certificate.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The undersigned has reviewed, or caused to be reviewed, the relevant terms of the Agreement and has made, or caused to be made under his or her supervision, a review of the transactions and conditions of the Borrower from the beginning of the period being covered by the financial statements being furnished in connection herewith to the date hereof. Such review [has] [has not]<sup>2</sup> disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

<sup>1</sup> Note: Insert title of the undersigned, who must be a Financial Officer of the Borrower.

<sup>2</sup> Note: If a Default or Event of Default exists, provide the specific nature and period of existence thereof and what action the Borrower have taken or proposes to take with respect thereto.

Exhibit C-1

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IN WITNESS WHEREOF, the undersigned Financial Officer of the Borrower has executed this certificate as of the date first set forth above.

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| |
|:---|
| **BASIN ELECTRIC POWER COOPERATIVE** |
| By |
| Name: |
| Title: |

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## Exhibit 4.9

**Exhibit 4.9**

**Basin Electric Power Cooperative**

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055**

**_____________________________**

***<u>Exchange and Registration Rights Agreement</u>***

October 14, 2025

Wells Fargo Securities, LLC

550 South Tryon Street

Charlotte, North Carolina 28202

PNC Capital Markets LLC

300 Fifth Avenue, 10<sup>th</sup> Floor

Pittsburgh, Pennsylvania 15222

U.S. Bancorp Investments, Inc.

214 North Tryon Street, 26th Floor

Charlotte, North Carolina 28202

as representatives of the Purchasers

Ladies and Gentlemen:

Basin Electric Power Cooperative, an electric cooperative corporation organized under the laws of the State of North Dakota (the "<u>Company</u>"), proposes to issue and sell to the Purchasers (as defined herein) upon the terms set forth in the Purchase Agreement (as defined herein) $700,000,000 in aggregate principal amount of its 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 (the "<u>Securities</u>") to be issued pursuant to the provisions of the Forty-Second Supplemental Indenture, dated as of September 15, 2025 (the "<u>Supplemental</u> <u>Indenture</u>"), to the Amended and Restated Indenture, dated as of May 5, 2015, between the Company and U.S. Bank Trust Company, National Association, as trustee (the "<u>Trustee</u>"), as amended and supplemented (the "<u>Indenture</u>"). As an inducement to the Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the obligations of the Purchasers thereunder, the Company agrees with the Purchasers for the benefit of holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;*Certain Definitions*. For purposes of this Exchange and Registration Rights Agreement (this "<u>Agreement</u>"), the following terms shall have the following respective meanings:

"<u>Alternative Registration</u>" shall have the meaning assigned thereto in Section 2(b).

"<u>Alternative Registration Statement</u>" shall have the meaning assigned thereto in Section 2(b).

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"<u>Base Interest</u>" shall mean the interest that would otherwise accrue on the Securities under the terms thereof and the Indenture, without giving effect to the provisions of this Agreement.

The term "<u>broker-dealer</u>" shall mean any broker or dealer registered with the Commission under the Exchange Act.

"<u>Business Day</u>" shall have the meaning set forth in Rule 13e-4(a)(3) promulgated by the Commission under the Exchange Act, as the same may be amended or succeeded from time to time.

"<u>Closing Date</u>" shall mean the date on which the Securities are initially issued.

"<u>Commission</u>" shall mean the United States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose.

"<u>Company</u>" shall have the meaning assigned thereto in the Preamble.

"<u>EDGAR System</u>" means the EDGAR filing system of the Commission and the rules and regulations pertaining thereto promulgated by the Commission in Regulation S-T under the Securities Act and the Exchange Act, in each case as the same may be amended or succeeded from time to time (and without regard to format).

"<u>Effective Time</u>," in the case of (i) an Exchange Registration, shall mean the time and date as of which the Commission declares the Exchange Registration Statement effective or as of which the Exchange Registration Statement otherwise becomes effective and, (ii) an Alternative Registration, shall mean the time and date as of which the Commission declares the Alternative Registration Statement effective or as of which the Alternative Registration Statement otherwise becomes effective.

"<u>Electing Holder</u>" shall mean any holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(c)(ii) or Section 3(c)(iii) and the instructions set forth in the Notice and Questionnaire.

"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder, as the same may be amended or succeeded from time to time.

"<u>Exchange Offer</u>" shall have the meaning assigned thereto in Section 2(a).

"<u>Exchange Registration</u>" shall have the meaning assigned thereto in Section 3(b).

"<u>Exchange Registration Statement</u>" shall have the meaning assigned thereto in Section 2(a).

"<u>Exchange Securities</u>" shall have the meaning assigned thereto in Section 2(a).

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The term "<u>holder</u>" shall mean each of the Purchasers and other persons who acquire Securities from time to time (including any successors or assigns), in each case for so long as such person owns any Securities.

"<u>Indenture</u>" shall have the meaning assigned thereto in the Preamble.

"<u>Notice and Questionnaire</u>" means a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in the form of Exhibit A hereto.

The term "<u>person</u>" shall mean a corporation, limited liability company, cooperative or membership corporation, association, partnership, organization, business, individual, government or political subdivision thereof or governmental agency.

"<u>Purchase Agreement</u>" shall mean the Purchase Agreement, dated as of October 6, 2025, between the Purchasers and the Company relating to the Securities.

"<u>Purchasers</u>" shall mean the Purchasers named in Schedule I to the Purchase Agreement.

"<u>Registrable Securities</u>" shall mean the Securities; *provided, however*, that a Security shall cease to be a Registrable Security upon the earliest to occur of the following: (i) in the circumstances contemplated by Section 2(a), the Security has been exchanged for an Exchange Security in an Exchange Offer as contemplated in Section 2(a) (provided that any Exchange Security that, pursuant to the last two sentences of Section 2(a), is included in a prospectus for use in connection with resales by broker-dealers shall be deemed to be a Registrable Security with respect to Sections 5, 6 and 9 until resale of such Registrable Security has been effected within the Resale Period); (ii) in the circumstances contemplated by Section 2(b), an Alternative Registration Statement registering such Security under the Securities Act has been declared or becomes effective and such Security has been sold or otherwise transferred by the holder thereof pursuant to and in a manner contemplated by such effective Alternative Registration Statement; (iii) subject to Section 8(b), such Security is actually sold by the holder thereof pursuant to Rule 144, *provided* that a Security will not cease to be a Registrable Security for purposes of the Exchange Offer by virtue of this clause (iii); or (iv) such Security shall cease to be outstanding.

"<u>Registration Default</u>" shall have the meaning assigned thereto in Section 2(c).

"<u>Registration Default Period</u>" shall have the meaning assigned thereto in Section 2(c).

"<u>Registration Expenses</u>" shall have the meaning assigned thereto in Section 4.

"<u>Resale Period</u>" shall have the meaning assigned thereto in Section 2(a).

"<u>Restricted Holder</u>" shall mean (i) a holder that is an affiliate of the Company within the meaning of Rule 405, (ii) a holder who acquires Exchange Securities outside the ordinary course of such holder's business, (iii) a holder who has arrangements or understandings with any person to participate in the Exchange Offer for the purpose of distributing Exchange Securities and (iv) a holder that is a broker-dealer, but only with respect to Exchange Securities received by such broker-dealer pursuant to an Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer directly from the Company.

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"<u>Rule 144</u>", "<u>Rule 405</u>", "<u>Rule 415</u>", "<u>Rule 424</u>", "<u>Rule 430B</u>" and "<u>Rule 433</u>" shall mean, in each case, such rule promulgated by the Commission under the Securities Act (or any successor provision), as the same may be amended or succeeded from time to time.

"<u>Securities</u>" shall have the meaning assigned thereto in the Preamble.

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder, as the same may be amended or succeeded from time to time.

"<u>Special Interest</u>" shall have the meaning assigned thereto in Section 2(c).

"<u>Suspension Period</u>" shall have the meaning assigned thereto in Section 2(b).

"<u>Trust Indenture Act</u>" shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations promulgated by the Commission thereunder, as the same may be amended or succeeded from time to time.

"<u>Trustee</u>" shall have the meaning assigned thereto in the Preamble.

Unless the context otherwise requires, any reference herein to a "Section" or "clause" refers to a Section or clause, as the case may be, of this Agreement, and the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision.

2.&nbsp;&nbsp;&nbsp;&nbsp;*Registration Under the Securities Act*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Section 2(b) below, the Company agrees to file under the Securities Act, no later than 210 days after the Closing Date, a registration statement relating to an offer to exchange (such registration statement, the "<u>Exchange Registration</u> <u>Statement</u>", and such offer, the "<u>Exchange Offer</u>") any and all of the Securities for a like aggregate principal amount of debt securities issued by the Company, which debt securities are substantially identical to the Securities (and are entitled to the benefits of the Indenture), except that they have been registered pursuant to an effective registration statement under the Securities Act and do not contain provisions for Special Interest contemplated in Section 2(c) below (such new debt securities hereinafter called "<u>Exchange Securities</u>"). The Company agrees to use commercially reasonable efforts to cause the Exchange Registration Statement to become effective under the Securities Act no later than 360 days after the Closing Date. The Exchange Offer will be registered under the Securities Act on the appropriate form and will comply with all applicable tender offer rules and regulations under the Exchange Act. Unless the Exchange Offer would not be permitted by applicable law or Commission policy, the Company further agrees to use commercially reasonable efforts to (i) commence the Exchange Offer promptly following the Effective Time of such Exchange Registration Statement, (ii) hold the Exchange Offer open for at least 20 Business Days in accordance with Regulation 14E promulgated by the Commission under the Exchange Act and (iii) exchange Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn promptly following the expiration of the Exchange Offer. The Exchange Offer will be deemed to have been "completed" only (i) if the debt securities received by holders other than Restricted Holders in the Exchange Offer for Registrable Securities are, upon receipt, transferable by each such holder without restriction under the

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Securities Act and the Exchange Act and without material restrictions under the blue sky or securities laws of a majority of the States of the United States of America and (ii) upon the Company having exchanged, pursuant to the Exchange Offer, Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of the Exchange Offer, which shall be on a date that is at least 20 and not more than 60 Business Days following the commencement of the Exchange Offer. The Company agrees (x) to include in the Exchange Registration Statement a prospectus for use in any resales by any holder of Exchange Securities that is a broker-dealer and (y) to use commercially reasonable efforts to keep such Exchange Registration Statement effective for a period (the "<u>Resale Period</u>") beginning when Exchange Securities are first issued in the Exchange Offer and ending upon the earlier of the expiration of the 180<sup>th</sup> day after the Exchange Offer has been completed or such time as such broker-dealers no longer own any Registrable Securities. With respect to such Exchange Registration Statement, such holders shall have the benefit of the rights of indemnification and contribution set forth in Subsections 6(a), (c), (d) and (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If (i) on or prior to the time the Exchange Offer is completed existing law or Commission interpretations are changed such that the debt securities received by holders other than Restricted Holders in the Exchange Offer for Registrable Securities are not or would not be, upon receipt, transferable by each such holder without restriction under the Securities Act, (ii) the Effective Time of the Exchange Registration Statement is not within 360 days following the Closing Date and the Exchange Offer has not been completed within 60 Business Days of such Effective Time or (iii) any holder of Registrable Securities notifies the Company prior to the 20th day following the completion of the Exchange Offer that: (A) it is prohibited by law or Commission policy from participating in the Exchange Offer, (B) it may not resell the Exchange Securities to the public without delivering a prospectus and the prospectus supplement contained in the Exchange Registration Statement is not appropriate or available for such resales or (C) it is a broker-dealer and owns Securities acquired directly from the Company or an affiliate of the Company, then the Company shall, in lieu of (or, in the case of clause (iii), in addition to) conducting the Exchange Offer contemplated by Section 2(a), file under the Securities Act no later than 30 Business Days after the time such obligation to file arises (but no earlier than 210 days after the Closing Date), an alternative registration statement providing for the registration of, and the sale on a continuous or delayed basis by the holders of, all of the Registrable Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the "<u>Alternative</u> <u>Registration</u>" and such registration statement, the "<u>Alternative Registration Statement</u>"). The Company agrees to use commercially reasonable efforts to cause the Alternative Registration Statement to become or be declared effective no later than 150 days after such Alternative Registration Statement filing obligation arises (but no earlier than 360 days after the Closing Date). The Company agrees to use commercially reasonable efforts to keep such Alternative Registration Statement continuously effective for a period ending on the earlier of the first anniversary of the Effective Time or such time as there are no longer any Registrable Securities outstanding. No holder shall be entitled to be named as a selling securityholder in the Alternative Registration Statement or to use the prospectus forming a part thereof for resales of Registrable Securities unless such holder is an Electing Holder. The Company agrees, after the Effective Time of the Alternative Registration Statement and promptly upon the request of any holder of Registrable Securities that is not then an Electing Holder, to use commercially reasonable efforts to enable such holder to use the prospectus forming a part thereof for resales of Registrable Securities, including, without limitation, any

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action necessary to identify such holder as a selling securityholder in the Alternative Registration Statement (whether by post-effective amendment thereto or by filing a prospectus pursuant to Rules 430B and 424(b) under the Securities Act identifying such holder), *provided, however*, that nothing in this sentence shall relieve any such holder of the obligation to return a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(c)(iii). Notwithstanding anything to the contrary in this Section 2(b), upon notice to the Electing Holders, the Company may suspend the use or the effectiveness of such Alternative Registration Statement, or extend the time period in which it is required to file the Alternative Registration Statement, for up to 30 consecutive days and up to 60 days in the aggregate, in each case in any 12-month period (a "<u>Suspension</u> <u>Period</u>") if the Company determines that there is a valid business purpose for suspension of the Alternative Registration Statement; provided that the Company shall promptly notify the Electing Holders when the Alternative Registration Statement may once again be used or is effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event that (i) the Company has not filed the Exchange Registration Statement or the Alternative Registration Statement on or before the date on which such registration statement is required to be filed pursuant to Section 2(a) or Section 2(b), respectively, or (ii) such Exchange Registration Statement or Alternative Registration Statement has not become effective or been declared effective by the Commission on or before the date on which such registration statement is required to become or be declared effective pursuant to Section 2(a) or Section 2(b), respectively, or (iii) the Exchange Offer has not been completed within 60 Business Days after the Effective Time of the Exchange Registration Statement relating to the Exchange Offer (if the Exchange Offer is then required to be made) or (iv) any Exchange Registration Statement or Alternative Registration Statement required by Section 2(a) or Section 2(b) is filed and declared effective but shall thereafter either be withdrawn by the Company or shall become subject to an effective stop order issued pursuant to Section 8(d) of the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted herein, including, with respect to any Alternative Registration Statement, during any applicable Suspension Period in accordance with the last sentence of Section 2(b)) without being succeeded within 30 days from the date such registration statement was suspended by an additional registration statement filed and declared effective (each such event referred to in clauses (i) through (iv), a "<u>Registration</u> <u>Default</u>" and each period during which a Registration Default has occurred and is continuing, a "<u>Registration Default Period</u>"), then, as liquidated damages for such Registration Default, subject to the provisions of Section 9(b), special interest ("<u>Special Interest</u>"), in addition to the Base Interest, shall accrue on all Registrable Securities then outstanding at a per annum rate of 0.25% for the first 90 days of the Registration Default Period and at a per annum rate of 0.50% thereafter for the remaining portion of the Registration Default Period**.** Special Interest shall accrue and be payable only with respect to a single Registration Default at any given time, notwithstanding the fact that multiple Registration Defaults may exist at such time. Immediately upon the cure of all Registration Defaults, the accrual of Special Interest will cease and the interest rate on the Securities shall revert to the Base Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall take all actions necessary or advisable to be taken by it to ensure that the transactions contemplated herein are effected as so contemplated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Any reference herein to a registration statement or prospectus as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by

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reference as of such time; and any reference herein to any post-effective amendment to a registration statement or to any prospectus supplement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by reference as of such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that the liquidated damages in the form of Special Interest provided for in Section 2(c) constitute a reasonable estimate of and are intended to constitute the sole damages payable under this Agreement that will be suffered by the holders of Securities, and the sole remedy available to the holders, by reason of the failure of (i) the Exchange Offer to be completed, (ii) the Alternative Registration Statement, if required hereby, to be declared effective, or (iii) the Alternative Registration Statement to remain effective (and the prospectus contained therein to remain usable), in each case to the extent required by this Agreement.

3.&nbsp;&nbsp;&nbsp;&nbsp;*Registration Procedures*.

If the Company files a registration statement pursuant to Section 2(a) or Section 2(b), the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At or before the Effective Time of the Exchange Registration or any Alternative Registration, whichever may occur first, the Company shall cause the Indenture to be qualified under the Trust Indenture Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Company's obligations with respect to the registration of Exchange Securities as contemplated by Section 2(a) (the "<u>Exchange Registration</u>"), if applicable, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepare and file with the Commission, no later than 210 days after the Closing Date, an Exchange Registration Statement on any form which may be utilized by the Company and which shall permit the Exchange Offer and resales of Exchange Securities by broker-dealers during the Resale Period to be effected as contemplated by Section 2(a), and use commercially reasonable efforts to cause such Exchange Registration Statement to become effective no later than 360 days after the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as practicable prepare and file with the Commission such amendments and supplements to such Exchange Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Exchange Registration Statement for the periods and purposes contemplated in Section 2(a) and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Exchange Registration Statement, and promptly provide each broker-dealer holding Exchange Securities with such number of copies of the prospectus included therein (as then amended or supplemented), in conformity in all material respects with the requirements of the Securities Act and the Trust Indenture Act, as such broker-dealer reasonably may request prior to the expiration of the Resale Period, for use in connection with resales of Exchange Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly notify each broker-dealer that has requested or received copies of the prospectus included in such Exchange Registration Statement, and confirm such advice in writing, (A) when such Exchange Registration Statement or the prospectus included

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therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to such Exchange Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by the blue sky or securities commissioner or regulator of any state with respect thereto or any request by the Commission for amendments or supplements to such Exchange Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop order suspending the effectiveness of such Exchange Registration Statement or the initiation of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company contemplated by Section 5 cease to be true and correct in all material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Exchange Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (F) the occurrence of any event that causes the Company to become an "ineligible issuer" as defined in Rule 405, or (G) if at any time during the Resale Period when a prospectus is required to be delivered under the Securities Act, that such Exchange Registration Statement, prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act or the Trust Indenture Act or 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 then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the event that the Company would be required, pursuant to Section 3(b)(iii)(G), to notify any broker-dealers holding Exchange Securities (except as otherwise permitted during any Suspension Period), promptly prepare and furnish to each such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of such Exchange Securities during the Resale Period, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Exchange Registration Statement or any post-effective amendment thereto at the earliest practicable date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) use commercially reasonable efforts to (A) register or qualify the Exchange Securities under the securities laws or blue sky laws of such jurisdictions as are contemplated by Section 2(a) no later than the commencement of the Exchange Offer, to the extent required by such laws, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period, (C) take any and all other actions as may be reasonably necessary or advisable to enable each broker-dealer holding Exchange Securities to consummate the disposition thereof in such jurisdictions and (D) obtain the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect the Exchange Registration, the Exchange Offer and the offering and sale of Exchange Securities by broker-dealers during the Resale Period; *provided, however*, that the Company shall not

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be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(b)(vi), (2) consent to general service of process in any such jurisdiction or become subject to taxation in any such jurisdiction or (3) make any changes to its articles of incorporation or bylaws or other governing documents or any agreement between it and its members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) obtain a CUSIP number for all Exchange Securities, not later than the applicable Effective Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) comply with all applicable rules and regulations of the Commission, and make generally available to its securityholders no later than eighteen months after the Effective Time of such Exchange Registration Statement, an "earning statement" of the Company and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158 thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Company's obligations with respect to the Alternative Registration, if applicable, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepare and file with the Commission, within the time periods specified in Section 2(b), an Alternative Registration Statement on any form which may be utilized by the Company and which shall register all of the Registrable Securities for resale by the holders thereof in accordance with such method or methods of disposition as may be specified by the holders of Registrable Securities as, from time to time, may be Electing Holders and use commercially reasonable efforts to cause such Alternative Registration Statement to become effective within the time periods specified in Section 2(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mail the Notice and Questionnaire to the holders of Registrable Securities not less than 30 days prior to the anticipated Effective Time of the Alternative Registration Statement; *provided* that no holder shall be entitled to be named as a selling securityholder in the Alternative Registration Statement, and no holder shall be entitled to use the prospectus forming a part thereof for resales of Registrable Securities at any time, unless and until such holder has returned a completed and signed Notice and Questionnaire to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) after the Effective Time of the Alternative Registration Statement, upon the request of any holder of Registrable Securities that is not then an Electing Holder, promptly send a Notice and Questionnaire to such holder; *provided* that the Company shall not be required to take any action to name such holder as a selling securityholder in the Alternative Registration Statement or to enable such holder to use the prospectus forming a part thereof for resales of Registrable Securities until such holder has returned a completed and signed Notice and Questionnaire to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as soon as practicable prepare and file with the Commission such amendments and supplements to such Alternative Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Alternative Registration Statement for the period specified in Section 2(b) and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Alternative Registration Statement, and furnish to the

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Electing Holders copies of any such supplement or amendment simultaneously with or prior to its being used or filed with the Commission to the extent such documents are not publicly available on the Commission's EDGAR System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) comply with the provisions of the Securities Act with respect to the disposition of all of the Registrable Securities covered by such Alternative Registration Statement in accordance with the intended methods of disposition by the Electing Holders provided for in such Alternative Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) provide the Electing Holders and not more than one counsel for all the Electing Holders the opportunity to participate in the preparation of such Alternative Registration Statement, each prospectus included therein or filed with the Commission and each amendment or supplement thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) for a reasonable period prior to the filing of such Alternative Registration Statement, and throughout the period specified in Section 2(b), make available at reasonable times at the Company's principal place of business or such other reasonable place for inspection by the persons referred to in Section 3(c)(vi) who shall certify to the Company that they have a current intention to sell the Registrable Securities pursuant to the Alternative Registration such financial and other information and books and records of the Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege, in such counsel's reasonable belief), in the judgment of the respective counsel referred to in Section 3(c)(vi), to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; *provided, however*, that the foregoing inspection and information gathering on behalf of the Electing Holders shall be conducted by one counsel designated by the holders of at least a majority in aggregate principal amount of the Registrable Securities held by the Electing Holders at the time outstanding; *provided*, *further*, that each such party shall be required to maintain in confidence and not to disclose to any other person any information or records reasonably designated by the Company as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its inclusion in such Alternative Registration Statement or otherwise), or (B) such person shall be required so to disclose such information pursuant to a subpoena or order of any court or other governmental authority having jurisdiction over the matter (subject to the requirements of such order, and only after such person shall have given the Company prompt prior written notice of such requirement so that the Company may, at its own expense, undertake to prevent disclosure of the information deemed confidential), or (C) such information is required to be set forth in such Alternative Registration Statement or the prospectus included therein or in an amendment to such Alternative Registration Statement or an amendment or supplement to such prospectus in order that Alternative Registration Statement, prospectus, amendment or supplement, as the case may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and does not contain an untrue statement of a material fact or omit to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) promptly notify each of the Electing Holders and confirm such advice in writing, (A) when such Alternative Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to such Alternative Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by the blue sky or securities commissioner or regulator of any state with respect thereto or any request by the Commission for amendments or supplements to such Alternative Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop order suspending the effectiveness of such Alternative Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company set forth in Section 5 cease to be true and correct in all material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (F) the occurrence of any event that causes the Company to become an "ineligible issuer" as defined in Rule 405, or (G) if at any time when a prospectus is required to be delivered under the Securities Act, that such Alternative Registration Statement, prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act or 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 then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) use commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Alternative Registration Statement or any post-effective amendment thereto at the earliest practicable date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) if requested by any Electing Holder, promptly incorporate in a prospectus supplement or post-effective amendment such information as is required by the applicable rules and regulations of the Commission and as such Electing Holder, based on the advice of counsel referred to in Section 3(c)(vi), specifies should be included therein relating to the terms of the sale of such Registrable Securities, including information with respect to the principal amount of Registrable Securities being sold by such Electing Holder, the name and description of such Electing Holder, the offering price of such Registrable Securities and any discount, commission or other compensation payable in respect thereof and with respect to any other terms of the offering of the Registrable Securities to be sold by such Electing Holder; and make all required filings of such prospectus supplement or post-effective amendment promptly after notification of the matters to be incorporated in such prospectus supplement or post-effective amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) furnish to each Electing Holder and the counsel referred to in Section 3(c)(vi) an executed copy (or a conformed copy) of such Alternative Registration Statement, each such amendment and supplement thereto (in each case including all exhibits thereto (in the case of an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of copies of such Alternative Registration Statement (excluding exhibits thereto and documents incorporated by reference therein unless specifically so requested by such Electing Holder) and of the

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prospectus included in such Alternative Registration Statement (including each preliminary prospectus and any summary prospectus), in conformity in all material respects with the applicable requirements of the Securities Act and the Trust Indenture Act to the extent such documents are not available through the Commission's EDGAR System, and such other documents, as such Electing Holder may reasonably request in order to facilitate the offering and disposition of the Registrable Securities owned by such Electing Holder and to permit such Electing Holder to satisfy the prospectus delivery requirements of the Securities Act; and subject to Section 3(d), the Company hereby consents to the use of such prospectus (including such preliminary and summary prospectus) and any amendment or supplement thereto by each such Electing Holder (subject to any applicable Suspension Period), in each case in the form most recently provided to such person by the Company, in connection with the offering and sale of the Registrable Securities covered by the prospectus (including such preliminary and summary prospectus) or any supplement or amendment thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) use commercially reasonable efforts to (A) register or qualify the Registrable Securities to be included in such Alternative Registration Statement under such securities laws or blue sky laws of such jurisdictions as any Electing Holder shall reasonably request, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions during the period the Alternative Registration Statement is required to remain effective under Section 2(b) and for so long as may be necessary to enable any such Electing Holder to complete its distribution of Registrable Securities pursuant to such Alternative Registration Statement, (C) take any and all other actions as may be reasonably necessary or advisable to enable each such Electing Holder to consummate the disposition in such jurisdictions of such Registrable Securities and (D) obtain the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect the Alternative Registration or the offering or sale in connection therewith or to enable the selling holder or holders to offer, or to consummate the disposition of, their Registrable Securities; provided, however, that the Company shall not be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(c)(xii), (2) consent to general service of process in any such jurisdiction or become subject to taxation in any such jurisdiction or (3) make any changes to its articles of incorporation or bylaws or other governing documents or any agreement between it and its members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) unless any Registrable Securities shall be in book-entry only form, cooperate with the Electing Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates, if so required by any securities exchange upon which any Registrable Securities are listed, if applicable, shall be printed, penned, lithographed, engraved or otherwise produced by any combination of such methods, on steel engraved borders, and which certificates shall not bear any restrictive legends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) obtain a CUSIP number for all Securities that have been registered under the Securities Act, not later than the applicable Effective Time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) notify in writing each holder of Registrable Securities of any proposal by the Company to amend or waive any provision of this Agreement pursuant to Section 9(h) and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the text of the amendment or waiver proposed or effected, as the case may be; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) comply with all applicable rules and regulations of the Commission, and make generally available to its securityholders no later than eighteen months after the Effective Time of such Alternative Registration Statement an "earning statement" of the Company and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158 thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Company would be required, pursuant to Section 3(c)(viii)(G), to notify the Electing Holders, the Company shall promptly prepare and furnish to each of the Electing Holders a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of Registrable Securities, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. Each Electing Holder agrees that upon receipt of any notice from the Company pursuant to Section 3(c)(viii)(G), such Electing Holder shall forthwith discontinue the disposition of Registrable Securities pursuant to the Alternative Registration Statement applicable to such Registrable Securities until such Electing Holder shall have received copies of such amended or supplemented prospectus, and if so directed by the Company, such Electing Holder shall deliver to the Company (at the Company's expense) all copies, other than permanent file copies, of the prospectus covering such Registrable Securities in such Electing Holder's possession at the time of receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event of an Alternative Registration, in addition to the information required to be provided by each Electing Holder in its Notice and Questionnaire, the Company may require such Electing Holder to furnish to the Company such additional information regarding such Electing Holder and such Electing Holder's intended method of distribution of Registrable Securities as may be required in order to comply with the Securities Act. Each such Electing Holder agrees to notify the Company as promptly as practicable of any inaccuracy or change in information previously furnished by such Electing Holder to the Company or of the occurrence of any event in either case as a result of which any prospectus relating to such Alternative Registration contains or would contain an untrue statement of a material fact regarding such Electing Holder or such Electing Holder's intended method of disposition of such Registrable Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder's intended method of disposition of such Registrable Securities required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain, with respect to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Until the expiration of two years after the Closing Date, the Company will not, and will not permit any of its "affiliates" (as defined in Rule 144) to, resell any of the Securities that have been reacquired by any of them except pursuant to an effective registration statement, or a valid exemption from the registration requirements, under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;As a condition to its participation in the Exchange Offer, each holder of Registrable Securities shall furnish, upon the request of the Company, a written representation to the Company (which may be contained in the letter of transmittal or "agent's message" transmitted via The Depository Trust Company's Automated Tender Offer Procedures, in either case contemplated by the Exchange Registration Statement) to the effect that (A) it is not an "affiliate" of the Company, as defined in Rule 405 of the Securities Act, or if it is such an "affiliate", it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (B) it is not engaged in and does not intend to engage in, and has no arrangement or understanding with any person to participate in, a distribution of the Exchange Securities to be issued in the Exchange Offer, (C) it is acquiring the Exchange Securities in its ordinary course of business, (D) if it is a broker-dealer that holds Securities that were acquired for its own account as a result of market-making activities or other trading activities (other than Securities acquired directly from the Company or any of its affiliates), it will deliver a prospectus meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received by it in the Exchange Offer, (E) if it is a broker-dealer, that it did not purchase the Securities to be exchanged in the Exchange Offer from the Company or any of its affiliates, and (F) it is not acting on behalf of any person who could not truthfully and completely make the representations contained in the foregoing subclauses (A) through (E).

4.&nbsp;&nbsp;&nbsp;&nbsp;*Registration Expenses*.

The Company agrees to bear and to pay or cause to be paid promptly all expenses incident to the Company's performance of or compliance with this Agreement, including (a) all Commission and any FINRA registration, filing and review fees and expenses including reasonable fees and disbursements of one counsel for the Electing Holders in connection with such registration, filing and review, (b) all fees and expenses in connection with the qualification of the Registrable Securities, the Securities and the Exchange Securities, as applicable, for offering and sale under the State securities and blue sky laws referred to in Section 3(c)(xii) and determination of their eligibility for investment under the laws of such jurisdictions as the Electing Holders may designate, including any reasonable fees and disbursements of Eversheds Sutherland (US) LLP, counsel for the Electing Holders in connection with such qualification and determination, (c) all expenses relating to the preparation, printing, production, distribution and reproduction of each registration statement required to be filed hereunder, each prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement to the foregoing, the expenses of preparing the Securities or Exchange Securities, as applicable, for delivery and the expenses of printing or producing any selling agreements and blue sky or legal investment memoranda and all other documents in connection with the offering, sale or delivery of Securities or Exchange Securities, as applicable, to be disposed of (including certificates representing the Securities or Exchange Securities, as applicable), (d) messenger, telephone and delivery expenses relating to the offering, sale or delivery of Securities or Exchange Securities, as applicable, and the preparation of documents referred in clause (c) above, (e) fees and expenses of the Trustee under the Indenture, any agent of the Trustee and any counsel for the Trustee and of any collateral agent or custodian, (f) internal

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expenses (including all salaries and expenses of the Company's officers and employees performing legal or accounting duties), (g) reasonable fees, disbursements and expenses of counsel and independent certified public accountants of the Company, (h) reasonable fees, disbursements and expenses of Eversheds Sutherland (US) LLP, counsel for the Electing Holders retained in connection with an Alternative Registration, (i) any fees charged by securities rating services for rating the Registrable Securities, the Securities or the Exchange Securities, as applicable, and (j) fees, expenses and disbursements of any other persons, including special experts, retained by the Company in connection with such registration (collectively, the "<u>Registration Expenses</u>"). To the extent that any Registration Expenses are incurred, assumed or paid by any holder of Registrable Securities, Securities or Exchange Securities, as applicable, the Company shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a request therefor. Notwithstanding the foregoing, the holders of the Registrable Securities being registered shall pay all agency fees and commissions and underwriting discounts and commissions, if any, and transfer taxes, if any, attributable to the sale of such Registrable Securities, Securities and Exchange Securities, as applicable, and the fees and disbursements of any counsel or other advisors or experts retained by such holders (severally or jointly), other than the counsel and experts specifically referred to above.

5.&nbsp;&nbsp;&nbsp;&nbsp;*Representations and Warranties*.

The Company represents and warrants to, and agrees with, each Purchaser and each of the holders from time to time of Registrable Securities that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each registration statement covering Registrable Securities, Securities or Exchange Securities, as applicable, and each prospectus (including any preliminary or summary prospectus) contained therein or furnished pursuant to Section 3(b) or Section 3(c) and any further amendments or supplements to any such registration statement or prospectus, when it becomes effective or is filed with the Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act and the Trust Indenture Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and at all times subsequent to the Effective Time when a prospectus would be required to be delivered under the Securities Act, other than (A) from (i) such time as a notice has been given to holders of Registrable Securities pursuant to Section 3(b)(iii)(G) or Section 3(c)(viii)(G) until (ii) such time as the Company furnishes an amended or supplemented prospectus pursuant to Section 3(b)(iv) or Section 3(d) or (B) during any applicable Suspension Period, each such registration statement, and each prospectus (including any summary prospectus) contained therein or furnished pursuant to Section 3(b) or Section 3(c), as then amended or supplemented, will conform in all material respects to the requirements of the Securities Act and the Trust Indenture Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; *provided, however*, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by a holder of Registrable Securities expressly for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any documents incorporated by reference in any prospectus referred to in Section 5(a), when they become or became effective or are or were filed with the

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Commission, as the case may be, will conform or conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents will contain or contained an untrue statement of a material fact or will omit or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; *provided, however*, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by a holder of Registrable Securities expressly for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The compliance by the Company with all of the provisions of this Agreement and the consummation of the transactions herein contemplated will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject, (ii) result in any violation of the provisions of the articles of incorporation, as amended and restated, or the bylaws or other governing documents, as applicable, of the Company or (iii) result in any violation of any statute or any order, rule or regulation of any court or governmental authority having jurisdiction over the Company or any of its properties, except in the case of (i) and (iii) above as would not have a material adverse effect on the business, financial condition or results of operations of the Company; and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental authority is required for the consummation by the Company of the transactions contemplated by this Agreement, except (x) the registration under the Securities Act of the Registrable Securities, the Securities and the Exchange Securities, as applicable, and qualification of the Indenture under the Trust Indenture Act, (y) such consents, approvals, authorizations, registrations or qualifications as may be required under state securities or blue sky laws in connection with the offering and distribution of the Registrable Securities, the Securities and the Exchange Securities, as applicable, and (z) such consents, approvals, authorizations, registrations or qualifications that have been obtained and are in full force and effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement has been duly authorized, executed and delivered by the Company.

6.&nbsp;&nbsp;&nbsp;&nbsp;*Indemnification and Contribution*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Indemnification by the Company*. The Company will indemnify and hold harmless each of the holders of Registrable Securities included in an Exchange Registration Statement and, each of the Electing Holders as holders of Registrable Securities included in an Alternative Registration Statement against any losses, claims, damages or liabilities, joint or several, to which such holder or, such Electing Holder may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Exchange Registration Statement or, any Alternative Registration Statement, as the case may be, under which such Registrable Securities, Securities or Exchange Securities were registered under the Securities Act, or any preliminary, final or summary prospectus (including, without limitation, any "issuer free writing prospectus" as defined in Rule 433) contained therein or furnished by the Company to any such holder or, any such Electing Holder, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material

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fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such holder and, each such Electing Holder for any and all legal or other expenses reasonably incurred by them in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that the Company shall not be liable to any such person in any such case to the extent that any such loss, claim, damage or liability (or action in respect thereof) arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary, final or summary prospectus (including, without limitation, any "issuer free writing prospectus" as defined in Rule 433), or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by such person expressly for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Indemnification by the Electing Holders*. The Company may require, as a condition to including any Registrable Securities in any Alternative Registration Statement filed pursuant to Section 2(b), that the Company shall have received an undertaking reasonably satisfactory to it from each Electing Holder of Registrable Securities included in such Alternative Registration Statement, severally and not jointly, to (i) indemnify and hold harmless the Company and all other Electing Holders of Registrable Securities included in such Alternative Registration Statement, against any losses, claims, damages or liabilities to which the Company or such other Electing Holders may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in such registration statement, or any preliminary, final or summary prospectus (including, without limitation, any "issuer free writing prospectus" as defined in Rule 433) contained therein or furnished by the Company to any Electing Holder, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by such Electing Holder expressly for use therein, and (ii) reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred; *provided, however*, that no such Electing Holder shall be required to undertake liability to any person under this Section 6(b) for any amounts in excess of the dollar amount of the proceeds to be received by such Electing Holder from the sale of such Electing Holder's Registrable Securities pursuant to such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Notices of Claims, Etc*. Promptly after receipt by an indemnified party under subsection (a) or (b) above of written notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party pursuant to the indemnification provisions of or contemplated by this Section 6, notify such indemnifying party in writing of the commencement of such action; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under the indemnification provisions of or contemplated by Section 6(a) or Section 6(b), except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such omission. In case any such action shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein

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and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without the prior written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of any indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;*Contribution*. If for any reason the indemnification provisions contemplated by Section 6(a) or Section 6(b) are unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or by such indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 6(d) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 6(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no Electing Holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds received by such holder from the sale of any Registrable Securities exceeds the amount of any damages which such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 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 who was not guilty of such fraudulent misrepresentation. The holders' obligations in this Section 6(d) to contribute shall be several in proportion to the principal amount of Registrable Securities registered by them and not joint.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each officer, director and partner of each holder, each Electing Holder, and each person, if any, who controls any of the foregoing within the meaning of the Securities Act; and the obligations of the holders and the Electing Holders contemplated by this Section 6 shall be in addition to any liability which the respective holder or Electing Holder may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company and to each person, if any, who controls the Company within the meaning of the Securities Act, as well as to each officer and director of the other holders and to each person, if any, who controls such other holders within the meaning of the Securities Act.

7.&nbsp;&nbsp;&nbsp;&nbsp;*Underwritten Offerings*.

Each holder of Registrable Securities hereby agrees with the Company and each other such holder that no holder of Registrable Securities may participate in any underwritten offering hereunder unless (a) the Company gives its prior written consent to such underwritten offering, (b) the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in aggregate principal amount of the Registrable Securities to be included in such offering, *provided* that such designated managing underwriter or underwriters is or are reasonably acceptable to the Company, (c) each holder of Registrable Securities participating in such underwritten offering agrees to sell such holder's Registrable Securities on the basis provided in any underwriting arrangements approved by the persons entitled selecting the managing underwriter or underwriters hereunder and (d) each holder of Registrable Securities participating in such underwritten offering completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. The Company hereby agrees with each holder of Registrable Securities that, to the extent it consents to an underwritten offering hereunder, it will negotiate in good faith and execute all indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, including using commercially reasonable efforts to procure customary legal opinions and auditor "comfort" letters.

8.&nbsp;&nbsp;&nbsp;&nbsp;*Rule 144*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*Facilitation of Sales Pursuant to Rule 144*. The Company covenants to the holders of Registrable Securities that to the extent it shall be required to do so under the Exchange Act, the Company shall timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), and shall take such further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144. Upon the request of any holder of Registrable Securities in connection with that holder's sale pursuant to Rule 144, the Company shall deliver to such holder a written statement as to whether it has complied with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Availability of Rule 144 Not Excuse for Obligations under Section 2*. The fact that holders of Registrable Securities may become eligible to sell such Registrable Securities

------

pursuant to Rule 144 shall not (1) cause such Securities to cease to be Registrable Securities or (2) excuse the Company's obligations set forth in Section 2 of this Agreement, including without limitation the obligations in respect of an Exchange Offer, Alternative Registration, and Special Interest**.**

9.&nbsp;&nbsp;&nbsp;&nbsp;*Miscellaneous*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*No Inconsistent Agreements*. The Company represents, warrants, covenants and agrees that it has not granted, and shall not grant, registration rights with respect to Registrable Securities, Exchange Securities or Securities, as applicable, or any other securities which would be inconsistent with the terms contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*Specific Performance*. Except as set forth in Section 2(f), the parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations hereunder and that the Purchasers and the holders from time to time of the Registrable Securities may be irreparably harmed by any such failure, and accordingly agree that the Purchasers and such holders, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel specific performance of the obligations of the Company under this Agreement in accordance with the terms and conditions of this Agreement, in any court of the United States or any State thereof having jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;*Time of the Essence*. Time shall be of the essence in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;*Notices*. All notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered by hand, if delivered personally, if delivered by electronic transmission or by courier, upon receipt, or three days after being deposited in the mail (registered or certified mail, postage prepaid, return receipt requested) as follows: If to the Company, initially to it at the Company's address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 9(c), and if to a holder, to the address of such holder set forth in the security register or other records of the Company, or to such other address as the Company or any such holder may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;*Parties in Interest*. All the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto, the holders from time to time of the Registrable Securities and the respective successors and assigns of the foregoing. In the event that any transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be deemed a beneficiary hereof for all purposes and such Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such transferee shall be entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by all of the applicable terms and provisions of this Agreement. If the Company shall so request, any such successor, assign or transferee shall agree in writing to acquire and hold the Registrable Securities subject to all of the applicable terms hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;*Survival*. The respective indemnities, agreements, representations, warranties and each other provision set forth in this Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof) made by or on behalf of any holder of Registrable Securities, any director, officer or partner of such holder, or any controlling person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities pursuant to the Purchase Agreement, the transfer and registration of Registrable Securities by such holder and the consummation of an Exchange Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;*Governing Law*. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of law that would result in the application of any law other than the laws of the State of New York. Any suit or proceeding arising in respect of this Agreement or the transactions contemplated by this Agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in the City and County of New York, and the Parties agree to jurisdiction and venue therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;*Headings*. The descriptive headings of the several Sections and paragraphs of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;*Entire Agreement; Amendments*. This Agreement and the other writings referred to herein (including the Indenture and the form of Securities) or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter. This Agreement supersedes all prior agreements and understandings between the parties with respect to its subject matter. This Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Company and the holders of at least a majority in aggregate principal amount of the Registrable Securities at the time outstanding. Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h), whether or not any notice, writing or marking indicating such amendment or waiver appears on such Registrable Securities or is delivered to such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;*Counterparts*. This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument. The words "execution," "signed," "signature," "delivery" and words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include electronic signatures (including any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transaction Act, the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other applicable law), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;*Severability*. If any provision of this Agreement, or the application thereof in any circumstance, is held to be invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of such provision in every other respect and of the remaining provisions contained in this Agreement shall not be affected or impaired thereby.

(Remainder of Page Intentionally Left Blank)

------

If the foregoing is in accordance with your understanding, please sign and return to us the counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Purchasers, this letter and such acceptance hereof shall constitute a binding agreement among each of the Purchasers and the Company. It is understood that your acceptance of this letter on behalf of each of the Purchasers and authorization to act hereunder is pursuant to the authority set forth in an Agreement among Purchasers, but without warranty on your part as to the authority of the signers thereto.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **BASIN ELECTRIC POWER COOPERATIVE** | **BASIN ELECTRIC POWER COOPERATIVE** |
| By: <u>/s/ Todd Brickhouse</u> | By: <u>/s/ Todd Brickhouse</u> |
| Name: | Todd Brickhouse |
| Title: | Chief Executive Officer & General Manager |

---

[Signature Page to Exchange and Registration Rights Agreement]

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Accepted as of the date hereof:

---

| |
|:---|
| **Wells Fargo Securities, LLC** |
| By: <u>/s/ Carolyn Hurley</u> |
| Authorized Representative |

---

---

| |
|:---|
| **PNC Capital Markets LLC** |
| By: <u>/s/ Valerie Shadeck</u> |
| Authorized Representative |

---

---

| |
|:---|
| **U.S. Bancorp Investments, Inc.** |
| By: <u>/s/ Michael Priore</u> |
| Authorized Representative |

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**On behalf of itself and as Representative of each of the Purchasers**

[Signature Page to Exchange and Registration Rights Agreement]

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*Exchange and Registration Rights Agreement*

**Exhibit A**

**Basin Electric Power Cooperative**

<u>INSTRUCTION TO DTC PARTICIPANTS</u>

*(Date of Mailing)*

**URGENT - IMMEDIATE ATTENTION REQUESTED**

***DEADLINE FOR RESPONSE: [DATE]*** <sup>\*</sup>

The Depository Trust Company ("<u>DTC</u>") has identified you as a DTC Participant through which beneficial interests in the Basin Electric Power Cooperative (the "<u>Company</u>") 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 (the "<u>Securities</u>") are held.

The Company is in the process of registering the Securities under the Securities Act of 1933 for resale by the beneficial owners thereof. In order to have their Securities included in the registration statement, beneficial owners must complete and return the enclosed Notice of Registration Statement and Selling Securityholder Questionnaire.

<u>It is important that beneficial owners of the Securities receive a copy of the enclosed materials as</u> <u>soon as possible</u> as their rights to have the Securities included in the registration statement depend upon their returning the Notice and Questionnaire by **[Deadline For Response]**. Please forward a copy of the enclosed documents to each beneficial owner that holds interests in the Securities through you. If you require more copies of the enclosed materials or have any questions pertaining to this matter, please contact Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota, 58503-0564, [Attn: ________ at telephone number: ________]**.**

<sup>\*</sup> Not less than 28 calendar days from date of mailing.

------

*Exchange and Registration Rights Agreement*

**Basin Electric Power Cooperative**

Notice of Registration Statement

and

<u>Selling Securityholder Questionnaire</u>

(Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the "<u>Exchange</u> <u>and Registration Rights Agreement</u>") between Basin Electric Power Cooperative (the "<u>Company</u>") and the Purchasers named therein. Pursuant to the Exchange and Registration Rights Agreement, the Company has filed or will file with the United States Securities and Exchange Commission (the "<u>Commission</u>") a registration statement on Form [__] (the "<u>Alternative Registration Statement</u>") for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), of the Company's 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 (the "<u>Securities</u>"). A copy of the Exchange and Registration Rights Agreement has been filed as an exhibit to the Alternative Registration Statement and can be obtained from the Commission's website at www.sec.gov. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Exchange and Registration Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled to have the Registrable Securities beneficially owned by it included in the Alternative Registration Statement. In order to have Registrable Securities included in the Alternative Registration Statement, this Notice of Registration Statement and Selling Securityholder Questionnaire ("<u>Notice and Questionnaire</u>") must be completed, executed and delivered to the Company's counsel at the address set forth herein for receipt ON OR BEFORE **[Deadline for Response]**. Beneficial owners of Registrable Securities who do not properly complete, execute and return this Notice and Questionnaire by such date (i) will not be named as selling securityholders in the Alternative Registration Statement and (ii) may not use the Prospectus forming a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in the Alternative Registration Statement and related Prospectus. Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Alternative Registration Statement and related Prospectus.

The term "<u>Registrable Securities</u>" is defined in the Exchange and Registration Rights Agreement.

------

*Exchange and Registration Rights Agreement*

ELECTION

The undersigned holder (the "<u>Selling Securityholder</u>") of Registrable Securities hereby elects to include in the Alternative Registration Statement the Registrable Securities beneficially owned by it and listed below in Item (3). The undersigned, by signing and returning this Notice and Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and conditions of this Notice and Questionnaire and the Exchange and Registration Rights Agreement, including, without limitation, Section 6 of the Exchange and Registration Rights Agreement, as if the undersigned Selling Securityholder were an original party thereto.

Pursuant to the Exchange and Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company, its officers who sign any Alternative Registration Statement, and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), against certain loses arising out of an untrue statement, or the alleged untrue statement, of a material fact in the Alternative Registration Statement or the related prospectus or the omission, or alleged omission, to state a material fact required to be stated in such Alternative Registration Statement or the related prospectus, but only to the extent such untrue statement or omission, or alleged untrue statement or omission, was made in reliance on and in conformity with the information provided in this Notice and Questionnaire.

Upon any sale of Registrable Securities pursuant to the Alternative Registration Statement, the Selling Securityholder will be required to deliver to the Company and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the Company and represents and warrants that such information is accurate and complete:

------

*Exchange and Registration Rights Agreement*

QUESTIONNAIRE

(1) (a)&nbsp;&nbsp;&nbsp;&nbsp;Full legal name of Selling Securityholder:

___________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Full legal name of registered holder (if not the same as in (a) above) of Registrable Securities listed in Item (3) below:

___________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Full legal name of DTC Participant (if applicable and if not the same as (b) above) through which Registrable Securities listed in Item (3) below are held:

___________________________________________________________________________

(2)&nbsp;&nbsp;&nbsp;&nbsp;Address for notices to Selling Securityholder:

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

Telephone: _______________________________________________________

Fax: _____________________________________________________________

Contact Person: ___________________________________________________

E-mail for Contact Person: __________________________________________

(3)&nbsp;&nbsp;&nbsp;&nbsp;Beneficial Ownership of Securities:

*Except as set forth below in this Item (3), the undersigned does not beneficially own any Securities.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Principal amount of Registrable Securities beneficially owned: _____________________

CUSIP No(s). of such Registrable Securities: ____________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Principal amount of Securities other than Registrable Securities beneficially owned: __

____________________________________________________________________________

CUSIP No(s). of such other Securities: __________________________________________

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*Exchange and Registration Rights Agreement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Principal amount of Registrable Securities that the undersigned wishes to be included in the Alternative Registration Statement: __________________________________________

CUSIP No(s). of such Registrable Securities to be included in the Alternative Registration Statement:

____________________________________________________________________________

(4)&nbsp;&nbsp;&nbsp;&nbsp;Beneficial Ownership of Other Securities of the Company:

*Except as set forth below in this Item (4), the undersigned Selling Securityholder is not the beneficial or registered owner of any other securities of the Company, other than the Securities listed above in Item (3).*

State any exceptions here:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

(5)&nbsp;&nbsp;&nbsp;&nbsp;Individuals who exercise dispositive powers with respect to the Securities:

*If the Selling Securityholder is not an entity that is required to file reports with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (a "<u>Reporting</u> <u>Company</u>"), then the Selling Securityholder must disclose the name of the natural person(s) who exercise sole or shared dispositive powers with respect to the Securities. Selling Securityholders should disclose the beneficial holders, not nominee holders or other such others of record. In addition, the Commission has provided guidance that Rule 13d-3 of the Securities Exchange Act of 1934 should be used by analogy when determining the person or persons sharing voting and/or dispositive powers with respect to the Securities.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Is the holder a Reporting Company?

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

*If "No", please answer Item (5)(b)*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;List below the individual or individuals who exercise dispositive powers with respect to the Securities:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

***Please note that the names of the persons listed in (b) above will be included in the Alternative Registration Statement and related Prospectus.***

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*Exchange and Registration Rights Agreement*

(6)&nbsp;&nbsp;&nbsp;&nbsp;Relationships with the Company:

*Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years*.

State any exceptions here:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

(7)&nbsp;&nbsp;&nbsp;&nbsp;Plan of Distribution:

*Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (3) only as follows (if at all): Such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder. Such Registrable Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block transactions) (i) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market, or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging the positions they assume. The Selling Securityholder may also sell Registrable Securities short and deliver Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such securities*.

State any exceptions here:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

*Note: In no event may such method(s) of distribution take the form of an underwritten offering of Registrable Securities without the prior written agreement of the Company*.

(8)&nbsp;&nbsp;&nbsp;&nbsp;Broker-Dealers:

*The Commission requires that all Selling Securityholders that are registered broker-dealers or affiliates of registered broker-dealers be so identified in the Alternative Registration Statement. In addition, the Commission requires that all Selling Securityholders that are registered broker-dealers be named as underwriters in the* 

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*Exchange and Registration Rights Agreement*

*Alternative Registration Statement and related Prospectus, even if they did not receive the Registrable Securities as compensation for underwriting activities*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;State whether the undersigned Selling Securityholder is a registered broker-dealer:

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the answer to (a) is "Yes", you must answer (i) and (ii) below, and (iii) below if applicable. Your answers to (i) and (ii) below, and (iii) below if applicable, will be included in the Alternative Registration Statement and related Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Were the Securities acquired as compensation for underwriting activities?

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

If you answered "Yes", please provide a brief description of the transaction(s) in which the Securities were acquired as compensation:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Were the Securities acquired for investment purposes?

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;If you answered "No" to both (i) and (ii), please explain the Selling Securityholder's reason for acquiring the Securities:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;State whether the undersigned Selling Securityholder is an affiliate of a registered broker-dealer and, if so, list the name(s) of the broker-dealer affiliate(s):

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

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*Exchange and Registration Rights Agreement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If you answered "Yes" to question (c) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Did the undersigned Selling Securityholder purchase Registrable Securities in the ordinary course of business?

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

If the answer is "No" to question (d)(i), provide a brief explanation of the circumstances in which the Selling Securityholder acquired the Registrable Securities:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;At the time of the purchase of the Registrable Securities, did the undersigned Selling Securityholder have any agreements, understandings or arrangements, directly or indirectly, with any person to dispose of or distribute the Registrable Securities?

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

If the answer is "Yes" to question (d)(ii), provide a brief explanation of such agreements, understandings or arrangements:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

***If the answer is "No" to Item (8)(d)(i) or "Yes" to Item (8)(d)(ii), you will be named as an underwriter in the Alternative Registration Statement and the related Prospectus.***

(9)&nbsp;&nbsp;&nbsp;&nbsp;Hedging and short sales:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;State whether the undersigned Selling Securityholder has or will enter into "hedging transactions" with respect to the Registrable Securities:

Yes&nbsp;&nbsp;&nbsp;&nbsp;______&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;______

If "Yes", provide below a complete description of the hedging transactions into which the undersigned Selling Securityholder has entered or will enter and the purpose of such

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*Exchange and Registration Rights Agreement*

hedging transactions, including the extent to which such hedging transactions remain in place:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is Interpretation A.65 of the Commission's July 1997 Manual of Publicly Available Interpretations regarding short selling:

*"An issuer filed a Form S-3 registration statement for a secondary offering of common stock which is not yet effective. One of the selling shareholders wanted to do a short sale of common stock "against the box" and cover the short sale with registered shares after the effective date. The issuer was advised that the short sale could not be made before the registration statement becomes effective, because the shares underlying the short sale are deemed to be sold at the time such sale is made. There would, therefore, be a violation of Section 5 if the shares were effectively sold prior to the effective date."*

By returning this Notice and Questionnaire, the undersigned Selling Securityholder will be deemed to be aware of the foregoing interpretation.

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*

By signing below, the Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions of the Exchange Act, particularly Regulation M (or any successor rule or regulation).

The Selling Securityholder hereby acknowledges its obligations under the Exchange and Registration Rights Agreement to indemnify and hold harmless the Company and certain other persons as set forth in the Exchange and Registration Rights Agreement.

In the event that the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Notice and Questionnaire and the Exchange and Registration Rights Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items (1) through (9) above and the inclusion of such information in the Alternative Registration Statement and related Prospectus. The Selling Securityholder understands that such information will be relied upon by the Company in connection with the preparation of the Alternative Registration Statement and related Prospectus.

In accordance with the Selling Securityholder's obligation under Section 3(c) of the Exchange and Registration Rights Agreement to provide such information as may be required by law for inclusion in the Alternative Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein which

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*Exchange and Registration Rights Agreement*

may occur subsequent to the date hereof at any time while the Alternative Registration Statement remains in effect and to provide such additional information that the Company may reasonably request regarding such Selling Securityholder and the intended method of distribution of Registrable Securities in order to comply with the Securities Act. Except as otherwise provided in the Exchange and Registration Rights Agreement, all notices hereunder and pursuant to the Exchange and Registration Rights Agreement shall be made in writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;To the Company:

<u>Basin Electric Power Cooperative</u>________

<u>1717 East Interstate Avenue</u>____________

<u>Bismarck, North Dakota 58503-0564</u>______

<u>Attn: [</u>________]______________________

<u>Telephone No: [</u>__________]____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;With a copy to:

___________________________________

___________________________________

___________________________________

___________________________________

___________________________________

Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the Company's counsel, the terms of this Notice and Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the Selling Securityholder (with respect to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item (3) above). This Notice and Questionnaire shall be governed in all respects by the laws of the State of New York.

------

*Exchange and Registration Rights Agreement*

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

Dated: __________________

_______________________________________________________________________

Selling Securityholder

(Print/type full legal name of beneficial owner of Registrable Securities)

By: ___________________________________________________________________

Name:

Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [**DEADLINE FOR RESPONSE**] TO THE COMPANY'S COUNSEL AT:

<u>Orrick, Herrington & Sutcliffe LLP</u>____

<u>51 West 52</u><sup>nd</sup> <u>Street</u>_______________

<u>New York, New York 10019</u>________

<u>Attn:</u>___________________________

<u>Telephone No:</u>___________________

------

*Exchange and Registration Rights Agreement*

**Exhibit B**

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

**U.S. Bank Trust Company, National Association, as Trustee**

**Basin Electric Power Cooperative**

**[c/o U.S. Bank National Association**

**Attn: Corporate Trust Services**

**425 Walnut Street**

**6**<sup>th</sup> **Floor**

**Cincinnati, Ohio 45202]**

Attention: Trust Officer

Re:&nbsp;&nbsp;&nbsp;&nbsp;**Basin Electric Power Cooperative** (the "<u>Company</u>")

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055**

Dear Sirs:

Please be advised that ________________________ has transferred $________________________ aggregate principal amount of the above-referenced Bonds pursuant to an effective Registration Statement on Form **[**__**]** (File No. 333-____) filed by the Company.

We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933, as amended, have been satisfied and that the above-named beneficial owner of the Bonds is named as a "Selling Holder" in the Prospectus dated **[date]** or in supplements thereto, and that the aggregate principal amount of the Bonds transferred are the Bonds listed in such Prospectus opposite such owner's name.

Dated:

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| | _____________________________________ |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Name) |
| | By: __________________________________ |
| | &nbsp;&nbsp;&nbsp;&nbsp;(Authorized Signature) |

---

## Exhibit 5.1

**Exhibit 5.1**

![basinelectrica.jpg](basinelectrica.jpg)

April 15, 2026

To:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

1717 East Interstate Avenue

Bismarck, North Dakota 58503

Re:&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative

Registration Statement on Form S-4

Ladies and Gentlemen:

I am Senior Staff Counsel to Basin Electric Power Cooperative, a North Dakota electric cooperative corporation (the **Cooperative**), and in that capacity, render this opinion to you in connection with the filing by the Cooperative of a registration Statement on Form S-4 (the **Registration Statement**) with the Securities and Exchange Commission (the **Commission**) under the Securities Act of 1933, as amended (the **Securities Act**), relating to the registration of the offer by the Cooperative to exchange (the **Exchange Offer**) up to Seven Hundred Million Dollars and No Cents ($700,000,000.00) aggregate principal amount of its outstanding First Mortgage Obligations, 2025 Series A Bonds, due October 15, 2055 (the **Original Bonds**), for a like principal amount of its First Mortgage Obligations, 2025 Series A Bonds, due October 15, 2055, that have been registered under the Securities Act (the **Exchange Bonds**), as described in the Registration Statement and the prospectus that forms a part thereof (the **Prospectus**). The Original Bonds have been and the Exchange Bonds will be issued under the Amended and Restated Indenture, dated as of May 5, 2015 (as supplemented and amended, the **Indenture**), between the Cooperative and U.S. Bank Trust Company, National Association (as successor to U.S. Bank National Association), in its capacity as trustee.

I am familiar with the affairs and properties of the Cooperative and have reviewed such documents, instruments, records and files relating to the Exchange Bonds, the Indenture, the Forty-Second Supplemental Indenture, dated as of September 15, 2025 (the **Forty-Second Supplemental Indenture**), the Registration Statement, and such other documents as I have deemed necessary in order to render the opinion set forth below.

In rendering the opinion herein, I have with your permission and without independent verification assumed the legal capacity of all natural persons executing documents other than on behalf of the Cooperative, the genuineness of all signatures, the authenticity of all documents submitted to me as originals and the conformity to reproduction copies. In making my examination of documents executed by parties other than the Cooperative, I have assumed that such parties had the power, corporate or other, to enter into and perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and the due execution and delivery by such parties of such documents and the validity and binding effect thereof as to such parties. As to any facts material to the opinion expressed herein which I did not independently establish or verify, I have relied upon statements and representations of representatives of the Cooperative.

---

| | | | | |
|:---|:---|:---|:---|:---|
| 1717 East Interstate Avenue | Bismarck, ND 58503 | 701.223.0441 | Fax 701.557.5336 | basinelectric.com |
| Equal Employment Opportunity Employer | Equal Employment Opportunity Employer | Equal Employment Opportunity Employer | Equal Employment Opportunity Employer | Equal Employment Opportunity Employer |

---

------

April 15, 2026

Based upon the foregoing and having regard for such legal considerations that I deem relevant, I am of the opinion that, when the Registration Statement has become effective under the Securities Act and the Exchange Bonds have been duly executed, authenticated and delivered in accordance with the terms of the Indenture against receipt of the Original Bonds surrendered in exchange therefor in accordance with the terms of the Exchange Offer, the Exchange Bonds will constitute legal, valid and binding obligations of the Cooperative, enforceable against the Cooperative in accordance with their terms and the terms of the Indenture, and entitled, equally and ratably with all other obligations issued and to be issued under the Indenture, to the benefits of the lien and security provided by the Indenture, subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors' rights and to general equity principles.

I am a member of the bar of the state of North Dakota and the foregoing opinion is limited to the laws of the State of North Dakota, and I express no opinion with respect to the laws of any other jurisdiction.

In providing the foregoing opinion, I express no opinion as to (i) the enforceability of any provision of the Indenture which purports to waive the right of benefit from the doctrine of marshalling of assets upon foreclosure, (ii) the validity or enforceability of any covenant to pay interest on defaulted interest, and (iii) the effectiveness of any provision in the Indenture purporting to create a "springing lien" whereby certain property initially excepted from the lien of the Indenture would become subject to the lien of the Indenture upon the occurrence of an Event of Default (as defined in the Indenture) thereunder; and moreover, that the Indenture contains customary provisions for the enforcement of the security provided for therein, certain of which may be limited by the laws of the State of North Dakota (but such laws do not, in my opinion, make inadequate the remedies necessary for the realization of the benefits of such security).

I hereby consent to the filing of this opinion letter as an exhibit to the Registration Statement and to being named under the heading "Legal Matters" in the Prospectus included in the Registration Statement. By giving this opinion, I do not admit that I am within the category of persons whose consent is required under Section 7 of the Securities Act and the rules and regulations promulgated thereunder.

Very truly yours,

/s/ Matthew R. Kolling

Matthew R. Kolling

Senior Staff Counsel

## Exhibit 10.1

**Exhibit 10.1**

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMONG

BASIN ELECTRIC POWER COOPERATIVE

TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC.

MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION

CITY OF LINCOLN, NEBRASKA

HEARTLAND CONSUMERS POWER DISTRICT

WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD

------

<u>MISSOURI BASIN POWER PROJECT</u>

**\* \* \***

<u>LARAMIE RIVER ELECTRIC GENERATING STATION</u>

<u>AND</u>

<u>TRANSMISSION SYSTEM</u>

<u>PARTICIPATION AGREEMENT</u>

<u>**TABLE OF CONTENTS**</u>

---

| | | | |
|:---|:---|:---|:---|
| **SECTION** | | | **PAGE** |
|  | PREAMBLE | PREAMBLE | 1 |
| 1 | PARTIES | PARTIES | 2 |
| 2 | RECITALS | RECITALS | 2 |
| 3 | AGREEMENT | AGREEMENT | 2 |
| 4 | DEFINITIONS | DEFINITIONS | 3 |
|  | 4.1 | Accounting Practice | 3 |
|  | 4.2 | Administrator | 3 |
|  | 4.3 | Capacity | 3 |
|  | 4.4 | Date Of Commercial Operation | 3 |
|  | 4.5 | Energy | 3 |
|  | 4.6 | Energy-Related Costs | 3 |
|  | 4.7 | Entitlement | 3 |
|  | 4.8 | Entitlement Share | 3 |
|  | 4.9 | Financing Instruments | 3 |
|  | 4.10 | FPC Accounts | 3 |
|  | 4.11 | Laramie River Electric Generating Station | 3 |
|  | 4.12 | Laramie River Plant Site | 3 |
|  | 4.13 | Laramie River Transmission System | 4 |
|  | 4.14 | Minimum Net Generation | 4 |
|  | 4.15 | Net Effective Generating Capability | 4 |
|  | 4.16 | Operating Agent | 4 |
|  | 4.17 | Participant | 4 |
|  | 4.18 | Participants | 4 |
|  | 4.19 | Points of Delivery | 4 |
|  | 4.20 | Project | 4 |
|  | 4.21 | Project Agreements | 4 |
|  | 4.22 | Project Insurance | 4 |
|  | 4.23 | Project Liability | 4 |
|  | 4.24 | Project Manager | 4 |
|  | 4.25 | Project Output | 4 |
|  | 4.26 | Project Substation | 5 |

---

i

------

<u>**TABLE OF CONTENTS**</u>

(continued)

---

| | | | |
|:---|:---|:---|:---|
| **SECTION** | | | **PAGE** |
|  | 4.27 | Project Work | 5 |
|  | 4.28 | Prudent Utility Practice | 5 |
|  | 4.29 | REA Accounts | 5 |
|  | 4.30 | Station | 5 |
|  | 4.31 | Station Unit | 5 |
|  | 4.32 | Transmission System | 5 |
|  | 4.33 | Willful Action | 5 |
|  | 4.34 | Zero Net Load | 6 |
| 5 | OWNERSHIP OF PROJECT | OWNERSHIP OF PROJECT | 6 |
| 6 | ADMINISTRATION | ADMINISTRATION | 6 |
| 7 | DISPOSITION OF STATION OUTPUT | DISPOSITION OF STATION OUTPUT | 8 |
| 8 | TRANSMISSION SYSTEM | TRANSMISSION SYSTEM | 9 |
| 9 | CONSTRUCTION SCHEDULES | CONSTRUCTION SCHEDULES | 10 |
| 10 | CONSTRUCTION COSTS | CONSTRUCTION COSTS | 10 |
| 11 | OPERATION AND MAINTENANCE COSTS | OPERATION AND MAINTENANCE COSTS | 11 |
| 12 | ADVANCEMENT OF FUNDS | ADVANCEMENT OF FUNDS | 11 |
| 13 | TAXES | TAXES | 12 |
| 14 | CO-TENANCY AND NONPARTITIONMENT | CO-TENANCY AND NONPARTITIONMENT | 13 |
| 15 | MORTGAGE AND TRANSFER OF INTERESTS | MORTGAGE AND TRANSFER OF INTERESTS | 13 |
| 16 | RIGHT OF FIRST REFUSAL | RIGHT OF FIRST REFUSAL | 14 |
| 17 | DESTRUCTION | DESTRUCTION | 15 |
| 18 | INSURANCE | INSURANCE | 16 |
| 19 | LIABILITY, INDEMNIFICATION AND CONTRIBUTION | LIABILITY, INDEMNIFICATION AND CONTRIBUTION | 17 |
| 20 | COVENANTS REGARDING OTHER AGREEMENTS AND DEFAULTS | COVENANTS REGARDING OTHER AGREEMENTS AND DEFAULTS | 17 |
| 21 | RESOLUTION OF DISPUTES | RESOLUTION OF DISPUTES | 18 |
| 22 | ACTIONS PENDING RESOLUTION OF DISPUTES | ACTIONS PENDING RESOLUTION OF DISPUTES | 19 |
| 23 | RESIGNATION OR REMOVAL OF PROJECT MANAGER OR OPERATING AGENT | RESIGNATION OR REMOVAL OF PROJECT MANAGER OR OPERATING AGENT | 19 |
| 24 | RELATIONSHIP OF PARTICIPANTS | RELATIONSHIP OF PARTICIPANTS | 19 |
| 25 | EQUAL OPPORTUNITY | EQUAL OPPORTUNITY | 20 |
| 26 | UNCONTROLLABLE FORCES | UNCONTROLLABLE FORCES | 21 |
| 27 | GOVERNING LAW | GOVERNING LAW | 21 |
| 28 | BINDNG OBLIGATIONS | BINDNG OBLIGATIONS | 21 |
| 29 | PROJECT AGREEMENTS | PROJECT AGREEMENTS | 21 |
| 30 | EFFECTIVE DATE, TERM AND RIGHTS OF PARTICIPANTS UPON TERMINATION | EFFECTIVE DATE, TERM AND RIGHTS OF PARTICIPANTS UPON TERMINATION | 21 |
| 31 | ACQUISITION OF INTERESTS | ACQUISITION OF INTERESTS | 22 |
| 32 | NOTICES | NOTICES | 22 |
| 33 | ENVIRONMENTAL PROTECTION | ENVIRONMENTAL PROTECTION | 23 |
| 34 | MISCELLANEOUS PROVISIONS | MISCELLANEOUS PROVISIONS | 24 |
|  | INDEX TO EXHIBITS | INDEX TO EXHIBITS | 32 |

---

ii

------

<u>**TABLE OF CONTENTS**</u>

(continued)

<u>EXHIBITS</u>

---

| | | | |
|:---|:---|:---|:---|
| | | | **PAGE** |
| A. | Description of the project | Description of the project |  |
|  | 1. | The Station | 33 |
|  | 2. | The Transmission System | 33 |
|  | 3. | Miscellaneous Property | 34 |
| B. | The Station and Transmission System Map | The Station and Transmission System Map | 35 |
| C. | Points of Delivery | Points of Delivery | 36 |
| D. | Schedule of Construction Dates | Schedule of Construction Dates | 37 |
| E. | Construction Costs | Construction Costs | 38 |
| F. | Operation and Maintenance Costs | Operation and Maintenance Costs | 39 |

---

iii

------

<u>MISSOURI BASIN POWER PROJECT</u>

\* \* \*

<u>LARAMIE RIVER ELECTRIC GENERATING STATION</u>

<u>AND</u>

<u>TRANSMISSION SYSTEM</u>

<u>PARTICIPATION AGREEMENT</u>

<u>PREAMBLE</u>

This Agreement represents the joint efforts of the six parties described in Section 1 of this Agreement. The purpose of this Preamble is to explain in summary form how the Agreement came about and the intentions of the parties to the Agreement so that the balance of the Agreement may be better understood and interpreted in light of the understandings of the parties.

As Section 2 of the Agreement recites, each of the parties either owns or operates electric generating, transmission and transformation facilities in various cities and states or is obligated to provide bulk electric power for its customers or its member systems. The parties have determined that it is in their mutual best interest to join together in the construction of the Project, and to share both the costs and the benefits anticipated to be realized from this Project.

At the outset the parties considered the question of whether an agreement should be drafted which encompasses each and every conceivable situation and makes provision therefor or, on the other hand, which vests in the Management Committee the ultimate responsibility for the Project, with the Project Manager to have responsibility to construct the Project and the Operating Agent to thereafter have responsibility to operate the Project. It was also contemplated by the parties that some standing committees would be created from time to time, either by appropriate resolution of the Management Committee or by the various agreements which are contemplated. The parties determined that they would prefer to have the Management Committee retain ultimate responsibility except as otherwise delegated to the Project Manager, the Operating Agent, and such committees as might be created, and for that reason they determined that this Agreement should not encompass each and every conceivable situation. Therefore, if the Agreement fails to spell out in detail a particular item, it is not because the parties did not consider the matter but rather because they felt that they could better determine the solution to a particular problem as the problem arose and as the Management Committee then determined how and in what manner it should be handled. The broad, general principles and the relationships between the parties are, however, covered by this Agreement and are intended to establish the general principles by which a particular situation is to be resolved.

The entire Agreement should, therefore, be interpreted in light of a broad, general principle which prevails throughout, namely, that each of the parties to this Agreement has entered into this Agreement in the utmost of good faith and with the intention that each of the parties shall mutually share in the benefits and detriments arising by reason of this Project as their interests appear. Ambiguity should be resolved in such manner as to provide the greatest benefit to each of the parties while imposing the least detriment upon any individual party. Moreover, the Agreement should be further interpreted in light of the further principle that each of the parties has entered into this program with the understanding and belief that no one individual party is to profit or gain at the expense or detriment of any other party to this Agreement except as may otherwise be specifically provided for in the Agreement or hereafter agreed to by the various parties.

The parties have selected Basin Electric Power Cooperative as both Project Manager and Operating Agent for the reason that each of the parties believes that Basin Electric is best qualified and possesses the greatest amount of experience to act as Project Manager and as Operating Agent. It should, however, be kept in mind that Basin Electric is not being compensated over and above costs of services rendered by it for performing such duties and should therefore be viewed as one of the Participants which has agreed, for and on behalf of the Participants, to

------

perform a further duty. By the same token, it is understood among the parties that Basin Electric, acting as either Project Manager or Operating Agent, is to be responsive to the dictates of the Management Committee and does not have the right to act unilaterally under this Agreement except to the extent and for the specific purposes which are provided for in this Agreement and other Project Agreements or which may be delegated to it by the Management Committee from time to time. The parties further contemplate that additional agreements will be necessary to carry out the intent of this Agreement, and unless otherwise specifically provided for, such additional agreements should be interpreted in light of this Preamble and the provisions of this Agreement.

1.&nbsp;&nbsp;&nbsp;&nbsp; <u>PARTIES</u>: The parties to this Agreement are: BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation, hereinafter referred to as "Basin Electric"; TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation, hereinafter referred to as "Tri-State"; MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION, an Iowa non-profit corporation, hereinafter referred to as "Corporation"-, CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation, operating the Lincoln Electric System, hereinafter referred to as "L.E.S."; HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the state of South Dakota, hereinafter referred to as "Heartland"; and WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD, a joint powers board of the state of Wyoming, hereinafter referred to as "Wyoming Board".

2. &nbsp;&nbsp;&nbsp;&nbsp;<u>RECITALS</u>: This Agreement is made with reference to the following facts, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 &nbsp;&nbsp;&nbsp;&nbsp;Basin Electric owns and operates electric generating facilities in the state of North Dakota, and electric transmission and transformation facilities in the states of North Dakota, South Dakota and Montana, serving members, all of which are rural electric cooperatives or public power districts or municipal utilities in the states of Wyoming, North Dakota, South Dakota, Nebraska, Montana, Minnesota, Iowa and Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 &nbsp;&nbsp;&nbsp;&nbsp;Tri-State owns and operates electric generating facilities in the state of Colorado, and electric transmission and transformation facilities in the states of Wyoming, Nebraska and Colorado, serving members, all of which are rural electric cooperatives or public power districts in the states of Wyoming, Nebraska and Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 &nbsp;&nbsp;&nbsp;&nbsp;Corporation does not presently own or operate any electric utility property. It is obligated to serve certain municipal utility systems in the states of Iowa, Minnesota and South Dakota, and it is presently engaged in the acquisition of future supplies of bulk electric power for such systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp; L.E.S. owns and operates electric generating, transmission and transformation facilities in the state of Nebraska, serving customers located both within and without the corporate boundaries of the city of Lincoln, Nebraska, and within its service area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;&nbsp;Heartland does not presently own or operate any electric utility property. It is presently engaged in the acquisition of future supplies of bulk electric power for certain public corporations and others in the state of South Dakota.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;&nbsp;Wyoming Board does not presently own or operate any electric utility property. It is obligated to serve its member municipal utility systems in the state of Wyoming, and it is presently engaged in the acquisition of future supplies of bulk electric power for such systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp; The parties to this Agreement desire to participate in the construction, ownership, operation, and maintenance of the Laramie River Electric Generating Station and Transmission System in accordance with the provisions of this Participation Agreement and the other Project Agreements, in order, among other things, to realize certain economies that are expected to be gained therefrom.

3. &nbsp;&nbsp;&nbsp;&nbsp;<u>AGREEMENT</u>: In consideration of the mutual covenants herein, the parties agree as set forth herein.

------

4. &nbsp;&nbsp;&nbsp;&nbsp;<u>DEFINITIONS</u>: The following terms, when used herein, shall have the meanings specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp; ACCOUNTING PRACTICE: Generally accepted utility accounting principles, in accordance with (i) the Federal Power Commission's "Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)" in effect on January 1, 1974 or (ii) the "Uniform System of Accounts Prescribed for Electric Borrowers of the Rural Electrification Administration" in effect on January 1, 1974, and as the respective system of accounts may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp; ADMINISTRATOR: The Administrator of the Rural Electrification Administration of the Department of Agriculture of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp; CAPACITY: Electrical rating expressed in megawatts (MW) or megavolt-amperes (MVA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp; DATE OF COMMERCIAL OPERATION: The date at which a Station Unit or a component of the Transmission System can reasonably be expected to operate dependably and continuously as certified by the Project architect-engineer unless otherwise determined by the Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp; ENERGY: Kilowatt-hours (kWh) or megawatt-hours (mWh).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp; ENERGY-RELATED COSTS: Costs of fuel, fuel transportation costs other than fixed transportation costs, and costs of all disposal of wastes directly relating to the production of energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;&nbsp;ENTITLEMENT: Each Participant's share of the output of the Laramie River Electric Generating Station, expressed in terms of Capacity, and determined by multiplying the Net Effective Generating Capability of all Station Units of such Station by such Participant's Entitlement Share, together with the Energy associated with such Capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp; ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

---

| | | | |
|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent |
| B. | Tri-State | = | 24.13 percent |
| C. | Corporation | = | 16.47 percent |
| D. | L.E.S. | = | 13.33 percent |
| E. | Heartland | = | 2.80 percent |
| F. | Wyoming Board | = | 1.00 percent |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp; FINANCING INSTRUMENTS: Loan contracts, mortgages and other instruments or encumbrances entered into by either Basin Electric or Tri-State, or both of them, and the United States of America through the Rural Electrification Administration of the Department of Agriculture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 &nbsp;&nbsp;&nbsp;&nbsp;FPC ACCOUNTS: The Federal Power Commission's "Uniform System of Accounts Prescribed for Public Utilities and Licensees (Class A and Class B)" in effect on January 1, 1974, and as such system of accounts may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11&nbsp;&nbsp;&nbsp;&nbsp; LARAMIE RIVER ELECTRIC GENERATING STATION: Three coal-fired steam electric generating units, each having a nameplate rating of 570 MW and an estimated Net Effective Generating Capability of 500 MW, and all property, facilities and structures used therewith or related thereto as generally described in Section A-1 of Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12&nbsp;&nbsp;&nbsp;&nbsp; LARAMIE RIVER PLANT SITE: A parcel of land in Platte County, Wyoming, consisting of approximately 2,560 acres, as generally described in Exhibit B hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13&nbsp;&nbsp;&nbsp;&nbsp; LARAMIE RIVER TRANSMISSION SYSTEM: The property, facilities and structures owned or to be owned by the Participants or in which they have rights, as generally described in Section A-2 of Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14&nbsp;&nbsp;&nbsp;&nbsp; MINIMUM NET GENERATION: The minimum level of Energy production expressed in net kilowatt-hours per hour at which one or more of the Station Units may be operated at any time as determined by the Operating Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 &nbsp;&nbsp;&nbsp;&nbsp;NET EFFECTIVE GENERATING CAPABILITY: The maximum continuous ability of a Station Unit to produce Capacity which is available to the Participants at the high voltage terminals of the generator step-up transformers, at any given time, less any remaining auxiliary requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16&nbsp;&nbsp;&nbsp;&nbsp; OPERATING AGENT: The Participant designated herein to be responsible for the operation and maintenance, but not the construction and completion, of the Project in accordance with the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17 &nbsp;&nbsp;&nbsp;&nbsp;PARTICIPANT: Any party named in Section 1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18 &nbsp;&nbsp;&nbsp;&nbsp;PARTICIPANTS: Two or more of the parties named in Section 1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19&nbsp;&nbsp;&nbsp;&nbsp; POINTS OF DELIVERY: The point or points at which the Participants are to receive delivery of Capacity and Energy under normal operating conditions as generally described in Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20&nbsp;&nbsp;&nbsp;&nbsp; PROJECT: The Station, the Transmission System, the Laramie River Plant Site, and all property, facilities, structures, land, water, fuel, and any rights or interests therein, which are generally described in Exhibit A hereto, together with any other property, facilities, structures, land, water, fuel, and any rights or interests related to or in furtherance of the foregoing, whenever acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21&nbsp;&nbsp;&nbsp;&nbsp; PROJECT AGREEMENTS: This Agreement, and any other agreement in furtherance of and not inconsistent with this Agreement and designated as a Project Agreement by the Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.22&nbsp;&nbsp;&nbsp;&nbsp; PROJECT INSURANCE: Policies of insurance to be procured and maintained in accordance with Section 18 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23&nbsp;&nbsp;&nbsp;&nbsp; PROJECT LIABILITY: Liability of one or more Participants for damage suffered by anyone other than a Participant, whether or not resulting from the negligence of any Participant, its directors, officers, employees or any other person or entity whose negligence would be imputed to such Participant, resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. &nbsp;&nbsp;&nbsp;&nbsp;The performance or non-performance of Project Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. &nbsp;&nbsp;&nbsp;&nbsp;The use or ownership of the Project; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. &nbsp;&nbsp;&nbsp;&nbsp;The past or future performance or non-performance of the obligations of any Participant under any of the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24&nbsp;&nbsp;&nbsp;&nbsp; PROJECT MANAGER: The Participant designated herein to be responsible for the construction and completion, but not the operation and maintenance, of the Project in accordance with the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.25 &nbsp;&nbsp;&nbsp;&nbsp;PROJECT OUTPUT: The net Capacity and Energy of the Station, which, at any time, can be delivered and made available to the Points of Delivery after Station use, main step-up transformer losses and transmission losses.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26&nbsp;&nbsp;&nbsp;&nbsp; PROJECT SUBSTATION: A high-voltage substation connected to each Station Unit beginning at the high-voltage terminals of such Station Unit's step-up transformer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.27&nbsp;&nbsp;&nbsp;&nbsp; PROJECT WORK: Engineering, design, contract preparation, purchasing, construction, supervision, expediting, inspection, legal services, accounting, testing, protection, operation, repair, maintenance, replacement, reconstruction, or use of and for the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.28&nbsp;&nbsp;&nbsp;&nbsp; PRUDENT UTILITY PRACTICE: Any of the practices, methods and acts which, in the exercise of reasonable judgment, in the light of the facts, including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the electrical utility industry prior thereto, known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. In applying the standard of Prudent Utility Practice to any matter under this Agreement, equitable consideration should be given to the circumstances, requirements and obligations of each of the parties. It is recognized that Prudent Utility Practice is not intended to be limited to the optimum practice, method or act at the exclusion of all others, but rather is a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.29 &nbsp;&nbsp;&nbsp;&nbsp;REA ACCOUNTS: The "Uniform System of Accounts Prescribed for Electric Borrowers of the Rural Electrification Administration" in effect on January 1, 1974, and as such system of accounts may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.30 &nbsp;&nbsp;&nbsp;&nbsp;STATION: The Laramie River Electric Generating Station as defined in Section 4.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.31 &nbsp;&nbsp;&nbsp;&nbsp;STATION UNIT: The combination of one (1) steam generator, one (1) turbine-generator, and the associated auxiliary and accessory systems and equipment required for the production of electrical energy at the Laramie River Electric Generating Station.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.32 &nbsp;&nbsp;&nbsp;&nbsp;TRANSMISSION SYSTEM: The Laramie River Transmission System as defined in Section 4.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.33&nbsp;&nbsp;&nbsp;&nbsp; WILLFUL ACTION:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. &nbsp;&nbsp;&nbsp;&nbsp;Action taken or not taken by a Participant at the direction of its directors, officers or employees having management or administrative responsibility affecting its performance under any of the Project Agreements, which action is knowingly or intentionally taken or failed to be taken with conscious indifference to the consequences thereof or with intent that injury or damage would result or probably would result therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. &nbsp;&nbsp;&nbsp;&nbsp;Action taken or not taken by a Participant at the direction of its directors, officers or employees having management or administrative responsibility affecting its performance under any of the Project Agreements, which action has been determined by final judgment or judicial decree to be a material default under any of the Project Agreements and which occurs or continues beyond the time specified in such judgment or judicial decree for curing such default or, if no time to cure is specified therein, occurs or continues thereafter beyond a reasonable time to cure such default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. &nbsp;&nbsp;&nbsp;&nbsp;Action taken or not taken by a Participant at the direction of its directors, officers or employees having management or administrative responsibility affecting its performance under any of the Project Agreements, which action is knowingly or intentionally taken or failed to be taken with the knowledge that such action taken or failed to be taken is a material default under any Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp; The phrase "employees having management or administrative responsibility" as used in this Section 4.33 means employees of a Participant who are responsible for one or

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more of the executive functions of planning, organizing, coordinating, directing, controlling or supervising such Participant's performance under any of the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. &nbsp;&nbsp;&nbsp;&nbsp;Willful Action does not include an act or failure to act which is merely involuntary, accidental or negligent, but it does include the failure of any Participant to pay any monies required of it under any Project Agreement whether or not such failure to pay is involuntary, accidental or negligent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.34&nbsp;&nbsp;&nbsp;&nbsp; ZERO NET LOAD: The load upon a Station Unit when the generator gross output of such unit equals the total unit auxiliary consumption.

5. &nbsp;&nbsp;&nbsp;&nbsp;<u>OWNERSHIP OF PROJECT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp; The Participants shall acquire and own the Project as tenants in common according to their Entitlement Shares.

6.&nbsp;&nbsp;&nbsp;&nbsp; <u>ADMINISTRATION</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in this Agreement and in the other Project Agreements, the administration, construction, completion, operation and maintenance of the Project shall be the responsibility of a Management Committee. The duties of the Management Committee shall include but not be limited to the following: provide liaison among the Participants at the management level; exercise general supervision over the Project Manager, the Operating Agent, the Engineering and Operating Committee and the Auditing Committee as hereafter established, and such other committees as it may from time to time establish; review, discuss and act upon issues and matters referred to it by another Committee; and perform such other functions and duties as may be delegated to it by the Participants. Such Management Committee shall consist of one representative of each Participant, which representative shall be an officer or general manager of a Participant or his designated representative, acting pursuant to authority granted such representative by its respective Participant. There shall be no obligation on any Participant to ascertain the authority granted to the representative of any other Participant, and should any representative not have authority to act on a particular matter it shall be the duty of such Participant to make known to the representatives of the other Participants the absence of such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;There shall also be an Engineering and Operating Committee and an Auditing Committee, each of which shall consist of one representative of each Participant. The aforesaid Committees shall have such functions and responsibilities as are described herein and in the other Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp; The Management Committee may delegate its responsibility in writing to the Project Manager, the Operating Agent, the Engineering and Operating Committee, the Auditing Committee, or other committees or persons, specifically or generally, as the Management Committee may from time to time deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 &nbsp;&nbsp;&nbsp;&nbsp;The Engineering and Operating Committee shall have such responsibility for the Project as may be delegated to it from time to time by the Management Committee. In addition, the Engineering and Operating Committee shall: recommend procedures for proper engineering liaison among the Participants and between them and the Project Manager and the Operating Agent; review and advise the Management Committee with respect to the annual construction budget and the annual operation and maintenance budget; advise the Management Committee with respect to the various reports, budgets and records, and the form thereof, kept by the Project Manager and the Operating Agent with respect to the Project (excluding accounting records used internally by the Project Manager and the Operating Agent for the purpose of accumulating financial and statistical data, such as books of original entry, ledgers, work papers, and source documents); recommend to the Management Committee the procedures to be utilized for determining Minimum Net Generation and Net Effective Generating Capability; recommend to the Management Committee the procedures for maintaining complete and accurate fuel, Capacity and Energy

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accounting; recommend to the Management Committee criteria for determining the Date of Commercial Operation; and perform such other functions and duties as may be delegated to it in the other Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 &nbsp;&nbsp;&nbsp;&nbsp;The Auditing Committee shall have such responsibility for the Project as may be delegated to it from time to time by the Management Committee. In addition, the Auditing Committee shall: recommend procedures for proper accounting and financial liaison among the Participants and between them and the Project Manager and the Operating Agent; advise the Management Committee with respect to the accounting, financial and internal control aspects of the Project; advise the Management Committee on matters involving auditing and financial transactions; make audits at least annually of the records maintained by the Project Manager and the Operating Agent in their capacities as such in support of their billings to the Participants; advise the Management Committee, for management purposes and for the use of the Participants only, whether the Project Manager's and Operating Agent's accounting methods and records are in accordance with the Project Agreements; advise the Management Committee as to the format and content of the Project Manager's and Operating Agent's accounting records and accounting reports; reconcile any differences between FPC Accounts and REA Accounts; and perform such other functions and duties as may be delegated to it in the other Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 &nbsp;&nbsp;&nbsp;&nbsp;The Project Manager and the Operating Agent shall be Basin Electric. Basin Electric, when operating as Project Manager or Operating Agent, shall do so in its capacity as a Participant and shall be liable when acting as Project Manager or Operating Agent to the same extent as any other Participant. The Project shall be constructed in accordance with a construction agreement and operated in accordance with an operating agreement to be entered into by the Participants, which agreements shall be considered Project Agreements. The construction agreement generally shall: define what constitutes construction work; set forth the manner in which construction work shall be performed and completed; set forth procedures to be followed during the start-up period; and include such other matters as the Participants deem appropriate for inclusion in such agreement. The operating agreement generally shall: define what constitutes operating work; set forth the manner in which operating work shall be performed; describe the manner in which Capacity and Energy shall be scheduled by Participants in accordance with this Agreement; set forth the procedures to be followed in the event of an operating emergency; define what constitutes initial training expenses and set forth how such expenses shall be allocated among the Participants; define what constitutes materials, supplies and spare parts and set forth how the cost of such items shall be allocated among the Participants; and include such other matters as the Participants deem appropriate for inclusion in such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 &nbsp;&nbsp;&nbsp;&nbsp;Within thirty (30) days after the execution of this Agreement, each Participant shall designate its representatives to serve on the Management Committee, the Engineering and Operating Committee, and the Auditing Committee. Such designation shall be in writing, with copies mailed to each of the other Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 &nbsp;&nbsp;&nbsp;&nbsp;Any action or determination of the Engineering and Operating Committee, the Auditing Committee and the Management Committee shall require a majority vote of the Participants, acting through their respective representatives, provided that such majority owns more than fifty (50) percent of the Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 &nbsp;&nbsp;&nbsp;&nbsp;All actions or determinations made by the Management Committee shall be reduced to writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 &nbsp;&nbsp;&nbsp;&nbsp;None of the Committees established above shall have authority to modify any of the terms, covenants or conditions of the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11&nbsp;&nbsp;&nbsp;&nbsp; Whenever any act is required to be performed under the terms of this Agreement and the manner in which such act is to be performed is not otherwise specifically detailed, then such act shall be performed in accordance with Prudent Utility Practice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 &nbsp;&nbsp;&nbsp;&nbsp;Assets acquired by any Participant for the Project shall be held in trust for the Participants in accordance with their respective Entitlement Shares.

7. &nbsp;&nbsp;&nbsp;&nbsp;<u>DISPOSITION OF STATION OUTPUT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall be entitled to schedule Capacity and Energy from the Station and shall be entitled to receive such Capacity and Energy as scheduled at its designated Points of Delivery, subject to the provisions of this Agreement, up to the amount of its Entitlement in the Station, such Entitlement being its share of the output of the Station available at the Station at any given time, as defined in Section 4.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 &nbsp;&nbsp;&nbsp;&nbsp;When a Participant schedules Capacity and Energy from the Station, each Participant shall, unless the Operating Agent obtains such Capacity and Energy from another source or unless otherwise determined by the Management Committee, schedule for its account its share of Minimum Net Generation which shall be the product of its Entitlement Share and the Minimum Net Generation established for the Station. At any time any Participant has scheduled from the Station an amount of Capacity in excess of the product of its Entitlement Share and Minimum Net Generation, then unless the Operating Agent obtains such Capacity from another source or unless otherwise determined by the Management Committee, the other Participants whose schedules are less than their respective Entitlement Shares of such Minimum Net Generation shall schedule on a pro rata basis, in the proportion which their respective Entitlement Shares bear to each other, the remaining amount of Minimum Net Generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 &nbsp;&nbsp;&nbsp;&nbsp;Operation of the Station by the Operating Agent and a Participant's right to receive the output thereof shall be subject to scheduled outages or curtailments, operating emergencies and unscheduled outages or curtailments of the Station Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 &nbsp;&nbsp;&nbsp;&nbsp;It is understood by all Participants that, after completion of the Project, two of the Station Units shall be synchronously interconnected to the electric system existing in the western United States and one of the Station Units shall be synchronously interconnected to the electric system existing in the eastern United States. It is further understood that such electric systems are not now reliably interconnected and that Capacity and Energy from all Station Units may not be available to all Participants at all times at their respective Points of Delivery. Notwithstanding any other provision of this Agreement and during any time that the electric systems of the eastern and western United States are not synchronously interconnected with each other on a reliable basis, the Operating Agent shall exercise every reasonable effort to operate the Station and effectuate transfers of Capacity and Energy produced at the Station between the eastern and western electric systems of the United States so as to deliver to each Participant its Entitlement at its designated Points of Delivery at the lowest total cost to all Participants; provided, however, that no Participant shall be entitled to delivery of its Entitlement at its designated Points of Delivery if the Operating Agent is unable to effectuate such delivery or if the effect of a transfer of Capacity and Energy between the eastern and western systems would preclude any other Participant from receiving its Entitlement at its designated Points of Delivery. The Operating Agent shall notify all Participants as soon as possible of any inability to deliver a Participant's Entitlement to its designated Points of Delivery as scheduled by such Participant and shall keep the Participants informed for the duration of such inability of all factors including the status of the Station and the Transmission System, the amount of each Participant's Entitlement, the location at which delivery of such Entitlement is being made and sales of such Entitlement made pursuant to Section 7.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 &nbsp;&nbsp;&nbsp;&nbsp;The Participants will enter into an agreement by January 1, 1980, whereby any Participant's Entitlement or portion thereof which cannot be delivered to such Participant at its designated Points of Delivery as scheduled by such Participant due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4 will be made available for sale to the other Participants which are capable of taking delivery of such Participant's Entitlement or portion thereof at a price equal to all of the selling Participant's allocable costs to such Entitlement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 &nbsp;&nbsp;&nbsp;&nbsp;In the event the Operating Agent is unable to deliver a Participant's Entitlement or any portion thereof to that Participant at its designated Points of Delivery due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4, the Operating Agent shall make *every* reasonable effort to purchase Capacity and Energy and deliver the same to such Participant at a place and in a manner to be set forth in the operating agreement, to be entered into among the Participants, in order to meet schedules of Capacity and Energy established by such Participant pursuant to Section 7.1. The costs incurred by the Operating Agent in making such purchase and delivery shall be treated as Energy-Related Costs except to the extent that they exceed those costs which would have been incurred had the Capacity and Energy been produced and delivered from the Station in which case such excess shall be shared by all Participants in the ratio of their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 &nbsp;&nbsp;&nbsp;&nbsp;The Participants will also enter into an agreement by January 1, 1980, whereby all or any portion of a Participant's Entitlement which such Participant desires to sell in the service area of another Participant or one of its Members must be made available to that Participant on the basis of a right of first refusal, with the rate to be paid by the purchasing Participant equal to all of the selling Participant's costs allocable thereto until three years after the Date of Commercial Operation of the third Station Unit, and thereafter to be the rate established by the power pool in the area in which the selling Participant has such Entitlement available for sale; provided, however, that such right of first refusal will apply only where the purchasing Participants will use such energy or Entitlement for the direct or indirect use of the Participants' own consumers or members, and not to purchases for resale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8&nbsp;&nbsp;&nbsp;&nbsp; No Participant is entitled to receive delivery of its Entitlement at points other than its designated Points of Delivery except pursuant to Section 7.6.

8.&nbsp;&nbsp;&nbsp;&nbsp; <u>TRANSMISSION SYSTEM</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp; The Transmission System shall be designed, constructed or otherwise acquired and operated with the objective of permitting each Participant to receive under normal operating conditions its Entitlement from the Station at its designated Points of Delivery and permitting Tri-State to use that certain portion of the Transmission System as provided for in Section 8.2 under normal operating conditions in a manner which will not unreasonably affect the operation of the electric systems of the Participants, and in such a manner so that if and when operated in parallel with such systems, the loss of any one circuit or element will not cause any other circuit or element of any of the parallel transmission systems of a Participant to carry Energy in excess of the short-time rating of such parallel transmission system as may be defined and established by the owner or operator of such system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp; Each Participant shall have the right to use the Transmission System to receive Capacity and Energy at its designated Points of Delivery under normal operating conditions in an amount equivalent to its Entitlement in the Station or to reserve the Transmission System for such use without regard to the origin, source, ownership or type of generation used to produce such Capacity and Energy; provided, however, that in the event the Operating Agent shall purchase replacement Capacity and Energy pursuant to Section 7.6, then to the extent that such replacement Capacity and Energy are delivered, the Operating Agent shall utilize the unused capacity in the Transmission System for the period of such replacement for the benefit of the Project. In addition, Tri-State shall have the right to use up to 200 megawatts of transmission Capacity in that portion of the Transmission System described in Section A-2.1.8 of Exhibit A and associated facilities which interconnects the Stegall (East) Substation and the Sidney (East) Substation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp; Any Participant may acquire the right to use the Transmission System on a firm basis in addition to the right to use provided for in Section 8.2 hereof upon approval by the Management Committee, provided that such use does not materially interfere with the right of any other Participant to receive its Entitlement as provided in Section 8.2 hereof. Such approval shall specify the amount of monetary compensation to be paid to and the allocation among the Participants for such use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 &nbsp;&nbsp;&nbsp;&nbsp;Any Participant may make non-firm use of transmission Capacity in addition to its right to use under Sections 8.2 and 8.3 hereof to the extent that transmission Capacity is determined to be

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available by the Operating Agent in accordance with criteria to be developed by the Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp; If two or more Participants concurrently desire to make non-firm use of transmission Capacity in the same segment of the Transmission System pursuant to Section 8.4 hereof, and the available transmission Capacity in such segment is not adequate to satisfy all such desired, then, unless otherwise agreed, the available Capacity will be shared by those Participants concurrently requesting such Capacity in the ratio of their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp; To the extent that it may be able to do so, each Participant shall be entitled to interconnect its transmission system or arrange for the interconnection of the transmission system of a third party with the Transmission System at its designated Points of Delivery, and the costs of such interconnection shall be paid by such Participant; provided, however, that inability to interconnect shall not relieve such Participant from paying for its share of the cost of the Transmission System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp; In the event of an outage or curtailment of any circuit or element of the Transmission System, the Operating Agent shall make every reasonable effort to furnish temporary alternate service through other circuits or elements of the Transmission System, and the Participants shall make *every* reasonable effort to furnish alternate service to the other Participants over any available parallel transmission system, and, in the event of an outage or curtailment of any such parallel transmission system, the Operating Agent shall make *every* reasonable effort to furnish temporary alternate service over any available transmission facilities. There will be no separate charge to any Participant for service provided pursuant to this Section 8.7, except for compensation in Energy for additional losses that may be incurred as a result of providing such alternate service; and the cost of obtaining such service shall be shared by the Participants in accordance with Section 11.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;&nbsp;&nbsp;Upon agreement with all the other Participants, a Participant may at its expense make interconnections to the Transmission System at points other than its designated Points of Delivery. Such agreement shall specify the terms and conditions under which such interconnections may be made and the charges to the interconnecting Participant, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise agreed to by the Management Committee, when the Capacity available to the Participants in any segment of the Transmission System is insufficient to accommodate all of the firm use of the Transmission System pursuant to Section 8.2 hereof under abnormal operating conditions, then the use of the available Capacity of that segment of the Transmission System will be allocated to affected Participants in proportion to their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Agreement, no Participant shall be required to make available to any other Participant any portion of the Transmission System which is necessary to enable the first Participant to receive at its designated Points of Delivery its Entitlement from the Station or replacement Capacity and Energy pursuant to Section7.6.

9. &nbsp;&nbsp;&nbsp;&nbsp;<u>CONSTRUCTION SCHEDULES</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 &nbsp;&nbsp;&nbsp;&nbsp;The Project Manager shall proceed with construction of the Project with the objective of having each component completed and available for start-up operation and energization for test date and for Date of Commercial Operation as specified in Exhibit D.

10. &nbsp;&nbsp;&nbsp;&nbsp;<u>CONSTRUCTION COSTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 &nbsp;&nbsp;&nbsp;&nbsp;Construction costs of the Project shall include all payments made and obligations incurred pursuant to Section 12 or as otherwise authorized by the Management Committee or its designee or designees for or in connection with the construction of the Project prior to the Date of Commercial Operation of any Station Unit, including but not limited to those costs specified in Exhibit E hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 &nbsp;&nbsp;&nbsp;&nbsp;The construction costs of the Project shall be shared and paid for by the Participants in proportion to their Entitlement Shares.

11. &nbsp;&nbsp;&nbsp;&nbsp;<u>OPERATION AND MAINTENANCE COSTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 &nbsp;&nbsp;&nbsp;&nbsp;Operation and maintenance costs shall include all payments made and obligations incurred pursuant to Section 12 or as otherwise authorized by the Management Committee or its designee or designees for or in connection with the operation and maintenance of any Station Unit or component of the Transmission System subsequent to the Date of Commercial Operation thereof, as specified in Exhibit F, and such costs, including costs of water but excluding Energy-Related Costs, shall be shared by the Participants in proportion to their Entitlement Shares. The amount of fuel required for active storage and the initial emergency fuel storage, the rate of fuel consumption for Zero Net Load operation and the costs of start-up shall be determined in accordance with procedures to be established by the Management Committee, and the costs thereof and fixed fuel transportation charges, if any, shall be shared by the Participants in proportion to their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 &nbsp;&nbsp;&nbsp;&nbsp;Energy-Related Costs shall be shared by each Participant in the ratio that such Participant's monthly net energy generation scheduled and produced from the Station bears to the total monthly net energy generation scheduled and produced from the Station.

12. &nbsp;&nbsp;&nbsp;&nbsp;<u>ADVANCEMENT OF FUNDS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall advance its share of construction costs and operation and maintenance costs when due, so that the Project Manager or the Operating Agent in their capacities as such will not have to advance any funds on behalf of another Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 &nbsp;&nbsp;&nbsp;&nbsp;The Project Manager and the Operating Agent will, on or before September 1 of each year, prepare annual budgets for the succeeding calendar year and submit the same to the Management Committee for approval, such approval not to occur earlier than thirty (30) days after such submission. The budget of the Project Manager shall set forth anticipated construction costs and a schedule as to when it is anticipated that funds to pay such costs will be required by the Project Manager from the Participants. The budget of the Operating Agent shall set forth anticipated operating and maintenance costs as well as anticipated Energy-Related Costs, and such budget shall also set forth a schedule as to when it is anticipated that funds to pay such costs will be required by the Operating Agent from the Participants. Upon approval by the Management Committee such budgets shall constitute the bases for the Project Manager's and Operating Agent's determinations of funds due under Sections 12.3 and 12.4; provided, however, that if the Management Committee fails to approve a budget within 90 days after its submission, the Project Manager or Operating Agent may proceed to notify Participants of sums it deems due pursuant to Sections 12.2, 12.3 and 12.4 and collect the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 &nbsp;&nbsp;&nbsp;&nbsp;At least thirty (30) but not more than sixty (60) days prior to the effective date of the Project Manager's proposed annual budget and at least once each month thereafter, the Project Manager will notify each Participant of the estimated monthly expenditures for the succeeding month, and each Participant shall pay to the Project Manager within twenty (20) days of such monthly notice its share of such estimate. If at any time it is determined that a Participant has made advances which are greater or less than its share of the construction costs, the difference shall be paid, refunded, or credited as determined by the Project Manager within a reasonable time after such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 &nbsp;&nbsp;&nbsp;&nbsp;At least thirty (30) but not more than sixty (60) days prior to the effective date of the Operating Agent's proposed annual budget and at least once each month thereafter, the Operating Agent will notify each Participant of the estimated monthly expenditures for the succeeding month, and each Participant shall pay to the Operating Agent within twenty (20) days of such monthly notice its share of such estimate. Funds advanced by the Participants for Energy-Related Costs will be adjusted, if required, pursuant to Section 11.2 by the Operating Agent in the next monthly billing, and funds advanced by the Participants for operating and maintenance costs, other than Energy-Related Costs, will be adjusted, if

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required, by the Operating Agent within forty-five (45) days following the end of each calendar year. The Operating Agent shall submit to each of the Participants within ninety (90) days following the end of each calendar year an accounting for such year showing all amounts received and expended for operating and maintenance costs. Adjustments shall be made among the Participants, if required, pursuant to Section 11.2 so that all costs incurred for such purposes will have been shared by each Participant in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 &nbsp;&nbsp;&nbsp;&nbsp;Funds received hereunder by the Project Manager and the Operating Agent from the Participants will be held in trust for such Participants and expended on their behalf in accordance with the Project Agreements. Such funds will be deposited in working capital accounts, and the Project Manager and the Operating Agent will use their best reasonable efforts to lawfully invest such funds as are not immediately needed pending future use of such funds in direct general obligations of or obligations unconditionally guaranteed by the United States of America or obligations of any agency of the United States of America or certificates of deposit of any national or state bank or trust company, to the extent that such deposits are insured by the Federal Deposit Insurance Corporation or issued by a state-owned bank. The Project Manager and the Operating Agent shall account at least annually to each Participant advancing the same for such interest thereon as may be received, and promptly pay to each Participant such sum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 &nbsp;&nbsp;&nbsp;&nbsp;The Project Manager shall promptly inform the Participants in writing of the Date of Commercial Operation of each Station Unit. Within ninety (90) days thereafter the Project Manager will furnish the Management Committee with a detailed description of such Station Unit, a complete summary of all construction costs incurred in connection with such Station Unit, a summary of each Participant's contributions toward such costs, a statement as to the additional contributions which should be paid back to or collected from each Participant, and a recommendation as to the manner in which such contributions should be paid back or collected. The Management Committee shall thereupon determine the additional contributions to be paid back to or collected from each Participants and the manner in which such contributions shall be paid back or collected. Any such contributions shall be paid back to or collected from the Participants so that all construction costs shall be shared by each Participant on the basis of its Entitlement Share. When such determination is made, the Project Manager shall pay back to each Participant any difference between total advances made by it and its share of the total construction costs of such Station Unit, and collect from each Participant any difference between total advances made by it and its share of the total construction costs of such Station Unit. Within six (6) months after the Date of Commercial Operation of the third Station Unit, the Participants shall jointly make, execute and deliver a supplement to this Agreement, in recordable form, which supplement shall describe with particularity and detail the facilities and other property then constituting the Project not specifically described in the exhibits hereto. Whenever additional facilities or other property are acquired for the Project which are not already specifically described in this Agreement or supplements hereto, the Participants shall jointly make, execute and deliver a further supplement to this Agreement, in recordable form, which supplement shall describe with particularity and detail the facilities and other property then constituting the Project not specifically described in the exhibits hereto.

13. &nbsp;&nbsp;&nbsp;&nbsp;<u>TAXES</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp; The Participants shall make every reasonable effort to have any taxing authority imposing any taxes or assessments (excluding any sales or use taxes on the Project, or any interests or rights therein) to assess and levy such taxes or assessments directly against each Participant in accordance with its Entitlement Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 &nbsp;&nbsp;&nbsp;&nbsp;All taxes or assessments levied against any Participant shall be the sole responsibility of the Participant upon which said taxes or assessments are levied unless such taxes or assessments were levied directly against an individual Participant on behalf of any or all of the other Participants, in which case such taxes or assessments shall be borne by all Participants in the ratio of their Entitlement Shares with the exception of taxes pertaining to Energy-Related Costs, which shall be borne by the Participants in the same manner as other Energy-Related Costs. Each Participant shall promptly pay when due all taxes or assessments levied against it with respect to its interest in the Project, subject to reasonable rights to protest

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or contest such tax or assessment either before or after payment thereof. In the event any Participant fails to pay any tax or assessment when due, the Project Manager or Operating Agent may do so and include such payment in sums next due from such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3&nbsp;&nbsp;&nbsp;&nbsp; If any taxes or assessments are levied or assessed in a manner other than as specified in Section 13.1 hereof, it shall be the responsibility of the Management Committee to establish equitable practices and procedures for the apportionment among the Participants of such taxes and assessments and the payment thereof.

14.&nbsp;&nbsp;&nbsp;&nbsp; <u>CO-TENANCY AND NONPARTITIONMENT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;&nbsp;&nbsp;&nbsp; The Participants and each of them will own their interests in the Project Agreements as tenants in common. Each Participant waives any right which it may have to partition the Project or any component thereof or the Project Agreements, whether by partitionment in kind or by sale and division of the proceeds, further waives any right which it may have to resort to any action in law or in equity to partition the same, and further waives the benefits of all laws that may now or hereafter authorize such partition for a term (i) which shall be co-terminous with the term of this Agreement, or (ii) which shall be for such lesser period as may be required under applicable law.

15. &nbsp;&nbsp;&nbsp;&nbsp;<u>MORTGAGE AND TRANSFER OF INTERESTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall have the right at any time and from time to time to mortgage, create or provide for a security interest in, or convey in trust all or a part of its Entitlement Share in the Project, together with an equal interest in the Project Agreements, under deeds of trust, mortgages, indentures, or security agreements, as security for its present or future bonds or other obligations or securities, without need for the consent of any other Participant, and without the mortgagee, trustee or secured party assuming or becoming in any respect obligated to perform any of the obligations of the Participant prior to it taking possession of or foreclosing upon the interest of such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 &nbsp;&nbsp;&nbsp;&nbsp;Any mortgagee, trustee or secured party under present or future deeds of trust, mortgages, indentures or security agreements of any of the Participants and any successor or assign thereof, and any receiver, referee or trustee in bankruptcy or reorganization of any of the Participants, and any successor by action of law or otherwise pursuant to this Section, or any transferee of any thereof may, without the prior written consent of the other Participants, succeed to and acquire all the interest of such Participant in the Project and the Project Agreements, and may take over possession of or foreclose upon said interest of such Participant, and in such event shall assume and be obligated to fully perform and discharge all of the obligations hereunder of such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall have the right to transfer all, but not less than all, of its Entitlement Share in the Project, together with an equal interest in the Project Agreements, to any of the following entities without the consent of any other Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. &nbsp;&nbsp;&nbsp;&nbsp;Any entity acquiring all or substantially all of the property and system of such Participant, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. &nbsp;&nbsp;&nbsp;&nbsp;Any entity merged or consolidated with such Participant, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. &nbsp;&nbsp;&nbsp;&nbsp;Any entity which is wholly-owned or controlled by such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 &nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section 15.4 the Project Manager shall serve written notice on the Participants of the anticipated date of execution of the first major equipment purchase contract for the third Station Unit as far in advance as possible, but not less than thirty (30) days before such anticipated date. Any Participant may transfer all, but not less than all, of its interest in the Project to the remaining Participants in the ratio that the Entitlement Share of each remaining Participant bears to the total of the Entitlement Shares of all remaining Participants, and such remaining Participants shall be obligated to purchase such interest and pay to the transferring Participant all sums contributed to the Project up to the

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date of transfer by the transferring Participants provided that the transferring Participant serves written notice of its intention to transfer as provided herein at least ten (10) days prior to the anticipated date of execution of the first major equipment purchase contract for the third Station Unit, and provided further that the total payment to the transferring Participant shall not exceed a total of six million dollars ($6,000,000.00), notwithstanding the fact that the sums contributed by the transferring Participant may have been in excess of six million dollars ($6,000,000.00). At least one hundred eighty (180) days prior to the date on which the intended transfer is to be consummated under this Section 15.4, the Participant desiring to transfer shall serve written notice of its intention to do so upon each of the other Participants. Such notice shall contain the proposed date of the transfer, the sums contributed by the transferring Participant as of the date of the notice, and the additional sums which the transferring Participant anticipates it will contribute up to the date on which the intended transfer is to be consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 &nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in Sections 15.1 and 15.2 hereof, any successor to the interest of a Participant in the Project shall succeed to such interest in the Project and shall assume and be obligated to fully perform and discharge all of the obligations under the Project Agreements of such Participant. Such successor shall notify each of the other Participants in writing of its succession to the interest of such Participant and furnish to each Participant evidence of such transfer or merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 &nbsp;&nbsp;&nbsp;&nbsp;No Participant shall be relieved of any of its obligations under the Project Agreements by succession or transfer under this Section 15 without the express prior written consent of all of the remaining Participants, which consent will not be unreasonably withheld.

16. &nbsp;&nbsp;&nbsp;&nbsp;<u>RIGHT OF FIRST REFUSAL</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1&nbsp;&nbsp;&nbsp;&nbsp; Except as provided in Section 15, should any Participant desire to transfer its interest in the Project or any part thereof to any person, entity or other Participant, each remaining Participant shall have the Right of First Refusal to purchase such interest for the greater of the original cost of such interest, depreciated from the Date of Commercial Operation to the date of transfer at an annual rate of 2.82% for generating facilities, 2.75% for substation facilities, and 2.60% for transmission facilities, or the outstanding debt of the transferring Participant attributable to such interest. If none of the Participants elects to purchase such interest of the offering Participant pursuant to this Section 16, the latter may proceed to transfer such interest to any person, entity or other Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 &nbsp;&nbsp;&nbsp;&nbsp;If more than one of the Participants desire to purchase such interests unless otherwise agreed by the Participants desiring to purchase, such interest shall be transferred in the ratio that the Entitlement Share of each such Participant desiring to purchase bears to the total Entitlement Shares of those Participants desiring to purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 &nbsp;&nbsp;&nbsp;&nbsp;Any transfer of less than a Participant's entire interest which would have the effect of increasing the number of Participants in the Project after the transfer is completed must receive the approval of the Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 &nbsp;&nbsp;&nbsp;&nbsp;At least one year prior to the date on which the intended transfer is to be consummated under Section 16, the Participant desiring to transfer shall serve written notice of its intention to do so upon each of the other Participants. Such notice shall contain the proposed date of transfer and the terms and conditions of the transfer including the name and the bona fide written offer of the proposed transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall have the option to purchase all or any part of the interest to be transferred and shall exercise said option by serving written notice of its intention upon the Participant desiring to transfer and upon the other Participants within six (6) months after service of the written notice of intention to transfer given pursuant to Section 16,4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6 &nbsp;&nbsp;&nbsp;&nbsp;If the Participants individually or collectively fail to exercise their option to purchase the entire interest to be transferred, then the Participant desiring to transfer shall serve written notice of this fact upon the remaining Participants within ten (10) days after its receipt of the last of the written notices given

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pursuant to Section 16.5 hereof, or after the expiration of the six-month period referred to in Section 16.5 hereof, whichever is earlier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7&nbsp;&nbsp;&nbsp;&nbsp; The Participants which exercised their option to purchase less than the entire interest to be transferred shall have the option to purchase the remaining interest to be transferred in the ratio of their Entitlement Shares, which such option shall be exercised by serving written notice of such election upon the Participant desiring to transfer, within thirty (30) days after the receipt of the notice given pursuant to Section 16.6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8&nbsp;&nbsp;&nbsp;&nbsp; The purchase of the interest by the Participants having elected to purchase the same shall be fully consummated within one year following the date upon which the initial notice was given under Section 16.4 hereof, unless the Participants are then diligently pursuing applications for required authorizations or approvals to effect such transfer or are then diligently pursuing or defending appeals from orders entered or authorizations issued in connection with such applications, in which event the transfer shall be consummated and the buyer shall tender payment within six (6) months following the date upon which the final order is entered or authorization issued in connection with such applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9&nbsp;&nbsp;&nbsp;&nbsp; If the Participants fail to exercise their options to purchase all of the interest to be transferred, the Participant desiring to transfer such interest shall be free to transfer all, but not less than all, of such interest to the party that made the offer to purchase referred to in Section 16.1 hereof upon the terms and conditions set forth in its bona fide written offer. If such transfer is not consummated by the proposed date of transfer, the Participant desiring to transfer said interest must give complete new rights of first refusal to all Participants pursuant to the provisions of this Section 16 before such Participant shall be free to transfer said interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10 &nbsp;&nbsp;&nbsp;&nbsp;Any Participant transferring an interest pursuant to this Section shall remain liable and obligated for the performance of the terms and conditions of the Project Agreements related to such interest arising from events occurring prior to the time of transfer, but it shall not be liable or obligated for the performance of the terms and conditions of the Project Agreements related to such interest arising from events occurring subsequent to the time of transfer as to the interest transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any other provision of this Agreement, any person, entity or other Participant acquiring or succeeding to an interest of a Participant shall take or acquire such interest subject to all the terms and conditions of the Project Agreements, and shall assume and be responsible for all of the outstanding obligations of its predecessor in interest, and shall also acquire all the rights of its predecessor in interest under said Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12 &nbsp;&nbsp;&nbsp;&nbsp;No Participant shall be relieved of any of its obligations under the Project Agreements by transfer under this Section 16 without the express prior written consent of all of the remaining Participants, which consent will not be unreasonably withheld.

17. &nbsp;&nbsp;&nbsp;&nbsp;<u>DESTRUCTION</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1&nbsp;&nbsp;&nbsp;&nbsp; If a Station Unit should be destroyed or substantially damaged, each Participant shall decide whether or not it desires to repair or reconstruct such unit. Each Participant, if it is willing to pay the costs of repairing or reconstructing such unit, shall have the right to do so. If such unit is repaired or reconstructed, those Participants which agree to pay the costs of such repair or reconstruction shall, unless otherwise agreed between or among them, share such costs in the ratio of their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2&nbsp;&nbsp;&nbsp;&nbsp; In the event one or more of the Participants desires to repair or reconstruct a destroyed or substantially damaged Station Unit, then each Participant which does not agree to repair or reconstruct such unit shall sell its interest in such unit to the Participant or Participants which desire to repair or reconstruct such unit, and such other Participant or Participants shall purchase such interest for an amount equal to the product of the salvage value of the unit and the selling Participant's Entitlement Share, together with a commensurate share of the Transmission System, land, water, fuel and all other rights to property

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associated with the unit to be repaired or reconstructed, valued in accordance with Section 16.1 hereof. The Participants agreeing to repair or reconstruct each such unit shall share the cost of such purchase in the ratio of their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3&nbsp;&nbsp;&nbsp;&nbsp; If any facility of the Transmission System should be destroyed or substantially damaged, the Management Committee shall make *every* effort to repair or reconstruct such facility. In the event the Management Committee determines that such facility cannot be economically repaired or reconstructed, it shall arrange for the delivery of Capacity and Energy from the Station to the affected Participants by the most reliable and economic alternate means. The Participants shall share the costs of the repairs, reconstruction or delivery by alternate means in the ratio of their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4&nbsp;&nbsp;&nbsp;&nbsp; If the Management Committee decides not to repair or reconstruct any facility of the Transmission System but one or more of the Participants desires to repair or reconstruct such facility, then each Participant which does not agree to repair or reconstruct such facility shall sell its interest in such facility to the Participant or Participants which desire to repair or reconstruct such facility, and such other Participant or Participants shall purchase such interest for an amount equal to the product of the salvage value of the facility and the selling Participant's Entitlement Share, valued in accordance with Section 16.1 hereof. The Participants agreeing to repair or reconstruct such facility shall, unless otherwise agreed by them, share the costs of repair or reconstruction in the ratio of their Entitlement Shares.

18.&nbsp;&nbsp;&nbsp;&nbsp; <u>INSURANCE</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 &nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified by the Management Committee, during the construction stage the Project Manager shall procure or cause to be procured and maintain in force policies of comprehensive bodily injury and property damage liability insurance, all-risk builder's risk insurance, contractor's equipment all-risk floater insurance, employees' dishonesty bond, automobile liability insurance, workmen's compensation insurance covering employees of the Project Manager engaged in the performance of its responsibilities under the Project Agreements at the job site, and such other policies of insurance as are normally carried by utilities constructing facilities similar to the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise specified by the Management Committee, during the operating stage the Operating Agent shall procure or cause to be procured and maintain in force broad form steam insurance including reasonable expediting expenses, broad form boiler and pressure vessel insurance including expediting expenses, workmen's compensation insurance covering employees of the Operating Agent engaged in the performance of its responsibilities under the Project Agreements at the job site, physical damage insurance, comprehensive bodily injury and property damage liability insurance, employees' dishonesty bond, automobile liability insurance, and such other policies of insurance as are normally carried by utilities operating facilities similar to the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall be named an insured with the other Participants as their interests appear on all insurance, and when appropriate, the insurance shall carry cross-liability endorsements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 &nbsp;&nbsp;&nbsp;&nbsp;The insurable values, limits, deductibles, retentions and other special terms of Project Insurance shall be determined by the Management Committee prior to the placement of such Project Insurance. Pending such determination, the Project Manager or Operating Agent shall procure insurance binders providing such coverage as in their respective judgments is necessary. After such determination, a policy of Project Insurance shall not be changed without the prior approval of the Management Committee except for minor changes as to which notification shall be given to the Participants by the Project Manager or Operating Agent responsible for procuring such Project Insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall be furnished with either a copy of each of the policies of Project Insurance or a copy of each of the policy forms of Project Insurance, or a renewal thereof, together with a line sheet therefor (and any subsequent amendments) naming the insurers and underwriters and the extent of their participation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall have the right, by written notice to the party procuring the policy, to name any mortgagee, trustee or secured party on all or any of the Project Insurance policies as loss payees or additional insureds as their interests may appear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 &nbsp;&nbsp;&nbsp;&nbsp;Each of the Project Insurance policies shall be endorsed so as to provide that all additional named insureds shall be given the same advance notice of cancellation or material change as that required to be given to the party having procured the policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 &nbsp;&nbsp;&nbsp;&nbsp;Project Insurance policies shall be primary insurance for all purposes and shall be so endorsed. It is expressly understood that each Participant has an insurable interest in the Project and may procure for its own account such insurance with respect to its interest as it may determine. The cost of such insurance shall be paid by such Participant from its own funds and the proceeds of such insurance shall be payable to such Participant. Other Participants shall not have any rights or interests in such insurance or the proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9&nbsp;&nbsp;&nbsp;&nbsp; In the event that any other Participant's insurance program affords equal or better coverage on a more favorable cost basis than that available to the Project Manager or Operating Agent responsible for procuring such Project Insurance, the Management Committee may adopt such insurance program in whole or in part.

19. &nbsp;&nbsp;&nbsp;&nbsp;<u>LIABILITY, INDEMNIFICATION AND CONTRIBUTION</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall be responsible for the consequences of its own Willful Action, and shall indemnify and hold harmless the other Participants from the consequences thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 &nbsp;&nbsp;&nbsp;&nbsp;Any Participant liable for damages resulting from its own Willful Action shall not be entitled to contribution or indemnification from any other Participant and shall be solely liable for such damages to any other party suffering such damages including any Participant herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall be liable to third parties, but not to other Participants, for Project Liability in the proportion its Entitlement Share bears to all Entitlement Shares unless such liability is due to a Participant's Willful Action in which case Section 19.2 shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4&nbsp;&nbsp;&nbsp;&nbsp; Except for Project Liability resulting from Willful Action, the cost of discharging Project Liability including defense costs imposed upon one or more of the Participants for which payment is not made by Project Insurance shall be paid by the Participants in proportion to their Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5 &nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Section 19 shall not be construed to relieve any insurer of its obligation to pay insurance proceeds in accordance with the terms and conditions of valid and collectible Project Insurance.

20. &nbsp;&nbsp;&nbsp;&nbsp;<u>COVENANTS REGARDING PROJECT AGREEMENTS AND DEFAULTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1&nbsp;&nbsp;&nbsp;&nbsp; Each Participant covenants to pay all monies and to perform all other obligations agreed to be paid or performed under the Project Agreements; provided, however, that monies due for such payment or performance shall be derived solely from the revenues of each Participant's electric system, including proceeds of bonds or notes issued to finance its participation in the Project, and shall not constitute a general obligation of any Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 &nbsp;&nbsp;&nbsp;&nbsp;Upon failure of a Participant to make any payment when due or to perform any other obligation under the Project Agreements, the Management Committee may make written demand upon such Participant to pay or otherwise perform. If the failure is not cured (a) within fifteen (15) days from the date of receipt of a demand for payment in the case of a failure to make payment to the Project Manager or the Operating Agent under the Project Agreements, or (b) within forty-five (45) days from the date of receipt of a demand for performance in the case of a failure to perform any obligation other than pay money

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to the Project Manager or the Operating Agent under the Project Agreements, the failure shall constitute a default as of the expiration of the fifteen- or forty-five-day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 &nbsp;&nbsp;&nbsp;&nbsp;If a Participant disputes the existence or extent of any failure to make any payment to the Project Manager or the Operating Agent under the Project Agreements, it shall nevertheless make such payment within the fifteen-day period provided in Section 20.2 under written protest directed to each of the other Participants. Such payments of a Participant not made when due shall bear interest at such rate as shall be determined by the Management Committee, but in no event in excess of the maximum legal rate of interest applicable to the defaulting Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 &nbsp;&nbsp;&nbsp;&nbsp;A Participant in default for failure to make any payment to the Project Manager or the Operating Agent under the Project Agreements shall have no right to any Project Output. The Capacity and Energy unavailable to a defaulting Participant by operation of this Section 20.4 may be utilized by the non-defaulting Participants during the period of default in the proportion each of their Entitlement Shares bears to the total of the non-defaulting Participants' Entitlement Shares pursuant to the terms and conditions of the Project Agreements as if such Capacity and Energy were a part of the non-defaulting Participants' Entitlements; provided, however, that such utilization shall be on an interruptible basis from the date of default to seven hundred thirty (730) days after the date of default and may, upon written notice by any Participant to the defaulting Participant, be on a firm, long-term basis thereafter. The date of default shall be established pursuant to Section 20.2. Nothing in this Section 20.4 shall be construed to relieve a defaulting Participant of any liability for its default including reimbursement to non-defaulting Participants for all payments made in respect to the defaulting Participant's obligation to make payments with the exception of payments for Energy-Related Costs which shall be borne solely by the non-defaulting Participants in proportion to their receipt of Energy associated with utilization of a defaulting Participant's Entitlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5 &nbsp;&nbsp;&nbsp;&nbsp;A Participant in default for failure to make payment of construction costs pursuant to Sections 10 and 12 for more than one hundred twenty (120) days shall lose that portion of its Entitlement Share in the Project which equals 1.25 times the total construction costs unpaid by the defaulting Participant divided by the construction costs paid by all Participants. Unless otherwise agreed among all of the non-defaulting Participants, the defaulting Participant's Entitlement Share lost by operation of this Section 20.5 shall inure to and all costs associated therewith shall be borne by the non-defaulting Participants in the ratio each such non-defaulting Participant's Entitlement Share bears to the total of all non-defaulting Participants' Entitlement Shares. Nothing in this Section 20.5 shall be construed to relieve a defaulting Participant of any liability for its default, except that its obligation to make payments associated with any lost Entitlement Share shall be discharged to the extent that other Participants have made such payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6 &nbsp;&nbsp;&nbsp;&nbsp;In addition to the rights granted in this Section 20, Participants may take any action in law or equity, including an action for specific performance, to enforce the Project Agreements in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any other provisions of this Section 20, if Basin Electric is the Participant in default, Basin Electric shall continue to perform its duties as Project Manager and Operating Agent in accordance with the Project Agreements until removed pursuant to Section 23.

21.&nbsp;&nbsp;&nbsp;&nbsp; <u>RESOLUTION OF DISPUTES:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 &nbsp;&nbsp;&nbsp;&nbsp;Any dispute, including but not limited to votes taken by the Management Committee with which a Participant does not agree, arising under the Project Agreements between or among any of the Participants shall first be submitted to the Management Committee for mediation by giving notice in writing to all Participants describing the dispute, the issue or issues to be resolved and any special time restrictions on resolution of the dispute. If unresolved by the Management Committee within thirty-five (35) days following notice to the Participants, any Participant shall have the right to submit the dispute to the Administrator, by service upon him and all other Participants of notice thereof similar in form to that

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accompanying submission of the dispute to the Management Committee, for mediation by him or his designee; provided, however, that if some legal requirement necessitates an earlier resolution of the dispute and the Management Committee is so notified, any Participant may submit the dispute to the Administrator before the thirty-five-day period has expired but not earlier than twenty-five (25) days before said period has expired. Fifty (50) days after the Administrator has received notice of the dispute in writing, and whether or not the Administrator or his designee has mediated said dispute, any Participant shall have the right to bring suit in a court of law or equity for a trial <u>de novo</u> of the dispute; provided, however, that if some legal requirement necessitates earlier resolution of the dispute, the fifty-day time period for mediation by the Administrator or his designee shall be shortened accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2 &nbsp;&nbsp;&nbsp;&nbsp;The rights and remedies of the Participants as set forth in this Agreement shall not be exclusive, except where otherwise indicated, and shall be in addition to all other rights of the Participants either at law or in equity.

22. &nbsp;&nbsp;&nbsp;&nbsp;<u>ACTIONS PENDING RESOLUTION OF DISPUTES</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1&nbsp;&nbsp;&nbsp;&nbsp; Irrespective of the pendancy of any dispute, the Project Manager or Operating Agent shall proceed with Project Work in accordance with the Project Agreements and the Participants shall advance the funds required to perform such Project Work in accordance with the applicable provisions of the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2&nbsp;&nbsp;&nbsp;&nbsp; In the event it is determined by mediation or otherwise that a protesting Participant is entitled to a refund of all or any portion of a disputed payment or payments with interest if applicable or is entitled to the payment of actual damages incurred in connection with a non-monetary default, then, upon such determination being made, the Project Manager or Operating Agent, as the case may be, shall pay such amount to the protesting Participant.

23.&nbsp;&nbsp;&nbsp;&nbsp; <u>RESIGNATION OR REMOVAL OF PROJECT MANAGER OR OPERATING AGENT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 &nbsp;&nbsp;&nbsp;&nbsp;The Project Manager and Operating Agent shall serve as such during the term of and pursuant to this Agreement or until either one resigns by giving written notice to the Participants at least one year in advance of the date of resignation, or until receipt by either one of notice of its removal following the issuance by the Management Committee of the notice provided for in Section 23.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2 &nbsp;&nbsp;&nbsp;&nbsp;If the Project Manager or Operating Agent shall fail to remedy any act of default within a reasonable time following a final decision or order made in accordance with the provisions of this Agreement that the Project Manager or Operating Agent is in default, then the Management Committee may cause the Project Manager or Operating Agent to be removed by serving written notice of removal upon the Project Manager or the Operating Agent as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3 &nbsp;&nbsp;&nbsp;&nbsp;Prior to the acceptance of a resignation submitted by the Project Manager or Operating Agent, or prior to the removal of either one of them, the Participants shall by written agreement designate a new Project Manager or Operating Agent, as the case may be. Acceptance by the new Project Manager or Operating Agent of its appointment as such shall constitute its agreement to perform the obligations of said position pursuant to this Agreement.

24. &nbsp;&nbsp;&nbsp;&nbsp;<u>RELATIONSHIP OF PARTICIPANTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1 &nbsp;&nbsp;&nbsp;&nbsp;The covenants, obligations and liabilities of the Participants are intended to be several and not joint or collective and, except as expressly provided in the Project Agreements, nothing herein contained shall ever be construed to create an association, joint venture, trust or partnership, or to impose a trust or partnership covenant, obligation or liability on or with regard to any one or more of the Participants. Each Participant shall be individually responsible for its own covenants, obligations and liabilities as herein provided. No Participant shall be the agent of or have a right or power to bind any other Participant without **its** express written consent, except as provided in the Project Agreements.

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25.&nbsp;&nbsp;&nbsp;&nbsp; <u>EQUAL OPPORTUNITY</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1 &nbsp;&nbsp;&nbsp;&nbsp;During the term of this Agreement, the Project Manager and the Operating Agent (hereinafter in this Section 25 referred to collectively as the "Contractor") agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.1 &nbsp;&nbsp;&nbsp;&nbsp;The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.2&nbsp;&nbsp;&nbsp;&nbsp; The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3 &nbsp;&nbsp;&nbsp;&nbsp;The Contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the Contractor's commitments under this Section 25 and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.4 &nbsp;&nbsp;&nbsp;&nbsp;The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and the rules, regulations and relevant orders of the Secretary of Labor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.5 &nbsp;&nbsp;&nbsp;&nbsp;The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations and orders of the Secretary of Labor issued pursuant thereto, and will permit access to its books, records and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.6&nbsp;&nbsp;&nbsp;&nbsp; In the event of the Contractor's noncompliance with the nondiscrimination clauses of this Agreement or with any of the said rules, regulations or orders, this Agreement may be canceled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.7 &nbsp;&nbsp;&nbsp;&nbsp;The Contractor will include the provisions of Sections 25.1.1 through 25.1.7 hereof in *every* subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

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26. &nbsp;&nbsp;&nbsp;&nbsp;<u>UNCONTROLLABLE FORCES</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1 &nbsp;&nbsp;&nbsp;&nbsp;No Participant, Project Manager or Operating Agent shall be considered to be in default in the performance of any of its obligations under the Project Agreements (other than obligations of said Participant to pay monies under the Project Agreements) when a failure of performance shall be due to uncontrollable forces. The term "uncontrollable forces" shall be any cause beyond the control of the Participant affected, including but not restricted to an act of God, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, shortage of railroad cars, sabotage, pestilence, restraint by court order or public authority, and action or non-action by or failure to obtain the necessary authorizations or approvals from any governmental authority, which by exercise of due diligence such Participant could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Nothing contained herein shall be construed to require a Participant to settle any strike or labor dispute in which it may be involved. Any Participant rendered unable to fulfill any of its obligations under the Project Agreements by reason of uncontrollable forces shall give prompt written notice of such fact to the other Participants and shall exercise due diligence to remove such inability with reasonable dispatch.

27. &nbsp;&nbsp;&nbsp;&nbsp;<u>GOVERNING LAW</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1 &nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise required by law, this Agreement shall be governed by the laws of the state of Wyoming.

28. &nbsp;&nbsp;&nbsp;&nbsp;<u>BINDING OBLIGATIONS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1 &nbsp;&nbsp;&nbsp;&nbsp;All of the obligations set forth in the Project Agreements shall bind the Participants and their successors and assigns, and such obligations shall run with the Participants' rights, titles and interests in the Project and with all of the interests of each Participant in the Project Agreements; provided that any mortgagee, trustee or secured party shall not be obligated for obligations arising prior to taking of possession or the initiation of remedial proceedings, whichever occurs first, other than obligations to the Participants under this Agreement.

29. &nbsp;&nbsp;&nbsp;&nbsp;<u>PROJECT AGREEMENTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1 &nbsp;&nbsp;&nbsp;&nbsp;The Participants agree to negotiate in good faith and to proceed with diligence to enter into all of the Project Agreements among the Participants and between the Participants and other entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2 &nbsp;&nbsp;&nbsp;&nbsp;It is acknowledged by the Participants that one or more of the Project Agreements to which all Participants are parties may contain provisions which are in conflict with or contrary to the terms of this Agreement, and any such provision in such a Project Agreement executed subsequent to the execution of this Agreement shall be deemed to supersede, amend or modify any conflicting or contrary provision herein. The agreement of the Participants to supersede, amend or modify the terms hereof shall constitute the legal consideration to support such change in the legal rights and obligations of the Participants.

30.&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECTIVE DATE, TERM AND RIGHTS OF PARTICIPANTS UPON TERMINATION</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1 &nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective only when it has been duly executed and delivered on behalf of all of the Participants and approved by the Administrator and by all regulatory agencies which have jurisdiction. This Agreement shall have a term of fifty (50) years from its effective date; provided, however, in no event shall the term of this Agreement exceed a period commencing on the effective date of this Agreement and which shall end twenty years and eleven months after the date of the death of John J. Conway of Denver, Colorado, Donald R. Allen of Washington, D.C. and Norman M. Krivosha of Lincoln, Nebraska, and those of their descendants who are living upon the effective date of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2 &nbsp;&nbsp;&nbsp;&nbsp;Upon termination of this Agreement the facilities comprising the Project shall be disposed of in a manner to be mutually agreed upon by the Participants and in accordance with then applicable federal, state and local laws, ordinances and regulations.

31. &nbsp;&nbsp;&nbsp;&nbsp;<u>ACQUISITION OF INTERESTS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1 &nbsp;&nbsp;&nbsp;&nbsp;Any Participant which acquires an interest in any real or personal property or contract which is part of the Project shall transfer and assign an undivided interest therein to the other Participants so that the ownership and rights of the Participants in such property or contract shall be as provided for in the Project Agreements.

32. &nbsp;&nbsp;&nbsp;&nbsp;<u>NOTICES</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.1 &nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Section 32.2 hereof, any notice, demand or request provided for in the Project Agreements shall be in writing and shall be deemed properly served, given or made if delivered in person or sent by registered or certified mail, postage prepaid, to the persons specified below:

Basin Electric Power Cooperative,

Attn: General Manager,

316 No. 5th St.,

Bismarck, North Dakota 58501

Tri-State Generation And Transmission Association, Inc.,

Attn: Executive Vice-President,

P.O. Box 29198,

Denver, Colorado 80229

Missouri Basin Public Power Financing Corporation,

Attn: General Manager,

707 E. 41st St.,

Sioux Falls, South Dakota 57105

Lincoln Electric System,

Attn: Administrator,

1401 "0" Street,

Lincoln, Nebraska 68501

Heartland Consumers Power District,

Attn: General Manager,

Drawer E,

Madison, South Dakota 57042

Wyoming Municipal Electric Joint Powers Board,

Attn: Executive Director,

3 E. 3rd,

Lusk, Wyoming 82225

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.2&nbsp;&nbsp;&nbsp;&nbsp; Informal communications of a routine nature involving committee matters shall be given in such manner as the committee shall arrange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.3 &nbsp;&nbsp;&nbsp;&nbsp;Any Participant may, at any time, by written notice to all other Participants, designate different or additional persons of different addresses for the giving of notices hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.4&nbsp;&nbsp;&nbsp;&nbsp; The Project Manager or the Operating Agent shall provide to each Participant a copy of any notice, demand or request given or received by it in connection with any of the Project Agreements.

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33.&nbsp;&nbsp;&nbsp;&nbsp; <u>ENVIRONMENTAL PROTECTION</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.1&nbsp;&nbsp;&nbsp;&nbsp; The Participants hereby covenant with one another that in the construction and operation of the Station they shall install and operate or cause to be installed and operated air quality and water quality control equipment, and that they shall design and construct that portion of the Transmission System to be designed and constructed by them in conformance with the environmental criteria for electric transmission systems which were developed and published jointly during 1970 by the United States Department of the Interior and the United States Department of Agriculture, and in accordance with 43 CFR 2851.2-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.2 &nbsp;&nbsp;&nbsp;&nbsp;The Participants, in recognition of all applicable federal, state, and local laws, orders and regulations relating to environmental protection, with which they intend to and shall fully comply in the construction and operation of the Project, hereby further agree as set forth in Sections 33.3 through 33.5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.3&nbsp;&nbsp;&nbsp;&nbsp; The Participants shall install and operate or cause to be installed and operated facilities and equipment to comply with applicable federal, state, and local laws, regulations and standards for the control of emissions. The design of the Project will, to the extent practicable, provide for the future installation of any equipment or facilities required to comply with said federal, state or local laws, regulations, or standards. Stack designs and the design of such equipment and of other plant features that may affect air quality control, and plans and facilities for control and disposal of waste materials or residue from burned fuel shall achieve compliance with the obligations herein set out and shall be submitted to the Administrator in advance of construction, installation, removal, or modification thereof. The Administrator shall be given an opportunity to review and comment in writing on the aforesaid designs, plans, equipment or features, or a major modification or supplementation thereof, within sixty (60) days after such submissions. Notwithstanding such opportunity for review by the Administrator, it is the Participants' responsibility to install such facilities and to operate them in such a manner as to comply with the standards set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.3.1&nbsp;&nbsp;&nbsp;&nbsp; In the operation of the Station, the Participants will make or cause to be made such tests and measurements and keep or cause to be kept such records as will enable them to make reports to the Administrator and other regulatory agencies relating to the operation and efficiency of the air quality control equipment at such intervals as may be mutually agreed upon, but not less than once annually. The tests and measurements will be made in conformance with applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.3.2 &nbsp;&nbsp;&nbsp;&nbsp;The Participants, during normal working hours, will permit access to, and inspection and copying of, all records relating to air quality control, by official and regularly employed representatives or professionally employed consultants of the Administrator and regulatory agencies having jurisdiction, and will also permit such persons to enter upon and inspect any facilities of the Project affecting air quality control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.4 &nbsp;&nbsp;&nbsp;&nbsp;The Participants shall install and operate or cause to be installed and operated as part of the Project such waste water and waste material control, and sewage control and disposal facilities, as are necessary to comply with all applicable federal, state and local laws, orders and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.4.1 &nbsp;&nbsp;&nbsp;&nbsp;Designs and plans for water quality control equipment and other plant features that may be related to the control of water quality, and facilities for the disposal of waste water, waste materials, sewage control and disposal and other plant features installed to control water quality under Section 33.4 hereof, shall be submitted to the Administrator in advance of construction, installation, removal, or major modification thereof. The Administrator shall be given an opportunity to review and comment in writing on the aforesaid designs, plans, equipment or features, or a major modification or supplementation thereof, within sixty (60) days after such submission. Notwithstanding such opportunity to review and comment by the Administrator, it is

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the Participants' responsibility to install such facilities and operate them in such a manner as to comply with the standards set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.4.2 &nbsp;&nbsp;&nbsp;&nbsp;During normal working hours, official and regularly employed representatives or professionally employed consultants of the Administrator and regulatory agencies having jurisdiction shall have access to and the right to inspect and to copy all records relating to water quality control, and such representatives and consultants also shall have the right to enter upon and inspect any facilities of the Project affecting water quality control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.5&nbsp;&nbsp;&nbsp;&nbsp; The Participants shall take appropriate measures to minimize the effect of the Station on the environment and shall recognize and consider the ecology of the area in the design of the Station. In developing plans for appurtenant buildings, substations, and coal and water handling facilities, due consideration will be given to minimizing adverse effects to the terrain on which they are located.

34.&nbsp;&nbsp;&nbsp;&nbsp; <u>MISCELLANEOUS PROVISIONS</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1 &nbsp;&nbsp;&nbsp;&nbsp;No Participant shall be required as a condition of this Agreement to maintain any specific reserves to support its Entitlement, but it may maintain such reserves as it deems appropriate or necessary. The consequences of a Participant's failure to provide adequate reserves shall be borne by such Participant and shall not result in Project Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.2 &nbsp;&nbsp;&nbsp;&nbsp;Each Participant agrees, upon request by the Management Committee, or Project Manager or Operating Agent, to make, execute and deliver any and all documents reasonably required to implement the Project Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.3 &nbsp;&nbsp;&nbsp;&nbsp;The captions and headings appearing in the Project Agreements are inserted merely to facilitate reference and shall have no bearing upon the interpretation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.4 &nbsp;&nbsp;&nbsp;&nbsp;Each term, covenant and condition of the Project Agreements is deemed to be an independent term, covenant and condition, and the obligation of any Participant to perform all of the terms, covenants and conditions to be kept and performed by it is not dependent on the performance by the other Participants of any or all of the terms, covenants and conditions to be kept and performed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.5&nbsp;&nbsp;&nbsp;&nbsp; In the event that any of the terms, covenants or conditions of any of the Project Agreements, or the application of any of such terms, covenants or conditions, shall be held invalid as to any person or circumstances by any court having jurisdiction in the premises, the remainder of such Project Agreement, and the application of its terms, covenants or conditions to such persons or circumstances shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.6 &nbsp;&nbsp;&nbsp;&nbsp;The Project Agreements shall be subject to the authority of any regulatory agency having jurisdiction thereover and to approval by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.7&nbsp;&nbsp;&nbsp;&nbsp; Any waiver at any time by any Participant of its rights with respect to a default or any other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.8 &nbsp;&nbsp;&nbsp;&nbsp;The Participants shall not, without approval in writing by the Administrator, construct any facilities which will involve any districts, site, building, structure or object which is included in the National Register of Historic Places, maintained by the Secretary of the Interior pursuant to the Historic Sites Act of 1935 and the National Historic Preservation Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.9 &nbsp;&nbsp;&nbsp;&nbsp;The Participants shall use or cause to be used such unmanu-factured articles, materials and supplies as have been mined or produced in the United States, and only such manufactured articles, materials and supplies as have been manufactured in the United States substantially all from articles, materials, or supplies mined, produced or manufactured, as the case may be, in the United States, except to

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the extent the Administrator shall determine that such use shall be impracticable or that the cost thereof shall be unreasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.10 &nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in the Project Agreements shall (a) relieve Tri-State or Basin Electric from complying in all respects with each of their Financing Instruments, or (b) obligate either Basin Electric or Tri-State to perform any act or refrain from acting if Basin Electric or Tri-State would thereby violate any provision of the Financing Instruments or the Rural Electrification Administration Act of 1936, as amended (7 U.S.C. 901 et seq.), or (c) be construed to make any Participant other than Basin Electric or Tri-State a party to or bound to perform under any of the Financing Instruments. In consideration of the approval by the Administrator of this Agreements, each Participant agrees that (a) none of the Project Agreements shall be amended, supplemented, waived or terminated without the prior approval in writing by the Administrator, and (b) the Project Agreements may be enforced by the Administrator on behalf of Basin Electric or Tri-State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.11 &nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Exhibit E, each Participant shall be responsible for obtaining, at its own expense, its required authorizations and approvals, if any, relating to its participation in the ownership, construction, reconstruction, operation, maintenance or use of the Project and to its performance of the provisions of this Participation Agreement, from federal, state or local regulatory authorities having jurisdiction to issue such authorizations and approvals, and each Participant shall keep the Project Manager or Operating Agent, as the case may be, informed of its applications therefor and authorizations issued in connection therewith. All costs of any of the Participants in securing appropriate permits for the Project as a whole, such as siting council permits, regulatory agency permits, water permits, and environmental permits, etc., shall be considered Project costs and shall be shared by the Participants in the ratio of their respective Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.12 &nbsp;&nbsp;&nbsp;&nbsp;Each of the Participants, as well as the Project Manager and the Operating Agent, will keep its books and records insofar as the Project is concerned, in accordance with Accounting Practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.13 &nbsp;&nbsp;&nbsp;&nbsp;Exhibits A, B, C, D, E and F are attached hereto and made a part of this Agreement.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 13th day of November, 1975.

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| | | |
|:---|:---|:---|
| (SEAL) | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| | By | /s/ Arthur Jones |
| | President | President |
| ATTEST: | | |
| /s/ Dennis Lindberg | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF BURLEIGH |) | |

---

On the 13th day of November month A.D. I975 before me personally appeared Arthur Jones to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Arthur Jones acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Micheal J. Herriman |
| (SEAL) | Notary Public |
| | My Commission expires: December 19, 19 |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 10th day of December, 1975.

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| | | |
|:---|:---|:---|
| (SEAL) | TRI-STATE GENERATION AND TRANSMiSSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMiSSION ASSOCIATION, INC. |
| | By | /s/ Everett B. Chesney |
| ATTEST: | President | President |
| /s/ E.A. Geesen | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

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On the 10th day of December month A.D. 1975 before me personally appeared Everett B. Chesney to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Everett B. Chesney acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ |
| (SEAL) | Notary Public |
| | My Commission expires: May 8, 1978 |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 8th day of December, 1975.

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| | | |
|:---|:---|:---|
| (SEAL) | MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION | MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION |
| | By | /s/ Leo H. Miller |
| | President | President |
| ATTEST: | | |
| /s/ Allen Roor | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| District of |) | |
| |) | SS. |
| Columbia |) | |

---

On the 8th day of the twelfth month A.D. 1975 before me personally appeared Leo H. Miller to me personally known, who, having been by me first duly sworn, did say: that he is the President of Missouri Basin Public Power Financing Corporation, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Leo H. Miller acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Ellen J Lawler |
| (SEAL) | Notary Public |
| | My Commission expires: October 31, 1979 |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 4th day of December, 1975.

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Administrator | Administrator |
| ATTEST: | Lincoln Electric System | Lincoln Electric System |
| /s/ | | |
| Assistant Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 4th day of December A.D. 19775 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that· said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Walter A. Canney acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ C.V. Sullivan |
| (SEAL) | Notary Public |
| | My Commission expires: December 20, 1977 |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 23th day of September, 1975.

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| | | |
|:---|:---|:---|
| (SEAL) | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| | By | /s/ Hilmar A. Wahl |
| ATTEST: | President | President |
| /s/ Leo P. Flynn | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

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On this the 23rd day of September, 1975, before me V.A.Horner, the undersigned officer, personally appeared Hilmar A. Wahl, President of Heartland Consumers Power District, and Leo P. Flynn, Secretary of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ V.A. Horner |
| | Notary Public, State of South Dakota |
| (SEAL) | My Commission expires: |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 20th day of November, 1975.

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| | | |
|:---|:---|:---|
| (SEAL) | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD |
| ATTEST: | By | /s/ George Frank |
| | President | President |
| /s/ | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 20th day of November A.D. 1975 before me personally appeared George Frank to me personally known, who, having been by me first duly sworn, did say: that he is the President of Wyoming Municipal Electric Joint Powers Board, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said George Frank acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Geroge A. Clarke |
| (SEAL) | Notary Public |
| | My Commission expires: 4-12-76 |

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<u>INDEX TO EXHIBITS</u>

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| | | |
|:---|:---|:---|
| | | **PAGE** |
| A. | Description of the Project |  |
|  | 1. The Station | 33 |
|  | 2. The Transmission System | 33 |
|  | 3. Miscellaneous Property | 34 |
| B. | The Station and Transmission System Map | 35 |
| C. | Points of Delivery | 36 |
| D. | Schedule of Construction Dates | 37 |
| E. | Construction Costs | 38 |
| F. | Operation and Maintenance Costs | 39 |

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<u>EXHIBIT A</u>

<u>DESCRIPTION OF THE PROJECT</u>

The Project shall consist of the following:

<u>A-1 &nbsp;&nbsp;&nbsp;&nbsp;THE STATION</u>

A-1.1&nbsp;&nbsp;&nbsp;&nbsp; Parcels of land located in Albany and Platte Counties, Wyoming, as shown on Exhibit B and generally referred to as the Laramie River Plant Site and Grayrocks Dam and Reservoir.

A-1.2 &nbsp;&nbsp;&nbsp;&nbsp;Three steam electric generating units (Unit 1, Unit 2, and Unit 3), which shall have a nameplate rating of 570,000 kW each and shall be tandem-compound, four flow, single reheat, turbine-generator units with initial steam conditions of 2400 psi and 1000 F. and reheat to 1000 F. and designed to take steam from three pulverized coal-fired steam generator units.

A-1.3 &nbsp;&nbsp;&nbsp;&nbsp;All auxiliary equipment associated with said units.

A-1.4 &nbsp;&nbsp;&nbsp;&nbsp;An administration building, machine shop and warehouse.

A-1.5 &nbsp;&nbsp;&nbsp;&nbsp;A reservoir, pumping station and all associated equipment.

A-1.6&nbsp;&nbsp;&nbsp;&nbsp; 345 kV step-up transformers and all equipment associated therewith up to the point where the leads from the said transformers terminate at the dead-end structure in the 345 kV switchyard.

A-1.7 &nbsp;&nbsp;&nbsp;&nbsp;Standby auxiliary power transformation equipment and related facilities.

A-1.8 &nbsp;&nbsp;&nbsp;&nbsp;Plant control and communication facilities and associated buildings and equipment.

A-1.9 &nbsp;&nbsp;&nbsp;&nbsp;Railroad trackage and associated lands, easements and rights-of-way.

<u>A-2&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>THE TRANSMISSION SYSTEM</u>

A-2.1&nbsp;&nbsp;&nbsp;&nbsp; The owned facilities of the Laramie River Transmission System shall consist of the following:

A-2.1.1 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Dave Johnston Power Plant, 230 kV ac transmission line, 1272 MCM single conductor, wood tower - estimated line length - 75.5 miles.

A-2.1.2 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Stegall (West) Substation, 230 kV ac transmission line, 2-954 MCM conductors, steel tower - estimated line length - 60.7 miles.

A-2.1.3 &nbsp;&nbsp;&nbsp;&nbsp;Stegall (West) Substation - Sidney (West) Substation, 230 kV ac transmission line, 954 MCM single conductor, wood tower - estimated line length - 80.5 miles.

A-2.1.4 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Ault Substation, 345 kV ac transmission line, 2-954 MCM conductors, steel tower -estimated line length - 108.5 miles.

A-2.1.5 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Archer Substation - Story Substation, 345 kV ac transmission line, 2-954 MCM conductors, steel tower - estimated line length - 171.5 miles.

A-2.1.6 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Sidney (East) Substation, 345 kV ac transmission line, 2-954 MCM conductors, steel tower - estimated line length - 120.00 miles.

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<u>EXHIBIT A</u>

(continued)

A-2.1.7 &nbsp;&nbsp;&nbsp;&nbsp;Laramie River Station - Stegall (East) Substation, 345 kV ac transmission line, 2-954 MCM conductors, steel tower - estimated line length - 59.00 miles.

A-2.1.8 &nbsp;&nbsp;&nbsp;&nbsp;Stegall (East) Substation - Sidney (East) Substation, 345 kV ac transmission line, 2-954 MCM conductors, steel tower - estimated line length - 77.00 miles.

A-2.1.9 &nbsp;&nbsp;&nbsp;&nbsp;Associated facilities, land, easements and rights-of-way.

A-2.2&nbsp;&nbsp;&nbsp;&nbsp; The contracted facilities of the Transmission System shall consist of the following:

A-2.2.1 &nbsp;&nbsp;&nbsp;&nbsp;A contract with Nebraska Public Power District for transmission service from Stegall and Sidney, Nebraska to certain specified East Side Points of Delivery in Exhibit C.

<u>A-3&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>MISCELLANEOUS PROPERTY</u>

A-3.1 &nbsp;&nbsp;&nbsp;&nbsp;A parcel of land located in Goshen County, Wyoming, as shown on Exhibit B.

A-3.2 &nbsp;&nbsp;&nbsp;&nbsp;Furniture and equipment located at the Station, in the office at Wheatland, Wyoming, and in Cheyenne, Wyoming.

A-3.3 &nbsp;&nbsp;&nbsp;&nbsp;Land and water rights associated with the Wall is Ranch and water rights associated with the Johnson Ranch.

A-3.4 &nbsp;&nbsp;&nbsp;&nbsp;R. 0. water rights associated with the Boughton Ditch. A-3.5 State of Wyoming water rights associated with the Boughton Ditch.

A-3.6 &nbsp;&nbsp;&nbsp;&nbsp;Coal rights as set forth in the Fuel Supply Contract with Western Fuels.

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EXHIBIT B

![exhibitba.jpg](exhibitba.jpg)

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<u>EXHIBIT C</u>

<u>POINTS OF DELIVERY</u>

<u>C-1&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>WEST SIDE TRANSMISSION DELIVERY POINTS</u>

Capacity and Energy will be delivered from the Transmission System at the following points and at the indicated voltages:

C-1.1&nbsp;&nbsp;&nbsp;&nbsp; Stegall (Nebraska) Substation - 230 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

C-1.2 &nbsp;&nbsp;&nbsp;&nbsp;Dave Johnston Station (Wyoming) Substation - 230 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State Wyoming Board

C-1.3&nbsp;&nbsp;&nbsp;&nbsp; Sidney (Nebraska) Substation - 230 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

C-l.4 &nbsp;&nbsp;&nbsp;&nbsp;Ault (Colorado) Substation - 230, 345 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

C-1.5&nbsp;&nbsp;&nbsp;&nbsp; Story (Colorado) Substation - 230, 345 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

C-1.6&nbsp;&nbsp;&nbsp;&nbsp; Laramie River Station (Wyoming) Substation - 69 kV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

C-1.7 &nbsp;&nbsp;&nbsp;&nbsp;Archer (Wyoming) Substation - 230 kV <sup>\*</sup>/

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Basin Electric, Tri-State, Wyoming Board

<u>C-2</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;</u><u>EAST SIDE TRANSMISSION POINTS OF DELIVERY</u>

Capacity and Energy will be delivered from the Transmission System at the following points:

C-2.1&nbsp;&nbsp;&nbsp;&nbsp; The high voltage points of interconnection between the Nebraska Public Power District's transmission system and the Joint Transmission System presently operated by the United States Bureau of Reclamation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Heartland Consumers Power District, Missouri Basin Municipal Power Authority

<sup>\*</sup>/ This Delivery Point ceases to exist on the Date of Commercial Operation of the third Station Unit and energization of the 345 kV transmission line between the Station and Story (Colorado) Substation.

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<u>EXHIBIT C</u>

(continued)

C-2.2&nbsp;&nbsp;&nbsp;&nbsp; The high voltage points of interconnection between the Nebraska Public Power District's transmission system and Lincoln Electric System

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp; Lincoln Electric System.

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<u>EXHIBIT D</u>

<u>SCHEDULE OF CONSTRUCTION DATES</u>

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| | | |
|:---|:---|:---|
|<br>**Laramie River Station** | **Scheduled**<br>**Start-up**<br>**Date** | **Scheduled**<br>**Date of Commercial**<br>**Operation** |
| Unit No. 1 | October 1, 1979 | January 1, 1980 |
| Unit No. 2 | April 1, 1980 | June 1, 1980 |
| Unit No. 3 | April 1, 1983 | June 1, 1983 |

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| | | |
|:---|:---|:---|
| **Transmission System** | **Energization**<br>**For Test Date** | **Scheduled**<br>**Date of Commercial**<br>**Operation** |
| Laramie River Station |  |  |
| &nbsp;&nbsp;&nbsp;-Dave Johnston Station | NA | April 1, 1978 |
| Laramie River Station-Archer Substation |  |  |
| &nbsp;&nbsp;&nbsp;-Story Substation | NA | April 1, 1978 |
| Stegall (West) Substation |  |  |
| &nbsp;&nbsp;&nbsp;-Sidney (West) Substation | October 1, 1979 | January 1, 1980 |
| Stegall (East) Substation |  |  |
| &nbsp;&nbsp;&nbsp;-Sidney (East) Substation | October 1, 1979 | January 1, 1980 |
| Laramie River Station |  |  |
| &nbsp;&nbsp;&nbsp;-Stegall (West) Substation | October 1, 1979 | January 1, 1980 |
| Laramie River-Sidney (East) Substation | March 1, 1980 | June 1, 1980 |
| Laramie River-Stegall (East) Substation |  |  |
| &nbsp;&nbsp;&nbsp;-Sidney (East) Substation | March 1, 1980 | June 1, 1980 |
| Laramie River-Ault Substation | March 1, 1983 | June 1, 1983 |

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<u>EXHIBIT E</u>

<u>CONSTRUCTION COSTS</u>

Construction costs of the Project provided for in Section 10 of the Agreement shall be those costs set forth in this Exhibit E.

<u>E-1</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;COMPONENTS OF CONSTRUCTION COSTS</u>

Construction costs of the Project to be shared by the Participants in accordance with Section 10 of the Agreement shall include all amounts paid and obligations incurred (other than allowance for funds used during construction) for acquisition and construction of the Project, including but not limited to the following:

E-1.1 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor performed or materials and supplies furnished under contract by companies, firms or individuals, other than the Project Manager, together with the costs incident to the award of such contracts, and the inspection of such work for the Project.

E-1.2 &nbsp;&nbsp;&nbsp;&nbsp;All costs and expenses of employees of the Project Manager while engaged in construction of the Project, together with related Workmen's Compensation Insurance, payroll taxes and similar items of expense.

E-1.3 &nbsp;&nbsp;&nbsp;&nbsp;All costs of materials and supplies furnished by the Project Manager and consumed during the performance of Project Work, including the purchase price at the point of free delivery plus customs duties, excise taxes, inspection costs, loading and transportation costs, related storage expenses and all costs of fabricated materials from the shops of the Project Manager.

E-1.4 &nbsp;&nbsp;&nbsp;&nbsp;All costs of transporting employees, materials and supplies, tools, purchased equipment, and other work equipment to and from points of construction for Project Work.

E-1.5 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor, materials and supplies, depreciation, and other expenses incurred in the maintenance, operation and use of special machines, provided by the Project Manager for Project Work, including expenditures for rental, maintenance and operation of machines of others.

E-1.6 &nbsp;&nbsp;&nbsp;&nbsp;All costs of protecting the Project from fire or other casualties and all costs of preventing damages to others, or to the property of others, including all costs of insurance, discovery or extinguishment of fires, apprehending and prosecuting incendiaries, fire protection, and other analogous items in connection with Project Work.

E-1.7 &nbsp;&nbsp;&nbsp;&nbsp;All costs or losses in connection with Project Liability pursuant to Section 19 of the Agreement. Insurance recovered or recoverable on account of compensation paid for injuries to persons incident to construction of the Project shall be credited to the account or accounts to which such compensation is charged.

E-1.8 &nbsp;&nbsp;&nbsp;&nbsp;All costs incurred in securing temporary privileges, permits or rights in connection with construction of the Project such as for the use of private or public property, streets or highways.

E-1.9 &nbsp;&nbsp;&nbsp;&nbsp;All amounts paid for the use of construction quarters and office space occupied by construction forces, amounts properly includable in construction costs for such facilities jointly used for the Project, and amounts paid to alleviate the impact of the Project in the vicinity of the Station.

E-1.10 &nbsp;&nbsp;&nbsp;&nbsp;Administrative and general expenses of the Project Manager, as more specifically described in Section E-2.

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<u>EXHIBIT E</u>

(continued)

E-1.11 &nbsp;&nbsp;&nbsp;&nbsp;All costs and expenses, including those of outside consultants and attorneys, incurred by the Project Manager or by other Participants with the approval of the Project Manager in regard to land and water rights, fuel requirements and supplies, governmental and other authorizations for the Project and for the preparation of other agreements related to Project Work. All Participants anticipating such costs and expenses shall submit an estimate of such costs and expenses to the Project Manager for approval in accordance with Sections 10 and 12 of the Agreement. Any Participant incurring such approved costs and expenses shall bill the Project Manager therefor.

E-1.12 &nbsp;&nbsp;&nbsp;&nbsp;All federal, state or local taxes of any character imposed upon the Project or incurred in connection with Project Work, except any tax assessed directly against an individual Participant, in which case such tax shall be shared in accordance with Section 13 of the Agreement.

E-1.13 &nbsp;&nbsp;&nbsp;&nbsp;All costs of operation and maintenance of the Project during the start-up period, including the cost of fuel, and the cost of all operation and maintenance expenses (exclusive of the cost of maintenance performed by the engineer-constructor start-up crews).

<u>E-2 &nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATIVE AND GENERAL EXPENSES OF PROJECT MANAGER</u>

All administrative and general expenses of the General Office of the Project Manager, including the departments of General Manager, Wyoming offices, General Counsel, Engineering, Accounting, Information, Environmental, and other departments, incurred in connection with Project Work, shall be accounted for by the Project Manager by a proper allocation of the administrative and general expenses of the General Office of the Project Manager, by appropriate accounting records and procedures. Such accounting shall include a listing of positions of the General Office of the Project Manager which have allocated time and expense to the Project, the basis for such allocations, reasonable details to support the allocation of administrative and general expenses outlined above and reasonable details of the Project Manager's total payroll overhead and total payroll costs. Those administrative and general expenses related to Project Work shall be included in the construction costs in accordance with Section E-1.10 and shall include but not be limited to the following:

E-2.1 &nbsp;&nbsp;&nbsp;&nbsp;All compensation, including salaries, fees and other consideration for services of directors, officers, executives and other employees of the Project Manager, properly chargeable to Project Work.

E-2.2 &nbsp;&nbsp;&nbsp;&nbsp;The cost of all office supplies and expenses incurred in connection with the general administration of the administrative and general operations of the Project Manager which are related to Project Work.

E-2.3 &nbsp;&nbsp;&nbsp;&nbsp;All fees and expenses of professional consultants and others for professional services in connection with accomplishment of Project Work, including the pay and expenses of persons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the Project Manager but is engaged for the performance of Project Work.

E-2.4 &nbsp;&nbsp;&nbsp;&nbsp;Payroll taxes applicable to the administrative and general salaries provided for under this Section.

E-2.5 &nbsp;&nbsp;&nbsp;&nbsp;Compensation insurance applicable to the administrative and general salaries provided for in this Section.

E-2.6 &nbsp;&nbsp;&nbsp;&nbsp;Pensions and benefits applicable to the administrative and general salaries provided for in this Section.

E-2.7&nbsp;&nbsp;&nbsp;&nbsp; Customary labor loading charges applicable to administrative and general expenses, properly chargeable to Project Work, including department overheads, time-off allowances, office space and utilities.

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<u>EXHIBIT E</u>

(continued)

<u>E-3&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>SYSTEM OF ACCOUNTS</u>

The Project Manager shall use FPC Accounts, as modified by the bulletins and directives of the Rural Electrification Administration, with appropriate subaccounts, to account for all construction costs.

<u>E-4 &nbsp;&nbsp;&nbsp;&nbsp;NO ADDITIONAL COMPENSATION FOR PROJECT MANAGER OR OTHER PARTICIPANTS</u>

The Project Manager and other Participants shall not be entitled to a fee, price, percentage or any other compensation, over and above the costs of services rendered by them in the performance of Project Work.

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<u>EXHIBIT F</u>

<u>OPERATION AND MAINTENANCE COSTS</u>

Operation and maintenance costs of the Project provided for in Section 11 of the Agreement shall be those costs set forth in this Exhibit F.

<u>F-1&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>COSTS TO BE SHARED IN PROPORTION TO ENTITLEMENT SHARES</u>

The operation and maintenance costs of the Project to be shared by the Participants in proportion to their Entitlement Shares in accordance with Section 11 of the Agreement shall include all amounts paid and obligations incurred for Project Work approved in accordance with Section 11 of the Agreement for operation and maintenance of the Project, including but not limited to the following:

F-1.1 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and expenses incurred in the general supervision and direction of operation of the Project, including station operation, line operation, etc.

F-1.2&nbsp;&nbsp;&nbsp;&nbsp; All costs and expenses of employees of the Operating Agent, and all materials used and expenses incurred, in the production of steam for electric generation at the Station and in the operation and maintenance of the Transmission System.

F-1.3 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and material used in operating prime movers, generators, and their auxiliary apparatus including pollution control equipment, switch gear and other electric equipment to the generator side of the transformer at the Station for conversion to transmission voltage, and water storage and supply facilities.

F-1.4 &nbsp;&nbsp;&nbsp;&nbsp;All costs of renting property of others used, occupied or operated in connection with steam power generation and the transmission of Capacity and Energy from the Station.

F-1.5&nbsp;&nbsp;&nbsp;&nbsp; All costs of labor and expenses incurred in the general supervision and direction of maintenance of the Project.

F-1.6 &nbsp;&nbsp;&nbsp;&nbsp;All costs of maintenance of steam structures, including labor and materials used and expenses incurred in the maintenance of the Station.

F-1.7 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and materials used and expenses incurred in the maintenance of electric plant, engines, engine-driven generators, turbo-generator units, accessory electric equipment and pollution control equipment and water storage and supply facilities.

F-1.8 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and materials used and expenses incurred in maintenance of miscellaneous steam generating plant.

F-1.9 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and materials used and expenses incurred in load dispatching operations pertaining to the transmission of Capacity and Energy from the Station, including switching, arranging and controlling clearances for construction, maintenance, test, and emergency purposes, controlling system voltages, communications systems and services provided for system control purposes, system record and report forms, and the obtaining of weather and special events reports.

F-1.10 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and materials used and expenses incurred in operating transmission substations and switching stations, including super-vision, adjustment of equipment, inspecting, testing and calibrating equipment, maintaining logs and records, preparing reports, security of areas, and care of grounds, operating

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<u>EXHIBIT F</u>

(continued)

supplies such as lubricants, commutator brushes, rubber goods, meter and instrument supplies, report forms, tool expense, and transportation, lodging and meal expense of employees incident to necessary travel.

F-1.11 &nbsp;&nbsp;&nbsp;&nbsp;All costs of the transmission of Capacity and Energy from the Station over transmission facilities owned by others.

F-1.12 &nbsp;&nbsp;&nbsp;&nbsp;All costs of labor and materials used and expenses incurred in maintaining transmission structures, improvements, substations, station equipment, overhead lines, and all other work in connection with the operation and maintenance of the Transmission System.

F-1.13&nbsp;&nbsp;&nbsp;&nbsp; All costs of insurance purchased by the Operating Agent in connection with the operation of the Project, including Workmen's Compensation, comprehensive bodily injury, personal injury and property damage liability, automobile liability, employer's liability, employees' blanket fidelity bond, broad form steam turbine and machinery breakdown insurance, broad form boiler and pressure vessel insurance, physical damage insurance, and such other insurance coverages as are normally carried by utilities with facilities similar to the Project.

F-1.14 &nbsp;&nbsp;&nbsp;&nbsp;All costs, including those of outside consultants and attorneys, incurred by the Operating Agent in the operation of the Project.

F-1.15 &nbsp;&nbsp;&nbsp;&nbsp;All federal, state or local taxes of any character imposed upon the operation of the Project, except any tax assessed directly against an individual Participant, in which case such tax shall be shared in accordance with Section 13 of the Agreement.

F-1.16 &nbsp;&nbsp;&nbsp;&nbsp;All administrative and general expenses of the General Office of the Operating Agent, including the departments of General Manager, Wyoming offices, General Counsel, Engineering, Accounting, Information, Environmental and other departments, incurred in connection with the operation and maintenance of the Project, shall be accounted for by the Operating Agent by a proper allocation of the administrative and general expenses of the General Office of the Operating Agent, by appropriate accounting records and procedures. Such accounting shall include a listing of positions of the General Office of the Operating Agent which have allocated time and expense to the operation and maintenance of the Project, the basis for such allocations, reasonable details to support the allocation of administrative and general expenses outlined above and reasonable details of the Operating Agent's total payroll overhead and total payroll costs. Those administrative and general expenses related to the Project which shall be included in operation and maintenance costs shall include but not be limited to the following:

F-1.16.1 &nbsp;&nbsp;&nbsp;&nbsp;All compensation, including salaries, fees and other consideration for services of directors, officers, executives and other employees of the Operating Agent, properly chargeable to operation and maintenance of the Project.

F-1.16.2 &nbsp;&nbsp;&nbsp;&nbsp;The cost of all office supplies and expenses incurred in connection with administrative and general operations of the Operating Agent which are related to operation and maintenance of the Project.

F-1.16.3 &nbsp;&nbsp;&nbsp;&nbsp;All fees and expenses of professional consultants and others for professional services in connection with accomplishment of operation and maintenance of the Project, including the pay and expenses of persons engaged for a special or temporary administrative or general purpose in circumstances where the person so engaged is not considered as an employee of the Operating Agent but is engaged for the performance of operation and maintenance of the Project.

------

<u>EXHIBIT F</u>

(continued)

F-1.16.4 &nbsp;&nbsp;&nbsp;&nbsp;Payroll taxes applicable to the administrative and general salaries provided for under this Section.

F-1.16.5 &nbsp;&nbsp;&nbsp;&nbsp;Compensation insurance applicable to the administrative and general salaries provided for in this Section.

F-1.16.6 &nbsp;&nbsp;&nbsp;&nbsp;Pensions and benefits applicable to the administrative and general salaries provided for in this Section.

F-l.16.7&nbsp;&nbsp;&nbsp;&nbsp; Customary labor loading charges applicable to administrative and general expenses, properly chargeable to operation and maintenance of the Project, including department overheads, time-off allowances, office space and utilities.

<u>F-2</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;COSTS TO BE SHARED IN PROPORTION TO GENERATION SCHEDULED AND ENERGY</u> <u>PRODUCED</u>

The Energy-Related Costs of the Project to be shared by the Participants in accordance with Section 11.2 of the Agreement, shall include but not be limited to the following:

F-1.2 &nbsp;&nbsp;&nbsp;&nbsp;All costs of fuel consumed in the production of Energy at the Station.

F-2.2 &nbsp;&nbsp;&nbsp;&nbsp;All costs of supervising the purchasing and handling of fuel, including routine fuel analyses, unloading from shipping facilities and putting in storage, moving from storage to hopper or first bunker of boiler-house structure, operation of mechanical equipment utilized in the handling of fuel, all materials, tools, lubricants and other supplies for fuel handling equipment, and all stores expenses in connection with handling of fuel.

F-2.3 &nbsp;&nbsp;&nbsp;&nbsp;All operating, maintenance and depreciation expenses and ad valorem taxes on fuel handling or transportation equipment.

F-2.4 &nbsp;&nbsp;&nbsp;&nbsp;All costs of fuel transportation, other than fixed fuel transportation costs, ash disposal, and disposal of other residues of operation of the Project, including fly ash, chemicals, and all other substances directly relating to the production of Energy.

<u>F-3</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;SYSTEM OF ACCOUNTS</u>

The Operating Agent shall use FPC Accounts, as modified by the bulletins and directives of the Rural Electrification Administration, with appropriate subaccounts, to account for all operation and maintenance costs of the Project.

<u>F-4</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;NO ADDITIONAL COMPENSATION FOR OPERATING AGENT OR OTHER PARTICIPANTS</u>

The Operating Agent and other Participants shall not be entitled to a fee, price, percentage or other compensation, over and above the costs of services rendered by them in the performance of operation and maintenance of the Project.

------

**Execution Version**

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 1

AGREEMENT, dated as of March 15, 1977, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION, an Iowa non-profit corporation ("Corporation"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the state of South Dakota ("Heartland"); and WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD, a joint powers board of the state of Wyoming ("Wyoming Board");

WITNESSETH:

WHEREAS, the parties hereto have entered into a document entitled "Missouri Basin Power Project \* \* *\** Laramie River Electric Generating Station and Transmission System Participation Agreement" ("Participation Agreement"),

------

executed on various dates during the months of November and December, 1975;

WHEREAS, the parties have agreed to amend the Participation Agreement in the manner set forth herein;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

<u>Section 1</u>. &nbsp;&nbsp;&nbsp;&nbsp;Section 15.4 of the Participation Agreement shall be amended to read as follows:

"15.4 For the purposes of this Section 15.4 the Project Manager shall serve written notice on the Participants of the anticipated date of execution of the first major equipment purchase contract for the third Station Unit as far in advance as possible, but not less than thirty (30) days before such anticipated date. Any Participant may transfer all, but not less than all, of its interest in the Project to the remaining Participants in the ratio that the Entitlement Share of each remaining Participant bears to the total of the Entitlement Shares of all remaining Participants, and such remaining Participants shall be obligated to purchase such interest and pay to the transferring Participant all sums contributed to the Project up to the date of transfer by the transferring Participant, provided that the transferring Participant serves written notice of its intention to transfer as provided herein at least ten (10) days prior to the anticipated date of execution of the first major equipment purchase contract for the third Station Unit, and provided further that the total payment to the transferring Participant

------

shall not exceed a total of twenty-five million dollars ($25,000,000), notwithstanding the fact that the sums contributed by the transferring Participant may have been in excess of twenty-five million dollars ($25,000,000). At least one hundred eighty (180) days prior to the date on which the intended transfer is to be consummated under this Section 15.4, the Participant desiring to transfer shall serve written notice of its intention to do so upon each of the other Participants. Such notice shall contain the proposed date of the transfer, the sums contributed by the transferring Participant as of the date of the notice, and the additional sums which the transferring Participant anticipates it will contribute up to the date on which the intended transfer is to be consummated."

Section 2. &nbsp;&nbsp;&nbsp;&nbsp;This agreement shall become effective only when it has been fully executed and delivered on behalf of all of the parties hereto and approved by the Administrator of the Rural Electrificiation Administration and shall remain in effect as long as the Participation Agreement is in effect.

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day first above written.

---

| | | | |
|:---|:---|:---|:---|
| | | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| | (SEAL) | By | /s/ C. R. Thiessen |
| | | President | President |
| | ATTEST: | | |
| | /s/ Andrew Mork | | |
| Assistant Secretary | Assistant Secretary | | |

---

------

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF North Dakota |) | |
| |) | SS. |
| COUNTY OF Burleigh |) | |

---

On the 11th day of March, 1977 before me personally appeared C. R. Thiessen to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said c. R. Thiessen acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Michael J. Herriman |
| (SEAL) | |
| My Commission expires: December 19, 1980 | My Commission expires: December 19, 1980 |

---

------

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | | |
| | By | /s/ Hilmar A. Wahl |
| ATTEST: | President | President |
| /s/ Leo P. Flynn | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 5th day of May, 1977, before me personally appeared Hilmar A. Wahl, President of Heartland Consumers Power District, and Leo P. Flynn Secretary of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ V.A. Horner |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | |
| My Commission expires: December 20, 1982 | My Commission expires: December 20, 1982 |

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Administrator | Administrator |
| | Lincoln Electric System | Lincoln Electric System |
| ATTEST: | | |
| /s/ Lee R. Starr | | |
| Assistant Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 23rd. day of March, 1977 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that· said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Administrator acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ C.V. Sullivan |
| | Notary Public |
| (SEAL) | |
| My Commission expires: December 20, 1977 | My Commission expires: December 20, 1977 |

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------

---

| | | |
|:---|:---|:---|
| | MISSOURI BASIN PUBLIC POWER | MISSOURI BASIN PUBLIC POWER |
| | Financing Corporation | Financing Corporation |
| (SEAL) | | |
| | By | /s/ Earl LaMaack |
| | President | President |
| ATTEST: | | |
| /s/ Allen Roor | | |
| Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF CODINGTON |) | |

---

On the 17 day of March, 1977 before me personally appeared Earl LaMaack to me personally known, who, having been by me first duly sworn, did say: that he is the President of Missouri Basin Public Power Financing Corporation, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Earl LaMaack acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ |
| (SEAL) | Notary Public |
| My Commission expires: 6-28-82 | My Commission expires: 6-28-82 |

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------

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ Everett B. Chesney |
| ATTEST: | President | President |
| /s/ E.A. Geesen | | |
| Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 24th day of March, 1977 before me personally appeared Everett B. Chesney to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Everett B. Chesney acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Robertson |
| (SEAL) | Notary Public |
| My Commission expires: December 8, 1980 | My Commission expires: December 8, 1980 |

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD |
| (SEAL) | | |
| | By | /s/ George Frank |
| ATTEST: | President | President |
| /s/ George A. Clark | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF PARK |) | |

---

On the 5th day of May, 1977 before me personally appeared George Frank to me personally known, who, having been by me first duly sworn, did say: that he is the President of Wyoming Municipal Electric Joint Powers Board, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said George Frank acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Coleane McGlothlin |
| (SEAL) | Notary Public |
| My Commission expires: | |

---

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**Execution Version**

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 2

AGREEMENT, dated as of March 16, 1977, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); MISSOURI BASIN PUBLIC POWER FINANCING CORPORATION, an Iowa non-profit corporation ("Corporation"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the state of South Dakota ("Heartland"); WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD, a joint powers board of the state of Wyoming ("Wyoming Board"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the state of Minnesota ("Western Minnesota").

WITNESSETH:

WHEREAS, Basin Electric, Tri-State, the Corporation, L.E.S., Heartland and the Wyoming Board ("Original Participants") , have entered into a document entitled "Missouri

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Basin Power Project *\*\*\** Laramie River Electric Generating Station and Transmission System Participation Agreement" ("Participation Agreement"), executed on various dates during the months of November and December, 1975;

WHEREAS, the Original Participants have agreed to a transfer of the Corporation's Entitlement Share, as such term is defined in the Participation Agreement, to Heartland and Western Minnesota as evidenced by letters executed by each of the Original Participants attached hereto as Exhibit A;

WHEREAS, the Original Participants wish to amend the Participation Agreement to make Western Minnesota a party to the Participation Agreement and all other Project Agreements, as such term is defined in the Participation Agreement, and to reflect the transfer of the Corporation's Entitlement Share to Heartland and Western Minnesota;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

<u>Section 1</u>.&nbsp;&nbsp;&nbsp;&nbsp; Western Minnesota shall be a party to the Participation Agreement and all other Project Agreements requiring execution by Participants and wherever used in any Project Agreement, the word "Corporation" shall be read as "Western Minnesota."

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<u>Section 2</u>. &nbsp;&nbsp;&nbsp;&nbsp;Section 4.8 of the Participation Agreement shall be amended to read as follows:

"4.8 &nbsp;&nbsp;&nbsp;&nbsp;ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent | |
| B. | Tri-State | = | 24.13 percent | |
| C. | L.E.S. | = | 13.33 percent | |
| D. | Heartland | = | 11.67 percent | |
| E. | Western Minnesota | = | 7.60 percent | |
| F. | Wyoming Board | = | 1.00 percent | " |

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Without further amendment or change, all Project Agreements shall be construed and the terms thereof applied in a manner consistent with the foregoing change of parties and Entitlement Shares.

<u>Section 3</u>. &nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall no longer be a party to the Participation Agreement or any other Project Agreement.

<u>Section 4</u>. &nbsp;&nbsp;&nbsp;&nbsp;The words "Missouri Basin Municipal Power Authority" in Section C-2.1 of Exhibit C of the Participation Agreement (at lines 3 and 4, page 72) shall be amended to read "Western Minnesota Municipal Power Agency".

<u>Section 5</u>. &nbsp;&nbsp;&nbsp;&nbsp;This agreement shall become effective only when it has been fully executed and delivered on behalf of all of the parties hereto and approved by the Administrator of the Rural Electrification Administration and shall remain in effect as long as the Participation Agreement is in effect.

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IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day first above written.

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| | | | |
|:---|:---|:---|:---|
| | | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| | | By | /s/ C. R. Thiessen |
| | | President | President |
| |<br>(SEAL)<br>ATTEST:<br>/s/ Andrew Mork | | |
| Assistant Secretary | Assistant Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

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| | |
|:---|:---|
| STATE OF NORTH DAKOTA |) |
| |) |
| COUNTY OF BURLEIGH |) |

---

On the 11th day of March, I977 before me personally appeared C. R. Thiessen to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said C. R. Thiessen acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Micheal J. Herriman |
| (SEAL) | Notary Public |
| My Commission expires: December 19, 1980 | |

---

------

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | | |
| | By | /s/ Hilmar A. Wahl |
| ATTEST: | President | President |
| /s/ Leo P. Flynn | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 5th day of May, 1977, before me personally appeared Hilmar A. Wahl, President of Heartland Consumers Power District, and Leo P. Flynn Secretary of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ V.A. Horner |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | |
| My Commission expires: December 20, 1982 | |

---

------

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Administrator | Administrator |
| | Lincoln Electric System | Lincoln Electric System |
| ATTEST: | | |
| /s/ Lee R. Starr | | |
| Assistant Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 23rd. day of March, 1977 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that· said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Administrator acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ C.V. Sullivan |
| | Notary Public |
| (SEAL) | |
| My Commission expires: December 20, 1977 | |

---

------

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| | | |
|:---|:---|:---|
| | MISSOURI BASIN PUBLIC POWER | MISSOURI BASIN PUBLIC POWER |
| | Financing Corporation | Financing Corporation |
| (SEAL) | | |
| | By | /s/ Earl LaMaack |
| | President | President |
| ATTEST: | | |
| /s/ Allen Roor | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF CODINGTON |) | |

---

On the 17 day of March, 1977 before me personally appeared Earl LaMaack to me personally known, who, having been by me first duly sworn, did say: that he is the President of Missouri Basin Public Power Financing Corporation, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Earl LaMaack acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ |
| (SEAL) | Notary Public |
| My Commission expires: 6-28-82 | |

---

------

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ Everett B. Chesney |
| ATTEST: | President | President |
| /s/ E.A. Geesen | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 24th day of March, 1977 before me personally appeared Everett B. Chesney to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Everett B. Chesney acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Robertson |
| (SEAL) | Notary Public |
| My Commission expires: December 8, 1980 | |

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Robert J. Banks |
| ATTEST: | President | President |
| /s/ Kenneth E deVillers | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEW YORK |) | |
| |) | SS. |
| COUNTY OF NEW YORK |) | |

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On the 27th day of April, 1977 before me personally appeared Robert J. Banks to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said Robert J. Banks acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Janet P. Faas |
| (SEAL) | Notary Public |
| My Commission expires: March 30, 1978 | |

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD | WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD |
| (SEAL) | | |
| | By | /s/ George Frank |
| ATTEST: | President | President |
| /s/ George A. Clark | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF PARK |) | |

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On the 5th day of May, 1977 before me personally appeared George Frank to me personally known, who, having been by me first duly sworn, did say: that he is the President of Wyoming Municipal Electric Joint Powers Board, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said George Frank acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Coleane McGlothlin |
| (SEAL) | Notary Public |
| My Commission expires: | |

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------

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 3

AGREEMENT, dated as of August 1, 1982, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation, referred to as "Basin Electric"; TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation, hereinafter referred to as "Tri-State"; CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation, operating the Lincoln Electric System, hereinafter referred to as "L.E.S."; HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota, hereinafter referred to as "Heartland"; WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota, hereinafter referred to as "Western Minnesota"; and WYOMING MUNICIPAL ELECTRIC JOINT POWERS BOARD, a joint powers board of the State of Wyoming, hereinafter referred to as "Wyoming Board".

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WITNESSETH:

WHEREAS, the parties hereto have entered into a document entitled "Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement" ("Participation Agreement"), executed on various dates during the months of November and December, 1975, and taking effect as of May 25, 1977; and

WHEREAS, the parties hereto have agreed to Amendment No. 1 to the Participation Agreement dated as of March 15, 1977, and Amendment No. 2 to the Participation Agreement dated as of March 16, 1977; and

WHEREAS, with the experience the parties have gained working under this Agreement, the parties have agreed to amend the Participation Agreement a third time in the manner set forth herein; and

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1. &nbsp;&nbsp;&nbsp;&nbsp;Section 7.6 of the Participation Agreement is amended in its entirety to state:

"In the event the Operating Agent is unable to deliver a Participant's Entitlement or any portion thereof to that Participant at its designated Points of Delivery due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4, the Operating Agent shall make every reasonable effort to purchase Capacity and Energy and deliver the same to such Participant at a place and in a manner to be set forth in the Operating Agreement, to be entered into among the Participants, in order to meet the schedules of Capacity and Energy established by such Participant pursuant to Section 7.1. Except as hereinafter provided in this Section 7.6, the costs incurred by the Operating Agent in making such purchase and delivery shall be treated as Energy-Related Costs except to the extent that they exceed those costs which would have been incurred had the Capacity and Energy been produced and delivered from the Station in which case such excess shall be billed to that Participant whose Entitlement Share or portion thereof the Operating Agent is unable to deliver. In the event that there is zero net output from the two Station Units interconnected to the electrical system in the western United States or there is <u>zero</u> net output from the Station Unit interconnected to the electrical system in the eastern United States and this condition continues for a period in excess of an initial period, the duration of which will be determined from time to time by the Management Committee, and the Operating Agent is unable to deliver the Participant's Entitlement or any portion thereof to the Participant at its designated Points of Delivery due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4, the costs incurred by the Operating Agent in making such purchase and delivery of Capacity and Energy beyond such initial period shall be treated as Energy-Related Costs except to the extent that they exceed those costs which would have been incurred had the Capacity and Energy been produced and delivered from the Station, in which case such excess shall be shared by all Participants in the ratio of their Entitlement Shares."

2. &nbsp;&nbsp;&nbsp;&nbsp;Section 11.2 of the Participation Agreement is amended in its entirety to read as follows:

"11.2. Energy-Related Costs shall be shared by each Participant in accordance with the ratio which such Participant's monthly BTU requirements needed to produce its net energy scheduled and produced from the Station bears to the total Participants' monthly BTU requirements needed to produce the total net energy scheduled and produced from the Station. Such BTU requirements will be determined by utilizing efficiency calculations based on the heat rate curve of the Station Units. Such costs shall be allocated by the Operating Agent in accordance with procedures approved by the Management Committee."

3.&nbsp;&nbsp;&nbsp;&nbsp; Section 12.3 of the Participation Agreement is amended in its entirety to read as follows:

"12.3. At least thirty (30) but not more than sixty (60) days prior to the effective date of the Project Manager's proposed annual budget and by the twenty-fifth (2 5th) day of each month thereafter, the Project Manager will notify each Participant of the estimated monthly expenditures for each billing month, and

------

each Participant shall pay to the Project Manager by the last day of such month its share of the billed amount. If at any time it is determined that a Participant has made advances which are greater or less than its share of the construction costs, the difference shall be paid, refunded, or credited as determined by the Project Manager within a reasonable time after such determination."

4. &nbsp;&nbsp;&nbsp;&nbsp;Section 12.5 is amended by deleting at page 27, line 22 the remainder of the sentence after the word "in" and by inserting in place thereof the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; Time deposits (which may be represented by certificates of deposit) in any bank or trust company (which may include the Trustee or any Co- Paying Agent), provided that such time deposits (i) do not exceed at any one time in the aggregate 10% of the total of the capital and surplus of such bank or trust company, and such bank or trust company has a combined capital and surplus of at least $15,000,000 or (ii) are secured by obligations described in items (c), (d), (e) or (f) of this definition of Investment Securities, which such obligations at all times have a market value (exclusive of accrued interest) at least equal to such time deposits so secured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; Bankers' acceptances drawn on and accepted by commercial banks (including the Trustee or any Co-Paying Agent) having a combined capital and surplus of at least $15,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; Direct obligations of, or obligations guaranteed by, the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;Direct obligations of, or obligations guaranteed by, any state of the United States of America which are rated in one of the two highest rating categories by each of the two nationally recognized rating agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp; Public Housing Bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the Project Notes issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States of America or any agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp; Commercial or finance company paper which is rated in one of the two highest ratings by each of the two nationally recognized rating agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds rated in one of the two highest rating categories by a nationally recognized rating agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; Repurchase agreements with any bank or trust company organized under the laws of any state of the United States or any national banking association (including the Trustee and any Co-Paying Agents) or government bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of New York, which such agreements are secured by securities which are obligations described in items (a) through (h) above.

5. &nbsp;&nbsp;&nbsp;&nbsp;Section C-2.1 of Exhibit C to the Participation Agreement is amended by deleting everything in the final two lines after the phrase, "Heartland Consumers Power District," and inserting in lieu thereof, the following:

"Western Minnesota Municipal Power Agency, Basin Electric."

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6.&nbsp;&nbsp;&nbsp;&nbsp; Section C-2 of Exhibit C to the Participation Agreement is amended by the insertion of three new Sections, C-2.3, C- 2.4 and C-2.5, which shall read:

"C-2.3 The Stegall (Nebraska) Substation 230 kV Heartland Consumers Power District, Western Minnesota Municipal Power Agency, Basin Electric, Tri-State\*, Lincoln Electric System."

"C-2.4 The Sidney (Nebraska) Substation 230, 345 kV Heartland Consumers Power District, Western Minnesota Municipal Power Agency, Basin Electric, Tri-State<sup>\*</sup>, Lincoln Electric System."

"C-2.5 The East 345 kV Bus at the Laramie River Station, Lincoln Electric System, Heartland Consumers Power District, Western Minnesota Municipal Power Agency, Basin Electric."

7.&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 of the Participation Agreement is amended in its entirety to state:

"7.3 &nbsp;&nbsp;&nbsp;&nbsp;The Management Committee shall establish from time to time the maximum delivery rights for each Participant at its Points of Delivery from the Station Units connected to the western electric system and from the Station Units connected to the eastern electric system. Operation of the Station by the Operating Agent and a Participant's right to receive the output thereof shall be subject to scheduled outages or curtailments, operating emergencies and unscheduled outages or curtailments of the Station Units. A full or partial outage of one or more Station Units on one of the electric systems shall not change a Participant's delivery rights from Station Units on the other electric system."

8.&nbsp;&nbsp;&nbsp;&nbsp; On July 1, 1976, by Amendment No. 1 to the Wyoming Municipal Electric Joint Powers Board Agreement the name of the Wyoming Municipal Electric Joint Powers Board was changed to the Wyoming Municipal Power Agency. The Participants acknowledge the name change and further acknowledge that the Wyoming Municipal Power Agency is a party to the Participation Agreement and all other Project Agreements requiring execution by Participants and wherever used in any Project Agreement, the name Wyoming Municipal Electric Joint Powers Board shall be read as Wyoming Municipal Power Agency.

This agreement shall become effective only when it has been fully executed and delivered on behalf of all of the parties hereto and approved by the Administrator of the Rural Electrification Administration and shall remain in effect as long as the Participation Agreement is in effect.

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 3 to be executed this 15th day of October, 1982.

<sup>\*</sup>"Tri-State's right to deliver Capacity and Energy at these Delivery Points is derived through Section 8.2 and does not give Tri-State the right to deliver its Entitlement from the Laramie River Station at these Delivery Points."

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | By | /s/ Dennis Lindberg |
| | President | President |
| ATTEST: | | |
| /s/ Clarence Welander | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

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On the 15th day of October, A.D. 1982 before me personally appeared Dennis Lindberg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Coop., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Dennis Lindberg acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Kimberla Buchholtz |
| (SEAL) | Notary Public |
| | My Commission expires: 7/24/84 |

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | | |
| | By | /s/ Ellwood Paulsen |
| ATTEST: | President | President |
| /s/ Leo P. Flynn | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

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On this the 14th day of September, A.D. 1982, before me, Carolyn Rudebusch, the undersigned officer, personally appeared Ellwood Paulsen, President of Heartland Consumers Power District, and Leo P. Flynn Secretary of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated for and the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| (SEAL) | /s/ Carolyn Rudebusch |
| | Notary Public |
| | State of South Dakota |
| | My Commission expires: May 12, 1986 |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ James H. McNear |
| ATTEST: | President | President |
| /s/ William W. Dalles | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

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On the 2nd day of September, A.D. 1982 before me personally appeared James H. McNear to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said James H. McNear acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Diana E. Wakefield |
| (SEAL) | Notary Public |
| | My Commission expires: 12/8/84 |

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Russell F. Berg |
| ATTEST: | President | President |
| /s/ David R. Hartley | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF South Dakota |) | |
| |) | SS. |
| COUNTY OF Minnehaha |) | |

---

On the 16th day of September, A.D. 1982 before me personally appeared Russell F. Berg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Russell F. Berg acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ |
| (SEAL) | Notary Public |
| | My Commission expires: 7/3/90 |

---

------

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ John C. Harrison |
| ATTEST: | President | President |
| /s/ Jim Dunbar | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 27th day of May, A.D. 1982 before me personally appeared John C. Harrison to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said person acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | My Commission expires: 1-18-86 |

---

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) | | |
| | By | /s/ Walter A. Canney |
| ATTEST: | President | President |
| /s/ Debbra L. Hoy | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 30th day of August, A.D. 1982 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Walter A. Canney acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Dorothy M. Johnsen |
| (SEAL) | Notary Public |
| | My Commission expires: 2-18-85 |

---

------

**Execution Version**

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 4

AGREEMENT dated as of September 1, 1982, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation, hereinafater referred to as "Basin Electric"; TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation, hereinafter referred to as "Tri-State"; CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation, operating as the Lincoln Electric System, hereinafter referred to as "LES"; HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota hereinafter referred to as "Heartland"; WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota, hereinafter referred to as "Western Minnesota"; and WYOMING MUNICIPAL POWER AGENCY, a joint powers board of the State of Wyoming, hereinafter referred to as "Wyoming Board".

WITNESSETH:

WHEREAS, the Participants hereto have entered into a document entitled "Missouri Basin Power Project \* \* \* Laramie River Electric Generating

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Station and Transmission System Participation Agreement" ("Participation Agreement"), executed on various dates during the months of November and December, 1975, and taking effect as of May 25, 1977; and

WHEREAS, the Participants hereto have executed Amendment No. 1 to the Participation Agreement dated as of March 15, 1977, Amendment No. 2 to the Participation Agreement dated as of March 16, 1977 and Amendment No. 3 to the Participation Agreement dated as of August 1, 1982; and

WHEREAS, LES under date of April 29, 1981 did pursuant to Section 16 of the Participation Agreement give notice of its intention to transfer up to 25% of its Entitlement to the other Participants; and

WHEREAS, the Participants have agreed to such transfer of a portion of LES's Entitlement Share, as such term is defined in the Participation Agreement, to Heartland; and

WHEREAS, Basin Electric has entered into an agreement with LES to purchase a portion of such Entitlement on a participation basis with an option to transfer such Entitlement to Basin Electric within five (5) years of the effective date of the agreement; and

WHEREAS, the Participants wish to amend the Participation Agreement to reflect the transfer of such portion of LES's Entitlement Share to Heartland, and to recognize the participation purchase by and potential transfer of such additional portion of LES's Entitlement Share to Basin Electric;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Participants hereby agree as follows:

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<u>Section 1.</u> &nbsp;&nbsp;&nbsp;&nbsp;Section 4.8 of the Participation Agreement shall be amended to read as follows:

"4.8 ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent | |
| B. | Tri-State | = | 24.13 percent | |
| C. | LES | = | 13.13 percent | |
| D. | Heartland | = | 11.87 percent | |
| E. | Western Minnesota | = | 7.60 percent | |
| F. | Wyoming Board | = | 1.00 percent | " |

---

<u>Section 2.</u> &nbsp;&nbsp;&nbsp;&nbsp;For purposes of the Laramie River Station Participation Power Sales Agreement between the City of Lincoln and Basin Electric Power Cooperative, the Participants hereby recognize the purchase by Basin Electric of 15.8% of LES's Entitlement Share on a participation basis and agree that such purchase, including the option to transfer such Entitlement to Basin Electric, has been accomplished in accordance with Section 16 of the Participation Agreement, and that no additional notice or Right of First Refusal must be given by any of the Participants to effectuate such transfer to Basin Electric.

<u>Section 3.</u> &nbsp;&nbsp;&nbsp;&nbsp;This Amendment shall become effective May 1, 1982.

IN WITNESS WHEREOF, the Participants have caused this Amendment No. 4 to be executed this 1st day of September, 1982.

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---

| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | By | /s/ Dennis Lindberg |
| | President | President |
| ATTEST: | | |
| /s/ Clarence Welander | | |
| Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the 15th day of October, A.D. 1982 before me personally appeared Dennis Lindberg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Coop., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Dennis Lindberg acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Kimberla Buchholtz |
| (SEAL) | Notary Public |
| | My Commission expires: 7/24/84 |

---

------

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ James H. McNear |
| | President | President |
| ATTEST: | | |
| /s/ William L. Dalles | | |
| Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 7th day of October, A.D. 1982 before me personally appeared James H. McNear to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said James H. McNear acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Wakefield |
| (SEAL) | Notary Public |
| | My Commission expires: 12/8/84 |

---

------

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Russell J. Berg |
| | President | President |
| ATTEST: | | |
| /s/ David R. Hartley | | |
| Asst. Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF MINNESOTA |) | |
| |) | SS. |
| COUNTY OF BIG STONE |) | |

---

On the 18th day of October, A.D. 1982 before me personally appeared Russell J. Berg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Russell J. Berg acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Robert R. Pflueger |
| (SEAL) | Notary Public |
| | My Commission expires: Jan.17, 1988 |

---

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) | By | /s/ Walter A Canney |
| | Administrator | Administrator |
| ATTEST: | | |
| /s/ Debbra L. Hoy | | |
| Secretary (Assistant) | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 227th day of September, A.D. 1982 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Walter A. Canney acknowledged said instrument to be the free act and deed of said Corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Dorothy M. Johnsen |
| | Notary Public |
| (SEAL) | My Commission expires: 2/18/85 |

---

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | | |
| | By | /s/ Ellwood Paulsen |
| ATTEST: | President | President |
| /s/ Wendell Garwood | | |
| Secretary, Assistant | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 11th day of January, A.D. 1983, before me, Carolyn Rudebusch, the undersigned officer, personally appeared Ellwood Paulsen, President of Heartland Consumers Power District, and Wendell Garwood, Asst., Secretary of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ Carolyn Rudebusch |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | My Commission expires: May 12, 1986 |

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ John C. Harrison |
| ATTEST: | President | President |
| /s/ Jim Dunbar | | |
| Asst. Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 21st day of October, A.D. 1982 before me personally appeared John C. Harrison to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said John C. Harrison acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | My Commission expires: 1-18-86 |

---

------

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 5

AGREEMENT, dated as of May 2, 1983, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota ("Heartland"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("Wyoming Municipal); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("Western Minnesota").

WITNESSETH:

WHEREAS, the parties hereto are the current Participants to the "Missouri Basin Power Project \*\*\* Laramie River Electric Generating Station and Transmission System Participation Agreement" (the "Participation Agreement"), executed on various dates during the months of November and December, 1975; and

WHEREAS, the Participants wish to amend the Participation Agreement to reflect, the transfer of a portion of Heartland's Entitlement Share to Western Minnesota;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

<u>Section 1</u>. &nbsp;&nbsp;&nbsp;&nbsp;Section 4.8 of the Participation Agreement shall be amended to read as follows:

"4.8 ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

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| | | | |
|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent |
| B. | Tri-State | = | 24.13 percent |
| C. | L.E.S. | = | 13.13 percent |
| D. | Western Minnesota | = | 16.47 percent |
| E. | Heartland | = | 3.00 percent |
| F. | Wyoming Municipal | = | 1.00 percent |

---

Without further amendment or change, all Project Agreements shall be construed and the terms thereof applied in a manner consistent with the foregoing change of parties and Entitlement Shares.

<u>Section 2</u>.&nbsp;&nbsp;&nbsp;&nbsp; This agreement shall become effective only when it has been fully executed and delivered on behalf of all of the parties hereto and approved by the Administrator of the Rural Electrification Administration and shall remain in effect as long as the Participation Agreement is in effect. In the event that the

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transfer referred to in the preambles hereto does not occur, this Amendment No. 5 shall be null and void without any further action by any Participant.

------

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day first above written.

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | By | /s/ Dennis Lindberg |
| | President | President |
| ATTEST: | | |
| /s/ Clarence Welander | | |
| Title: Secretary-Treasurer | | |

---

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the 17th day of June, 1983 before me personally appeared Dennis Lindberg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Clarence Welander acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Michael J. Hinman |
| | Notary Public |
| (SEAL) | |
| My Commission expires: Jan. 12, 1987 | |

---

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| | By | /s/ Ellwood Paulsen |
| | Title: | Title: |
| (SEAL) | | |
| ATEST: | | |
| /s/ Donald W. Kimball | | |
| Title: | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 10th day of May, 1983, before me, personally appeared Ellwood Paulsen, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ Carolyn Rudebusch |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | |
| My Commission expires: May 12, 1986 | |

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Title: Administrator | Title: Administrator |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Julian J. Brix | | |
| Title: Manager-Power Supply Division | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 4th day of May, 1983 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Walter A. Canney acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Debbra L. Hoy |
| | Notary Public |
| (SEAL) | |
| My Commission expires: Mar. 17, 1986 | |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| | By | /s/ James H. McNear |
| | Title: President | Title: President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Paddy Bard | | |
| Title: Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 1st day of June, 1983 before me personally appeared James H. McNear to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said James H. McNear acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Wakefield |
| | Notary Public |
| | 12076 Grant Street, P.O. Box 33695 |
| | Denver, Colorado 80233 |
| (SEAL) | |
| My Commission expires: 12/8/84 | |

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| | | | |
|:---|:---|:---|:---|
| | | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| | | By | /s/ Russell J. Berg |
| | | Title: | Russell Berg |
| | | | President |
| (SEAL) | (SEAL) | | |
| ATTEST: | ATTEST: | | |
| /s/ David R. Hartley | /s/ David R. Hartley | | |
| Title: | David Hartley | | |
| | Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF MINNESOTA |) | |
| |) | SS. |
| COUNTY OF BIG STONE |) | |

---

On the 9th day of June, 1983 before me personally appeared Russell Berg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Robert R. Pflueger |
| | Notary Public |
| (SEAL) | |
| My Commission expires: Jan.17, 1988 | |

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| | By | /s/ Larry LaMaack |
| | Executive Director | Executive Director |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Richard D. Pullen | | |
| Asst. Treasurer | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 25th day of May, 1983 before me personally appeared Larry LaMaack to me personally known, who, having been by me first duly sworn, did say: that he is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Larry LaMaack acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| | Notary Public |
| (SEAL) | |
| My Commission expires: 1-18-86 | |

---

------

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 6

AGREEMENT, dated as of March 1, 1986, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation (Basin Electric); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation (Tri-State); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System (L.E.S.); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota (Heartland); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming (Wyoming Municipal); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota (Western Minnesota).

WITNESSETH:

WHEREAS, the Participants hereto have executed Amendment No. 1 to the Participation Agreement dated as of March 15, 1977, Amendment No. 2 to the Participation Agreement dated as of March 16, 1977, Amendment No. 3 to the Participation Agreement dated as of August 1, 1982, Amendment No. 4 to the Participation Agreement dated as of September 1, 1982, and Amendment No. 5 to the Participation Agreement dated as of May 2, 1983;

WHEREAS, Amendment No. 4 amended the Participation Agreement to reflect a transfer of .20 percent of the L.E.S. undivided ownership in the Project to Heartland and to recognize a participation purchase by and potential transfer of such portion of the L.E.S. Entitlement Share to Basin Electric;

WHEREAS, Amendment No. 5 amended the Participation Agreement to reflect the transfer of a portion of Heartland's Entitlement Share to Western Minnesota;

WHEREAS, Amendment No. 4 was not approved by the Rural Electrification Administration and Amendment No. 5 was approved; and

WHEREAS, the Participants desire to enter into Amendment No. 6 so that the Participation Agreement is amended to reflect the transfer of that portion of the L.E.S. Entitlement Share to Heartland stated in Amendment No. 4 that was not approved by the Rural Electrification Administration.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the Participants hereby agree as follows:

<u>Section 1</u>. &nbsp;&nbsp;&nbsp;&nbsp;That L.E.S. provided proper notice pursuant to Section 16 of the Participation Agreement for the proposed sale of a portion of its Entitlement Share.

<u>Section 2</u>. &nbsp;&nbsp;&nbsp;&nbsp;That the Participants agree to the transfer of .20 percent of the L.E.S. undivided ownership interest in the Project to Heartland.

<u>Section 3</u>. &nbsp;&nbsp;&nbsp;&nbsp;That as a result the transfer noted in Section 2 above and the conveyance by Heartland to Western Minnesota of a portion of Heartland's Entitlement Share provided for in Amendment No. 5 to the

------

Participation Agreement, the parties hereby restate Section 4.8 of the Participation Agreement to reflect the Entitlement Share of each Participant as of the date of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 ENTITLEMENT SHARE

---

| | | | |
|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent |
| B. | Tri-State | = | 24.13 percent |
| C. | L.E.S. | = | 13.13 percent |
| D. | Western Minnesota | = | 16.47 percent |
| E. | Heartland | = | 3.00 percent |
| F. | Wyoming Municipal | = | 1.00 percent |

---

<u>Section 4</u>. &nbsp;&nbsp;&nbsp;&nbsp;The parties acknowledge that a dispute exists between Basin Electric and L.E.S. with regard to the legal effect of the failure of the Rural Electrification Administration to approve Amendment No. 4. Litigation involving that dispute is currently pending (City of Lincoln, Plaintiff v. Basin Electric Power Cooperative, defendant, CV 85-L-594, United States District Court for the District of Nebraska). By execution hereof, the parties do not waive or release any rights, duties, liabilities, obligations, remedies, or relief to which they are entitled in the pending litigation, and expressly state the sole purpose for this Amendment No. 6 is to assure for Heartland and Western Minnesota the benefits of the transaction described in Section 3 hereof, and has no effect with regard to the positions or obligations of either Basin Electric or L.E.S. in their existing litigation.

<u>Section 5</u>. &nbsp;&nbsp;&nbsp;&nbsp;This agreement is subject to the approval of the Administrator of the Rural Electrification Administration.

IN WITNESS WHEREOF, the parties have caused this agreement to be executed as of the day first above written.

------

---

| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| | By | /s/ Dennis Lindberg |
| | President | President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ George A. Hargens | | |
| Title: Secretary-Treasurer | | |

---

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the 14th day of March, 1986 before me personally appeared Dennis Lindberg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said George Hargens acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ Judy J. Willman |
| | Notary Public |
| (SEAL) | |
| March 1, 1991 | |
| My Commission expires: | |

---

------

---

| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Ellwood Paulsen |
| | Title: President | Title: President |
| ATEST: | | |
| /s/ Donald W. Kimball | | |
| Title: | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 11th day of March, 1986, before me, personally appeared Ellwood Paulsen, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

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| | |
|:---|:---|
| | /s/ Carolyn Rudebusch |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | |
| My Commission expires: May 12, 1986 | |

---

------

---

| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Title: Administrator | Title: Administrator |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Julian J. Brix | | |
| Title: Manager-Power Supply Division | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 31st day of March, 1986 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Administrator acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Lois L. Harms |
| | Notary Public |
| (SEAL) | |
| 5/7/88 | |
| My Commission expires: | |

---

------

---

| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| | By | /s/ H.J. Thompson |
| | Title: President | Title: President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Paddy Bard | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 1st day of March, 1986 before me personally appeared H.J. Thompson to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said H.J. Thompson acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Wakefield |
| | Notary Public |
| | 12076 Grant Street, P.O. Box 33695 |
| | Denver, Colorado 80233 |
| (SEAL) | |
| December 8, 1988 | |
| My Commission expires: | |

---

------

---

| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| | By | /s/ Russell J. Berg |
| | Title: President | Title: President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF MINNESOTA |) | |
| |) | SS. |
| COUNTY OF BIG STONE |) | |

---

On the 20th day of March, 1986 before me personally appeared Russell Berg to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ |
| | Notary Public |
| (SEAL) | |
| My Commission expires: July 3, 1990 | |

---

------

---

| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| | By | /s/ Larry E. LaMaack |
| | Title: Executive Director | Title: Executive Director |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Richard D. Pullen | | |
| Title: Assistant Treasurer | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 18th day of March, 1986 before me personally appeared Larry E. LaMaack to me personally known, who, having been by me first duly sworn, did say: that he is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Larry LaMaack acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| | Notary Public |
| (SEAL) | |
| January 18, 1990 | |
| My Commission expires: | |

---

------

MISSOURI BASIN POWER PROJECT

\* \* \*

LARAMIE RIVER ELECTRIC GENERATING STATION

AND

TRANSMISSION SYSTEM

PARTICIPATION AGREEMENT

AMENDMENT NO. 7

AGREEMENT, dated as of September 15, 1986, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation (Basin Electric); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation (Tri-State); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System (L.E.S.); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota (Heartland); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming (Wyoming Municipal); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota (Western Minnesota).

WITNESSETH:

WHEREAS, the Participants hereto have executed Amendment No. 1 to the Participation Agreement dated as of March 15, 1977, Amendment No. 2 to the Participation Agreement dated as of March 16, 1977, Amendment No. 3 to the Participation Agreement dated as of August 1, 1982, Amendment No. 4 to the Participation Agreement dated as of September 1, 1982, Amendment No. 5 to the Participation Agreement dated as of May 2, 1983; and Amendment No. 6 to the Participation Agreement dated as of March 1, 1986; and

WHEREAS, the Participants desire to enter into Amendment No. 7 so that the Participation Agreement is amended to reflect the transfer of a portion of the L.E.S. Entitlement Share to the Wyoming Municipal Power Agency.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the Participants hereby agree as follows:

<u>Section 1</u>. &nbsp;&nbsp;&nbsp;&nbsp;That L.E.S. provided proper notice pursuant to Section 16 of the Participation Agreement for the proposed sale of a portion of its Entitlement Share.

<u>Section 2</u>. &nbsp;&nbsp;&nbsp;&nbsp;That the Participants agree to the transfer of .37 percent of the L.E.S. undivided ownership interest in the Project to Wyoming Municipal.

<u>Section 3</u>. &nbsp;&nbsp;&nbsp;&nbsp;That as a result the transfer noted in Section 2 above, the parties hereby restate Section 4.8 of the Participation Agreement to reflect the Entitlement Share of each Participant as of the date of this agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 ENTITLEMENT SHARE

---

| | | | |
|:---|:---|:---|:---|
| A. | Basin Electric | = | 42.27 percent |
| B. | Tri-State | = | 24.13 percent |
| C. | L.E.S. | = | 12.76 percent |
| D. | Western Minnesota | = | 16.47 percent |
| E. | Heartland | = | 3.00 percent |
| F. | Wyoming Municipal | = | 1.37 percent |

---

<u>Section 4</u>. &nbsp;&nbsp;&nbsp;&nbsp;This agreement is subject to the approval of the Administrator of the Rural Electrification Administration.

IN WITNESS WHEREOF, the parties have caused this agreement to be executed as of the day first above written.

------

---

| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| | By | /s/ Quentin Louden |
| | Title: Vice-President | Title: Vice-President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ George A. Hargens | | |
| Title: Secretary-Treasurer | | |

---

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the 17th day of October, 1986 before me personally appeared Quentin Louden to me personally known, who, having been by me first duly sworn, did say: that he is the Vice-President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said George Hargens acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ Judy J. Willman |
| | Notary Public |
| (SEAL) | March 1, 1991 |
| | My Commission expires: |

---

------

---

| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Ellwood Paulsen |
| | Title: President | Title: President |
| ATEST: | | |
| /s/ Donald W. Kimball | | |
| Title: | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 14th day of October, 1986, before me, personally appeared Ellwood Paulsen, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that they executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

---

| | |
|:---|:---|
| | /s/ Carolyn Rudebusch |
| | Notary Public |
| | State of South Dakota |
| (SEAL) | |
| | My Commission expires: 5-12-94 |

---

------

---

| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| | By | /s/ Walter A Canney |
| | Title: Administrator | Title: Administrator |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Julian J. Brix | | |
| Title: Manager-Power Supply Division | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 22nd day of September, 1986 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say: that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Walter A Canney acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Debbra L. Hoy |
| | Notary Public |
| (SEAL) | |
| | March 17, 1990 |
| | My Commission expires: |

---

------

---

| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| | By | /s/ H.J. Thompson |
| (SEAL) | Title: President | Title: President |
| ATTEST: | | |
| /s/ Paddy Bard | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 9th day of October, 1986 before me personally appeared H.J. Thompson to me personally known, who, having been by me first duly sworn, did say: that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said H.J. Thompson acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Donna E. Wakefield |
| | Notary Public |
| | 12076 Grant Street, P.O. Box 33695 |
| | P.O. Box 33695 |
| | Denver, Colorado 80233 |
| (SEAL) | |
| | December 8, 1988 |
| | My Commission expires: |

---

------

---

| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| | By | /s/ Greg Sherman |
| | Title: President | Title: President |
| (SEAL) | | |
| ATTEST: | | |
| /s/ Donald Habicht | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF MINNEHAHA |) | |

---

On the 16th day of October, 1986 before me personally appeared Greg Sherman to me personally known, who, having been by me first duly sworn, did say: that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ |
| | Notary Public |
| (SEAL) | |
| | My Commission expires: 7/3/90 |

---

------

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| | By | /s/ Richard D. Wilder |
| (SEAL) | Title: Chairman | Title: Chairman |
| ATTEST: | | |
| /s/ Timothy T. Conner | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 21st day of October, 1986 before me personally appeared Larry E. LaMaack to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Timothy T. Conner acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | January 18, 1990 |
| | My Commission expires: |

---

------

**MISSOURI BASIN POWER PROJECT**

**\* \* \***

**LARAMIE RIVER ELECTRIC GENERATING STATION**

**AND**

**TRANSMISSION SYSTEM**

**PARTICIPATION AGREEMENT**

**AMENDMENT NO. 8**

AGREEMENT, dated as of June 10, 1997, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota ("Heartland"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("Wyoming Municipal"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("Western Minnesota").

W I T N E S S E T H ;

WHEREAS, the parties hereto have entered into a document entitled Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement, executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time;

WHEREAS, the parties have agreed to amend that document in the manner set forth herein;

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

Section 7.5 shall be amended to read as follows:

The Participants have agreed that any Participant's Entitlement or portion thereof which cannot be delivered to such Participant at its designated Points of Delivery as scheduled by such Participant due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4 will be made available for sale to the other Participants which are capable of taking delivery of such Participant's Entitlement or portion thereof pursuant to the rules and procedures approved by the Management Committee.

Section 7.6 shall be amended to read as follows:

In the event the Operating Agent is unable to deliver a Participant's Entitlement or any portion thereof to that Participant at its Designated Points of Delivery due to the Operating Agent's inability to transfer Capacity and Energy because of the conditions set forth in Section 7.4, the acquisition and pricing of alternative Capacity and Energy for that Participant will be handled pursuant to the rules and procedures approved by the Management Committee.

------

This Amendment No. 8 shall become effective only when it has been fully executed and delivered on behalf of all of the Parties hereto and approved by the Administrator of the Rural Utilities Service.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 8 to be executed as of the date first above written.

------

---

| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | | |
| | By | /s/ Wayne Child |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ J. William Keller | | |
| Title: Secretary-Treasurer | | |

---

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the 18th day of April, 1997 before me personally appeared Wayne L. Child, to me personally known, who, having been by me first duly sworn, did say: that he is the President of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Wayne L. Child acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| (SEAL) | /s/ Michelle Wiedrich |
| | Notary Public |
| | My Commission expires: |
| | July 13, 1997 |

---

------

---

| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Donald E. Habicht |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Dennis Jutting | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF MINNEHAHA |) | |

---

On the 15th day of May, 1997 before me personally appeared D. Habicht to me personally known, who, having been by me first duly sworn, did say that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

---

| | |
|:---|:---|
| (SEAL) | /s/ |
| | Notary Public |
| | My Commission expires: 7/3/98 |

---

------

---

| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| | By | /s/ Marvin Haefele |
| (SEAL) | Title: Chairman | Title: Chairman |
| ATTEST: | | |
| /s/ Zane Q. Logan | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) |) |
|  |) | SS. |
| COUNTY OF NIOBRARA |) |  |

---

On the 17th day of April, 1997 before me personally appeared Marvin Haefele, to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Zane Q. Logan acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Dorothy M. Vollmer |
| (SEAL) | Notary Public |
| | My Commission expires: |
| | 6/26/99 |

---

------

---

| | | |
|:---|:---|:---|
|  | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Dan O'Connor |
|  | Title: President | Title: President |
| ATEST: |  |  |
| /s/ Jerry Michell |  |  |
| Title: |  |  |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) |  |
| |) | SS. |
| COUNTY OF LAKE |) |  |

---

On this the 10th day of June, 1997, before me, personally appeared Dan O'Connor, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Carolyn Rudebusch |
|  | Notary Public |
|  | My Commission expires: |
|  | May 12, 2002 |

---

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) | | |
| | By | /s/ Walter A Canney |
| | Title: Administrator | Title: Administrator |
| ATTEST: | | |
| /s/ | | |
| Title: Manager, Water Supply Division | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) |) |
| |) | SS. |
| COUNTY OF LANCASTER |) |  |

---

On the 9th day of April, 1997 before me personally appeared Walter A. Canney to me personally known, who, having been by me first duly sworn, did say that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Walter A Canney acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Shelley R. Zart |
| | Notary Public |
| | My Commission expires: |
| | 1/17/98 |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ H.J. Thompson |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Daryl D. Stout | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 30th day of April, 1997 before me personally appeared H.J. Thompson to me personally known, who, having been by me first duly sworn, did say that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said H.J. Thompson acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Robin S. Wilkins |
| | Notary Public |
| | My Commission expires: |
| | 9-13-2000 |

---

------

**MISSOURI BASIN POWER PROJECT**

**\* \* \***

**LARAMIE RIVER ELECTRIC GENERATING STATION**

**AND**

**TRANSMISSION SYSTEM**

**PARTICIPATION AGREEMENT**

**AMENDMENT NO. 9**

AGREEMENT, dated as of April 16, 1999, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota ("Heartland"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("Wyoming Municipal"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("Western Minnesota").

**W I T N E S S E T H ;**

WHEREAS, the parties hereto have entered into a document entitled Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement, executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "Participation Agreement");

WHEREAS, Basin Electric has entered into an agreement with the United States (acting by and through the Administrator of the Rural Utilities Service ("RUS")) and certain of its other creditors, pursuant to which agreement Basin Electric has executed and delivered that certain Indenture of Trust (First Mortgage Obligations) dated as of January 1, 1998, and naming U.S. Bank as Trustee; and

WHEREAS, Tri-State similarly has entered into an amendment and restatement of its Consolidated Mortgage and Security Agreement dated as of July 3, 1996 in the form of a Master First Mortgage Indenture, Deed of Trust and Security Agreement;

WHEREAS, the various and respective rights, titles and interests of Basin Electric and Tri-State with respect to the Project (as defined in the Participation Agreement) will comprise an important and significant part of the collateral pledges by Tri-State and Basin Electric to the United States and other creditors pursuant to the respective indentures; and

WHEREAS, it is the desire of the United States (acting by and through the Administrator of the RUS) that Section 4.9 of the Participation Agreement clearly reflect that said Basin Electric and Tri-State indentures constitute "Financing Instruments" for all purposes relevant to the Participation Agreement and the Project;

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Amendment 1: Section 4.9 of the Participation Agreement is hereby amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 FINANCING INSTRUMENTS: Loan contracts, mortgages and other instruments or encumbrances entered into by either Basin Electric or Tri-State, or both of them, including indentures of trust (including

------

all documents and instruments relating thereto) for purposes of securing the indebtedness of Tri-State and Basin Electric, specifically including Tri-State's Consolidated Mortgage and Security Agreement dated as of July 3, 1996, as amended and restated in the form of a Master First Mortgage Indenture, Deed of Trust and Security Agreement and any amendments, supplements or replacements thereto and Basin Electric's Indenture (First Mortgage Obligations) dated as of January 1, 1998, and any amendments, supplements or replacements thereto.

Amendment 2. Section 34.10 of the Participation Agreement is hereby amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.10. Except as provided in Section 15.2 of the Participation Agreement, nothing contained in the Project Agreements shall (a) relieve Tri-State or Basin Electric from complying in all respects with each of their Financing Instruments, or (b) obligate either Basin Electric or Tri-State to perform any act or refrain from acting if Basin Electric or Tri-State would thereby violate any provision of the Financing Instruments or the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.), or (c) be construed to make any Participant other than Basin Electric or Tri-State a party to or bound to perform under any of the Financing Instruments. In consideration of the approval by the Administrator of this Agreement, each Participant agrees that (a) none of the Project Agreements shall be amended, supplemented, waived or terminated without the prior approval in writing by the Administrator, and (b) the Project Agreements may be enforced by the Administrator on behalf of Basin Electric or Tri-State.

This Amendment No. 9 shall become effective only when it has been fully executed and delivered on behalf of all of the Parties hereto and approved by the Administrator of the Rural Utilities Service.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 9 to be executed as of the date first above written.

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | | |
| | By | /s/ R.L. McPhail |
| | Title: General Manager and CEO | Title: General Manager and CEO |
| ATTEST: | | |
| /s/ Michael J. Hinman | | |
| Title: Assistant Secretary | | |

---

<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the12th day of March, 1999 before me personally appeared Robert L. McPhail, to me personally known, who, having been by me first duly sworn, did say: that he is the General Manager and CEO of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Robert L. McPhail acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Michelle Wiedrich |
| | Notary Public |
| | My Commission expires: |
| | July 18, 2003 |

---

------

---

| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Donald E. Habicht |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Thomas J. Heller | | |
| Title: Assistant Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF MINNEHAHA |) | |

---

On the 16th day of April, 1999 before me personally appeared Thomas J. Heller to me personally known, who, having been by me first duly sworn, did say that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ |
| | Notary Public |
| | My Commission expires: 9/23/04 |

---

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | By | /s/ Marvin H. Haefele |
| | Title: Chairman | Title: Chairman |
| ATTEST: | | |
| /s/ Zane Logan | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 25th day of March, 1999 before me personally appeared Marvin H. Haefele, to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Zane Logan acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | My Commission expires: |
| | February 4, 2002 |

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Dan O'Connor |
| | Title: Board President | Title: Board President |
| ATEST: | | |
| /s/ Jerry Michell | | |
| Title: | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 10th day of June, 1997, before me, personally appeared Dan O'Connor, Board President of Heartland Consumers Power District, known to me or satisfactorily proven to be the persons described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Sharla Fedeler |
| | Notary Public |
| | My Commission expires: |
| | 1/26/2005 |

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) | | |
| | By | /s/ Terry L. Bundy |
| | Title: Administrator | Title: Administrator |
| ATTEST: | | |
| /s/ Shelley R. Sahling | | |
| Title: Policy Analysis Director & Assistant Counsel | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 14th day of April, 1999 before me personally appeared Terry L. Bundy, to me personally known, who, having been by me first duly sworn, did say that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Terry L. Bundy acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Douglas L. Curry |
| | Notary Public |
| | My Commission expires: |
| | October 21, 2001 |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ H.J. Thompson |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Daryl D. Stout | | |
| Title: Secretary | | |

---

<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 3rd day of March, 1999 before me personally appeared H.J. Thompson to me personally known, who, having been by me first duly sworn, did say that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said H.J. Thompson acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Robin S. Wilkins |
| | Notary Public |
| | My Commission expires: |
| | 9-13-2000 |

---

------

**MISSOURI BASIN POWER PROJECT**

**\* \* \***

**LARAMIE RIVER ELECTRIC GENERATING STATION**

**AND**

**TRANSMISSION SYSTEM**

**PARTICIPATION AGREEMENT**

**AMENDMENT NO. 10**

AGREEMENT, dated as of July 31, 2014, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("Basin Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("Tri-State"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("L.E.S."); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota ("Heartland"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("Wyoming Municipal"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("Western Minnesota").

**W I T N E S S E T H ;**

WHEREAS, the parties hereto have entered into a document entitled Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement, executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "Participation Agreement");

WHEREAS, Basin Electric has entered into an agreement with the United States (acting by and through the Administrator of the Rural Utilities Service ("RUS")) and certain of its other creditors, pursuant to which agreement Basin Electric has executed and delivered that certain Indenture of Trust (First Mortgage Obligations) dated as of January 1, 1998, and naming U.S. Bank as Trustee; and

WHEREAS, Tri-State similarly has entered into an amendment and restatement of its Consolidated Mortgage and Security Agreement dated as of July 3, 1996 in the form of a Master First Mortgage Indenture, Deed of Trust and Security Agreement dated effective December 15, 1999;

WHEREAS, the various and respective rights, titles and interests of Basin Electric and Tri-State with respect to the Project (as defined in the Participation Agreement) will comprise an important and significant part of the collateral pledges by Tri-State and Basin Electric to the United States and other creditors pursuant to the respective indentures; and

WHEREAS, it is the desire of the United States (acting by and through the Administrator of the RUS) that Section 4.9 of the Participation Agreement clearly reflect that said Basin Electric and Tri-State indentures constitute "Financing Instruments" for all purposes relevant to the Participation Agreement and the Project;

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section C-1 of Exhibit C to the Participation Agreement is hereby amended by the insertion of Section C-1.8 and C-1.9, which shall read:

C-1.8 Arrow (Wyoming) Substation 345kV

– Basin Electric, Tri-State, Wyoming Municipal.

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C-1.9 Keota (Colorado) Substation 345kV

– Basin Electric, Tri-State, Wyoming Municipal.

This Amendment No. 10 shall become effective only when it has been fully executed and delivered on behalf of all of the Parties hereto and approved by the Administrator of the Rural Utilities Service.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 10 to be executed as of the date first above written.

[SIGNATURE PAGES FOLLOWING]

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | | |
| | By | /s/ Paul M. Sukut |
| | Paul M. Sukut | Paul M. Sukut |
| | CEO and General Manager | CEO and General Manager |
| ATTEST: | | |
| /s/ Claire M. Olson | | |
| Claire M. Olson | | |
| Assistant Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

---

On the30th day of May, 2014 before me personally appeared Paul M. Sukut, to me personally known, who, having been by me first duly sworn, did say: that he is the General Manager and CEO of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Paul M. Sukut acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Michelle Wiedrich |
| | Notary Public |
| | My Commission expires: |
| | August 6, 2015 |

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Signature Page to Amendment No 10 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ William Schwandt |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Scott Hain | | |
| Title: Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF Lincoln |) | |

---

On the 12th day of June, 2014 before me personally appeared William Schwandt to me personally known, who, having been by me first duly sworn, did say that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Geraldyne Shumaker |
| | Notary Public |
| | My Commission expires: Nov. 16, 2016 |

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Signature Page to Amendment No 10 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | By | /s/ Zane Logan |
| | Title: Chairman | Title: Chairman |
| ATTEST: | | |
| /s/ Doug Weaver | | |
| Title: Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

---

On the 24th day of July, 2014 before me personally appeared Zane Logan, to me personally known, who, having been by me first duly sworn, did say: that he is the Chairman of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Chairman acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | My Commission expires: |
| | February 4, 2018 |

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Signature Page to Amendment No 10 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Russell Olson |
| | Title: President CEO/GM | Title: President CEO/GM |
| ATEST: | | |
| /s/ Mike Malone | | |
| Title: CFO | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

---

On this the 26th day of June, 2014, before me, personally appeared Russ Olson, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the person described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Jon Knuths |
| | Notary Public |
| | My Commission expires: |
| | Aug. 28, 2018 |

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Signature Page to Amendment No 10 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA d/b/a LINCOLN ELECTRIC SYSTEM | CITY OF LINCOLN, NEBRASKA d/b/a LINCOLN ELECTRIC SYSTEM |
| (SEAL) | | |
| | By | /s/ Terry L. Bundy |
| | Title: Administrator | Title: Administrator |
| ATTEST: | | |
| /s/ Shelley Sahling Zart | | |
| Title: Vice President & General Counsel | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

---

On the 23rd day of June, 2014 before me personally appeared , to me personally known, who, having been by me first duly sworn, did say that he is the Administrator and CEO of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Administrator and CEO acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Judy E. Jecha |
| | Notary Public |
| | My Commission expires: |
| | May 10, 2015 |

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Signature Page to Amendment No 10 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ Joel K. Bladow |
| | Title: Senior Vice President, Transmission | Title: Senior Vice President, Transmission |
| ATTEST: | | |
| Title: Secretary | | |

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<u>ACKNOWLEDGMENT</u>

---

| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

---

On the 27th day of June, 2014 before me personally appeared Joel K. Bladow to me personally known, who, having been by me first duly sworn, did say that he is the President of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Senior Vice President acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Diane K. Byers |
| | Notary Public |
| | My Commission expires: |
| | Sept. 4, 2016 |

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**MISSOURI BASIN POWER PROJECT**

\*\*\*

**LARAMIE RIVER ELECTRIC GENERATING STATION** 

**AND** 

**TRANSMISSION SYSTEM** 

**PARTICIPATION AGREEMENT** 

**AMENDMENT NO. 11**

AGREEMENT, dated as of **<u>July 10, 2015</u>,** by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation **("Basin** Electric"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation **("Tri-State");** CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System **("L.E.S.");** HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota **("Heartland");** WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming **("Wyoming Municipal");** and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota **("Western Minnesota"),** all of whom may be collectively referred to as the "Parties."

**WITNESSETH:**

WHEREAS, the Parties have entered into a document entitled Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement , executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "Participation Agreement"); and

WHEREAS, the Parties desire to add one (1) new Point of Delivery to this Participation Agreement and therefore wish to amend Exhibit C to this Participation Agreement to augment the West Side Transmission Delivery Points, as more particularly described below.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section C-1 of Exhibit C to the Participation Agreement is hereby amended by the insertion of Section C-1.10, which shall read:

C-1.10 Sawmill Creek (Wyoming) Substation 230 kV

- Basin Electric, Tri-State, Wyoming Board.

This Amendment No. 11 shall become effective only when it has been fully executed and delivered on behalf of all of the Parties hereto and approved by the Administrator of the Rural Utilities Service.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 11 to be executed as of the date first above written.

[SIGNATURE PAGES FOLLOWING]

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) | | |
| | By | /s/ Paul M. Sukut |
| | Paul M. Sukut | Paul M. Sukut |
| | CEO and General Manager | CEO and General Manager |
| ATTEST: | | |
| /s/ Mark D. Foss | | |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Mark D. Foss | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary | | |

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<u>CORPORATION ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF BURLEIGH |) | |

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On the 16th day of June, 2015, before me personally appeared Paul M. Sukut, to me personally known, who, having been by me first duly sworn, did say that he is the CEO and General Manager of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Paul M. Sukut acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Michelle Wiedrich |
| | Notary Public |
| | My Commission expires: |
| | August 6, 2015 |

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Signature Page to Amendment No. 11 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ William Schwandt |
| | Title: President | Title: President |
| ATTEST: | | |
| /s/ Scott Hain | | |
| Title: Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF MINNEHAHA |) | |

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On the 10th day of July, 2015, before me personally appeared William Schwandt to me personally known, who, having been by me first duly sworn, did say that he is the President of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed in behalf of said agency by authority of its board of directors; and said President acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Geraldyne Shumaker |
| | Notary Public |
| | My Commission expires: Nov. 16, 2016 |

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Signature Page to Amendment No. 11 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | By | /s/ Larry E. LaMaack |
|  | Title: Executive Director | Title: Executive Director |
| ATTEST: |  |  |
| By: /s/ Richard D. Pullen |  |  |
| Richard D. Pullen<br>Assistant Treasurer |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | SS. |
| COUNTY OF NIOBRARA |) | |

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On the 17th day of June, 2015, before me personally appeared Larry E. LaMaack, to me personally known, who, having been by me first duly sworn, did say that he is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Executive Director acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ Karen L. Titchener |
| (SEAL) | Notary Public |
| | My Commission expires: |
| | February 4, 2018 |

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Signature Page to Amendment No. 11 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By | /s/ Merlin Van Walleghen |
| | Title: President | Title: President |
| ATEST: | | |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | SS. |
| COUNTY OF LAKE |) | |

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On this the 17th day of June, 2015, before me personally appeared Merlin Van Walleghen, President of Heartland Consumers Power District, known to me or satisfactorily proven to be the person described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF I hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Sharla Fedeler |
| | Notary Public |
| | My Commission expires: |
| | 1/26/17 |

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Signature Page to Amendment No. 11 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA d/b/a LINCOLN ELECTRIC SYSTEM | CITY OF LINCOLN, NEBRASKA d/b/a LINCOLN ELECTRIC SYSTEM |
| (SEAL) | | |
| | By | /s/ Kevin Wailes |
| | Title: Administrator | Title: Administrator |
| ATTEST: | | |
| Title: Legal Assistant, LES | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | SS. |
| COUNTY OF LANCASTER |) | |

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On the 16th day of June, 2015, before me personally appeared Kevin Wailes, to me personally known, who, having been by me first duly sworn, did say that he is the Administrator of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Administrator acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Debra R. Vandegrift |
| | Notary Public |
| | My Commission expires: |
| | July 2, 2018 |

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Signature Page to Amendment No. 11 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) | | |
| | By | /s/ Joel K. Bladow |
| | Title: Senior Vice President, Transmission | Title: Senior Vice President, Transmission |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | SS. |
| COUNTY OF ADAMS |) | |

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On the 26th day of June, 2015, before me personally appeared Joel K. Bladow, to me personally known, who, having been by me first duly sworn, did say that he is the Senior Vice President, Transmission of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Senior Vice President acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarial seal on the day and the year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Diane K. Byers |
| | Notary Public |
| | My Commission expires: |
| | Sept. 4, 2016 |

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**MISSOURI BASIN POWER PROJECT**

**\* \* \*** 

**LARAMIE RIVER ELECTRIC GENERATING STATION**

**AND**

**TRANSMISSION SYSTEM**

**PARTICIPATION AGREEMENT**

**AMENDMENT NO. 12**

This Amendment No. 12 ("Amendment"), dated as of September 20, 2018, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("**Basin Electric**"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("**Tri-State**"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("**L.E.S.**"); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota ("**Heartland**"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("**Wyoming Municipal**"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("**Western Minnesota**"), all of whom may be collectively referred to as the "Parties" and individually referred to as "Party." Capitalized terms used herein without definition shall have the respective meanings set forth in the Participation Agreement (as defined below).

**W I T N E S S E T H:**

WHEREAS, the Parties have entered into a document entitled "Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement," executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "**Participation Agreement**"); and

WHEREAS, the Parties wish to amend the Participation Agreement to reflect the transfer of all of Heartland's 3.00% Entitlement Share to Tri-State, the assignment of all of Heartland's interest in the Participation Agreement to Tri-State, and to remove Heartland as a party to the Participation Agreement.

WHEREAS, in addition, the Parties wish to make certain other amendments to the Participation Agreement.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>AMENDMENTS TO PARTICIPATION AGREEMENT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;Section 4.8 of the Participation Agreement shall be amended in its entirety to read as follows:

"4.8 &nbsp;&nbsp;&nbsp;&nbsp;ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Basin Electric = 42.27 percent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Tri-State = 27.13 percent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. L.E.S. = 12.76 percent

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Western Minnesota = 16.47 percent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Wyoming Municipal = 1.37 percent"

Without further amendment or change, all Project Agreements shall be construed and the terms thereof applied in a manner consistent with the foregoing change of Parties and Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;Section 6.8 of the Participation Agreement shall be amended in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 &nbsp;&nbsp;&nbsp;&nbsp;Any action or determination of the Engineering and Operating Committee, the Audit Committee and the Management Committee shall require a vote of four (4) out of the five (5) Participants, acting through their respective representatives, provided that such four (4) Participants own more than fifty (50) percent of the Entitlement Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;Section 30 of the Participation Agreement shall be amended in its entirety to read as follows:

"30.1&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective only when it has been duly executed and delivered on behalf of all of the Participants and approved by all regulatory agencies which have jurisdiction. This Agreement shall continue in full force and effect until December 31, 2042.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of this Agreement, the facilities comprising the Project shall be disposed of in a manner to be mutually agreed upon by the Participants and in accordance with the applicable federal, state and local laws, ordinances and regulations. This section shall remain in effect after the termination or expiration of the Project Agreements and until the disposal of the facilities comprising the Project is complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3&nbsp;&nbsp;&nbsp;&nbsp;If and to the extent that any of the options, rights and privileges granted under this Agreement, would, in the absence of the limitation imposed by this sentence, be invalid or unenforceable as being in violation of the rule against perpetuities or any other rule or law relating to the vesting of interests in property or the suspension of the power of alienation of property, then it is agreed that notwithstanding any other provision of this Agreement, such options, rights and privileges, subject to the respective conditions hereof governing the exercise of such options, rights and privileges, will be exercisable only during (a) the longer of (i) a period which will end twenty-one (21) years after the death of the last survivor of the descendants living on the date of the execution of the Amendment No. 12 to this Agreement, of the following Presidents of the United States: Franklin D. Roosevelt, Harry S. Truman, Dwight D. Eisenhower, John F. Kennedy, Lyndon B. Johnson, Richard M. Nixon, Gerald R. Ford, James E. Carter, Ronald W. Reagan, George H. W. Bush, William J. Clinton, George W. Bush, and Barack H. Obama, or (ii) in the event that Wyo. Stat. Ann. § 34-1-139 applies to the exercise of such options, rights and privileges, the period provided under such statute, or (b) the specific applicable period of time expressed in this Agreement, whichever of (a) and (b) is shorter."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;Section C-2 of Exhibit C of the Participation Agreement is amended to delete the words "Heartland Consumers Power District" in each instance that it appears.

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>RULE AGAINST PERPETUITIES</u>: Each Party acknowledges and agrees that, in connection with amending Section 30 of the Participation Agreement as provided in this Amendment, for purposes of complying with the rule against perpetuities or any other rule or law relating to the vesting of interests in property or the suspension of the power of alienation of property, any options, rights and privileges in the Participation Agreement, including Sections 16, 17 and 31, are hereby re-granted by the execution of this Amendment. Therefore, the creation of such options, rights and privileges in the Participation Agreement is as of Effective Date.

3.&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER AND CONSENT</u>: With respect to the transfer, assignment and sale of Heartland's 3.00% Entitlement Share to Tri-State and the assignment of all of Heartland's interest in the Project Agreements to Tri-State (collectively, the "Heartland Transaction"), each Party, individually, hereby (a) recognizes and consents to the Heartland Transaction, (b) knowingly, freely, and definitively agrees, without any conditions, that the Heartland Transaction has been accomplished in accordance with the Participation Agreement, including, but not limited to, Section 16 of the Participation Agreement, and (c) knowingly, freely, and definitively waives, without any conditions, any and all rights it might have under Section 16 of the Participation Agreement related to the Heartland Transaction, including, but not limited to, any notices or Right of First Refusal. Each Party, individually, acknowledges and recognizes that certain other transactions or agreements have or may occur between various Parties related to the Heartland Transaction, and each Party agrees that its consent and waiver with respect to the Heartland Transaction as set forth in the preceding sentence is not conditioned upon any such other transactions or agreements. This waiver and consent does not in any way alter or amend any other transactions or agreements between various Parties, except as expressly agreed by such Parties, nor does it waive any rights or obligations under the Project Agreements, except as expressly agreed by the Parties.

4.&nbsp;&nbsp;&nbsp;&nbsp;<u>HEARTLAND NO LONGER A PARTY</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Heartland shall no longer be a party to the Participation Agreement or any other Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;The following parts and sections of the Participation Agreement are also revised or deleted as appropriate to remove any reference to Heartland: the cover page, Sections 1, 2.5, and 32.1.

5.&nbsp;&nbsp;&nbsp;&nbsp;<u>MUTUAL REPRESENTATIONS AND WARRANTIES</u>: As of the date first written above, Each Party represents and warrants to the other Parties that (i) it possesses full power and authority to enter into and perform this Amendment; (ii) the execution, delivery and performance of this Amendment by it have been duly authorized by it; (iii) the execution, delivery and performance of this Amendment by it does not require the consent or approval of, filing with, nor notice to any other person, which if not obtained would prevent it from performing its obligations hereunder; and (iv) the execution, delivery and performance of this Amendment by it shall not violate any federal, state or municipal laws, rules or regulations applicable to it.

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6.&nbsp;&nbsp;&nbsp;&nbsp;<u>EFFECTIVE DATE</u>: This Amendment became retroactively effective on July 1, 2018 ("Effective Date"). As Basin Electric and Tri-State are no longer borrowers from the Rural Utilities Service, no approval by the Administrator of the Rural Utilities Service is required.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 12 to be executed and delivered as of the date first written above.

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) |  |  |
|  | By: | /s/ Paul M. Sukut |
|  | Title: General Manager and CEO | Title: General Manager and CEO |
| ATTEST: |  |  |
| /s/ Mark D. Foss |  |  |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |  |  |

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<u>CORPORATE ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF BURLEIGH |) | |

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On the 12th day of September, 2018, before me personally appeared Paul M. Sukut, to me personally known, who, having been by me first duly sworn, did say that he is the General Manager and CEO of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Paul M. Sukut acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Michelle Wiedrich |
| | Notary Public |
| | My Commission Expires: |
| | August 6, 2021 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) | | |
| | By | /s/ Thomas J Heller |
| | Title: Assistant Secretary & Assistant Treasurer | Title: Assistant Secretary & Assistant Treasurer |
| ATTEST: | | |
| /s/ Merlin Sawyer | | |
| Title: Assistant Secretary | | |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF LINCOLN |) | |

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On the 14th day of September, 2018, before me personally appeared Tom Heller to me personally known, who, having been by me first duly sworn, did say that he is the Assistant Secretary & Assistant Treasurer of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed on behalf of said agency by authority of its board of directors; and said Tom Heller acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Geraldyne Shumaker |
| | Notary Public |
| | My Commission Expires: September 30, 2022 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | By: | /s/ Rosemary K Henry |
|  | Title: Executive Director | Title: Executive Director |
| ATTEST: |  |  |
| /s/ Zane Logan |  |  |
| Title: Chairman |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | ss. |
| COUNTY OF NIOBRARA |) | |

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On the 20th day of September, 2018, before me personally appeared Rosemary K Henry, to me personally known, who, having been by me first duly sworn, did say that he is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Rosemary K Henry acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| | /s/ M Luana Govin |
| (SEAL) | Notary Public |
| | My Commission Expires: |
| | May 16, 2022 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | HEARTLAND CONSUMERS POWER DISTRICT | HEARTLAND CONSUMERS POWER DISTRICT |
| (SEAL) | By: | /s/ Russell Olson |
|  | Title: Chief Executive Officer | Title: Chief Executive Officer |
| ATTEST: |  |  |
| /s/ Katlyn Hahn |  |  |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Administrative Assistant |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF LAKE |) | |

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On the 10th day of September, 2018, before me personally appeared Russell Olson, Chief Executive Officer of Heartland Consumers Power District, known to me or satisfactorily proven to be the person described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Katlyn Hahn |
| | Notary Public |
| | My Commission Expires: |
| | September 14, 2022 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) |  |  |
|  | By: | /s/ Kevin G Wailes |
|  | Title: Administrator & Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System | Title: Administrator & Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System |
| ATTEST: |  |  |
| /s/ Lacy Stockdale |  |  |
| Title: Assistant Secretary |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | ss. |
| COUNTY OF LANCASTER) | COUNTY OF LANCASTER) | |

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On the 10th day of September, 2018, before me personally appeared Kevin G Wailes, to me personally known, who, having been by me first duly sworn, did say that he is the Administrator & Chief Executive Officer of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Kevin G Wailes acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Brenda Austin |
| | Notary Public |
| | My Commission Expires: |
| | January 27, 2019 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) |  |  |
|  | By: | /s/ Micheal S. McInnes |
|  | Title: Chief Executive Officer | Title: Chief Executive Officer |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | ss. |
| COUNTY OF ADAMS |) | |

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On the 10th day of September, 2018, before me personally appeared Micheal S. McInnes, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Executive Officer of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Micheal S. McInnes acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | /s/ Pamela Lee Schroder |
| | Notary Public |
| | My Commission Expires: |
| | April 4, 2022 |

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Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

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**MISSOURI BASIN POWER PROJECT**

**\* \* \***

**LARAMIE RIVER ELECTRIC GENERATING STATION AND TRANSMISSION SYSTEM PARTICIPATION AGREEMENT AMENDMENT NO. 13**

This Amendment No. 13 ("**Amendment**"), dated as of May 27, 2021, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("**Basin Electric**"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("**Tri-State**"); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("**L.E.S.**"); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming ("**Wyoming Municipal**"); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("**Western Minnesota**"), all of whom may be collectively referred to as the "Parties" and individually referred to as "Party." Capitalized terms used herein without definition shall have the respective meanings set forth in the Participation Agreement (as defined below).

**W I T N E S S E T H:**

WHEREAS, the Parties have entered into a document entitled "Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement," executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "**Participation Agreement**"); and

WHEREAS, the Parties wish to amend the Participation Agreement to reflect the transfer of all of Wyoming Municipal's 1.37% Entitlement Share to Tri-State, the assignment of all of Wyoming Municipal's interest in the Participation Agreement to Tri-State, and to remove Wyoming Municipal as a Party to the Participation Agreement; and

WHEREAS, in addition, the Parties wish to make certain other amendments to the Participation Agreement.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>AMENDMENTS TO PARTICIPATION AGREEMENT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Section 4.8 of the Participation Agreement shall be amended in its entirety to read as follows:

"4.8 ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows:

A.Basin Electric = 42.27 percent

B.Tri-State = 28.50 percent

C.Western Minnesota = 16.47 percent

D.L.E.S. = 12.76 percent"

Without further amendment or change, all Project Agreements shall be construed and the terms thereof applied in a manner consistent with the foregoing change of Parties and Entitlement Shares.

Page 1 of 3

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Section 6.8 of the Participation Agreement shall be amended in its entirety to read as follows:

"6.8 Any action or determination of the Engineering and Operating Committee, the Audit Committee, and the Management Committee shall require a vote of three (3) out of the four (4) Participants, acting through their respective representatives, provided that such three (3) Participants collectively own more than fifty (50) percent of the Entitlement Shares."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Section 16.8 of the Participation Agreement shall be amended in its entirety to read as follows:

"16.8 The purchase of the interest by the Participants having elected to purchase the same shall be fully consummated within one year following the date upon which the initial notice was given under Section 16.4 hereof, unless the Participants are then diligently pursuing required authorizations or approvals to effect such transfer or are then diligently pursuing or defending appeals from orders entered or authorizations issued in connection with such transfer, in which event the transfer shall be consummated and the buyer shall tender payment within six (6) months following the date upon which the final order is entered or authorization issued in connection with such transfer."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Section C-1 of Exhibit C of the Participation Agreement shall be amended to delete the words "Wyoming Municipal Power Agency," or "Wyoming Municipal," in each instance that it appears.

2. &nbsp;&nbsp;&nbsp;&nbsp;<u>NOTICE OF TRANSFER</u>: Wyoming Municipal provided notice pursuant to Section 16 of the Participation Agreement for the proposed sale of its 1.37% Entitlement Share. Only Tri-State elected to purchase Wyoming Municipal's interest and therefore Wyoming Municipal may proceed with the transfer of all its interest to Tri-State. With respect to the transfer, assignment and sale of Wyoming Municipal's 1.37% Entitlement Share to Tri-State and the assignment of all of Wyoming Municipal's interest in the Project Agreements to Tri-State (collectively, the "**Wyoming Municipal Transaction**"), each Party, individually, by signing this Amendment, hereby (a) recognizes and consents to the Wyoming Municipal Transaction and (b) knowingly, freely, and definitively agrees, without any conditions, that the Wyoming Municipal Transaction has been accomplished in accordance with the Participation Agreement, including, but not limited to, Section 16 of the Participation Agreement. This consent does not in any way alter or amend any other transactions or agreements between various Parties, except as expressly agreed by such Parties, nor does it waive any rights or obligations under the Project Agreements, except as expressly agreed by the Parties.

3. &nbsp;&nbsp;&nbsp;&nbsp;<u>WYOMING MUNICIPAL NO LONGER A PARTY</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Wyoming Municipal shall no longer be a Party to the Participation Agreement or any other Project Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, the following parts and sections of the Participation Agreement are also revised or deleted as appropriate to remove any reference to Wyoming Municipal or its predecessor in interest: the cover page and Sections 1, 2.6, and 32.1.

Page 2 of 3

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4. &nbsp;&nbsp;&nbsp;&nbsp;<u>MUTUAL REPRESENTATIONS AND WARRANTIES</u>: As of the date first written above, each Party represents and warrants to the other Parties that (i) it possesses full power and authority to enter into and perform this Amendment; (ii) the execution, delivery and performance of this Amendment by it have been duly authorized by it; (iii) except for the acceptance of this Amendment by the Federal Energy Regulatory Commission ("**FERC**"), the execution, delivery and performance of this Amendment by it does not require the consent or approval of, filing with, nor notice to any other person, which if not obtained would prevent it from performing its obligations hereunder. Each Party further represents and warrants to the other Parties that the execution, delivery and performance of this Amendment does not violate any federal, state or municipal laws, rules or regulations applicable to such Party.

5. &nbsp;&nbsp;&nbsp;&nbsp;<u>EFFECT OF AMENDMENT NOT OBTAINING REQUIRED APPROVALS</u>: In the event that the transfer referred to in this Amendment does not occur, this Amendment shall be null and void without any further action by any Participant.

6. &nbsp;&nbsp;&nbsp;&nbsp;<u>RURAL UTILITIES SERVICE</u>. The Participants acknowledge and agree that Basin Electric and Tri-State are no longer borrowers from the Rural Utilities Service (f/k/a Rural Electrification Administration) and therefore that, as of the Effective Date, all terms of the Project Agreements granting the Administrator any right in or interest under the Project Agreements shall have no further force or effect whatsoever.

7. &nbsp;&nbsp;&nbsp;&nbsp;<u>EFFECTIVE DATE</u>: As Basin Electric and Tri-State are no longer borrowers from the Rural Utilities Service, no approval by the Administrator of the Rural Utilities Service is required. As Basin Electric and Tri-State have filed the Participation Agreement with FERC, FERC's approval or acceptance for filing of this Amendment is required. This Amendment is effective on the latest of ("**Effective Date**") (1) the closing date of the Wyoming Municipal Transaction, (2) the effective date established by FERC upon the final and unappealable acceptance for filing of this Amendment, and (3) the effective date established by FERC upon the final and unappealable acceptance for filing of the amendments of any other Project Agreements filed with FERC associated with the Wyoming Municipal Transaction. Tri-State will provide written notice to all other Participants of the Effective Date.

IN WITNESS HEREOF, the Parties have caused this Amendment No. 13 to be executed and delivered as of the date first written above.

[SIGNATURE PAGES TO FOLLOW]

Page 3 of 3

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) |  |  |
|  | By: | /s/ Paul M. Sukut |
|  | Title: Chief Executive Officer & General Manager | Title: Chief Executive Officer & General Manager |
| ATTEST: |  |  |
| By:&nbsp;&nbsp;&nbsp;&nbsp;/s/ Mark Foss |  |  |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | ss |
| COUNTY OF BURLEIGH |) | |

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On this 25th day of May, 2021, before me personally appeared Paul M. Sukut, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Executive Officer and General Manager of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Paul M. Sukut acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Sheila E. Wald |
| | My Commission Expires: May 2, 2022 |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) |  |  |
|  | By: | /s/ Patrick L. Bridges |
|  | Title: Senior Vice President/Chief Financial Officer, serving as Acting Chief Executive Officer | Title: Senior Vice President/Chief Financial Officer, serving as Acting Chief Executive Officer |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | ss |
| COUNTY OF ADAMS |) | |

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On this 25 day of May, 2021, before me personally appeared Patrick L. Bridges, to me personally known, who, having been by me first duly sworn, did say that he is the Senior Vice President/Chief Financial Officer, serving as Acting Chief Executive Officer of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Patrick L. Bridges acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Diane K. Byers |
| | My Commission Expires: Sep 4, 2024 |

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) |  |  |
|  | By: | /s/ Thomas J. Heller |
|  | Title: Assistant Secretary & Assistant Treasurer | Title: Assistant Secretary & Assistant Treasurer |
| ATTEST: |  |  |
| By: <u>/s/ Merlin Sawyer</u> |  |  |
| Title: Assistant Secretary |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | ss |
| COUNTY OF LINCOLN |) | |

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On this 27th day of May, 2021, before me personally appeared Thomas J. Heller, to me personally known, who, having been by me first duly sworn, did say that he is the Assistant Secretary and Assistant Treasurer of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; and that said instrument was signed and sealed on behalf of said agency by authority of its board of directors; and said Thomas J. Heller acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Daniel J. Harmelink |
| | My Commission Expires: June 1, 2023 |

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| | | |
|:---|:---|:---|
| | CITY OF LINCOLN, NEBRASKA | CITY OF LINCOLN, NEBRASKA |
| (SEAL) |  |  |
|  | By: | /s/ Kevin G. Wailes |
|  | Title: Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System | Title: Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System |
| ATTEST: |  |  |
| By: /s/ Shelley Sahling-Zart |  |  |
| Title: Vice President & General Counsel |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | ss |
| COUNTY OF LANCASTER) | COUNTY OF LANCASTER) | |

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On this 27 day of May, 2021, before me personally appeared Kevin G. Wailes, to me personally known, who, having been by me first duly sworn, did say that he is the Administrator & Chief Executive Officer of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed on behalf of Lincoln Electric System by authority of its Administrative Board; and said Kevin G. Wailes acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Michelle L. Miller |
| | My Commission Expires: September 19, 2023 |

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| | | |
|:---|:---|:---|
| | WYOMING MUNICIPAL POWER AGENCY | WYOMING MUNICIPAL POWER AGENCY |
| (SEAL) | By: | /s/ Rosemary Henry |
|  | Title: Executive Director | Title: Executive Director |
| ATTEST: |  |  |
| By: <u>/s/ James L Harty</u> |  |  |
| Title: Operations Manager |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF WYOMING |) | |
| |) | ss |
| COUNTY OF NIOBRARA |) | |

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On this 26th day of May, 2021, before me personally appeared Rosemary K. Henry, to me personally known, who, having been by me first duly sworn, did say that she is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that that said instrument was signed on behalf of said corporation by authority of its board of directors; and said Rosemary K. Henry acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Michelle G. Burt |
| | My Commission Expires: 2/10/2024 |

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**MISSOURI BASIN POWER PROJECT**

**\* \* \***

**LARAMIE RIVER ELECTRIC GENERATING STATION AND**

**TRANSMISSION SYSTEM PARTICIPATION AGREEMENT**

**AMENDMENT NO. 14**

This Amendment No. 14 ("**Amendment**"), dated as of May 1, 2023, by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation ("**Basin Electric**"); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation ("**Tri-State**"); WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota ("**Western Minnesota**"); and CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System ("**L.E.S.**"), all of whom may be collectively referred to as the "Parties" and individually referred to as a "Party." Capitalized terms used herein without definition shall have the respective meanings set forth in the Participation Agreement (as defined below).

**W I T N E S S E T H:**

**WHEREAS**, the Parties have entered into a document entitled "Missouri Basin Power Project \* \* \* Laramie River Electric Generating Station and Transmission System Participation Agreement," executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the "**Participation Agreement**"); and

**WHEREAS**, the Parties wish to amend the Participation Agreement to reflect changes to the Description of the Project and Points of Delivery as identified in Exhibit A and Exhibit C, respectively, and in addition, the Parties intend to adopt, through coordination and mutual agreement, a conformed version of the Participation Agreement reflecting this Amendment and all prior amendments;

**NOW THEREFORE**, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>AMENDMENTS TO PARTICIPATION AGREEMENT</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.&nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Subsections A-2.1.2, A-2.1.5, A-2.1.6, A-2.1.7, A-2.1.8, A-2.10, and A-2.1.11 of Exhibit A, Section A-2, The Transmission System, are amended to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.2 Laramie River Station - Stegall (West) Substation, 230 kV ac transmission line, 2306 MCM single conductor, steel tower - estimated line length - 60.7 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.5 Laramie River Station - Wayne Child, 345 kV ac transmission line, 2-1272 MCM conductors, steel tower - estimated line length - 73.6 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.6 Laramie River Station - Sidney (East) Substation, 345 kV ac transmission line, 2306 MCM single conductor, steel tower - estimated line length - 120.00 miles."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1. 7 Laramie River Station - Stegall (East) Substation, 345 kV ac transmission line. 2306 MCM single conductor, steel tower - estimated line length - 59.00 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.5 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.8 Stegall (East) Substation - Sidney (East) Substation, 345 kV ac transmission line, 2-2306 MCM single conductors, steel tower - estimated line length - 77.00 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.6 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.10 Wayne Child Substation-Keota Substation, 345 kV ac transmission line, 2-1272 MCM conductors, steel tower - estimated line length - 40.9 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.7 &nbsp;&nbsp;&nbsp;&nbsp;"A-2.1.11 Keota Substation - Story Substation, 345 kV ac transmission line, 2-1272 MCM conductors, steel tower - estimated line length - 59.0 miles."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;As of the Effective Date, Subsections C-1.7, C-1.8, and C-1.10 of Exhibit C, Section C-1, West Side Transmission Delivery Points, shall be amended to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1&nbsp;&nbsp;&nbsp;&nbsp;"C-1.7 [REMOVED, as amended DATE, Amendment 14]."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2&nbsp;&nbsp;&nbsp;&nbsp;"C-1.8 Wayne Child (Wyoming) Substation 345kV - Basin Electric, Tri-State."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3&nbsp;&nbsp;&nbsp;&nbsp;"C-1.10 [REMOVED, as amended DATE, Amendment 14]."

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>MUTUAL REPRESENTATIONS AND WARRANTIES</u>: As of the date first written above, each Party represents and warrants to the other Parties that (i) it possesses full power and authority to enter into and perform this Amendment; (ii) the execution, delivery and performance of this Amendment by it have been duly authorized by it; (iii) except for the acceptance of this Amendment by the Federal Energy Regulatory Commission ("FERC"), the execution, delivery and performance of this Amendment by it does not require the consent or approval of, filing with, nor notice to any other person, which if not obtained would prevent it from performing its obligations hereunder; and (iv) the execution, delivery and performance of this Amendment by it does not violate any federal, state or municipal laws, rules or regulations applicable to it.

3.&nbsp;&nbsp;&nbsp;&nbsp;<u>EFFECTIVE DATE</u>: As Basin Electric and Tri-State are no longer borrowers from the Rural Utilities Service, no approval by the Administrator of the Rural Utilities Service is required. As Basin Electric and Tri-State have filed the Participation Agreement with FERC, FERC's approval or acceptance for filing of this Amendment is required. This Amendment 14 is effective on the latest of the effective date ("Effective Date") established by FERC upon the final and unappealable acceptance for filing of this Amendment. Basin Electric will provide written notice to all other Participants of the Effective Date.

**IN WITNESS HEREOF**, the Parties have caused this Amendment No. 14 to be executed and delivered as of the date first written above.

[SIGNATURE PAGES TO FOLLOW]

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| | | |
|:---|:---|:---|
| | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| (SEAL) |  |  |
|  | By: | /s/ Todd E. Telesz |
|  | Title: Chief Executive Officer & General Manager | Title: Chief Executive Officer & General Manager |
| ATTEST: |  |  |
| By:&nbsp;&nbsp;&nbsp;&nbsp;/s/  |  |  |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Assistant Secretary |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NORTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF BURLEIGH |) | |

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On this 22nd day of February, 2023, before me personally appeared Todd E. Telesz, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Executive Officer and General Manager of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Todd E. Telesz acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Lisa J. Carney |
| | My Commission Expires: 10-19-26 |

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| | | |
|:---|:---|:---|
| | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. |
| (SEAL) |  |  |
|  | By: | /s/ Duane Highley |
|  | Title: Chief Executive Officer | Title: Chief Executive Officer |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF COLORADO |) | |
| |) | ss. |
| COUNTY OF ADAMS |) | |

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On this 14th day of February, 2023, before me personally appeared Duane Highley, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Operating Officer of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Duane Highley acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Shannon Michelle Bradley |
| | My Commission Expires: 1-18-2026 |

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| | | |
|:---|:---|:---|
| | WESTERN MINNESOTA MUNICIPAL POWER AGENCY | WESTERN MINNESOTA MUNICIPAL POWER AGENCY |
| (SEAL) |  |  |
|  | By: | /s/ Thomas J. Heller |
|  | Title: Assistant Secretary & Assistant Treasurer | Title: Assistant Secretary & Assistant Treasurer |
| ATTEST: |  |  |
| By: <u>/s/</u>  |  |  |
| Title: General Counsel |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF SOUTH DAKOTA |) | |
| |) | ss. |
| COUNTY OF LINCOLN |) | |

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On this 21st day of February, 2023, before me personally appeared Thomas J. Heller, to me personally known, who, having been by me first duly sworn, did say that he is the Assistant Secretary and Assistant Treasurer of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed on behalf of said agency by authority of its board of directors; and said Thomas J. Heller acknowledged said instrument to be the free act and deed of said agency.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Tasha L. Altmann |
| | My Commission Expires: |

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| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CITY OF LINCOLN, NEBRASKA d/b/a<br>Lincoln Electric System | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CITY OF LINCOLN, NEBRASKA d/b/a<br>Lincoln Electric System |
| (SEAL) |  |  |
|  | By: | /s/ Kevin G. Wailes |
|  | Title: Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System | Title: Chief Executive Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;Lincoln Electric System |
| ATTEST: |  |  |
| By: /s/ Shelley Sahling-Zart |  |  |
| Title: General Counsel |  |  |

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<u>ACKNOWLEDGMENT</u>

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| | | |
|:---|:---|:---|
| STATE OF NEBRASKA |) | |
| |) | ss. |
| COUNTY OF LANCASTER) | COUNTY OF LANCASTER) | |

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On 14th day of February, 2023, before me personally appeared Kevin G. Wailes, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Executive Officer of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed on behalf of Lincoln Electric System by authority of its Administrative Board; and said Kevin G. Wailes acknowledged said instrument to be the free act and deed of said Lincoln Electric System.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.

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| | |
|:---|:---|
| (SEAL) | Notary Public: |
| | /s/ Michelle L. Miller |
| | My Commission Expires: September 18, 2023 |

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## Exhibit 10.2

**Exhibit 10.2**

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS DOCUMENT

BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT

TREATS AS PRIVATE OR CONFIDENTIAL. THIS DOCUMENT HAS BEEN MARKED WITH

"[\*\*\*]" TO INDICATE WHERE OMISSIONS HAVE BEEN MADE.

COTEAU LIGNITE SALES AGREEMENT

dated as of January 1,&nbsp;&nbsp;&nbsp;&nbsp;1990

by and between

THE COTEAU PROPERTIES COMPANY

and

DAKOTA COAL COMPANY

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**CONTENTS**

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| | |
|:---|:---|
| ARTICLE I – DEFINITIONS | 2 |
| Section 1.1 Definitions | 2 |
| ARTICLE II - SALE OF LIGNITE | 5 |
| Section 2.1 General | 5 |
| Section 2.2 Tonnages | 5 |
| Section 2.3 Rate | 6 |
| Section 2.4 Point(s) of Delivery | 6 |
| ARTICLE III - DESCRIPTION OF LIGNITE | 6 |
| Section 3.1 Lignite Quality | 6 |
| Section 3.2 Sub-Quality Lignite | 6 |
| Section 3.3 Dedicated Lignite | 7 |
| ARTICLE IV - MINING PLAN, FINANCIAL PROTECTION TO DAKOTA | 7 |
| Section 4.1 Mining Plan | 7 |
| Section 4.2 Budgets and Cash Flow Projections | 8 |
| Section 4.3 Financial Protection to Dakota | 8 |
| Section 4.4 Change Orders | 10 |
| Section 4.5 Meetings | 10 |
| Section 4.6 Reports | 10 |
| Section 4.7 Procurement Policies | 11 |
| Section 4.8 Payment of Dividends | 11 |
| Section 4.9 Accounting Practices | 11 |
| Section 4.10 Other Policies and Practices | 11 |
| Section 4.11 Employment Contracts | 12 |
| ARTICLE V – PRICING | 12 |
| Section 5.1 Determination of Price | 12 |
| Section 5.2 Cost of Production | 12 |
| Section 5.3 Price During Development Period | 15 |
| Section 5.4 Computation of Agreed Profit | 15 |
| Section 5.5 Modification of Agreed Profit | 16 |
| Section 5.6 Further Modifications | 17 |
| Section 5.7 Post-Expiration/Termination Payments | 17 |
| Section 5.8 Mine Closing Costs | 18 |

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| | |
|:---|:---|
| ARTICLE VI - AUDITS AND FINANCIAL REPORTS | 19 |
| Section 6.1 Audits | 19 |
| Section 6.2 Financial Reports | 19 |
| ARTICLE VII - BILLING AND ADJUSTMENTS | 19 |
| Section 7.1 Billing | 19 |
| Section 7.2 Adjustments | 19 |
| ARTICLE VIII - RATE OF SHIPMENT, PERFORMANCE | 20 |
| Section 8.1 Rate of Shipment | 20 |
| Section 8.2 Performance | 20 |
| ARTICLE IX - SAMPLING AND ANALYSIS, WEIGHTS | 20 |
| Section 9.1 Sampling and Analysis | 20 |
| Section 9.2 Weights | 21 |
| ARTICLE X • LOAN AND LEASE OBLIGATIONS | 22 |
| Section 10.1 Loan and Lease Obligations | 22 |
| Section 10.2 Negative Pledge | 22 |
| ARTICLE XI • FORCE MAJEURE | 23 |
| Section 11.1 Force Majeure/Coteau | 23 |
| Section 11.2 Force Majeure/Dakota | 23 |
| Section 11.3 Idle Mine Expenses | 23 |
| Section 11.4 Resumption After Interruption | 23 |
| ARTICLE XII - LIGNITE FEE LAND AND LEASE ACQUISITION AND MAINTENANCE | 24 |
| Section 12.1 Leases | 24 |
| Section 12.2 Recoverable Tons | 24 |
| Section 12.3 Protection of Reserves | 24 |
| Section 12.4 Remedy for Failure to Protect | 24 |
| ARTICLE XIII - LIMITATION OF COTEAU'S ACTIVITIES | 25 |
| Section 13.1 Sales to Others | 25 |
| Section 13.2 Other Activities | 26 |
| ARTICLE XIV - TERM, PREMATURE TERMINATION AND EXPIRATION OPTIONS | 26 |
| Section 14.1 Term | 26 |
| Section 14.2 Premature Termination | 26 |
| Section 14.3 Expiration | 27 |
| Section 14.4 Exercise of Option for Escrowed Stock | 28 |

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| | |
|:---|:---|
| ARTICLE XV - FEDERAL GOVERNMENT PROVISIONS | 29 |
| Section 15.l Buy American | 29 |
| Section 15.2 Historic Preservation | 29 |
| Section 15.3 Nondiscrimination | 29 |
| ARTICLE XVI – GENERAL | 30 |
| Section 16.l Effect of Waiver | 30 |
| Section 16.2 Arbitration | 30 |
| Section 16.3 Assignment | 31 |
| Section 16.4 Conduct of Operations | 31 |
| Section 16.5 Right of Inspection | 31 |
| Section 16.6 Insurance | 32 |
| Section 16.7 Third Party Beneficiaries | 32 |
| Section 16.8 **Table of Contents** and Headings | 32 |
| Section 16.9 Governing Law | 32 |
| Section 16.10 Amendments | 32 |
| Section 16.11 Representations and Warranties | 32 |
| Section 16.12 Counterparts | 33 |
| Section 16.13 Notices | 33 |
| Section 16.14 Prior Agreement | 34 |
| Section 16.15 REA Approval | 34 |
| EXHIBIT A | 35 |
| EXHIBIT B | 36 |
| EXHIBIT C | 37 |
| EXHIBIT D | 39 |
| EXHIBIT E | 40 |
| EXHIBIT F | 42 |
| EXHIBIT G | 43 |
| EXHIBIT H | 45 |

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-iii-

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**COTEAU LIGNITE SALES AGREEMENT**

THIS COTEAU LIGNITE SALES AGREEMENT (Agreement) dated as of January 1, 1990, is by and between THE COTEAU PROPERTIES COMPANY, an Ohio corporation authorized to do business in the State of North Dakota (Coteau) and DAKOTA COAL COMPANY, a North Dakota corporation (Dakota).

**WITNESSETH:**

WHEREAS Coteau is a party to the Restatement of Coal Sales Agreement dated as of June 1, 1979, as subsequently amended (the Coal Sales Agreement), by and between Coteau and ANG Coal Gasification Company (ANG);

WHEREAS, as of November 1, 1988, ANG assigned, and Dakota assumed, all of ANG's rights, interests and obligations pursuant to and under the Coal Sales Agreement;

WHEREAS, Dakota has entered into an agreement entitled "Coal Sales Agreement" dated as of November 1, 1988 with Basin Electric Power Cooperative (Basin Electric) pursuant to which Dakota is selling lignite to Basin Electric for use by Basin Electric in its Antelope Valley Station, which consists of two 450 MW generating units and is located near Beulah, North Dakota;

WHEREAS, Dakota has also entered into the Coal Supply Agreement dated as of November 1, 1988 with Dakota Gasification Company (DGC) pursuant to which Dakota is selling lignite to DGC for use by DGC in its Great Plains Coal Gasification Plant. the first phase of which consists of a Lurgi lignite gasification facility with the capability of producing approximately 160 MMSCF of pipeline quality synthetic natural gas per day and is located on a site adjacent to Basin Electric's Antelope Valley Station;

WHEREAS, Dakota may enter into another agreement with Basin Electric or an Affiliate (as hereinafter defined) of Basin Electric pursuant to which Dakota will supply to Basin Electric all of the lignite to be used by Basin Electric in any expansion of the electrical generating capability at the Antelope Valley Station;

WHEREAS, Dakota may enter into another agreement with DGC or an Affiliate of DGC pursuant to which Dakota will supply to DGC all of the lignite used by DGC in any expansion of the Great Plains Coal Gasification Plant;

WHEREAS, Dakota intends to enter into another agreement with Basin Electric or an Affiliate of Basin Electric pursuant to which Dakota will supply to Basin Electric or an Affiliate of Basin Electric the portion of the lignite used at Basin Electric's Leland Olds Station, which consists of a 215 MW generating unit and a 440 MW generating unit and is located near Stanton, North Dakota. which is not supplied by the Glenharold Mine;

WHEREAS, Dakota hopes to enter into agreements with other third parties pursuant to which Dakata will provide all or a portion of the lignite used by said third parties' facilities; and

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WHEREAS, in light of the foregoing, the Coal Sales Agreement is being terminated by Coteau and Dakota simultaneously in connection with the execution and delivery of this Agreement, and Coteau and Dakota desire that this Agreement supersede and replace the Coal Sales Agreement.

NOW, THEREFORE, Coteau and Dakota agree as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.1 **<u>Definitions.</u>**

As used in this Agreement, the following terms shall have the following meanings:

Additional Dedicated Lignite shall mean those lignite reserves in the areas outside of the Primary Dedicated Lignite which, pursuant to Section 3.3 hereof, are made part of the Dedicated Lignite pursuant to this Agreement by being hereafter (a) acquired or held by Dakota or an Affiliate of Dakota, which then are acquired by, or transferred or subleased to Coteau or (b) acquired by Coteau at the direction of Dakota.

Affiliate shall mean any other person who, directly or indirectly, through ownership of securities, contract or otherwise, controls, is controlled by or is under common control with another person.

Agreed Profit shall have the meanings ascribed to the term in Sections 5.4, 5.5 and 5.7 hereof.

ANG shall mean ANG Coal Gasification Company, a Delaware corporation authorized to do business in the State of North Dakota and a second tier wholly owned subsidiary of Basin Electric.

Basic Agreement shall mean the Basic Agreement dated March 6, 1973, between North American Coal and Michigan Wisconsin Pipe Line Company. Pursuant to an. Assignment Agreement dated July 1, 1975, Michigan Wisconsin Pipe Line Company assigned all of its rights and obligations under said Basic Agreement to American Natural Gas Production Company Pursuant to an Assignment Agreement dated November 2, 1977, American Natural Gas Production Company assigned all of its rights and obligations under said Basic Agreement to WCDC. The Basic Agreement was subsequently restated pursuant to the Restatement of Basic Agreement dated as of June 1, 1979. Subsequently, the Restatement of Basic Agreement was terminated and replaced by the Coal Reserve Agreement. Pursuant to the Coal Reserve Agreement, WCDC transferred its obligations under the Restatement of Basic Agreement to ANG.

Basin Electric shall mean Basin Electric Power Cooperative, a North Dakota electric cooperative corporation.

Business Day shall mean any day other than a Saturday, Sunday or day on which banks in North Dakota or New York City are required or authorized to be closed.

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Coal Reserve Agreement shall mean the Coal Reserve Agreement made and entered into as of March 2, 1987, by and among Coteau, Dakota (as successor in interest to ANG), North American Coal, The Missouri Valley Properties Company and WCDC.

Coal Sales Agreement shall mean the Restatement of Coal Sales Agreement dated as of June 1, 1979, and as subsequently amended, by and between Coteau and Dakota (as successor in interest to ANG).

Cost of Production shall have the meaning ascribed to the term in Section 5.2 hereof.

Coteau shall mean The Coteau Properties Company, an Ohio corporation authorized to do business in the State of North Dakota and a wholly owned subsidiary of North American Coal.

Coteau's Mine shall mean all mining areas developed by Coteau in the Dedicated Lignite.

Dakota shall mean Dakota Coal Company, a North Dakota corporation and a wholly owned subsidiary of Basin Electric.

Dakota's Other Plants shall mean all additional generating units installed by Basin Electric which increase the original generating capacity of the Antelope Valley Station and all additional gasifiers as well as the incremental increased capacity achieved by replacing one or more of the existing gasifiers with a replacement gasifier having a capacity greater than the gasifier being replaced at or near the Great Plains Coal Gasification Plant.

Dakota's Plants shall mean collectively Dakota's Primary Plants, Dakota's Secondary Plant, Dakota's Other Plants and Other Plants.

Dakota's Primary Plants shall mean collectively the Antelope Valley Station. consisting of two 450 MW generating units named Units 1 and 2 and located near Beulah, North Dakota, which is controlled and operated by Basin Electric, and the Great Plains Coal Gasification Plant, the first phase of which consists of a Lurgi lignite gasification facility with the capability of producing approximately 160 MMSCF of pipeline quality synthetic natural gas per day and is located on a site adjacent to the Antelope Valley Station, which is owned and operated by DGC.

Dakota's Requirements shall mean (a) all of the coal requirements of Dakota's Primary Plants and Dakota's Other Plants, (b) except as otherwise provided by Section 2.1 hereof, the portion of the coal used at Dakota's Secondary Plant which is not supplied by the Glenharold Mine and (c) the portion of the coal requirements of Other Plants which Dakota desires Coteau to supply.

Dakota's Secondary Plant shall mean the Leland Olds Statton, consisting of a 215 MW generating unit and a 440 MW generating unit, owned by Basin Electric and located near Stanton, North Dakota.

Dedicated Lignite shall mean collectively the Primary Dedicated Lignite and the Additional Dedicated Lignite.

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Development Period shall mean, with respect to the development of any mining area of Coteau's Mine for Dakota's Plants, the period from the date of Dakota's written approval of the Mining Plan with respect to such mining area until such date that Dakota shall designate.

DGC shall mean Dakota Gasification Company. a North Dakota corporation and a wholly owned subsidiary of Basin Electric.

Emergency Expenditures shall mean expenditures for Coteau's Mine which, in the reasonable judgment of Coteau, are necessary as a result of explosion, fire, flood or other emergency and the delay of which, in order to secure Dakota's prior approval, would either Jeopardize life or substantial property of Dakota or Coteau, or result in a material interruption of Coteau's Mine production.

Escrowed Stock shall mean the one hundred (100) shares of common stock, without par value, issued and outstanding of Coteau.

Glenharold Mine shall mean the lignite reserves delineated in Exhibit A hereto which by this reference is made a part hereof.

Index shall mean the average Producer Price Index - All Commodities on the base 1982 = 100, published by the Bureau of Labor Statistics of the U.S. Department of labor, for the twelve (12) months of said calendar year. The base for calculating changes in the Index in Subsections 5.5(a), 5.5(b) and 5.5(c) hereof shall be the Producer Price Index - All Commodities for July, 1988.

Loans and Leases shall have the meaning ascribed to the term in Section 10.1 hereof.

Mining Plan shall mean the mining plan furnished to and approved by Dakota in accordance with Section 4.1 hereof and updated pursuant to such Section.

North American Coal shall mean The North American Coal Corporation. a Delaware corporation authorized to do business in the State of North Dakota (formerly Nortex Mining Company).

Option Agreement shall mean the Option and Put Agreement dated as of January 1. 1990, by and among Dakota, North American Coal and the State of North Dakota doing business as the Bank of North Dakota.

Other Plants shall mean any other facility owned by a third party for which Dakota shall contract to provide lignite.

Party shall mean either Coteau or Dakota as indicated by the context.

Parties shall mean Coteau and Dakota.

Premature Termination Mine Closing Costs shall have the Meaning ascribed to the term in Section 14.2 hereof.

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Primary Dedicated Lignite shall mean those lignite reserves within the areas of interest described in Exhibit B hereto which by this reference is made a part hereof which areas may be changed from time to time pursuant to Section 3.3 hereof.

Primary Truck Dump shall mean the facility presently located at Coteau's Mine where mine-run lignite is dumped and subsequently crushed before delivery to the Secondary Crusher Building.

Production Payment shall have the meaning ascribed to the term in Section 5.7 hereof.

Secondary Crusher Building shall mean the building constructed by Coteau to house the secondary crusher and to accommodate the transfer of lignite from the Primary Truck Dump to Dakota's Primary Plants.

Sub-Quality Lignite shall mean lignite with an average calorific content of less than six thousand two hundred (6,200) BTUs per pound on an as-received basis. Such average computations shall be based upon the analyses of representative samples taken in accordance with the provisions of Subsection 5.5(d) and Section 9.1 hereof.

Ton shall mean a net ton of two thousand (2,000) pounds.

WCDC shall mean ANR Western Coal Development Company, a Delaware corporation.

**ARTICLE II**

**SALE OF LIGNITE**

Section 2.1 **<u>General.</u>**

Dakota agrees to purchase and accept and Coteau agrees to sell and deliver lignite pursuant to the terms and conditions of this Agreement.

Dakota shall purchase from Coteau all of Dakota's Requirements pursuant to this Agreement; provided, however, that lignite purchased by Dakota from an Affiliate of Basin Electric from lignite reserves located in the Glenharold Mine for use at Dakota's Secondary Plant shall be exempt from this requirement; and further provided that, if federal, state or local laws prohibit or, in the reasonable opinion of Basin Electric or an Affiliate of Basin Electric, render uneconomical the use of North Dakota lignite at Dakota's Secondary Plant, Dakota shall have the right to purchase and use, outside of the scope of this Agreement, alternative fuels or sub-bituminous or bituminous coal at Dakota's Secondary Plant.

Section 2.2 **<u>Tonnages.</u>**

On a time schedule agreed to by the Parties, Dakota shall designate in writing to Coteau Dakota's Requirements for the following calendar year, including the monthly tonnage requirements from Coteau's Mine for each of Dakota's Plants. Dakota shall promptly advise Coteau in writing of any material revisions and modifications to the annual designation of Dakota's Requirements.

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As necessary, Dakota shall consult with Coteau as to projected increases and decreases in Dakota's Requirements on a long-range basis. If Dakota desires to increase the annual lignite deliveries for any calendar year by more than ten percent (10%) of the preceding year's lignite requirements, Dakota shall provide Coteau with a written estimated schedule of Dakota's Requirements on an annual basis for the succeeding five (5) calendar years, including the estimated deliveries from Cotaau's Mine for each of Dakota's Plants. The lignite quantities set forth in such schedule shall be within the limits of Coteau's productive capability, provided that when any increase in estimated lignite requirements occurs which necessitates the acquisition by Coteau of additional equipment, Coteau shall not be obligated to supply such increased requirements until such time as it is able to acquire and install such additional equipment and do all other things necessary to supply such increased requirements.

Section 2.3 **<u>Rate.</u>**

Scheduled deliveries shall be in approximately equal weekly amounts in each calendar year during the entire term of this Agreement, subject, however, to the right of Dakota to increase or decrease such weekly amounts pursuant to Section 2.2 hereof. The scheduling of such shipments of lignite shall be made by mutual agreement of the Parties. To the extent practicable, Coteau shall coordinate the vacation schedule at Coteau's Mine so as to accommodate the requirements of Dakota's Plants for lignite and other services provided hereunder.

Section 2.4 **<u>Point(s) of Delivery.</u>**

Delivery of lignite shall be made at Dakota's Primary Plants or to such other point(s) designated in writing by Dakota to Coteau. Any transportation beyond said point(s) of delivery shall be arranged by and at the cost of Dakota.

**ARTICLE III**

**DESCRIPTION OF LIGNITE**

Section 3.1 **<u>Lignite Quality</u>**<u>.</u>

The lignite to be sold and delivered hereunder shall be from Coteau's Mine and shall be mine-run lignite. Coteau shall make all reasonable efforts to avoid shipping extraneous impurities and, upon request of and reasonable written notice from Dakota, shall install lignite cleaning facilities specified by Dakota. Coteau shall not mine lignite from any area estimated by Coteau and Dakota to contain Sub-Quality Lignite unless Dakota shall have given its prior written consent.

Section 3.2 **<u>Sub-Quality Lignite</u>**<u>.</u>

Dakota shall have the right to reject Sub-Quality Lignite, provided that Dakota shall not have the right to reject Sub-Quality Lignite mined with its consent from an area estimated to contain Sub-Quality Lignite pursuant to Section 3.1 hereof. If Coteau delivers Sub-Quality Lignite without receiving Dakota's prior written consent pursuant to Section 3.1 hereof, Dakota shall have the right. on notice to Coteau confirmed in writing, to suspend deliveries of lignite until Coteau establishes that it will meet specifications. Any Sub-Quality lignite so rejected and not utilized or sold by Dakota shall be excluded from the tonnages upon which Coteau's Agreed Profit is based.

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Section 3.3 **<u>Dedicated Lignite</u>**<u>.</u>

The lignite to be sold and delivered hereunder shall be from the Dedicated Lignite. At the written direction of Dakota from time to time the geographic boundaries of the Dedicated Lignite may be modified to reflect the addition of Additional Dedicated Lignite to the Dedicated Lignite. At the written direction of Dakota from time to time the geographic boundaries of Primary Dedicated Lignite may be modified to reflect additions to the Primary Dedicated Lignite. With the mutual written approval of Coteau and Dakota, the geographic boundaries of the Dedicated Lignite may be modified from time to time to reflect deletions from the Dedicated Lignite. With the mutual written approval of Coteau and Dakota, the geographic boundaries of the Primary Dedicated Lignite also may be modified from time to time to reflect deletions from the Primary Dedicated Lignite.

**ARTICLE IV**

**MINING PLAN, FINANCIAL PROTECTION TO DAKOTA**

Section 4.1 **<u>Mining Plan.</u>**

From time to time at Dakota's request, Coteau shall provide to Dakota in writing a Mining Plan to furnish Dakota's Requirements from the Dedicated Lignite. The Mining Plan shall be in accordance with sound engineering and design practices and applicable laws, rules and regulations and shall include production schedules, manpower and equipment requirements, estimated costs per Ton, time schedules for mine development. estimated dates of initial production and full production, method of operation, including method of operation of any lignite handling facilities, reclamation and permitting schedules, capital expenditure· and operating cost requirements, mine design, mine projection maps, mine progression and reserve studies and such other data as may be reasonably requested by Dakota. The Mining Plan shall be in such detail and format as may be reasonably requested by Dakota. Within seventy-five (75) days after receipt by Dakota of such Mining Plan, Dakota shall give Coteau written notice of Dakota's approval or disapproval of the Mining Plan. If Dakota does not give such notice within such seventy-five (75) days, Dakota shall be deemed to have approved such Mining Plan. If Dakota disapproves the Mining Plan or any portion(s) thereof, Dakota shall state in detail in its notice of disapproval the reason(s) for such disapproval and Coteau and Dakota shall meet promptly and attempt in good faith to settle their differences with respect to the Mining Plan. If Coteau and Dakota are unable to resolve their differences within thirty (30) days after Coteau's receipt from Dakota of such notice of disapproval, Dakota may reasonably direct Coteau, subject to Section 16.4 hereof, as to the revisions to be made in the Mining Plan and Coteau shall make such revisions. The Mining Plan shall be reviewed and revised or expanded annually (or as necessary) with the written approval of Dakota. Such revisions shall be based upon the then current projections developed by Coteau and requirements of applicable law, rules and regulations and shall be subject to approval by Dakota as provided above. No material modification of or deviation from the Mining Plan shall be made without the written approval of Dakota, which approval shall not be unreasonably withheld. It is recognized by the Parties that, subject to the duties imposed upon Coteau pursuant to Section 16.4 hereof, Coteau may make minor modifications of or deviations from the.Mining.Plan without Dakota's approval. Coteau shall consult with and keep Dakota informed of the progress of the design, development and

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operation of Coteau's Mine and shall, upon Dakota's request, furnish to Dakota copies of all major and significant drawings and documents relating to such design, development and operation.

Section 4.2 **<u>Budgets and Cash Flow Projections.</u>**

Coteau shall furnish to Dakota, on a time schedule agreed to by the Parties, the following budgets and cash flow for activities pursuant to this Agreement during the following calendar year:

a) An annual capital budget containing estimates of all commitments in excess of $10,000. Such annual capital budget shall be revised quarterly and submitted to Dakota no later than forty-five (45) days prior to the end of each calendar quarter. Within forty-five (45) days after Dakota's receipt of the foregoing annual capital budget and within thirty (30) days after Dakota's receipt of the foregoing revised quarterly budgets, Dakota shall give Coteau written notice of Dakota's approval or disapproval of such capital budgets. If Dakota shall fail to give such notice within such forty-five (45) day or thirty (30) day period, as the case may be, Dakota shall be deemed to have approved such budgets. Dakota's approval of such capital budgets may be limited to the immediately following calendar quarter. Upon the approval of any capital budget or portion thereof by Dakota, such budget or portion thereof shall be deemed part of the Mining Plan.

b) An operating budget containing estimates of all operating and production costs. Such operating budget may be modified pursuant to the change order procedure described in Section 4.4 hereof. The annual operating budget shall be presented on a month-by-month basis. Within forty-five (45) days after Dakota's receipt of the foregoing annual operating budget, Dakota shall give Coteau written notice of Dakota's approval or disapproval of such operating budget. If Dakota shall fail to give such notice within such forty-five (45) day period, Dakota shall be deemed to have approved such budget. Upon the approval of any operating budget or portion thereof by Dakota, such budget or portion thereof shall be deemed part of the Mining Plan.

c) A cash flow statement for all capital expenditures and operating and production costs presented on a month-by-month basis for the following four (4) calendar years. Such cash flow statement shall be revised monthly by Coteau and submitted to Dakota.

Such budgets and cash flow statement, as described in this Section 4.2, shall be in such form and detail acceptable to Dakota.

Section 4.3 **<u>Financial Protection to Dakota.</u>**

Coteau shall not make any expenditures unless they are generally reflected in a budget, or portion thereof, approved by Dakota as aforesaid; nor shall Coteau make any single expenditure (except for expenditures made to maintain inventory levels as approved by Dakota from time to time) for materials, supplies, equipment, facilities or services in excess of $l0,000, or enter into any contracts, agreements or commitments involving more than $10,000, unless such item has

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been specifically identified in a budget, or portion thereof, approved by Dakota or unless Dakota has otherwise approved thereof.

Any expenditures made by Coteau for capital items which are not made in accordance with the immediately preceding paragraph shall be deemed to have been made for the account of Coteau and shall not be recoverable from Dakota under any of the other provisions of this Agreement. Coteau shall have the right in its sole discretion to dispose of any capital items which are deemed to have been made for the account of Coteau.

Notwithstanding anything to the contrary contained in this Agreement. Coteau shall have the right during any calendar year to make Emergency Expenditures without advance approval by Dakota, provided that Coteau shall subsequently and promptly give Dakota written notice thereof.

If, at any time while an operating budget as approved by Dakota is in effect and Dakota, in good faith, believes that Coteau is not in compliance with any of the provisions of such operating budget, Dakota shall have the right to give Coteau notice of such noncompliance. Such notice shall be in writing and identified as a "Notice of Noncompliance Pursuant to Section 4.3 of the Coteau Lignite Sales Agreement dated as of January 1, 1990", shall cite the provision(s) of the operating budget as to which Dakota believes Coteau is not in compliance, shall state in detail the reasons why Dakota so believes Coteau is not in compliance and shall include all other pertinent information.

No later than fifteen (15) Business Days after Coteau's receipt of such notice of noncompliance, Coteau shall either (a) give Dakota written notice that Coteau denies that such noncompliance has occurred or is occurring or (b) correct such noncompliance; provided, however, that if Coteau within five (5) Business Days after Coteau's receipt of such notice of noncompliance from Dakota gives Dakota· notice confirmed.in writing that Coteau needs more than fifteen (15) Business Days in order to correct the noncompliance(s) cited in such notice, together. with reasons therefore, Dakota shall give Coteau such reasonable extension as may be necessary in order to make such correction(s).

If Coteau gives Dakota notice denying such noncompliance, Coteau and Dakota shall meet promptly and attempt in good faith to settle their differences. Any matter agreed upon by Coteau and Dakota with respect to such operating budget which requires implementation shall be implemented promptly. If Coteau and Dakota are unable to resolve their differences within thirty (30) days after Dakota's receipt of notice from Coteau denying such noncompliance, either Party may submit the matter to arbitration as provided in Section·l6.2 hereof. If arbitration is sought, Coteau shall not be deemed to be in noncompliance and shall not be required to correct any noncompliance until the matter shall have been determined finally in accordance with the aforesaid arbitration provisions.

If the noncompliance is not corrected or resolved by Coteau and Dakota as aforesaid and (x) arbitration is not so sought, or (y)&nbsp;&nbsp;&nbsp;&nbsp;Coteau subsequently is found in arbitration proceedings to be in noncompliance, then all costs incurred by Coteau following the expiration of five (5) Business Days after Coteau's receipt of notice of noncompliance from Dakota, including costs

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incurred during the period prior to the completion of any arbitration proceeding, and which costs result directly from such noncompliance with the operating budget as specified in said notice of noncompliance from Dakota, shall be disallowed up to an amount equal to the Agreed Profit due to Coteau for lignite produced during the period of disallowance and computed in accordance with Section 5.4 hereof. Subject to the provisions of Section 16.4 hereof, such disallowance shall be Dakota's exclusive remedy for such noncompliance.

Section 4.4 **<u>Change Orders.</u>**

Coteau shall develop a change order procedure acceptable to Dakota. Change orders consistent with such procedures shall be submitted by Coteau to Dakota for Dakota's approval for (a) any change in the annual operating budget, as approved by Dakota resulting from changes requested in writing by Dakota in the lignite quantities or design criteria contained in the annual operating budget, (b) any factor which results in a change in the current delivery schedule for&nbsp;&nbsp;&nbsp;&nbsp;lignite and (c) any predicted or actual increase in the annual operating budget, as approved by Dakota.

Section 4.5 **<u>Meetings.</u>**

Coteau and Dakota shall meet periodically to review the progress of the design, development and operation of Coteau's Mine. Coteau and Dakota anticipate these meetings will be held quarterly.

Prior to such meetings, Coteau shall submit to Dakota in a format acceptable to Dakota, such reports, schedules and operating and financial data as may be reasonably requested by Dakota.

Section 4.6 **<u>Reports</u>**.

Coteau and Dakota shall cooperate to establish, maintain and use a cost and schedule control system with respect to the development of Coteau's Mine adequate for (a) the preparation of a project schedule which shall facilitate the planning of the development of Coteau's Mine and demonstrate production date impact resulting from schedule slippages, if any, in the development of Coteau's Mine, and (b) a cost control system and a physical progress data reporting system which (i) provide actual cost and scheduling status reports to Dakota for the immediately preceding calendar month by the fifteenth (15th) Business Day of every month in which development of Coteau's Mine is in progress, (ii) report the actual progress of the development of Coteau's Mine relative, to the Mining Plan and such other schedules as Dakota shall designate and (iii) provide adequate audit trail information. Such.control system may include the preparation by Coteau, as requested by Dakota, of the.following documents in a format acceptable to Dakota:

1)Budget Status Report

2)Projected Expenditures Report (actual/projected)

3)Cost and Comparison to Estimate Report

4)Physical Progress Report

5)Permit Status Report

6)Project Status Report (written detail, all areas)

7)Project Development Schedule (bar chart or time-oriented activity diagram);

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or such other documents as requested by Dakota. Coteau shall notify Dakota in writing of any proposed changes in the cost and schedule control system previously approved by Dakota.

Section 4.7 **<u>Procurement Policies.</u>**

All materials, supplies, equipment, facilities and services, and all contracts, agreements and commitments therefore or in connection therewith required to construct, develop and operate Coteau's Mine shall be acquired, entered into or made only pursuant to formal procurement policies adopted by Coteau and acceptable to Dakota. Coteau shall notify Dakota in writing of any proposed material changes to formal procurement policies previously approved by Dakota.

Section 4.8 **<u>Payment of Dividends.</u>**

Coteau shall have the right to pay dividends on the Escrowed Stock only from earned surplus.

Section 4.9 **<u>Accounting Practices</u>**.

Coteau shall maintain accurate books and records in accordance with generally accepted accounting principles and as necessary to support such detailed cost analyses, classifications and allocations as may be requested from time to time by Dakota.

Coteau's accounting systems, policies and procedures shall conform to Dakota's specifications, which shall be in accordance with generally accepted accounting principles, and shall be subject to Dakota's approval. Coteau shall notify Dakota in writing of any proposed material changes to Coteau's accounting systems, policies and procedures previously approved by Dakota. Coteau's accounting system shall provide for cost classifications (chart of accounts) as requested by Dakota. Coteau shall develop a cash management system acceptable to Dakota which shall include the maintenance of separate cash accounts to the extent requested by Dakota.

Coteau's accounting operations with respect to matters related to this Agreement shall be at such location as Dakota shall approve; provided. however, that Coteau shall have the right under this Agreement to conduct such other accounting operations and maintain such other accounting records and systems as Coteau deems necessary to be consistent with the accounting system of Affiliates of Coteau, the cost of which shall be included in the Cost of Production defined in Section 5.2 hereof.

Section 4.10 **<u>Other Policies and Practices.</u>**

Coteau shall develop formal written policies with respect to executive compensation plans, which policies shall be subject to approval of Dakota. Such approval shall not be withheld if such policies are consistent with those of North American Coal.

Expenditures by Coteau for memberships in national trade associations and state trade associations which are included in the Cost of Production shall be limited to one and two, respectively, unless expenditures for additional memberships are approved by Dakota. Coteau shall keep Dakota apprised of the activities of the trade associations of which Coteau is a member and shall use its influence as a member to support the causes of Dakota.

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Coteau shall develop formal written policies with respect to matters such as travel and entertainment, overtime, labor reporting, attendance at seminars. meetings and schools, use of company aircraft and vehicles, mine-related cost allocation methods and equipment replacement policies, all of which policies shall be subject to approval by Dakota.

Coteau shall develop formal written policies with respect to employee insurance. relocation expense. vacation and retirement benefits, all of which policies shall be subject to approval by Dakota. Such approval shall not be withheld if such policies are consistent with those of North American Coal and generally consistent with those of the lignite mining industry.

Coteau shall develop formal written policies with respect to donations to charitable and civic organizations and corporate sponsorships, which policies shall be subject to approval by Dakota. Expenditures by Coteau for donations and sponsorships which are included in the Cost of Production shall be limited to not more than $10,000 per year, unless a higher amount is approved in writing by Dakota. Coteau shall provide Dakota a listing of estimated planned expenditures for donations and sponsorships for the following calendar year by December 1.

Coteau shall notify Dakota in writing of any proposed material changes to such policies previously approved by Dakota.

Section 4.11 **<u>Employment Contracts.</u>**

Coteau shall consult with Dakota and consider the advice and counsel provided by Dakota before entering into any employment contracts or any contracts for the employment of consultants in its mining business other than contracts for professional services such as accounting services, architectural services and legal services which normally are performed by independent contractors.

**ARTICLE V**

**PRICING**

Section 5.1 **<u>Determination of Price.</u>**

Subject to the right of Dakota to determine the price during the Development Period pursuant to Section 5.3 hereof and to adjustment as provided in Sections 5.5 and 5.7 hereof, Dakota shall pay for the lignite sold and delivered hereunder a price which annually equals the Cost of Production, as defined in Section 5.2 hereof, plus the Agreed Profit as determined pursuant to Sections 5.4, 5.5 and 5.7 hereof.

Section 5.2 **<u>Cost of Production.</u>**

For the purposes of this Agreement, except as otherwise expressly stated, "Cost of Production" shall mean all the costs actually incurred by Coteau in the design, development, construction and operation of Coteau's Mine and the mining, processing and delivery of lignite under this Agreement. Such costs shall be determined and allocated on an accrual basis in accordance with

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generally accepted accounting principles (except as otherwise expressly stated herein); consistently applied and shall include but not be limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All production, transportation and maintenance costs including without limitation the following types of costs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Labor costs, which include wages and the costs of all related payroll taxes, benefits and fringes, including welfare plans, group insurance, vacations and other comparable benefits of employees, wherever located. whose labor cost is properly charged directly to Coteau's Mine.

ii)Materials and supplies,

iii)Tools,

iv)Machinery and equipment not capitalized or leased,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v)With respect to the particular lignite mined, an appropriate allocation of the cost of acquiring interests in lignite reserves and surface lands, whether in fee, by lease or otherwise, prepaid royalties recoverable on mining and other expenses of having kept such interests in effect (not including costs paid by Dakota or its Affiliates pursuant to paragraph 5 of the Coal Reserve Agreement) and current tonnage royalty actually paid, if any,

vi)Rental of machinery and equipment,

vii)Power costs,

viii)Reasonable and necessary services by third parties other than Affiliates of Coteau,

ix)Insurance including Worker's Compensation either in the state fund or self insurance, whichever in the best judgment of Coteau is more advantageous,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x)Taxes, but not including income taxes or alternative minimum income taxes imposed by any governmental unit,

xi)Cost of reclamation as required by law or at such higher level of reclamation as shall be agreed upon between the Parties,

xii)Costs incurred by Coteau in connection with or as a result of the enactment, modification, interpretation, repeal or enforcement of all applicable federal, state and local governmental laws, rules and regulations,

xiii)Development costs, which shall be amortized ratably after the end of the Development Period as provided in Section 5.3 hereof,

xiv)Amounts payable to WCDC pursuant to paragraph 7 of the Coal Reserve Agreement, and

xv)Amounts payable to WCDC pursuant to paragraph 8 of the Coal Reserve Agreement.

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There shall be credited to costs under this Subsection 5.2(a): (y) any investment tax credit or other tax credits based upon new investment taken by Coteau and any net receipts by Coteau from rental of, or other net income derived by Coteau from, property including surface lands overlying the Dedicated Lignite, and (z) all amounts disallowed in accordance with the last paragraph of Section 4.3 hereof. There shall be credited to costs under this Subsection 5.2(a) any gains, and so charged any losses, on the disposal of any property owned by Coteau related to Coteau's Mine or the Dedicated Lignite.

b) General and administrative costs of Coteau's Mine including services rendered by Affiliates of Coteau.

If any of the foregoing items in Subsections 5.2(a) and 5.2(b) hereof include costs incurred by an Affiliate of Coteau and charged to Coteau, they shall be included only at the cast to such Affiliate without addition for any loading, inter-company profit or service charge and shall be allocated to Coteau on the basis of time spent or (in the case of buildings) space used.

c) Depreciation and amortization on personal property owned by Coteau the rates of which, reflecting salvage, shalt be determined by Coteau and Dakota from time to time, and which shall not, except by mutual consent of the Parties, exceed the maximum deduction allowable under applicable federal income tax laws and regulations. Transactions involving capital assets between Coteau and any of its Affiliates shall be reflected in Coteau's accounts at the higher of the cost of the assets involved, less accrued depreciation, as shown by the accounts of the transferring company or the fair market value of the assets involved.

d) Loan and Lease Expense. Interest on indebtedness and loan and lease commitment fees to the extent not previously paid by Dakota during the Development Period currently due and payable, and amortization of other expenses incurred in connection with Coteau obtaining loans or leases (to the extent not otherwise provided for under Subsection 5.2(c) hereof), accrued by Coteau with respect to such loans and leases, less interest or dividends received by Coteau on its investments.

e) Protective Provisions. If Coteau files consolidated tax returns with an Affiliate or Affiliates of Coteau, it shall collect from such Affiliate or Affiliates any net tax benefit derived by any such Affiliate from such consolidation attributable to Coteau. If Coteau has any surplus cash, it shall invest it in income producing securities or, if requested by Dakota, use such excess to repay indebtedness of Coteau.

Notwithstanding the foregoing, "Cost of Production" shall specifically exclude fines and penalties imposed by any governmental agency, administration, commission or body, with the exception of (i) a fine or penalty imposed by a governmental agency, administration, commission or body regulating the mining of lignite or the reclamation of mined lignite lands or (ii) a fine or penalty imposed by any governmental agency, administration, commission or body on activities or conduct specifically directed or otherwise approved by Dakota or one of its Affiliates.

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Section 5.3 **Price During Development Period.**

Dakota shall determine the price to be paid during each Development Period for the lignite sold and delivered hereunder from the relevant portion of Coteau's Mine, which price shall not be less per Ton of lignite than the prior calendar year's Cost of Production per Ton of lignite and which shall be deemed to include the Agreed Profit with respect to lignite delivered from such portion of Coteau's Mine. During each Development Period, the excess of the Cost of Production over the price (less Agreed Profit) paid for such lignite shall be capitalized, for purposes of determining subsequent price. The amount so capitalized shall be recovered by inclusion in the Cost of Production pro rata commencing at the end of each Development Period over a period, designated by Dakota, which shall not be longer than the estimated life of the particular mining area.

Section 5.4 **<u>Computation of Agreed Profit.</u>**

a) For lignite sold and delivered hereunder in any calendar year for use at Dakota's Primary Plants, the Agreed Profit, expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons of lignite up to and including [\*\*\*] ([\*\*\*]) Tons and shall be [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons of lignite which exceed [\*\*\*] ([\*\*\*]) Tons, which such amounts of Agreed Profit shall be subject to adjustment as provided in Subsection 5.5(a) hereof.

For the first [\*\*\*] ([\*\*\*]) Tons of lignite sold and delivered from the Dedicated Lignite for use at Dakota's Primary Plants following the date of this Agreement, the Agreed Profit per Ton, after adjustment pursuant to Subsection 5.5(a) hereof, shall be reduced by an amount equal to [\*\*\*] cents ([\*\*\*]¢) adjusted in the manner as provided in paragraph 7 of the Coal Reserve Agreement. An example of the aforesaid calculation is attached hereto as Exhibit C and made a part hereof.

b) For lignite sold and delivered hereunder for use at Dakota's Other Plants, the Agreed Profit. expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ([\*\*\*]¢) per Ton, which such amount shall be subject to adjustment as provided in Subsection 5.5(b) hereof, until the quantity of lignite sold and delivered to Dakota's Secondary Plant, Dakota's Other Plants and Other Plants equals the total quantity of economically recoverable lignite reserves contained within the Additional Dedicated Lignite then owned, leased or subleased by Coteau pursuant to this Agreement. Once the aggregate lignite deliveries to Dakota's Secondary Plant, Dakota's Other Plants and Other Plants equal such quantity, the Agreed Profit for all lignite delivered to Dakota for use at Dakota's Other Plants shall be at the rate(s) specified in Subsection 5.4(a) hereof and the adjustment of such Agreed Profit shall be as provided in Subsection 5.5(a) hereof.

c) For lignite sold and delivered hereunder in any calendar year for use at Dakota's Secondary Plant and at Other Plants the Agreed Profit, expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons up to and including [\*\*\*] ([\*\*\*]) Tons, [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons in excess of [\*\*\*] ([\*\*\*]) and less than [\*\*\*] ([\*\*\*]) Tons, and [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons including and in excess of [\*\*\*] ([\*\*\*]) Tons, which such amounts of Agreed Profit shall be subject to adjustment as provided in

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Subsection 5.5(c) hereof, until the quantity of lignite sold and delivered to Dakota's Secondary Plant, Dakota's Other Plants and Other Plants equals the total quantity of economically recoverable lignite reserves contained within the Additional Dedicated Lignite then owned. leased or subleased by Coteau pursuant to this Agreement. Once the aggregate lignite deliveries to Dakota's Secondary Plant, Dakota's Other Plants and Other Plants equal such total quantity, the Agreed Profit for all lignite delivered to Dakota for use at Dakota's Secondary Plant and at Other Plants shall be at the rate(s) specified in Subsection 5.4(a) hereof and the adjustment of such Agreed Profit shall be as provided in Subsection 5.5(a) hereof.

Section 5.5 **<u>Modification of Agreed Profit.</u>**

a) The Agreed Profit per Ton for each Ton of lignite sold and delivered hereunder for use at Dakota's Primary Plants shall be adjusted for each calendar year, as of December 31 of such calendar year, by [\*\*\*] percent ([\*\*\*]%) of the percentage difference between the Index for the year under consideration and the base Index figure. An example of the aforesaid calculation is attached hereto as Exhibit D and made a part hereof.

b) Subject to Subsection 5.4(b) hereof, the Agreed Profit per Ton for each Ton of lignite sold and delivered hereunder for use at Dakota's Other Plants shall be adjusted for each calendar year, as of December 31 of such calendar year, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)[\*\*\*] percent ([\*\*\*]%) of the first [\*\*\*] percent ([\*\*\*]%) of the change in the Index for the year under consideration relative to the previous year's Index and

ii)A prorated percentage of that portion of the percentage change in the Index for the year under consideration relative to the previous year's Index which is greater than [\*\*\*] percent ([\*\*\*]%) but less than [\*\*\*] percent ([\*\*\*]%), which proration shall be made linearly, with the prorated percentage being [\*\*\*] percent ([\*\*\*]%) for a [\*\*\*] ([\*\*\*]%) increase or decrease in the Index and with the prorated percentage being [\*\*\*] percent ([\*\*\*]%) for the [\*\*\*] percent ([\*\*\*]%) change in the Index and

iii)[\*\*\*] percent ([\*\*\*]%) of that portion of the percentage increase or decrease in the Index relative to the previous year's Index which is equal to or greater than [\*\*\*] percent ([\*\*\*]%).

Examples of the aforesaid calculation are attached hereto as Exhibit E and made a part hereof.

c) Subject to Subsection 5.4(c) hereof, the Agreed Profit per Ton for each Ton of lignite sold and delivered hereunder for use at Dakota's Secondary Plant and Other Plants shall be adjusted for each calendar year, as of December 31 of such calendar year, by [\*\*\*] percent ([\*\*\*]%) of the percentage difference between the Index for the year under consideration and the base Index figure. An example of the aforesaid calculation is attached hereto as Exhibit F and made a part hereof.

d) The Agreed Profit for all Sub-Quality lignite that is sold and delivered hereunder shall be reduced by multiplying the applicable Agreed Profit by a fraction, the numerator of which shall be the actual BTU content of said Sub-Quality Lignite and the denominator of which

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shall be [\*\*\*] ([\*\*\*]) BTUs per pound. The Agreed Profit rate to which such reductions shall be made shall be the average Agreed Profit rate, before said adjustment, paid by Dakota to Coteau during the month in which the Sub-Quality Lignite is severed by Coteau and sold and delivered to Dakota hereunder. An example of the aforesaid calculation is attached hereto as Exhibit G and made a part hereof.

Specific mining areas in which Sub-Quality Lignite is available shall be determined by Coteau and agreed to by Dakota prior to the delivery of such lignite. The actual quantities of Sub-Quality Lignite taken from these specific areas to which the adjustment in this Subsection 5.5(d) shall apply, shall be determined by pit survey, and the BTU rating shall be determined from pit samples, utilizing procedures mutually agreed to by Coteau and Dakota.

Section 5.6 **<u>Further Modifications.</u>**

If at any time during the term of this Agreement it is reasonably believed by either Party that the Producer Price Index - All Commodities or any index substituted therefor in accordance with the following provisions reflects the true change in purchasing power of the United States dollar, then upon the written request of either Party a substituted index or method whereby such change in purchasing power of the United States dollar, can be determined shall be substituted by mutual agreement. In the event that the Producer Price Index- All Commodities or any substituted index is changed in the future to use some base other than the base of 1982 = 100, then, for the purposes hereof, the Producer Price Index - All Commodities or any substitute index, as the case may be, shall be adjusted so as to be in correct relationship to the base of 1982 = 100, or some other alternative base which is mutually agreeable to Coteau and Dakota. In the event publication of the Producer Price Index - All Commodities or any substituted index is no longer made by any federal agency, the index to be used as aforesaid shall be that index agreed to by the Parties which, after necessary adjustment, if any, provides the most reasonable substitute for said index.

Section 5.7 **<u>Post-Expiration/Termination Payments</u>**.

a) In the event that, following an expiration of this Agreement pursuant to Section 14.1 hereof, Dakota exercises its right, pursuant to the Option Agreement, to cause the transfer of the Escrowed Stock to Dakota, or in the event that, following a premature termination of this Agreement pursuant to Subsection 14.2(a) hereof, North American Coal exercises its put option under the Option Agreement, Dakota shall then pay to North American Coal or its designee as part of the purchase price for' the Escrowed -Stock. a production payment (Production Payment) in the following amounts under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Until such time as Dakota shall have paid Agreed Profit as calculated pursuant to Subsection 5.4(a) hereof as adjusted pursuant to Subsection 5.5(a) hereof and/or Production Payments pursuant to the terms of this Agreement for [\*\*\*] ([\*\*\*]) Tons of coal and/or lignite sold and delivered following the date of this Agreement, a Production Payment equal to the Agreed Profit as calculated pursuant to Subsection 5.4(a) hereof as adjusted pursuant to Subsection 5.7(b) hereof for x) coal and/or lignite sold and delivered to Dakota's Primary Plants, regardless of the source of such coal and/or lignite, and/or lignite sold and delivered to Dakota's Plants from Primary Dedicated Lignite;

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ii)After the conditions of Subsection 5.7(a)(i) hereof have been satisfied and Dakota shall have paid the specified Agreed Profit and/or Production Payments for [\*\*\*] ([\*\*\*]) Tons, a Production Payment, expressed in January l, 1990 dollars, equal to [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons mined from the Primary Dedicated Lignite and sold to Dakota's Plants, until such time as Dakota shall have paid Agreed Profit pursuant to Subsection 5.4(a) hereof as adjusted pursuant to Subsection 5.5(a) and/or Production Payments pursuant to Subsection 5.7(a)(i) hereof and this Subsection 5.7(a)(ff) as adjusted pursuant to Subsection 5.7(b) hereof for all Tons in excess of [\*\*\*] ([\*\*\*]) Tons of coal and/or lignite but less than [\*\*\*] ([\*\*\*]) Tons of coal and/or lignite; and

iii)Thereafter, a Production Payment, expressed in January 1, 1990 dollars, equal to [\*\*\*] cents ([\*\*\*]¢) per Ton for all Tons mined from the Primary Dedicated Lignite and sold and delivered to Dakota's Plants, until such time as Dakota shall have paid Agreed Profit pursuant to Subsection 5.4(a) hereof as adjusted pursuant to Subsection 5.5(a) hereof and/or Production Payments pursuant to Subsection 5.7(a)(i) and Subsection 5.7(a)(ii) hereof and this Subsection 5.7(a)(iii) as adjusted pursuant to Subsection 5.7(b) hereof for all Tons in excess of [\*\*\*] ([\*\*\*]) but less than [\*\*\*] ([\*\*\*]) Tons of coal and/or lignite; at which point Dakota's obligation to pay the Production Payment shall cease.

b) The Production Payment per Ton of lignite referenced in Subsection.5.7(a)(i) hereof shall be adjusted for each calendar year, as of December 31 of such calendar year, by [\*\*\*] percent ([\*\*\*]%) of the percentage difference between the Index for the year under consideration and the Index as of July l, 1988. The Production Payment per Ton of lignite referenced in Subsections 5.7(a)(ii) and 5.7(a)(iii) hereof shall be adjusted for each calendar year, as of October 31 of such calendar year, by [\*\*\*] percent ([\*\*\*]%) of the percentage difference between the Index for the year under consideration and the Index as of January 1, 1990.

c) There shall be included in and counted toward the tonnage figures in Subsection 5.7(a) hereof all Tons of lignite sold by Coteau to third parties as provided in Section 13.1 hereof.

d) In the event Dakota or North American Coal exercises its right. pursuant to the Option Agreement, to cause the transfer of the Escrowed Stock to Dakota, (i) the obligations of Dakota under this Section 5.7 shall survive any termination or expiration of this Agreement, (ii) Dakota shall not. and shall cause Coteau to not, dissolve or liquidate and (iii) Dakota shall not, and shall cause Coteau to not, merge or consolidate with, or sell all or substantially all of its assets to. any third party unless such third party shall have agreed in writing to be bound by the terms of this Section 5.7 and shall be financially capable of performing Dakota's obligation under this Section 5.7 and shall otherwise be solvent.

Section 5.8 **<u>Mine Closing Costs.</u>**

Dakota recognizes that mine closing costs will be incurred by Coteau from time to time. Dakota shall reimburse Coteau for all such mine closing costs. Such costs when determined shall be included within budgets and operating plans submitted to Dakota for its approval and shall be paid as part of the Cost of Production or otherwise be reimbursed to Coteau by Dakota as incurred, which obligation of Dakota shall survive any termination or expiration of this Agreement.

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**ARTICLE VI**

**AUDITS AND FINANCIAL REPORTS**

Section 6.1 **<u>Audits.</u>**

Coteau shall annually have an audit of its accounts performed by a firm of independent certified public accountants and shall provide Dakota with a copy of such audit. Dakota shall have the right at any time on reasonable notice in writing to Coteau to examine by its certified public accountants (which may include representatives of Basin Electric or its Affiliate) the records and books of account of Coteau and any Affiliate of Coteau, :relating to the items and allocations of cost and production entering into the computation of the Cost of Production. Payment or payments under Article VII of this Agreement shall not be deemed a waiver of any rights of Dakota to have the price hereunder corrected.

Section 6.2 **<u>Financial Reports.</u>**

On or before the twentieth (20th) day of each month, Coteau shall furnish to Dakota financial statements reflecting Coteau's financial position as of the end of the preceding calendar month and the results of operations of Coteau for the period then ending and a detailed statement of the Cost of Production for the preceding calendar month at Coteau's Mine, including the quantity of lignite delivered and the aggregate man-hours by classification and shifts required for its production. Coteau shall furnish to Dakota detailed cost analyses and other financial reports with respect to Coteau as Dakota may reasonably request. Said statements, analyses and reports shall be in such form and detail as may reasonably be requested by Dakota.

**ARTICLE VII**

**BILLING AND ADJUSTMENTS**

Section 7.1 **<u>Billing.</u>**

The monthly invoice for lignite sold and delivered hereunder in a calendar month shalt be issued by Coteau no earlier than the sixth (6th) day of the next calendar month. Any such invoice received by Dakota after 12:00 Noon. Bismarck time, on any Business Day shall be deemed to have been received by Dakota on the following Business Day. Dakota shall pay such invoice within ten (10) days after its receipt thereof. If such tenth (10th) day is not a Business Day, Dakota shall pay such invoice no later than the next following Business Day.

Section 7.2 **<u>Adjustments.</u>**

After the end of each Development Period, the monthly billing of lignite sold and delivered from Coteau's Mine to which such Development Period related in each calendar month shall be based upon the estimated Cost of Production applicable to Coteau's Mine during such month, plus the Agreed Profit on lignite mined from Coteau's Mine for such month. Any differences between the estimated Cost of Production, upon which the billing is based, and actual Cost of Production for each calendar month shall be included as an adjustment to the monthly billing of lignite in each subsequent calendar month.

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Billings for lignite sold and delivered from Coteau's Mine for each calendar month shall be based upon the Agreed Profit for the previous calendar year as recomputed pursuant to Section 5.5 hereof. As soon as possible after the expiration of each calendar year. the Agreed Profit shall be recomputed on an annual basis for such calendar year and additional payment or refund shall be made accordingly. An example of such recomputation is attached hereto as Exhibit H and made a part hereof.

**ARTICLE VIII**

**RATE OF SHIPMENT, PERFORMANCE**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;**<u>Rate of Shipment.</u>**

If by reason of failure to receive shipping instructions or releases from Dakota under this Agreement, Coteau does not ship the required amount for any particular month, Coteau shall have the option, but shall not be required, to

waive the actual delivery of the undelivered tonnage for such month, but any such waiver shall not relieve Dakota from liability to respond in damages for the failure to perform its obligations; provided, however, that Dakota shall not incur any liability to respond in damages if the failure to perform its obligations pursuant to this Agreement is due to an event described in Section 11.2 hereof. If Coteau fails to !Rake deliveries required of it hereunder, Dakota shall have the option, but shall not be required, to waive the actual delivery of the undelivered tonnage, but such waiver shall not relieve Coteau from the liability to respond in damages for the failure to perform its obligations.

Section 8.2 **<u>Performance.</u>**

Notwithstanding anything to the contrary contained in this Agreement, Coteau shall not incur any liability to respond in damages for failure to perform its obligations pursuant to this Agreement if such failure is due to an event described in Section 11.1 hereof or if such failure is due to control exercised by Dakota in accordance with this Agreement or results from the failure of Dakota to perform its obligations in accordance herewith.

**ARTICLE IX**

**SAMPLING AND ANALYSIS, WEIGHTS**

Section 9.1 **<u>Sampling and Analysis.</u>**

Except for the analyses of pit samples of Sub-Quality Lignite pursuant to Subsection 5.5(d) hereof, the quality of the lignite sold and delivered hereunder from Coteau's Mine shall be determined by analyses of samples taken from at least five thousand (5,000) Tons of lignite at a point or points mutually agreed upon by Coteau and Dakota. Sampling and analysis shall be performed by methods which meet the standards of the American Society of Testing Materials, or by such other methods as nay be mutually agreed upon by Coteau and Dakota. Each sample shall be divided into two (2) parts and put into suitable air-tight containers. One (1) part shall be submitted to Dakota for analysis and the second part shall be properly sealed and labeled and

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retained by Dakota for thirty (30) days, to be analyzed if a dispute arises with respect to the results of the analyses of Dakota. Coteau shall be given copies of all analyses made by Dakota and Coteau shall have the right to have a representative present at any and all times to observe the sampling and analyses performed by Dakota.

If any dispute arises with respect to the results of the analyses of Dakota. an analysis of the second part shall be made by an independent commercial testing laboratory mutually chosen by Coteau and Dakota and the analysis of the independent commercial testing laboratory shall be controlling. The cost of the analysis made by such commercial laboratory shall be paid by Coteau and shall be included in the Cost of Production.

If any dispute arises with respect to the methods of sampling or analyses performed or being performed by Dakota, Coteau shall so advise Dakota. Coteau and Dakota shall meet promptly and shall, within thirty (30) days of notice of such dispute, mutually agree upon modifications or changes in such method(s) to resolve such dispute.

Section 9.2 **<u>Weights.</u>**

The weight of the lignite sold and delivered hereunder for use at Dakota's Plants shall be determined by Coteau on scales located on the conveyors between the Primary Truck Dump and the Secondary Crusher Building at Dakota's Primary Plants or at such other location(s) mutually agreed to by the Parties; provided, however, that when Coteau's scales are inoperable, the weight of lignite sold and delivered hereunder for use at Dakota's Primary Plants and Dakota's Other Plants shall be determined by Basin Electric's and/or DGC's scales at Dakota's Primary Plants. Dakota shall be given a record of all weight determinations made by Coteau and shall have the right to have a representative present at any and all times to observe the weighing of lignite sold and delivered hereunder. If Dakota at any time questions the accuracy of the weights, Dakota shall so advise Coteau and Coteau shall permit Dakota's representatives to test and check such scales. If such tests show that any scale is inaccurate, it shall be adjusted by mutual agreement of Coteau and Dakota to an accurate condition.

The weight of lignite redelivered by Dakota to Dakota's Secondary Plant and to Other Plants shall be determined from rail car or truck weight receipts acquired from the transportation contractor(s), or by some other method mutually agreeable to the Parties. The weight of the lignite utilized by Dakota's Primary Plants and Dakota's Other Plants shall be determined by subtracting the weight of the lignite ultimately delivered to Dakota's Secondary Plant and to Other Plants from the total lignite measured on Coteau's scales at the location(s) specified in this Section 9.2. For the weight of all lignite redelivered by Dakota to Dakota's Secondary Plant and Other Plants, Coteau shall be given a record of all weight determinations made by Dakota, and Coteau shall have the right to have a representative present at any or all times to observe the weighing of lignite delivered hereunder. If Coteau should at any time question the accuracy of the weights, Coteau shall so advise Dakota and Dakota shall permit Coteau's representatives to test and check such scales. If such tests show that any scale is inaccurate, it shall be adjusted by mutual agreement of Coteau and Dakota to an accurate condition.

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If it is determined that any scale or any other method used to weigh lignite is inaccurate, the quantities of lignite delivered hereunder during the period when such inaccuracy existed shall be adjusted pursuant to procedures agreed to by the Parties.

**ARTICLE X**

**LOAN AND LEASE OBLIGATIONS**

Section 10.1 **<u>Loan and Lease Obligations.</u>**

It will be necessary for Coteau to obtain loans and/or leases for the construction and equipping of Coteau's Mine, which shall be indebtedness or lease obligations of Coteau not guaranteed by North American Coal. If Dakota so requests, Coteau shall use its best efforts to obtain long-term loans and/or long-term leases (such loans and leases and such continued or additional loans or leases as may be necessitated by replacement of or addition to Coteau's equipment, or by the expiration of any lease of equipment to Coteau prior to the expiration of this Agreement being referred to herein collectively as the "Loans and Leases") in amounts sufficient for the following purposes: developing, equipping and operating of Coteau's Mine, including, without

limitation. (a) developing roadways, (b) constructing tipples and cleaning plants, (c) acquiring machinery and (d) maintaining working capital for operating Coteau's Mine; provided, however. that (i) the Loans and Leases and the amounts thereof must be approved by Dakota in its sole discretion and shall be made if directed by Dakota and (ii) if such Loans and Leases are not available to Coteau, or Dakota does not request that Coteau obtain the same or does not approve the same, Dakota shall assume the responsibility for obtaining the Loans and Leases for such amounts and on such terms as it shall reasonably determine to be necessary to meet the foregoing purposes. If Dakota has such responsibility. Dakota itself shall (w) provide the Loans and Leases, (x) arrange for Loans or Leases by Coteau from third persons, (y) direct Coteau to borrow or lease from third persons or (z) combine Dakota's Loans or Leases with those of third persons. If the Loans and Leases shall be arranged with third persons, Dakota shall have the right subsequently to discharge the Loans or Leases and substitute itself as lender or lessor for the balance of the term of such Loans or Leases. Any Loan or Lease provided, arranged for or directed by Dakota in the exercise of its rights under this Section 10.1 shall not be less favorable to Coteau than a Loan or Lease for the same term which could be obtained by Coteau directly. Dakota shall have the right to cause part or all of its obligations under this Section 10.1 with respect to Coteau's Mine to be performed by an Affiliate, but such performance by an Affiliate shall not relieve Dakota of its responsibility for arranging subsequent Loans and Leases for Coteau's Mine.

Section 10.2 **<u>Negative Pledge</u>**.

Coteau shall not incur any long-term debt or pledge or encumber any assets owned by it in fee or any leasehold interests which it may hold except in connection with financing which has been approved by Dakota or an Affiliate of Dakota.

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**ARTICLE XI**

**FORCE MAJEURE**

Section 11.1 **<u>Force Majeure/Coteau.</u>**

In the event of strikes, labor disputes, fires, accidents at Coteau's Mine, failure of equipment, inability of Coteau to obtain necessary equipment by reason of a general short supply thereof, failure of transportation or shortage of transportation equipment, federal, state or local laws or regulations or other contingencies, whether of a like or different nature, beyond the control of Coteau and not due to its negligence, any of which contingencies prevents or interferes with the production or shipment of lignite hereunder. the shipments contracted for may, at the election of Coteau, be suspended or partially suspended as the case may require for the duration of the contingency.

Section 11.2 **<u>Force Majeure/Dakota.</u>**

In the event of strikes, labor disputes, fires, accidents at Dakota's Plants, failure of equipment, the inability to obtain necessary equipment for Dakota's Plants by reason of a general short supply thereof, failure of transportation or shortage of transportation equipment, federal, state or local laws or regulations or other contingencies, whether of a like or different nature, beyond control of Dakota and not due to its negligence. any of which contingencies prevents or interferes with the taking of delivery of the lignite purchased hereunder at Dakota's Plants to which, under instructions of Dakota, such lignite is then currently being delivered, or which prevents or interferes with the processing of such lignite or the subsequent transportation of the product to be produced at Dakota's Plants, or in the event that the product to be produced at Dakota's Plants cannot be sold on an economic basis, then shipments contracted for shall, at the election of Dakota, be suspended or partially suspended as the case may require for the duration of such contingency.

Section 11.3 **<u>Idle Mine Expenses.</u>**

Notwithstanding the suspensions of delivery of lignite provided for in Sections 11.1 and 11.2 hereof, if Coteau's Mine is substantially idle during a calendar month pursuant to such Sections, or if Dakota takes no deliveries in any calendar month, Dakota shall pay to Coteau as part of the Cost of Production or otherwise reimburse Coteau for the actual out-of-pocket idle mine expenses and depreciation for such month.

Section 11.4 **<u>Resumption After Interruption.</u>**

Interruptions in tendering delivery or acceptance of shipments and deliveries referred to in this Article XI shall not invalidate the remainder of this Agreement, but upon removal of the cause of such interruptions, delivery shall be resumed at the rate specified herein. In the event of such interruptions, the Party immediately affected by such contingency shall, if possible, give reasonable advance notice confirmed in writing to the other Party of the extent and probable duration thereof. with sufficient detail to enable the other Party to verify the same.

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**ARTICLE XII**

**LIGNITE FEE LAND AND LEASE ACQUISITION AND MAINTENANCE**

Section 12.1 **<u>Leases</u>**.

Coteau shall proceed as directed by Dakota to acquire leases or the fee title to lignite reserves within the Dedicated Lignite. Coteau shall drill said areas to the extent that Dakota determines is necessary to establish the estimated quantity and the estimated quality of lignite therein and shall provide Dakota with access to all cores and access to and copies of all logs and other records of such drilling. In its acquisition and drilling program, Coteau shall follow any guidelines stated in writing by Dakota as to terms and conditions as well as the maximum amount it may pay for fee interests or in lease rentals or in tonnage royalties and amounts to be spent for drilling, and shall keep Dakota currently advised as to the progress of such acquisition and drilling programs. Upon the request of Dakota, Coteau shall provide, at the expense of Dakota. good and sufficient evidence of the right, title and interest of Coteau in and to leases and fee title to lignite reserves within the Dedicated Lignite. As to any parcel of land, whether mineral or surface or both, which by reason of its location is within the Dedicated Lignite, if Coteau notifies Dakota of the availability of such parcel for acquisition and Dakota does not request that it be acquired. North American Coal shall be free to acquire the same for its own account in accordance with the Coal Reserve Agreement and it shall not thereafter be considered a part or portion of the Dedicated Lignite.

Section 12.2 **<u>Recoverable Tons.</u>**

At the time Additional Dedicated Lignite is acquired by Coteau or assigned, transferred or subleased by Dakota to Coteau, Dakota and Coteau shall mutually agree as to the total quantity of economically recoverable Tons of lignite contained in such lignite reserves. If Coteau and Dakota cannot agree on the quantity of economically recoverable Tons of lignite contained within such reserves, Coteau and Dakota shall jointly select a qualified independent consultant to make a final and binding determination of such quantity.

Section 12.3 **<u>Protection of Reserves.</u>**

Coteau, utilizing lease maintenance and payment procedures approved by Dakota in writing, agrees to make all payments due under those leases acquired by or assigned or transferred to Coteau in the Dedicated Lignite in a timely manner, not to permit any default under said leases to occur, not to surrender said leases in whole or in part without the written consent of Dakota and not to encumber, assign or sublease said leases, except in connection with financing pursuant to Section 10.1 hereof.

Section 12.4 **<u>Remedy for Failure to Protect</u>**.

If Coteau, without the written consent of Dakota, causes or permits any such lease covering lignite with a calorific content of six thousand two hundred (6,200) BTUs per pound or more, on an as-received basis, to be surrendered, terminated or cancelled prior to the expiration of its term or encumbers, assigns or subleases any such lease, (a) Coteau shall (i) at its sole expense, remove the encumbrance(s), (ii) reinstate such lease or (iii) acquire and make available a substitute lease or leases within the Dedicated Lignite which, to the reasonable satisfaction of Dakota, covers

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lignite of no less total BTU content than the lignite covered by any such lease which was surrendered, terminated, cancelled, assigned or subleased, or (b) Coteau may, at its sole discretion, deliver to Dakota substitute lignite of no less total BTU content than the lignite covered by any such lease which was surrendered, terminated, cancelled, assigned or subleased at a per-Ton cost each month equal to the average of the Cost of Production, as defined in Section 5.2 hereof, for the twelve (12) month period preceding such month in which the substitute lignite is delivered to Dakota plus the applicable Agreed Profit. For the purposes of Subsections 12.4(a)(iii) and 12.4(b) hereof, only lignite with a calorific content of six thousand two hundred (6,200) or more BTUs per pound, on an as-received basis, shall be considered. For the activities described in Subsections 12.4(a)(ii) and 12.4(a)(iii) hereof, Coteau shall pay the acquisition costs (as hereinafter defined), drilling costs, engineering and testing costs, any increase in the annual advance engineering and testing costs and any increase in the annual advance royalty or rental payments and/or the production royalty rates. For the purposes of this Section 12.4 and Article XII hereof, the term "acquisition costs" shall mean the salaries, associated overhead costs and related expenses of employees engaged in the reinstatement of any lease(s) or in the acquisition of a substitute lease(s), bonus or advance royalty for a lease(s), brokerage fees, legal and other expenses in establishing and reviewing titles, closing expenses and all drilling, exploratory, analytical and engineering costs directly related to such acquisition work.

It is understood and agreed that in the event of a default by Coteau of its obligations under Section 12.3 hereof, Dakota's sole exclusive remedy shall be the enforcement of the obligations of Coteau set forth in this Section 12.4.

**ARTICLE XIII**

**LIMITATION OF COTEAU'S ACTIVITIES**

Section 13.1 **<u>Sales to Others.</u>**

Coteau shall engage in no business other than the ownership and operation of Coteau's Mine, the sale of the products thereof and the rental of property which fs owned as an incident to its mining business. Coteau shall not sell outside of this Agreement any lignite extracted from the Dedicated. Lignite which would make Coteau unable to give first priority to the performance of its obligations under this Agreement, including any extensions thereof. Coteau shall notify Dakota in writing annually of the amount of lignite to be extracted from the Dedicated Lignite, if any, which it proposes to sell outside this Agreement in advance of such sale, and Dakota shall be entitled to prohibit such sale if, in the reasonable judgment of Dakota, such sale would impair Coteau's ability to perform its obligations under this Agreement including any extensions thereof. In addition to the foregoing restrictions, such sales outside this Agreement shall not without written consent of Dakota exceed two million (2,000,000) Tons per calendar year during the first ten (10) calendar years of this Agreement.

Any sale of lignite by Coteau to third parties shall be from lignite reserves within the Dedicated Lignite. All Tons of lignite sold by Coteau to third parties shall be treated as if such Tons were sold and delivered to Dakota's Primary Plants for purposes of Section 5.7 hereof. In

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consideration of Dakota providing the financing that has enabled and will enable Coteau to acquire equipment which Coteau has used and will use to produce and sell lignite under this Agreement and to third parties, Coteau shall pay to Dakota for each Ton of lignite sold by Coteau during the term of this Agreement to third parties a fee equal to ninety cents (90¢) per Ton, which fee shall be adjusted as provided in Subsection 5.5(a) hereof. In addition, Coteau shall include in the cost of lignite sold to third parties a cost per Ton not less than the then current Cost of Production per Ton. For all Tons of lignite sold to third parties, Coteau also shall reimburse Dakota or its Affiliate a proportionate amount of the costs that Dakota or such Affiliate has incurred, and for which Dakota has not been reimbursed by Coteau, of providing financing for Coteau's Mine or for which Dakota or its Affiliates anticipate Dakota or its Affiliates will incur during the period of time that said lignite is being sold to said third parties and would not otherwise be reimbursed by Coteau.

Section 13.2 **Other Activities.**

Notwithstanding the provisions of Section 13.1 hereof. it is contemplated that Coteau may provide other services to Dakota such as solid waste disposal, disposal of excess lignite fines, snow removal as well as such other services, in each instance as may be mutually agreed upon by Coteau and Dakota. It is further contemplated that Coteau shall provide said services to Dakota at a price agreed to by the Parties.

**ARTICLE XIV**

**TERM, PREMATURE TERMINATION AND EXPIRATION OPTIONS**

Section 14.l **<u>Term.</u>**

The original term of this Agreement shalt commence on the date first written above and shall expire on April 22. 2007, provided that Dakota shall have the option to extend this Agreement for up to ten (10) successive five (5) year periods by giving written notification to Coteau not less than three (3) years before the expiration of the original term or, in the case of renewal terms, eighteen (18) months before the expiration of the renewal term then in effect; provided, however, that this Agreement shall terminate upon the exhaustion of the Dedicated Lignite. The lignite covered by any particular lease shall be deemed to be exhausted upon the expiration of such lease without further right. of renewal.

Section 14.2 **<u>Premature Termination.</u>**

a) If all of Dakota's Plants are permanently closed or if a federal, state or local law, rule or regulation is enacted or promulgated which, at the time of said enactment or promulgation, permanently prohibits or permanently prevents the mining of lignite in North Dakota, Dakota shall have the right to terminate this Agreement by giving Coteau nine (9) months' prior written notice unless Dakota is prevented from giving such prior notice by such federal, state or local law, rule or regulation in which case if Dakota so notifies Coteau in writing, this Agreement shall terminate upon· the permanent closure of all of Dakota's Plants or the effective date when the mining of lignite in North Dakota is prohibited or prevented pursuant to federal, state or local law, rule or regulation as the case may be.

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b) If Dakota exercises its right to terminate this Agreement in accordance with Subsection 14.2(a) hereof and provided North American Coal has not exercised its put option under the Option Agreement, Coteau shall retain title to all machinery, equipment and improvements or other assets of Coteau's Mine and shall retain title to all lignite which has not been mined at the date of such termination and the acquisition cost of which has been reimbursed to Coteau by Dakota or its Affiliates. Provided that (i) Dakota has paid all amounts due hereunder including all indebtedness and lease obligations which have theretofore been incurred by Coteau pursuant to Section 10.1 hereof, (ii) Dakota has reimbursed Coteau for all Premature Termination Mine Closing Costs and (iii) Dakota has assigned to Coteau all leases for equipment, machinery and other things leased or subleased by Dakota to Coteau. then Coteau shall pay to Dakota (x) the fair market value of all machinery, equipment, improvements and other assets then at Coteau's Mine and owned by Coteau (other than surface-and/or lignite lands and leases) and (y) an amount equal to the acquisition costs and carrying charges of unmined lignite for which Dakota or one of its Affiliates has reimbursed Coteau for the acquisition costs plus interest on such costs and charges at the prime rate charged from time to time by Ameritrust Company National Association, Cleveland, Ohio, from the date of reimbursement to Coteau by Dakota or an Affiliate to the time of payment by Coteau to Dakota or an Affiliate.

c) If Dakota exercises its right to terminate this Agreement in accordance with Subsection 14.2(a) hereof and North American Coal elects not to exercise its put option under the Option Agreement, Coteau and Dakota shall meet promptly and negotiate in good faith to determine the amount of the Premature Termination Mine Closing Costs. The Premature Termination Mine Closing Costs shall be determined as though Coteau's Mine were closing on the effective date of the termination of this Agreement, regardless of Coteau's intention regarding the future operation of Coteau's Mine. If within six (6) months following the commencement of such negotiations the Parties are unable to agree on the amount of any such Premature Termination Mine Closing Costs, the Parties shall mutually select disinterested mining engineers, appraisers, actuaries or other qualified experts on the issues in controversy to determine the amounts of all such disputed mine closing costs. The determination of such experts shall be binding on the Parties.

Upon payment by Dakota of the Premature Termination Mine Closing Costs, Coteau shall assume in writing and shall indemnify and hold Dakota harmless from any costs and liabilities associated with Coteau's Mine and this Agreement.

For purposes of this Section 14, "Premature Termination Mine Closing Costs" shall mean all costs which would be incurred by Coteau if Coteau was to close down Coteau's Mine with the following exceptions: pension payments and medical benefits to retired employees and the cost of reclaiming structures and improvements to real property including but not limited to buildings, haul roads, access roads, ponds, stockpiles and coal handling equipment.

Section 14.3 **<u>Expiration.</u>**

In the event of the expiration of this Agreement other than as provided in Section 14.2 hereof, and provided that Dakota has not exercised its rights as provided in Section 14.4 hereof, Dakota

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shall pay all sums than due to Coteau hereunder and shall expressly assume in writing the primary obligation to pay all remaining indebtedness and lease obligations incurred by Coteau with respect thereto to acquire all machinery, equipment and improvements or other assets (other than lignite lands) held by Coteau in connection with Coteau's Mine. Coteau shall execute and deliver to Dakota appropriate deeds, assignments, bills of sales and other instruments of transfer without further payment by Dakota. Any expense, including sales or transfer taxes, in connection with such transfer shall be paid by Dakota.

Notwithstanding the foregoing paragraph, Coteau shall have the right to retain title to all or any specified items of such property as shall be specified in writing by notice to Dakota upon payment to Dakota in cash of the fair market value of the property so retained or the amount of liens or lease rentals owing thereon, whichever is greater.

Dakota shall have no right to acquire Coteau's lignite reserves or surface lands which were owned by it or North American Coal or an Affiliate of North American Coal prior to October 1, 1971.

Coteau shall be entitled to retain the lignite which has not been mined at the date of such termination and the acquisition cost of which has been reimbursed to Coteau by Dakota or its Affiliates upon payment to Dakota of an amount equal to the acquisition costs and carrying charges for such lignite plus an amount equal to interest on such costs and charges at the prime rate charged from time to time by Ameritrust Company National Association, Cleveland, Ohio, from the date of reimbursement to Coteau by Dakota or its Affiliates to the time of payment by Coteau to Dakota or its Affiliates. This right shall apply to all but not part of such lignite.&nbsp;&nbsp;&nbsp;&nbsp;

All lignite lands, the acquisition costs and carrying charges of which ere paid by Dakota or its Affiliates which are not retained by Coteau as hereinabove provided in the foregoing paragraph, shall be transferred to Dakota by quitclaim deeds or assignment of leases without recourse, and Dakota shall pay only the expense, including transfer taxes, of such transfer.

Section 14.4 **<u>Exercise of Option for Escrowed Stock.</u>**

Provided that Dakota has not exercised any of its rights under Section 14.2 hereof, upon the expiration of the original term of this Agreement or expiration of any renewal term of this Agreement, as the case may be, Dakota may exercise its right, pursuant to the Option Agreement, to cause the transfer of the Escrowed Stock to Dakota. To exercise said right, Dakota shall give written notice to Coteau with a copy to the escrow agent under the Option Agreement not less than three (3) years before the expiration of the original term or, in the case of renewal terms, eighteen (18) months before the expiration of the renewal term then in effect and shall otherwise comply with the terms and conditions of the Option Agreement.

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**<u>ARTICLE XV</u>**

**<u>FEDERAL GOVERNMENT PROVISIONS</u>**

Section 15.1 **<u>Buy American.</u>**&nbsp;&nbsp;&nbsp;&nbsp;.

Coteau agrees that no funds advanced by Dakota or any of its Affiliates directly or indirectly to Coteau for development of Coteau's Mine shall, without the approval of Dakota, be used to acquire (a) unmanufactured articles, materials or supplies as have been mined or produced outside the United States, or (b) manufactured articles, materials or supplies mined, produced or manufactured outside the United States or manufactured inside the United States substantially all from articles, materials or supplies mined. produced or manufactured. as the case may be, outside the United States.

Section 15.2 **<u>Historic Preservation.</u>**

Coteau shall not, without the approval of Dakota, use any funds. advanced directly or indirectly by Dakota or any of its Affiliates for the development of Coteau's Mine to construct any facilities which will involve any district, site, building, structure or object which is included in the National Register of Historic Places. maintained by the Secretary of the Interior pursuant to the Historic Sites Act of 1935 and the National Historic Preservation Act.

Section 15.3 **<u>Nondiscrimination.</u>**

a) Coteau shall not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. Coteau shall take affirmative action to ensure that applicants .are employed. and that employees are treated during employment without regard to their race. color, religion, sex or national origin. Such action shall include but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Coteau shall post in conspicuous places. available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

b) Coteau shall, in all solicitations or advertisements for employees placed by or on behalf of Coteau, state that all qualified applicants shall receive consideration for employment without regard to race, color, religion, sex or national origin.

c) Coteau shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, with respect to Coteau's Mine, a notice to be provided advising the said labor union or workers representative of Coteau's commitments under this Section 15.3 and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

d) Coteau shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor to the extent applicable to Coteau.

e) Coteau shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations and orders of the Secretary of Labor applicable thereto or pursuant thereto, and shall permit access to its books, records and

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accounts by the Rural Electrification Administration and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

f) In the event of Coteau's noncompliance with the nondiscrimination clauses of this Agreement or with any of the said rules, regulations or orders referred to above, this Agreement may be cancelled, terminated or suspended by the U.S. Department of Labor in whole or in part and Coteau may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by law.

g) Coteau shall include the provisions of paragraphs (a) through (g) of this Section 15.3 in every subcontract or purchase order for construction work which is paid for in whole or in part with funds advanced directly or indirectly to Coteau by Dakota or an Affiliate, unless exempted by rules, regulations or orders of the Secretary of labor issued pursuant to Section 204 of Executive Order 11246, dated September 24, 1965, so that such provisions will be binding upon each such subcontractor or vendor. Coteau shall take such action with respect to any subcontract or purchase order as the U.S. Department of Labor may direct as a means of enforcing such provision, including sanctions for noncompliance; provided, however, that in the event Coteau becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by such agency, Coteau·may request Dakota or an Affiliate and the United States to enter into such litigation to protect the interests of Dakota and the United States.

h) In employing persons to carry out this Agreement, Coteau shall take affirmative action to employ and advance in employment qualified handicapped individuals as defined in Section 7(a) of the Federal Rehabilitation Act of 1973 and qualified veterans covered by the Vietnam Era Veterans Readjustment Act of 1974 when applicable.

**ARTICLE XVI**

**GENERAL**

Section 16.1 **<u>Effect of Waiver</u>**.

Waiver by either Party of any breach by the other Party of any of the terms and provisions of this Agreement shall not be deemed to be a waiver of breach on any other occasion of the same, nor a waiver of breach of any other term or condition. No course of dealing by either of the Parties shall operate as a waiver of any rights in respect to this Agreement. No delay or omission on the part of either Party in exercising any right in respect to this Agreement shall operate as a waiver of such right or any other right hereunder.

Section 16.2 **<u>Arbitration.</u>**

A dispute between the Parties arising out of Section 4.3 hereof shall be tried by arbitration pursuant to the Rules of the American arbitration Association in effect at the time of such arbitration, with the exceptions, as hereinafter provided for. The request for arbitration shall be in writing, setting forth in detail the claim or claims to be arbitrated, the amount involved, if&nbsp;&nbsp;&nbsp;&nbsp;any,

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and the remedy sought. It shall be delivered to the other Party within ninety (90) days of the date of the first knowledge of the claiming Party of the occurrence or conditions giving rise to the dispute. Any failure to request arbitration within such ninety (90) day period shall be deemed a waiver of the right to arbitrate the dispute. Within fifteen (15) days after the delivery· of the request, the Parties shall agree upon an arbitrator. If the Parties are unable to agree upon the arbitrator within such fifteen (15) days, the arbitrator, who shall be an expert in the field of knowledge wherein the controversy lies, shall be selected by the Senior Judge of the United States Court of Appeals for the Eighth Circuit. The decision of the arbitrator shall be limited to selecting either the position and remedy stated by the Party in its request or the position and remedy stated by the other Party in its response to such request. The arbitrator shall have no power to mediate or compromise any dispute, but shall have only the limited authority herein provided to review the information presented by the Parties and to select the position and remedy proposed by one of the Parties. The award of the arbitrator shall be binding upon the Parties.

It is mutually understood that the existence of a dispute which has or may become the subject of an arbitration shall in no way excuse either Coteau or Dakota from performing its obligations under Section 4.3 hereof, and each of the Parties hereto shall continue to perform in accordance with the terms of this Agreement irrespective of the existence of any such dispute.

Section 16.3 **<u>Alignment.</u>**

This Agreement shall not be assigned by either Party without the written consent of the other Party except that either Coteau or Dakota may assign its interest in this Agreement either in connection with the merger, consolidation or sale of substantially all the assets of the assigning Party or under their respective mortgages or indentures to finance any of Coteau's Mine or Dakota's Plants. Any such permitted assignment shall not relieve the assignor of its obligation hereunder.

Section 16.4 **<u>Conduct of Operations.</u>**

Coteau shall conduct its mining operations hereunder in a careful, good and workmanlike manner according to the best mining practices prevalent in the field. Coteau shall also use its best efforts to operate Coteau's Mine in accordance with the laws, rules and regulations of all applicable federal, state and local governments, or their instrumentalities, if any, relating to mining operations and using of mining premises; provided, however, that Coteau shall have the right to contest in good faith through appropriate legal proceedings the validity or applicability of any such law, rule or regulation so long as Coteau gives Dakota prompt written notice of such proceedings and so long as the exercise of such right does not result in excessive additional costs or does not result in the closure of Coteau's Mine or a substantial portion thereof.

Section 16.5 **<u>Right of Inspection.</u>**

Dakota or its Affiliates, as Dakota's designees, shall upon reasonable notice have the right and privilege at any time of entering Coteau's Mine in order to inspect or survey the same and Dakota may designate a permanent representative for such purpose; provided, however, that the exercise of such rights shall not interfere with the operation of Coteau's Mine. Coteau shall implement the written recommendations made by Dakota pursuant to written notice in accordance with Section 16.13 hereof with respect to Coteau's mining operations; provided. however. that such

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suggestions or recommendations are consistent with sound engineering and design practices and in accordance with applicable laws, rules and regulations, unless Coteau shall have responded in writing to Dakota setting forth the reasons for not implementing such recommendations and such reasons must be based on prudent management practices.

Section 16.6 **<u>Insurance</u>**.

Coteau shall obtain and maintain insurance. to the extent available, with such coverage and of such types, limits and amounts as may be from time to time required and approved by Dakota, including but not limited to public liability, fire insurance with extended coverage and additional extended coverage. insurance covering physical damage to equipment and mine restoration.

Section 16.7 **<u>Third Partv Beneficiaries.</u>**

Coteau and Dakota acknowledge and agree that this Agreement is intended to directly benefit the Affiliates of Dakota, including Basin Electric and DGC and the Affiliates of Coteau, including North American Coal, which are third party beneficiaries to this Agreement.

Section 16.8 **<u>**Table of Contents** and Headings.</u>**

The table of contents, titles and headings of the Articles and Sections of this Agreement have been inserted for the convenience of reference only, are not to be considered part hereof and shall in no way modify or restrict the meaning of the terms or provisions hereof. As used herein, any gender shall include any other gender the singular shall include the plural and the plural shall include the singular, wherever appropriate.&nbsp;&nbsp;&nbsp;&nbsp;

Section 16.9 **<u>Governing Law.</u>**

This Agreement and the rights and obligations of the Parties to this Agreement shall be governed and construed in accordance with the laws of the State of North Dakota.

Section 16.10 **<u>Amendments.</u>**

This Agreement may not be amended, except in each instance pursuant to a written document executed by the Parties.

Section 16.11 **<u>Representations and Warranties.</u>**

a) Coteau represents and warrants to Dakota that: (i) Coteau is a corporation duly organized, validly existing and in good standing under the laws of the State of Ohio qualified to do business in the State of North Dakota. (ii) the execution and delivery of this Agreement by Coteau and the performance of its obligations hereunder have been duly authorized by all requisite corporate action, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Coteau shall, or after the lapse of time or with the giving of notice shall. conflict with, violate or result in a breach of, or constitute a default under the Articles of Incorporation or Regulations of Coteau or any law, statute, rule or regulation applicable to it, or except as set forth in that certain letter agreement dated August 3, 1990 among the Parties. North American Coal and Basin Electric conflict with, violate or result in a breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to

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which Coteau is a party or by which it is bound, or, except as set forth in Section 16.15 hereof require any approval consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of Coteau or any other person or entity and (iv) this Agreement constitutes a valid and binding obligation of Coteau and this Agreement is enforceable against Coteau in accordance with its terms.

b) Dakota represents and warrants to Coteau that: (i) Dakota is a corporation duly organized, validly existing and in good standing under the laws of the State of North Dakota, (ii) the execution and delivery of this Agreement by Dakota and the performance of its obligations hereunder have been duly authorized by all requisite corporate action, (iii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Dakota shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in the breach of. or constitute a default under the Articles of Incorporation or Bylaws of Dakota or any law, statute, rule or regulation applicable to it, or except as set forth in that certain letter agreement dated August 3, 1990 among the Parties. North American Coal and Basin Electric conflict with, violate or result in the breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which Dakota is a party or by which it is bound, or except as set forth in Section 16.15 hereof require any approval, consent, authorization or other action by any court governmental authority or regulatory body or any creditor of Dakota or any other person or entity and (iv) this Agreement constitutes a valid and binding obligation of Dakota and his Agreement is enforceable against Dakota in accordance with its: terms.

Section 16.12 **<u>Counterparts.</u>**

This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

Section 16.13 **<u>Notices.</u>**

Coteau and Dakota each shall appoint a designee to receive and give on behalf of Coteau and Dakota all notices and other communications required or permitted under this Agreement.

Except as otherwise expressly stated in this Agreement, any such notice or other communication shall be in writing to the other Party and shall be deemed to have been duly given when delivered in person or posted by United Statas registered or certified mail, with postage prepaid, addressed to the designated representatives of Coteau and Dakota as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)To Coteau:

The Coteau Properties Company

P.O. Box 1089

Beulah, ND 58523

Attention: President

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with copies to:

The Coteau Properties Company

2000 Schafer Street

Box No. 5500

Bismarck, HD 58502-5500

Attention: Chairman

and

The North American Coal Corporation

13140 Coit Road

Suite 400

Dallas, TX 75240-5784

Attention: President and

Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)To Dakota:

Dakota Coal Company

1600 East Interstate Avenue Bismarck, ND 58501-0561

Attention: Vice President and

Chief Operating Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)To such other address or addresses as the Parties may from time to time designate in writing.

Section 16.14 **<u>Prior Agreement.</u>**

Coteau and Dakota. as assignee of ANG's rights. interests and obligations under the Coal Sales Agreement, hereby agree that, effective as of the date hereof, the Coal Sales Agreement is hereby terminated and shall be of no further force and effect; provided. however, that Section 5.6 and Section 5.7 of the Coal Sales Agreement are not terminated hereby but shall survive such termination hereunder and shall remain in full force and effect until such time as the Coal Reserve Agreement is of no further force and effect; and provided further, however, that any and all liabilities and obligations of Coteau, ANG and Dakota. under the Coal Sales Agreement which have accrued prior to such termination are not terminated hereby but shall survive such termination.

Section 16.15 **<u>REA Approval.</u>**

The effectiveness of this Agreement is subject to the approval of the Administrator of the Rural Electrification Administration, United States Department of Agriculture, or his designee.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on their behalf by their respective authorized representatives as of the day first written above.

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---

| |
|:---|
| THE COTEAU PROPERTIES COMPANY |
| BY: |
| /s/ H Dean Jacob |
| CHAIRMAN |
| ATTEST: |
| /s/ Thomas J. Koza |
| SECRETARY |
| DAKOTA COAL COMPANY |
| BY: |
| /s/ Robert L McPhail |
| PRESIDENT AND CHIEF<br>EXECUTIVE OFFICER |
| ATTEST: |
| /s/ Michael J Hinman |
| SECRETARY |

---

------

<u>FIRST AMENDMENT TO COTEAU LIGNITE SALES AGREEMENT</u>

THIS FIRST AMENDMENT TO COTEAU LIGNITE SALES AGREEMENT ("Amendment") dated as if June 1, 1994, is by and between THE COTEAU PROPERTIES COMPANY, an Ohio corporation authorized to do business in the State of North Dakota and DAKOTA COAL COMPANY, a North Dakota corporation (Dakota).

WITNESSETH:

WHEREAS, Coteau and Dakota are parties to the Coteau Lignite Sales Agreement dates as of January 1, 1990 (the Coteau Lignite Sales Agreement); and

WHEREAS, the Parties desire to amend the Coteau Lignite Sales Agreement in certain respects;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;All capitalized terms used in this Amendment shall have the meanings ascribed to them in the Coteau Lignite Sales Agreement unless such terms are otherwise defined herein, or unless the contact clearly otherwise requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 of the Coteau Lignite Sales Agreement hereby is amended by adding the following definition after the definition of the term ANG:

Antelope Valley shall mean the Antelope Valley Station, consisting of two 450 MW generating units named "Unit 1" and "Unit 2", located at a site adjacent to Great Plains near Beulah, North Dakota, and which is controlled and operated by Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 of the Coteau Lignite Salas Agreement hereby is amended by adding the following definition after the definition of the term Dakota:

Dakota Option Agreement shall mean the Dakota Option Agreement dated January 1, 1992 by and among Coteau, Dakota and the State of North Dakota doinq business as the Bank of North Dakota (as escrow agent).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The definitions of the terms Dakota's Other Plants and Dakota's Primary Plans in Section 1.1 of the Coteau Lignite Sales Agreement hereby are amended to read in their entirety as follows:

Dakota's Other Plants shall mean all additional generating units installed by Basin Electric that increase the original generating capacity of Antelope Valley and all additional gasifiers as well as the incremental increased capacity achieved by replacing one or more of the existing gasifiers with a replacement gasifier having a capacity greater than that of the gasifier being replaced at or near Great Plains.

Dakota's primary Plants shall mean collectively Antelope Valley and Great Plains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 of the Coteau Lignite Sales Agreement hereby is amended by adding the following definition after the definition of the term Escrowed Stock:

GAAP shall mean generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 of the Coteau Lignite Sales Agreement hereby is amended by adding the following definition after the definition of the term Glenharold Mine:

Great Plains shall mean the Great Plains Coal Gasification Plant, the first phase of which consists of a Lurgi lignite gasification facility with the capability of producing approximately 175 MMSCF/D of pipeline quality synthetic natural gas and is located on a site adjacent to Antelope Valley near Beulah, North Dakota, which is owned and operated by DGC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;The definition of the term Index in Section 1.1 of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

Index shall mean the average Producer Price Index – All Commodities on the base 1982 = 100, published by the Bureau of Labor Statistics of the U.S. Department of Labor, for the months of January through November of said calendar year. The base for calculating changes in the Index in Subsections 5.5(a), 5.5(b) and 5.5(c) hereof shall be the Producer Proce Index – All Commodities for July 1988.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;The fifth paragraph of Section 4.10 of the Coteau Lignite Sales Agreement hereby is amened to read in its entirety as follows:

Coteau shall develop formal written policies with respect to donations to charitable and civic organizations and corporate sponsorships, which policies shall be subject to approval by Dakota. All expenditures by Coteau for donations and sponsorships that are included in the Cost of Production shall be subject to approval by Dakota.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;Section 5.2(a) of the Coteau Lignite Sales Agreement hereby is amended by deleting clauses (xiv) and (xv) in their entirety and adding the following in lieu thereof:

xiv) Acquisition costs and carrying charges payable to Coteau for surface and coal interests which are within the areas of Dedicated Lignite,

xv)&nbsp;&nbsp;&nbsp;&nbsp; Amounts payable to WCDC pursuant to paragraph 7 of the Coal Reserve Agreement, and

xvi) Amounts payable to HCDC pursuant to paragraph 8 of the Coal Reserve Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;Subsection 5.4(a) of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;i) For lignite sold and delivered hereunder in any calendar year before January 1, 1994 and after December 31, 2006 for use at Dakota's Primary Plants, the Agreed Profit, expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ($[\*\*\*]) per Ton for all Tons of lignite up to and including [\*\*\*] ([\*\*\*]) Tons for such year, and shall be [\*\*\*] cents ($[\*\*\*]) per Ton for all Tons of lignite which exceed [\*\*\*] ([\*\*\*]) Tons for such year, which such amounts of Agreed Profit shall be adjusted as provided in Subsection 5.5(a) hereof.

ii) &nbsp;&nbsp;&nbsp;&nbsp;For lignite sold and delivered hereunder in any calendar year between January 1, 1994 and. December 31, 2006 for use at Antelope Valley, the Agreed Profit, expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ($[\*\*\*]) per Ton for all Tons of lignite until the total quantity of lignite delivered to all of Dakota's

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Primary Plants equals [\*\*\*] ([\*\*\*]) Tons for such year and thereafter shall be [\*\*\*] cents ($[\*\*\*]) per Ton for all Tons in excess of [\*\*\*] ([\*\*\*]) Tons sold and delivered to Dakota's Primary Plants in such year, which such amounts of Agreed Profit shall be subject to adjustment as provided in Subsection 5.5(a) hereof. Notwithstanding the forgoing sentence, if Great Plains permanently and completely ceases production of synthetic natural gas on or before December 31, 1997, then for a period of two (2) years following the date on which Great Plains so ceases such production, the Agreed Profit for lignite sold and delivered hereunder for use at Antelope Valley, after adjustment pursuant to Subsection 5.5(a) hereof, shall be reduced by [\*\*\*] cents ($[\*\*\*]) per Ton, which amount of reduction shall not be subject to any adjustment. If Great Plains permanently and completely ceases production of synthetic natural gas after December 31, 1997, then the Agreed Profit for lignite sold and delivered hereunder for use at Antelope Valley, after adjustment pursuant to Subsection 5.5(a) hereof, shall not be reduced thereafter by the [\*\*\*] cents ($[\*\*\*]).

iii) &nbsp;&nbsp;&nbsp;&nbsp;For lignite sold and delivered hereunder in any calendar year between January 1, 1994 and December 31, 2006 for use at Great Plains, the Agreed Profit, expressed in July 1, 1988 dollars, shall be [\*\*\*] cents ($[\*\*\*]) per Ton, which such amount of Agreed Profit shall be subject to adjustment as provided in Subsection 5.5(a) hereof and after such adjustment shall be reduced by [\*\*\*] cents ($[\*\*\*]) per Ton, which amount of reduction shall not be subject to any adjustment.

iv) &nbsp;&nbsp;&nbsp;&nbsp;For the first [\*\*\*] ([\*\*\*]) Tons of lignite sold and delivered from the Dedicated Lignite for use at Dakota's Primary Plants following December 31, 1989, the Agreed Profit per Ton, after adjustment pursuant to Subsection 5.5(a) hereof, shall be reduced by an amount equal to [\*\*\*] cents ($[\*\*\*]) adjusted in the manner as provided in paragraph 7 of the Coal Reserve Agreement. An example of the aforesaid calculation is attached hereto as Exhibit C and made a part hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;The references to Subsection 5.4(a) that are contained in Subsections 5.4(b) and 5.4(c) hereby are amended to mean and refer to Subsection 5.4(a)(i). In addition, the second reference to Subsection 5.4(a) that is contained in clause (i) of Subsection 5.7(a) hereby is amended to mean and refer to Subsection 5.4(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.Section 5.6 of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

Section 5.6 <u>Further Modifications</u>.

If at any time during the term of this Agreement it is reasonably believed by either Party that the Producer Price Index – All Commodities or any index substituted therefor in accordance with the following provisions no longer reflects the true change in purchasing power of the United States dollar, then upon the written request of either Party a substituted index or method whereby such change in purchasing power of the United States dollar can be determined shall be substituted by mutual agreement. In the event that the Producer Price Index – All Commodities or any substituted index is changed in the future to use some base other than the base of 1982 = 100, then, for the purposes hereof, the Producer Price Index – All Commodities or any substitute index, as the case may be, shall be adjusted so as to be in correct relationship to the base of 1982 = 100, or some other alternative base which is mutually agreeable to Coteau and Dakota. In the event publication of the Producer Price Index – All Commodities or any substituted index is no longer made by any federal agency, the index to be used as aforesaid shall be that index agreed to by the Parties, which, after necessary adjustment, if any, provides the most reasonable substitute for said index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.Exhibits C, D, E and F hereto hereby are substituted for Exhibits C, D, E and F to the Coteau Lignite Sales Agreement, respectively, each of which shall be of no further force or effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.Section 13.2 of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

Section 13.2 <u>Other Activities</u>.

Notwithstanding the provisions of Section 13.1 hereof, it is contemplated that Coteau may provide other services to Dakota or its Affiliates such as solid waste disposal, disposal of excess lignite fines, now removal as well as such other services, in each instance as may e mutually agreed upon by Coteau and Dakota. It is further contemplated that Coteau shall provide such services to Dakota or its Affiliates at a price agreed to by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.Section 14.1 of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

Section 14.1 <u>Term.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The original term of this Agreement shall commence on January 1, 1990 and shall expire on April 22, 2007, provided that Coteau shall have the option to extend this Agreement for up to six (6) successive five (5) year periods by giving written notification to Dakota not less than three (3) years before the expiration of the original term, or in the case of renewal terms, eighteen (18) months before the expiration of the renewal term then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)If Coteau elects to extend this Agreement for all six (6) such periods, then Dakota shall have the option to extend this Agreement for up to four (4) additional successive five (5) year periods by giving written notification to Coteau not less than eighteen (18) months before the expiration of the renewal term then in effect. If Coteau does not elect to extend this Agreement for all six (6) such periods, then Dakota shall have no right to extend this Agreement for any additional periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Notwithstanding the foregoing, this Agreement shall terminate upon the exhaustion of the Dedicated Lignite. The lignite covered by any particular lease shall be deemed to be exhausted upon the expiration of such lease without further right of renewal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.Section 14.4 of the Coteau Lignite Sales Agreement hereby is amended to read in its entirety as follows:

Section 14.4 <u>Exercise of Option of Escrowed Stock.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Upon the expiration of the original term of this Agreement, Dakota may exercise its right pursuant to the option Agreement to cause the transfer of the Escrowed Stock to Dakota, provided that Coteau has not exercised its right to extend the original term of this Agreement pursuant to Section 14.1 hereof and provided, further, that Dakota has not exercised any of its rights under Section 14.2 hereof. To exercise said right, Dakota shall give written notice to Coteau with a copy to the escrow agent under the Option Agreement not less than twenty-four (24) months and not more than thirty-five (35) months before the expiration of the original term and shall otherwise comply with the terms and conditions of the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Upon the expiration of any renewal term of this Agreement that occurs on or before April 22, 2032, Dakota may exercise its right pursuant to the Option Agreement to cause the transfer of the Escrowed Stock to Dakota, provided that Coteau has not exercised its right to further extends such renewal term of this Agreement pursuant to Section 14.1 hereof and provided, further, that Dakota has not exercised any of its rights under Section 14.2 hereof. To exercise said right, Dakota shall give written notice to Coteau with a copy to the escrow agent under the Option Agreement not less than twelve (12) months and not more than seventeen (17) months before the expiration of such renewal term and hall otherwise comply with the terms and conditions of the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Upon the expiration of any renewal term of this Agreement that occurs on or after April 22, 2037, Dakota may exercise its right pursuant to the Option Agreement to cause the transfer of the Escrowed Stock to Dakota, provided that Dakota has not exercised any of its rights under Section 14.2 hereof. To exercise said right, Dakota shall give written notice to Coteau with a copy to the escrow agent under the Option Agreement not less than seventeen (17) months before the expiration of such renewal

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term and shall otherwise comply with the terms and conditions of the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.Article XIV of the Coteau Lignite Sales Agreement hereby is amended by adding a new Section 14.5 thereto, which shall read in its entirely as follows:

Section 14.5 &nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement for Certain Additional Deferred Tax Liabilities and</u> <u>Assets.</u>

On January 1, 1990, the effective date of this Agreement, GAAP required Coteau to follow Accounting Principles Board Opinion No. 11, entitled "Accounting for Income Taxes" ("APB 11"), or Statement of Financial Accounting Standard No. 96, entitled "Accounting for Income Taxes" ("SFAS 96"). Coteau did not adopt SFAS 96, and no further reference to SFAS 96 is either intended or implied herein. For fiscal years commencing after December 15, 1992, GAAP have required Coteau to adopt Statement of Financial Accounting Standard No. 109, entitled "Accounting for Income Taxes" ("SFAF 109"), which supersedes APB 11. Under SFAS 109, because of the difference between the financial statement and income tax basis of its assets and its liabilities, Coteau is required to record additional net deferred tax liabilities ("ADTL") on its financial statements for certain years that it was not required to record under APB 11. The amount of the ADTL will decrease with time. If Coteau continues in operation for a sufficient period of time, Coteau will not have to pay any portion of the ADTL and may be required to record additional net deferred tax assets ("ADTA") on its financial statements for certain years that it would not be required to record under APB 11.

So long as GAAP required that ADTL continue to be recorded on Coteau's financial statements, the amount of dividends Coteau is able to pay under Section 4.8 hereof will be reduced, because the amount of the ADTL will reduce the earned surplus from which such dividends may be paid. Accordingly, the Parties agree that if this Agreement terminates and/or if the Escrowed Stock is transferred to Dakota for any reason, then in addition to any other payments by Dakota to North American Coal provided for in this Agreement, the Option Agreement and/or the Dakota Option Agreement, Dakota shall pay to North American Coal an amount equal to the difference between (x) the amount of net deferred tax liabilities recorded on Coteau's financial statements on the date the Escrowed Stock is transferred to Dakota and (y) the amount of net deferred tax liabilities that Coteau would have recorded on such date if Coteau had determined such liabilities by the method it used prior to its required adoption of the payment by Dakota under this Subsection 14.5 exceed the total Agreed Profit paid to Coteau since its adoption of SFAS 109 less the sum of (i) the dividends paid by Coteau since its adoption of SFAS 109, (ii) the income tax payments made by Coteau with respect to years for which SFAS 109 was adopted, and (iii) the net deferred tax liabilities that would be payable by Coteau following the transfer of the Escrowed Stock in respect of its prior mining operations, if

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such deferred taxes were determined by the method Coteau used prior to its required adoption of SFAS 109.

So long as GAAP requires that ADTA continue to be recorded on Coteau's financial statements, the amount of dividends Coteau is able to pay under Section 4.8 hereof will be increased by the amount of the ADTA. Accordingly, the Parties agree that if this Agreement terminates and/or it the Escrowed Stock is transferred to Dakota tor any reason, then Coteau shall retain as an asset, and North American Coal shall not cause or permit Coteau to distribute to it as a dividend, an amount equal to the difference between (x) the amount of net deferred tax assets recorded on Coteau's financial statements on the date the Escrowed Stock is transferred to Dakota and (y) the amount of net deferred tax assets that Coteau would have recorded on such date if Coteau had determined such assets in accordance with SFAS 109.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.Article XV of the Coteau Lignite Sales Agreement and all references thereto in the Coteau Lignite Sales Agreement hereby are deleted in their entirety effective as of June 1, 1994.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.Section 16.15 of the Coteau Lignite Sales Agreement hereby is deleted in its entirety effective as of January 1, 1990.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.All of the other terms and provisions of the Coteau Lignite Sales Agreement not expressly amended hereby shall continue and remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.This Amendment may be executed in any number of counterparts, each of which, when executes and delivered, shall be an original, but all of which shall collectively constitute one and the same instrument.

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IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed on their behalf by their respective authorized representatives as of the day first written above.

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| | | |
|:---|:---|:---|
| ATTEST: | | THE COTEAU PROPERTIES COMPANY |
| s/ Thomas J. Koza | By | /s/ Robert L. Benson |
| Secretary | | Robert L. Benson, its President |
| ATTEST: | | DAKOTA COAL COMPANY |
| /s/ Michael J Hinman | By | /s/ Kent E. Jansen |
| Secretary | | |
| | Title | Vice President & Chief Operating Officer |

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## Exhibit 10.3

**Exhibit 10.3**

<u>BASIN</u> <u>ELECTRIC POWER COOPERATIVE WHOLESALE</u> <u>POWER</u> <u>CONTRACT</u>

AGREEMENT made as of **<u>May</u> <u>22</u>, <u>1962,</u>** between Basin Electric Power Cooperative (hereinafter called the "Seller"), a corporation organized and existing under the laws of the State of North Dakota, and **<u>UPPER</u> <u>MISSOURI</u> <u>G.</u> <u>&</u> <u>T.</u> <u>ELECTRIC</u> <u>COOPERATIVE,</u> <u>INC.,</u>** (hereinafter called the "Member"), a corporation organized and existing under the laws of the State of **<u>Montana</u>.**

WHEREAS, the Seller proposes to construct an electric generating plant or transmission system or both, and may purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

WHEREAS, the Seller contemplates the introduction of the power and energy of such proposed electric generating plant into the transmission system of the Bureau of Reclamation for delivery through facilities of the Bureau of Reclamation, including both transmission lines and substation equipment to its Members; and

WHEREAS, the Seller may, along with other electric cooperatives, enter into a contract with the Bureau of Reclamation to establish a "joint transmission system" including specifically described facilities, and contemplating additions to said joint transmission system under certain conditions, over which said joint transmission system Seller may deliver to Member power and energy under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric power and energy similar in form to this agreement with all of the borrowers which are members of the Seller, and may enter into similar contracts with other such borrowers who may become members; and

WHEREAS the Member desires to purchase electric power and energy from the Seller on the terms and conditions herein set forth.

NOW, THEREFORE, in consideration of the mutual undertakings here-in contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.<u>General.</u> The Seller shall sell and deliver to the Member, and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below; provided, however,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The power and energy purchased hereunder shall be furnished in accordance with the normal load pattern of the Member's system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The maximum demand of the Member supplied by the Seller in the month when the simultaneous maximum demands of the Member and all other Member Cooperatives supplied by the Seller equal in the aggregate 88% of the test capabilities of the

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Seller's First Garrison generating until shall continue during the remainder of the contract term to be the amount of power and energy which the member shall be obligated to purchase and receive and the Seller shall be obligated to sell and deliver hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Seller's obligation to furnish and the Member's obligation to receive and pay for electric power and energy hereunder shall commence upon completion of the generation and transmission facilities necessary for service hereunder and upon the availability to the Seller of necessary transmission and related facilities, including those of the Bureau of Reclamation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The Member shall have the right during the term of this Agreement to continue to obtain power and energy from the power sources and in the amounts listed below:

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| | |
|:---|:---|
| Bureau of Reclamation | **Contract Rate of Delivery** kw |
| Member's Generating Plant | kw |
| Other | -------kw |

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provided, however, that if the Seller at any time and from time to time is unable to sell on a firm power rate basis the entire capacity of the Seller's **First Garrison** generating unit, the Member shall reduce its purchases from the Bureau of Reclamation to the extent requested by the Seller and shall increase its purchases from the Seller in the amount of the requested reduction of purchases from the Bureau of Reclamation. The amount of reduction of Bureau of Reclamation power purchases which the Member shall be requested to make shall either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.bear the same ratio to the aggregate of the reductions which all Members shall be requested to make as the contract rate of delivery of the Member under its contract with the Bureau of Reclamation bears to the aggregate of the contract rates of delivery to all Members under their contracts with the Bureau of Reclamation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.be such other amount as the Seller and the Member may agree upon in order to minimize the loss in wheeling payments from, and billing penalty payments to, the Bureau of Reclamation under all the Members' contracts with the Bureau of Reclamation.

To the extent that the reduction of power purchases from the Bureau of Reclamation by the Member pursuant to such request of the Seller results in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the loss of wheeling payments which otherwise would have been made to the Member by the Bureau of Reclamation, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.in the Member's becoming liable for billing penalty payments under its power contract with the Bureau of Reclamation which it would not have otherwise incurred,

the amounts thereof shall be determined and the effects spread equitably among all the Members by means of a surcharge in the Rate Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;e.In addition to the supply under the preceding paragraph (d), the Member shall have the right to continue to purchase power and energy under the following contract(s) during the remainder of the term thereof and shall terminate such contract(s) as soon as it may legally do so if the Seller shall, with the approval or at the direction of the Administrator of the Rural Electrification Administration (hereinafter called the "Administrator"), so request:

&nbsp;&nbsp;&nbsp;&nbsp;f.The Seller shall not be obligated to supply power and energy hereunder to the Member in excess of that amount which, together with all amounts of power and energy supplied by the Seller to all other Members of the seller shall equal 88% of the test capability of the Seller's First Garrison generation unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Electric</u> <u>Characteristics</u> <u>and</u> <u>Delivery Points.</u> Electric power and energy to be furnished hereunder shall be alternating current, three phase, sixty cycle, The Seller shall deliver such electric power and energy into the transmission system of the Bureau of Reclamation, and the Member shall receive such power and energy at the point(s) of delivery on the transmission system of the Bureau or the joint transmission system contemplated to be established by a Pooling Agreement between the Seller, Bureau and others, as shall be scheduled by the Member, and such other point or points as may be agreed upon by the Seller and the Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Substation.</u> Delivery of electric power and energy shall be through the necessary substation equipment at the point(s) of connection with the transmission system of the Bureau of Reclamation or the joint system. The Member shall own and maintain switching and protective equipment which may be reasonably necessary to enable the Member to take and use the electric power and energy hereunder. Meters and metering equipment shall be furnished, maintained and read by the Bureau of Reclamation and shall be located at the point of delivery on the low voltage side of such transforming equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Rate.</u> (a) The Member shall pay the Seller for all electric power and energy furnished hereunder as the rates and on the terms and conditions set forth in Rate Schedule "A", attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The Board of Directors of the Seller at such intervals as it shall deem appropriate, but in any event not less frequently than once in each calendar year, shall review the rate for electric power and energy furnished hereunder and under similar agreements with other Members and, if necessary, shall revise

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such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of the Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacements, insurance, taxes and administrative and general overhead expenses) of the generating plant, transmission system and related facilities of the Seller, the cost of any power and energy purchased for resale hereunder by the Seller, the cost of transmission service, make payments on account of principal of and interest on all indebtedness of the Seller, and to provide for the establishment and maintenance of reasonable reserves. The Seller shall cause a notice in writing to be given to the Member and other Members of the Seller and the Administrator which shall set out all the proposed revisions of the rate with the effective date thereof, which shall be not less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of the Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric power and energy furnished by the Seller to it hereunder after the effective date any such revisions at such revised rates; provided, however, that no such revision shall be effective unless approved in writing by the Administrator,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Meter Readings</u> <u>and</u> <u>Payment</u> <u>of</u> <u>Bills.</u> Appropriate operating procedures shall be established to monthly determine the electric power and energy delivered and to be billed by Seller to the Member. Electric power and energy furnished hereunder shall be paid for at the office of the Seller in Bismarck, North Dakota, monthly within fifteen (15) days after the bill therefore is mailed to the Member. If the Member shall fail to pay any such bill within such fifteen-day period, the Seller may discontinue delivery of electric power and energy hereunder upon fifteen (15) days' written notice to the Member of its intention so to do.

6.<u>Meter</u> <u>Testing</u> <u>and</u> <u>Billing</u> <u>Adjustment.</u> All meters shall be tested and calibrated as provided for in the contract between the Member and the Bureau of Reclamation. The Member shall request a special test of meters delivering power or energy to it under the Member's contract with the Bureau of Reclamation, upon the request of the Seller. If any special meter test made at the Seller's re-quest shall disclose that the meters are recording accurately, the Seller shall reimburse the Member for the cost of such test. Meters registering not more than two per cent (2%) above or below normal shall be deemed to be accurate. The readings of any meter which shall have been disclosed by test to be inaccurate shall be corrected for the ninety (90) days previous to such test in accordance with the percentage of inaccuracy found by such test. If any meter shall fail to register for any period, the Member and the Seller shall agree to the amount of energy furnished during such period and the Seller shall render a bill therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Notice</u> <u>of</u> <u>Meter</u> <u>Reading</u> <u>or</u> <u>Test.</u> The Member shall notify the Seller in advance of the time of any meter reading or test so that the Seller's representative may be present at such meter reading or test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Right</u> <u>of</u> <u>Access.</u> Duly authorized representatives of either party hereto shall be permitted to enter the premises of the other party hereto at all reasonable times in order to carry out the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Continuity</u> <u>of</u> <u>Service.</u> The Seller shall use reasonable diligence to provide a constant and uninterrupted supply of electric power and energy hereunder. If the supply of electric power and energy shall fail or be interrupted or become defective through act of God or of the public enemy, or because of accident, failure in the joint transmission system, labor troubles, or any other cause beyond the control of the Seller, the Seller shall not be liable therefor or for damages caused thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Term.</u> This Agreement shall become effective only upon approval in writing by the Administrator and shall remain in effect until January 1, 2002, and thereafter until terminated by either party's giving to the other not less than six months' written notice of its intention to terminate. Subject to the provisions of Article I hereof, service hereunder and the obligation of the Member to pay therefore shall commence upon completion of the facilities necessary to provide service.

EXECUTED THE day and year first above mentioned.

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| | |
|:---|:---|
| Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| By: | /s/ Arthur Jones |
| Name: | Arthur Jones |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dennis Lindberg |
| Name: | Dennis Lindberg |
| Title: | Secretary |

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| | |
|:---|:---|
| Upper Missouri G.&T. Electric Cooperative, Inc., Member | Upper Missouri G.&T. Electric Cooperative, Inc., Member |
| By: | /s/ Henry T. Swenson |
| Name: | Henry T. Swenson |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ C.R. Thiessen |
| Name: | C.R. Thiessen |
| Title: | Secretary |

---

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To be attached to Electric Service

Contract between BASIN ELECTRIC POWER

COOPERATIVE and its MEMBERS.

RATE SCHEDULE "A"

• IT IS UNDERSTOOD that the rates, terms and conditions of this Rate Schedule "A" will be determined prior to commencement of service in accordance with Article 4(b) of the Agreement to which this Rate Schedule "A" is attached.

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AMENDMENT TO

WHOLESALE POWER CONTRACT

by and between

BASIN ELECTRIC POWER COOPERATIVE

and

UPPPER <u>MISSOURI</u> <u>G&T</u> <u>ELECTRIC</u> <u>COOPERATIVE,</u> INC •

AGREEMENT made as of <u>January 11, 1968</u>, between Basin Electric Power Cooperative (hereinafter called the "Seller") a corporation organized and existing under the laws of the State of North Dakota, and **<u>Upper Missouri G&T</u> <u>Electric Cooperative, Inc.,</u>** (hereinafter called the "Member"), a corporation organized and existing under the laws of the State of **<u>Montana</u>**.

WHEREAS, the Seller has constructed an electric generating plant and transmission system and may construct additional generating capacity or purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

WHEREAS, the Seller has contracted for the introduction of the power and energy produced by such electric generating plant into the transmission system of the Bureau of Reclamation for delivery to its members through facilities of the Bureau of Reclamation, including both transmission lines and substation equipment; and

WHEREAS, the Seller, along with other electric cooperatives, has entered into *a* contract with the Bureau of Reclamation to establish a "Joint Transmission System" including specifically described facilities and contemplated additions to said joint transmission system under certain conditions, over which said joint transmission system Seller may deliver to Member electric service under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric service similar in form to this agreement with REA borrowers which are Class "A" members of the Seller, and may enter into similar contracts with other such borrowers which may be or become Class "A" members; and

WHEREAS, the Seller may construct delivery facilities to make delivery of power and energy to its Members in addition to delivery facilities of the Joint Transmission System; and

WHEREAS the member has heretofore entered into a wholesale power contract with Seller (hereinafter referred to as the "Power Contract") dated <u>Ma</u><u>y</u> <u>22, 1962</u>, and the parties hereto desire to amend said Power Contract on the terms and conditions herein set forth:

NOW, THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Paragraph l of the Power Contract is hereby amended to read as follows:

"l. <u>General.</u> The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below, to the extent that the Seller shall have such power and energy and facilities available, but not to exceed <u>52,708KW;</u> provided, however,\*\* \*\* \*\*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Paragraph 1(b) of the Power Contract is hereby deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Paragraph 1(f) of the Power Contract is hereby deleted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Paragraph 10 of the Power Contract is hereby amended by deleting the date "January 1, 200<u>2</u>" in line 2 thereof, and substituting therefore the date January 1, 20<u>10</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.This Amendment to the Power Contract shall become effective when approved in writing by the Administrator of the Rural Electrification Administration.

EXECUTED the day and year first above mentioned.

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| | |
|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| By: | /s/ Arthur Jones |
| Name: | Arthur Jones |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dennis Lindberg |
| Name: | Dennis Lindberg |
| Title: | Secretary |

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| | |
|:---|:---|
| Upper Missouri G&T Electric Cooperative, Inc. | Upper Missouri G&T Electric Cooperative, Inc. |
| By: | /s/ Pat Plummer |
| Name: | Pat Plummer |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ C.R. Thiessen |
| Name: | C.R. Thiessen |
| Title: | Secretary |

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For information purposes, we show the amended and deleted sections as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. General. The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below; provided, however,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. (b) The maximum demand of the member supplied by the Seller in the month when the simultaneous maximum demands of the Member and all other Member cooperatives supplied by the Seller equal in the aggregate 88% of the test capabilities of the Seller's generating unit shall continue during the remainder of the contract term to be the amount of power and energy which the Member shall be obligated to sell and deliver hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. (f) The Seller shall not be obligated to supply power and energy hereunder to the Member in excess of that amount which, together with all amounts of power and energy supplied by the Seller to all other Members of the Seller, shall equal 88% of the test capability of the Seller's generating unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Term,</u> This Agreement shall become effective only upon approval in writing by the Administrator and shall remain in effect until January 1, 2002, and thereafter until terminated by either party's giving to the other not less than six months' written notice of its intention to terminate. Subject to the provisions of Article I hereof, service hereunder and the obligation of the Member to pay therefor shall commence upon completion of the facilities necessary to provide service.

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AMENDMENT TO

WHOLESALE POWER CONTRACT

**by** and between

BASIN ELECTRIC POWER COOPERATIVE

and

<u>UPPER</u> <u>MISSOURI</u> <u>G&T</u> <u>ELECTRIC</u> <u>COOPERATIVE,</u> <u>INC.</u>

Agreement made as of <u>November 3, 1976</u>, between Basin Electric Power Cooperative (hereinafter called the "Seller"), a corporation organized and existing under the laws of the State of North Dakota, and <u>Upper Missouri G&T Electric Cooperative,</u> <u>Inc</u>.

(hereinafter called the "Member", a corporation organized and existing under the laws of the State of <u>MONTANA</u> <u>:</u>

WHEREAS, the Seller has constructed an electric generating plant and transmission system and may construct additional generating capacity or purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

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- 2 –

WHEREAS, the Seller has contracted for the introduction of the power and energy produced by such electric generating plant into the transmission system of the Bureau of Reclamation for delivery through facilities of the Bureau of Reclamation, including both transmission lines and substation equipment to its Members; and

WHEREAS, the Seller, along with other electric cooperatives, has entered into a contract with the Bureau of Reclamation to establish a "Joint Transmission System" including specifically described facilities and contemplating additions to said joint transmission system under certain conditions, over which said joint transmission system Seller may deliver to Member electric service under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric service similar in form to this agreement with REA borrowers which are Class "A" members of the Seller, and may enter into similar contracts with other such borrowers which may be or become Class "A" members; and

WHEREAS, the Seller may construct delivery facilities to make delivery of power and energy to its Members in addition to delivery facilities of the Joint Transmission System; and

WHEREAS, the Member has heretofore entered into a wholesale power contract with Seller (hereinafter referred to as the "Power Contract") dated May 22, 1962, and the parties hereto desire to amend said Power Contract on the terms and conditions herein set forth:

NOW, THEREFORE, in consideration of mutual undertakings herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Paragraph 1 of the Power Contract is hereby amended to read as follows:

"1. <u>General.</u> The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below, to the extent that the Seller shall have such power and energy and facilities available**;** provided, however, \*\* \*\* \*\* \*\*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Member shall have the right during the term of this Agreement to continue to obtain power and energy from the power sources and in the amounts listed below:

 Bureau of Reclamation: 55,913 KW <br> Member's Generating Plant: 1,260 KW

Other: Any future firm power allocation by the Bureau of Reclamation to the consumers of the member and generation by member consumers present power sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Paragraph 10 of the Power Contract as amended is hereby amended by deleting the date "January 1, 2010" in line 2 thereof, and substituting therefor the date "January 1, 2020".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.This Amendment to the Power Contract shall become effective when approved in writing by the Administrator of the Rural Electrification Administration.

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EXECUTED THE day and year first above mentioned.

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| | |
|:---|:---|
| Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| By: | /s/ Art Jones |
| Name: | Art Jones |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dennis Lindberg |
| Name: | Dennis Lindberg |
| Title: | Secretary |

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| | |
|:---|:---|
| Upper Missouri G&T Electric Cooperative, Inc., Member | Upper Missouri G&T Electric Cooperative, Inc., Member |
| By: | /s/ George Rait |
| Name: | George Rait |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ C.R. Thiessen |
| Name: | C.R. Thiessen |
| Title: | Secretary |

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**AMENDMENT TO**

**WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE**

**AND**

**UPPER MISSOURI G&T ELECTRIC COOPERATIVE**

This Amendment to Wholesale Power Contract is made as of this 15th day of September, 1994, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 **(Basin Electric),** a North Dakota electric cooperative corporation, and Upper Missouri G&T Electric Cooperative, a Montana cooperative whose principal place of business is located in or near Sidney, Montana (hereinafter **Member).**

**W** I T **N** E S S E T H

WHEREAS, Basin Electric and Member have heretofore entered into **a** certain Wholesale Power Contract dated as of May 22, 1962, as amended **(Wholesale Contract**); and

WHEREAS, Basin Electric is seeking certain additional loans or loan guarantees (Loans) from the United States acting through the Administrator (Administrator) of the Rural Electrification Administration or its successor agency (REA); and

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WHEREAS, as a condition to such Loans, the Administrator has required that the Wholesale Contract and other similar contracts between Basin Electric and other members be amended; and

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

I. The recitals contained in the Wholesale Contract are deleted and the following recitals are inserted in lieu thereof:

WHEREAS, Seller presently owns and operates electric generating plants, a transmission system and associated facilities, and has entered into contracts with others to provide for transmission facilities or service or otherwise obtain electric capacity and energy for the purpose, among others, of supplying electric capacity and energy to borrowers from the Rural Electrification Administration **(REA)** which are or may become members of Seller; and

WHEREAS, Seller has financed and may, in the future, finance new facilities in whole or in part through loans made or guaranteed by the United States of America (hereinafter called the **Government),** acting through the Administrator; and

WHEREAS, this Agreement and payments due to Seller under this Agreement will be pledged and assigned to secure the Notes, as provided in the Mortgage or other notes pursuant to other financial arrangements; and

WHEREAS, Member acknowledges that Seller and the Government are relying on this commitment from Member, and similar commitments from all other members having similar contracts, to purchase capacity and energy for its present and future load requirements hereunder to provide for (a) the financing of Seller's facilities, (b) the development of an organization to serve Member and (c) for a long-term planning and power supply acquisition program; and

WHEREAS, the Government is relying on this Agreement and similar contracts between Seller and other borrowers from the Rural Electrification Administration to assure that the Notes are repaid and the purposes of the Rural Electrification Act of 1936, as amended, are carried out and Seller and Member by executing this Agreement, acknow1edge that reliance;

II. The provision of the Wholesale Contract entitled Rate (Section 4 of the Wholesale Contract) is deleted and the following paragraphs are inserted in lieu thereof:

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**<u>RATE.</u>** Member shall pay Seller for all electric power and energy furnished hereunder at the rates and on the terms and conditions set forth in Rate Schedule "A", attached hereto and made a part hereof, as the same may be modified from time to time by Seller.

The Board of Directors of Seller at such intervals as it shall deem appropriate, but in any event not less frequently than once in each calendar year, shall review the rate for electric capacity and energy furnished hereunder and under similar contracts with other members, and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacement, insurance, taxes and administrative and general overhead expenses) of the generating plants, the transmission system and related facilities of Seller, the cost of any capacity and energy purchased for resale hereunder by Seller, the cost of transmission service, the cost of lease payments; interest expense and depreciation expense of Seller, and to provide for the establishment and maintenance of reasonable reserves. Seller shall cause a notice in writing to be given to Member and other members of Seller and the Administrator which shall set out all of the proposed revisions of rate with the effective date hereof, which shall not be less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric capacity and energy furnished by Seller to it hereunder after the effective date of any such revision at such revised rates; provided, however, that no such revision shall be effective unless approved in writing by the Administrator.

III. The following additional sections are inserted in the Wholesale Contract:

<u>TRANSFER</u> <u>BY</u> <u>THE</u> <u>MEMBER.</u> The Member agrees that during the term of this Agreement, so long as any of the Notes are outstanding, the Member will not, without the approval in writing of Seller and the Administrator, take or suffer to be taken any steps for reorganization or to consolidate with or merge into any organization, or to sell, lease or transfer (or make any agreement therefor) all or a substantial portion of its assets, whether now owned or hereafter acquired. Notwithstanding the foregoing, Member may take or suffer to be taken any steps for reorganization or to consolidate or merge into any corporation or to sell, lease or transfer (or make any agreement therefor) all or a substantial portion of its assets, whether now owned or hereafter acquired, so long as Member shall pay such portion of the outstanding indebtedness on the Notes, as well as other obligations and commitments of Seller at the time existing, as shall be determined by Seller with the prior written consent of the Administrator and shall otherwise comply with such reasonable terms and conditions as the Administrator and Seller shall require.

<u>SPECIFIC</u> <u>PERFORMANCE.</u> Seller and Member agree that the failure or threatened failure of Member to comply with the terms of the immediately preceding paragraph entitled <u>Transfer</u> <u>by</u> <u>Member</u> will cause irreparable injury to Seller and to the Government which cannot properly or adequately be compensated by the mere payment of money. Member agrees, therefore, that in the event of a breach or threatened breach by Member of the paragraph entitled <u>Transfer</u> <u>by</u> <u>the</u> <u>Member,</u> of this Agreement, that Seller, in addition to any other remedies that may be available to it judicially, shall have the right to obtain from any competent court a decree enjoining such breach or threatened breach of said paragraph and providing for the terms of said paragraph to be specifically enforced.

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IV.The provision entitled "term" in the Wholesale Contract, as amended, is hereby amended by deleting the date appearing therein and substituting the date "December 31, 2039".

V.Except as amended hereby, the provision of the Wholesale Contract shall remain in full force and effect; provided, however, that to the extent any of the amending provisions hereof shall conflict with any other provision of the Wholesale Contract, this Amendment shall supersede such provision.

<u>Executed</u> as of the day and year first above written.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| (SEAL) | By: | /s/ Bill Wagner |
|  | Name: | Bill Wagner |
|  | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ William Keller |
| Name: | William Keller |

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| | | |
|:---|:---|:---|
| (SEAL) |  |  |
|  | Upper Missouri G&T Electric Cooperative | Upper Missouri G&T Electric Cooperative |
|  | By: | /s/ David Edwards |
|  | Name: | David Edwards |
|  | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ [illegible signature] |
| Name: | [illegible signature] |

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**SUPPLEMENTAL AGREEMENT**

THIS AGREEMENT, made this <u>16th</u> day of <u>September</u>, 1994, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 (hereinafter called Basin Electric), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, and Upper Missouri G&T Electric Cooperative, organized and existing under the laws of the State of Montana, with its principal office at 217 South Central Avenue, Sidney, Montana 59270 (hereinafter called **Member),** and the United States of America (hereinafter called the **Government),** acting through the Administrator of the Rural Electrification Administration (hereinafter called the **Administrator).**

**W** I T **N E S S E** T H

**WHEREAS** Basin Electric and Member have entered into a contract for the purchase and sale of electric power and energy, which contract is attached hereto and is hereinafter called the **Power Contract;** and

**WHEREAS,** the execution of the Power Contract between Member and Basin Electric is subject to the approval of the Administrator under the terms of the loan contracts entered into with the Administrator by Basin Electric and Member, respectively; and

**WHEREAS,** the Government is relying on said Power Contract and similar contracts between Basin Electric and other borrowers from the Rural Electrification Administration to assure that the "Notes" referred to in the Power Contract are repaid and the purposes of the Rural Electrification Act of 1936, as amended, are carried out and Basin Electric and Member by executing this Supplemental Agreement, acknowledge that reliance;

**NOW, THEREFORE,** in consideration of the mutual undertakings herein contained, and the approval of the Administrator of the Power Contract, the parties hereto agree as follows:

Basin Electric, Member and the Administrator agree that if Member shall fail to comply with any provisions of the Power Contract, Basin Electric, or the Administrator, if the Administrator so elects, shall have the right to enforce the obligations of Member under the provisions of the Power Contract by instituting all necessary actions at law or suits in equity, including, without limitation, suits for specific performance. Such rights of the Administrator to enforce the provisions of the Power Contract are in addition to and shall not limit the rights which the Administrator shall otherwise have as third-party beneficiary of the Power Contract or pursuant to the assignment and pledge of such Power Contract and the payments required to be made thereunder as provided in the "Mortgage" referred to in the Power Contract. The Government shall not, under any circumstances, assume or be bound by the obligations of Basin Electric under the Power Contract except to the extent the Government shall agree in writing to accept and be bound by such obligations.

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**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be duly executed as of the day and year first above mentioned.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| (SEAL) | By: | /s/ Bill Wagner |
|  | Name: | Bill Wagner |
|  | Title: | President |
|  | Date: | September 16, 1994 |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ William Keller |
| Name: | William Keller |
| Title: | Secretary |

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| | | |
|:---|:---|:---|
| (SEAL) | Upper Missouri G&T Electric Cooperative | Upper Missouri G&T Electric Cooperative |
| (SEAL) | By: | /s/ David Edwards |
|  | Name: | David Edwards |
|  | Title: | President |
|  | Date: | September 1, 1994 |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ [illegible signature] |
| Name: | [illegible signature] |
| Title: | Secretary |

---

---

| | |
|:---|:---|
| United States of America | United States of America |
| By: | /s/ Thomas Eddy |
| Name: | Thomas Eddy |
| Title: | Administrator of the Rural Electrification Administration |

---

------

**AMENDMENT TO WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE AND**

**UPPER MISSOURI GENERATION AND TRANSMISSION ELECTRIC COOPERATIVE**

This Amendment to Wholesale Power Contract is made as of this **<u>12</u>**<sup>th</sup> day of **<u>October</u>** 2005, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 **(Seller),** a North Dakota electric cooperative corporation, and Upper Missouri Generation And Transmission Electric Cooperative **(Member),** a Montana electric cooperative corporation.

**WITNESSETH:**

WHEREAS, Member and Member entered into a certain Wholesale Power Contract dated as of May 22, 1962, as amended **(Wholesale Contract);** and

WHEREAS Seller and Member are entering into this Amendment to extend the term of their Wholesale Contract.

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

I.Section 10 of the Wholesale Contract as amended by the Amendment to Wholesale Power Contract dated September 15, 1994, Section IV is hereby amended by deleting the date "December 31, 2039", and substituting the date "December 31, 2050".

II.This agreement is subject to the approval of the Administrator of the Rural Utilities Services.

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Executed as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| &nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | By: | /s/ Wayne L. Child |
|  | Name: | Wayne L. Child |
|  | Title: | President |

---

---

| | |
|:---|:---|
| ATTEST: | ATTEST: |
| By: | /s/ Kermit Pearson |
| Name: | Kermit Pearson |
| Title: | Secretary |

---

---

| | |
|:---|:---|
| (SEAL) |  |
| ATTEST: | ATTEST: |
| By: | /s/ David Sigloh |
| Name: | David Sigloh |
| Title: | Secretary |

---

---

| | |
|:---|:---|
| Upper Missouri G&T Electric Cooperative | Upper Missouri G&T Electric Cooperative |
| By: | /s/ Earl Pelton |
| Name: | Earl Pelton |
| Title: | President |

---

------

AMENDMENT TO

THE WHOLESALE POWER CONTRACT

BY AND BETWEEN

BASIN ELECTRIC POWER COOPERATIVE

AND

UPPER MISSOURI POWER COOPERATIVE

This Amendment to Wholesale Power Contract is made as of this <u>19</u> day of <u>August 2015, by</u> and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 **(Seller),** a North Dakota electric cooperative corporation, and Upper Missouri Power Cooperative, **(Member),** a Montana cooperative whose principal place of business is located at 111 2<sup>nd</sup> Ave SW, Sidney, MT 59270.

WITNESSETH:

WHEREAS, Seller and Member entered into a certain Wholesale Power Contract dated May 22, 1962, as amended and

WHEREAS, Seller is joining a Regional Transmission Organization (RTO) named the Southwest Power Pool (SPP) on October 1, 2015; and

WHEREAS, Seller intends to modify its transmission service obligations to pay all Federal Energy Regulatory Commission (FERC) pro forma wheeling assessments related to the Sellers power supply obligations; and

WHEREAS, Seller and Member are entering into this Amendment to modify and define Sellers Points of Delivery to Member; and

WHEREAS Seller is planning for the eventual retirement of its existing generation sources and replacement with new sources that will require substantial financing; and

WHEREAS, Member acknowledges that Seller and potential lenders are relying on the Wholesale Power Contract with Member, and similar commitments from other members to purchase capacity and energy for their present and future load requirement as security for the financing of Sellers facilities; and

WHEREAS, Seller and Member are entering into this Amendment to extend the term of their Wholesale Power Contract:

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

------

I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2 of the Wholesale Power Contract shall be amended as follows:

<u>Delivery Points</u>. The Seller shall deliver and the Member shall receive such power and energy from Seller at any of the following points of interconnection with the Member transmission system (Delivery Points):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)With the Southwest Power Pool (SPP)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)With the Midcontinent Independent System Operator - Montana Dakota Utilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Sellers generation within the Members system

Member shall provide necessary time registration metering for each Delivery Point used to determine Sellers power supply obligation to the Member. The Seller and the Member shall establish appropriate criteria to calibrate, read, and maintain this metering equipment.

II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4 of the Wholesale Power Contract shall be amended as follows:

**<u>Rate.</u>** Member shall pay Seller for all electric power and energy furnished hereunder at the rates and on the terms and conditions set forth in Rate Schedule "A", attached hereto and made a part hereof, as the same may be modified from time to time by Seller. The Board of Directors of Seller, at such intervals as it shall deem appropriate but in any event not less frequently than once in each calendar year, shall review the rate for electric power and energy furnished hereunder and under similar contract with other members and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacement, insurance, taxes and administrative and general overhead expenses) of the generating plants, the transmission system and related facilities of Seller, the cost of any power and energy purchased for resale hereunder by Seller, the cost of transmission service, the cost of lease payments, interest expense and depreciation expense or principal repayments of Seller, and to provide for the establishment and maintenance of reasonable reserves. Seller shall cause a notice in writing to be given to Member and other members of Seller and so long as Seller is contractually obligated to do so, to the Administrator of the Rural Utilities Service which shall set out the proposed revisions of rate with the effective date thereof, which shall not be less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric capacity and energy furnished by Seller to it hereunder after the effective date of any such revision at such revised rates; provided, however, that for so long as Seller is contractually required to receive such approval, no such revision shall be effective unless approved by the Administrator of the Rural Utilities Service.

------

III. Section 10 of the Wholesale Power Contract shall be amended to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Term</u>

This Agreement shall remain in effect until December 31, 2075. If either Party desires to terminate the Agreement on December 31, 2075, it shall provide written notice of intent to terminate by December 31, 2070. If notice of termination is not received by either party prior to December 31, 2070, this Agreement shall remain in effect unless terminated by either party giving to the other not less the five (5) years prior written notice of its intention to terminate.

IV.Effective Date: The terms of this Amendment shall become effective October 1, 2015.

V.This Amendment is subject to the approval of the Administrator of the Rural Utilities Services.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | By: | /s/ Paul Sukut |
|  | Name: | Paul Sukut |
|  | Title: | CEO & General Manager |

---

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Mark D. Foss |
| Name: | Mark D. Foss |
| Title: | Assistant Secretary |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL)

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| | | |
|:---|:---|:---|
| | Upper Missouri Power Cooperative | Upper Missouri Power Cooperative |
| (SEAL) | By: | /s/ Travis Thompson |
|  | Name: | Travis Thompson |
|  | Title: | President |

---

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Ray Clouse |
| Name: | Ray Clouse |
| Title: | Secretary |

---

------

AMENDMENT TO

WHOLESALE POWER CONTRACT

BY AND BETWEEN

BASIN ELECTRIC POWER COOPERATIVE

AND

UPPER MISSOURI POWER COOPERATIVE

This Amendment to Wholesale Power Contract is made effective as of this <u>16th</u> day of <u>December</u> 2015, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503 **(Seller),** a North Dakota electric power cooperative, and Upper Missouri G. & T. Electric Cooperative, Inc., d/b/a Upper Missouri Power Cooperative, **(Member),** a Montana cooperative whose principal place of business is located at 111 2<sup>n</sup><sup>d</sup> Ave. SW, Sidney, MT 59270.

WITNESSETH:

WHEREAS, Seller and Member entered into a certain Wholesale Power Contract **(WPC)** dated May 22, 1962, as amended; and

WHEREAS, the Member intends to begin to supply the electric power needs of Mid-Yellowstone Electric Cooperative, Inc. (Mid-Yellowstone), 203 Elliott Avenue, Hysham, MT 59038; and

WHEREAS, the Seller and Member wish to update and revise the Seller's Delivery Points to the Member.

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the Seller and Member agree as follows:

1. **<u>General</u>.** Commencing on October 1, 2017, the Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller all the electric power and energy needs that the Member shall require to serve Mid-Yellowstone in addition to the power and energy available to the Member from other power sources as provided below, to the extent the Seller has the power available.

The Member (or Mid-Yellowstone) shall have the right during the term of this Agreement to continue to obtain power and energy from the power sources listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i) Western Area Power Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Electric Characteristics.** Electric power and energy to be furnished hereunder shall be alternating current, three-phase, sixty (60) hertz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Rate.</u>** The Member shall pay the Seller for all electric power and energy furnished hereunder at the Class A Member rate, as the same may be modified from time to time, in the Seller's Class A Member Rate Schedule. The monthly billed demand delivery by Seller to the Member for Mid-Yellowstone shall be the Mid-Yellowstone demand contribution at the time of the Member's monthly coincident peak including Mid-Yellowstone reduced by the monthly Western Area Power Administration Contract Rate of Delivery for Mid-Yellowstone.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Wholesale Power Contract.</u>** The preceding terms and conditions apply only for energy provided to the Member for sale to Mid-Yellowstone. To the extent any provisions herein are in conflict with the applicable language of the WPC, as amended, the provision herein governs. Except as amended hereby, the provisions of the WPC remain unchanged and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Delivery Points.</u>** The Seller shall deliver and the Member shall receive such power and energy from Seller at any of the following points of interconnection with the Member transmission system (Delivery Points):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)with Northwestern Energy Montana

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)with Southwest Power Pool

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)the Seller's generation within the Member's system

The Member shall provide necessary time registration metering for each Delivery Point used to determine Seller's power supply obligation to the Member. The Seller and the Member shall establish appropriate criteria to calibrate, read, and maintain this metering equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>RUS</u> <u>Approval.</u>** This Amendment is subject to approval of the Administrator of the Rural Utilities Service.

Executed the day and year first written above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL)

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Mark D. Foss |
| Name: | Mark D. Foss |
| Title: | Assistant Secretary |

---

---

| | |
|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| By: | /s/ Paul Sukut |
| Name: | Paul Sukut |
| Title: | CEO & General Manager |

---

---

| | | |
|:---|:---|:---|
| (SEAL) | Upper Missouri Power Cooperative | Upper Missouri Power Cooperative |
| (SEAL) | By: | /s/ Travis Thompson |
| (SEAL) | Name: | Travis Thompson |
| (SEAL) | Title: | President |

---

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Ray Clouse |
| Name: | Ray Clouse |
| Title: | Secretary |

---

------

**AMENDMENT TO**

**WHOLESALE POWER CONTRACT**

**by and between**

**Basin Electric Power Cooperative and**

**Upper Missouri G. & T. Electric Cooperative, Inc.**

**THIS AMENDMENT TO WHOLESALE POWER CONTRACT** (**Amendment**), has been entered into and is made effective this <u>March</u> <u>24</u> , 2022 (**Effective Date**) by and between Upper Missouri G. & T. Electric Cooperative, Inc. d/b/a Upper Missouri Power Cooperative (**Upper Missouri**) and Basin Electric Power Cooperative (**Basin Electric**). Upper Missouri and Basin Electric are sometimes herein referred to individually as a "**Party**" or collectively as the "**Parties**".

**<u>RECITALS</u>**

**WHEREAS**, Upper Missouri is a Class A Member of Basin Electric that purchases and receives electric power and energy from Basin Electric under a Basin Electric Power Cooperative Wholesale Power Contract between Basin Electric and Upper Missouri dated May 22, 1962, as amended (**WPC**).

**WHEREAS,** under the WPC, Upper Missouri pays Basin Electric for electric power and energy furnished thereunder at the rates, terms, and conditions set forth in Basin Electric's Rate Schedule A (**Rate Schedule A**).

**WHEREAS,** on October 4, 2021 Upper Missouri submitted a Load Incentive Rate Application to Basin Electric, pursuant to the terms of the Load Incentive Rate under Rate Schedule A.

**WHEREAS,** Basin Electric has determined that it is necessary to terminate, and intends to terminate, the Load Incentive Rate under Rate Schedule A. Once terminated, the Load Incentive Rate will not be available under Rate Schedule A.

**WHEREAS,** for the purpose of acknowledging Upper Missouri's October 4, 2021 Load Incentive Rate Application, Basin Electric and Upper Missouri have agreed to a load incentive rate, and wish to amend the WPC to implement the agreed upon load incentive rate, on the terms set forth herein.

**<u>AGREEMENT</u>**

**NOW, THEREFORE**, in consideration of the premises, the Parties do hereby covenant and agree as follows:

**1.&nbsp;&nbsp;&nbsp;&nbsp;Amendment.** A new Section 11 shall be added to the WPC to read, in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;**Incentive Load.** Notwithstanding anything herein to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)*Definitions*. For purposes of this Section 11, the following words and terms shall have the meaning given them below:

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'<u>Base Demand Rate</u>' means the applicable Base Demand rate set forth in Rate Schedule A.

'<u>Base</u> <u>Energy</u> <u>Rate</u>' means the applicable Base Energy rate set forth in Rate Schedule A, unless such rate is adjusted under clause (iii) of this Section 11.

'<u>Incentive</u> <u>Load</u>' means the ultimate retail load at a large multi-building data center and office complex near Williston, ND that holds one or more long-term power supply agreements with one of Upper Missouri's distribution cooperative members (**UMPC Member**) that is served under the Wholesale Power Contract between the UMPC Member and Upper Missouri, and which is further defined in clause (ii).

'<u>Load Incentive Rate</u>' means the rates and terms that apply to the Incentive Load as described in clause (iii).

<u>'Power Cost Adjustment'</u> means a charge, determined daily by Basin Electric, which will apply if the average daily on-peak market price is above $55/MWh. The Power Cost Adjustment is determined by subtracting $55/MWh from the average daily on-peak market price for each day that such price exceeds $55/MWh. The Power Cost Adjustment is assessed based on daily energy deliveries under this Section 11. The average daily on-peak market price will be determined by averaging the 16 on peak hours (HE0700-HE2200 Central Prevailing Time) of the Day Ahead Locational Marginal Price (DA LMP) for the Southwest Power Pool Settlement Location of WAUE_BEPM.

ii)*Incentive Load*. The Incentive Load will be: (A) 250 MW for the period July 1, 2022 through December 31, 2023; (B) 125 MW for the period January 1, 2024 through December 31, 2026; and (C) 0 MW for the period from

and after January 1, 2027.

iii)*Load Incentive Rate*. The following rates and terms apply to the Incentive Load:

---

| | | | |
|:---|:---|:---|:---|
|  | **Accepted Load**<br>**under Load**<br>**Incentive Rate** | **Demand Billing** | **Energy Billing** |
| July 1, 2022<br>through<br>December 31, 2023 | 250 MW | $11/kw-mo. | Base Energy Rate +<br>Power Cost Adjustment |
| January 1, 2024<br>through<br>December 31, 2026 | 125 MW | $11/kw-mo. | Base Energy Rate +<br>Power Cost Adjustment |
| From and after<br>January 1, 2027 | 0 MW | Base Demand<br>Rate as stated<br>in Rate<br>Schedule A | Base Energy Rate as<br>stated in Rate Schedule<br>A |

---

Demand Billing for each month for the Incentive Load shall be determined **at the time of the Incentive Load's monthly 30 Minute non**-coincident peak for the month. Energy Billing for the Incentive Load shall be determined on a daily basis.

------

If Basin Electric experiences a rate reduction as a result of its use of deferred revenue, then the Base Energy Rate applied to the Incentive Load will be adjusted (increased) to exclude the deferred revenue from the Base Energy Rate calculation.

iv)*Restrictions*.

From the Effective Date through December 31, 2026, Upper Missouri shall only pass through to its member, for pass through to the Incentive Load, the following costs without markup: a) debt service costs resulting from the addition of new facilities required to serve the Incentive Load; b) third-party wheeling, incremental dues, and assessments; and c) taxes incurred as a result of serving the Incentive Load.

From the Effective Date through December 31, 2026, Upper Missouri shall pass through to its member, for pass through to the Incentive Load, the power supply costs (i.e., Demand Billing and Energy Billing) under this Section 11, and the total markup that Upper Missouri and/or its member adds to the power supply costs under this Section 11 shall not exceed $2 per MWh. This markup shall cover items such as operations and maintenance, customer accounting, administrative, general, and debt service of Upper Missouri's and/or its member's existing system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v)*Metering Requirements*.

Upper Missouri shall be responsible for installation, maintenance, and associated costs for metering the Incentive Load under this Section 11. The meter shall be electronically read by Upper Missouri and Basin Electric.

The Incentive Load meter readings shall be subtracted (if applicable) in order to exclude billing quantities from the Basin Electric's Base Demand and Energy rate billing under the WPC, without adjustment for any distribution system losses.

A thirty-minute time registration demand meter is required for the Incentive Load and must be approved by Basin Electric prior to installation. All meters shall be tested and calibrated as required by the WPC. All meter test reports shall be provided to Basin Electric. Continuous real-time usage data telemetry for the Incentive Load shall be provided to Basin Electric unless otherwise approved by Basin Electric.

Upper Missouri is responsible to provide Basin Electric with demand data for every 30-minute period of the billing month and total billing month energy usage for the Incentive Load. Failure to provide such data shall result in Upper Missouri being billed at Basin Electric's Base Demand Charge and Base Energy Charge, except for those situations where the data is not available due to equipment failure.

In the event of a metering equipment malfunction, Basin Electric shall be the sole determinant of the amounts of power and energy delivered by Basin Electric.

vi)*Patronage/ Bill Credits*. Power sales under this Section 11 shall be excluded from Basin Electric's margin allocation and bill credits.

vii)*Disputes.* Any and all disputes, conflicts or questions relating to this Section 11 first shall be referred to the General Managers of the Parties for resolution. If a mutually

------

acceptable resolution is not reached within sixty (60) days after the General Managers meet, the Parties may seek any legal remedy otherwise available to them.

**2. Applicable Law**

The Parties agree that this Amendment shall be construed and applied in accordance with the Federal Power Act and the laws of the State of North Dakota (applied without reference to the North Dakota conflict of laws statutes) and that North Dakota law governs any dispute between the Parties.

**3. Ratification**

Except as amended by this Amendment, the WPC shall remain unmodified and in full force and effect.

**IN WITNESS WHEREOF,** the Parties have caused this Agreement to be executed and delivered on their respective behalves by duly authorized representatives on the dates shown below.

---

| | |
|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| By: | /s/ Todd Telesz |
| Name: | Todd Telesz |
| Title: | CEO & GM |
| Dated: | March 24, 2022 |

---

---

| | |
|:---|:---|
| Upper Missouri Power Cooperative | Upper Missouri Power Cooperative |
| By: | /s/ Jeremy Mahowald |
| Name: | Jeremy Mahowald |
| Title: | General Manager |
| Dated: | March 24, 2022 |

---

## Exhibit 10.4

**Exhibit 10.4**

<u>BASIN</u> <u>ELECTRIC</u> <u>POWER</u> <u>COOPERATIVE</u> <u>WHOLESALE</u> <u>POWER</u> <u>CONTRACT</u>

Agreement made as of **<u>April</u>** <u>5</u>, 19**62,** between Basin Electric Power Cooperative <u>(hereinafter</u> <u>called the</u> "Seller"), a corporation organized and existing under the laws of the State of North Dakota, and East River Power Cooperative (hereinafter called the "Member", a corporation organized and existing under the laws of the State of **<u>South Dakota</u>**.

WHEREAS, the Seller proposes to construct an electric generating plant or transmission system or both, and may purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

WHEREAS, the Seller contemplates the introduction of the power and energy of such proposed electric generating plant into the transmission system of the Bureau of Reclamation for delivery through facilities of the Bureau of Reclamation, including both transmission lines and substation equipment to its Members; and

WHEREAS, the Seller may, along with other electric cooperatives, enter into a contract with the Bureau of Reclamation to establish a "joint transmission system" including specifically described facilities, and contemplating additions to said joint transmission system under certain conditions, over which said joint transmission system Seller may deliver to Member power and energy under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric power and energy similar in form to this agreement with all of the borrowers which are members of the Seller, and may enter into similar contracts with other such borrowers who may become members; and

WHEREAS, the Member desires to purchase electric power and energy from the Seller on the terms and conditions herein set forth;

NOW, THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;&nbsp;&nbsp;&nbsp;<u>General.</u> The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below; provided, however,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;The power and energy purchased hereunder shall be furnished in accordance with the normal load pattern of the Member's system;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;The maximum demand of the Member supplied by the Seller in the month when the simultaneous maximum demands of the Member and all other Member Cooperatives supplied by the Seller equal in the aggregate 88% of the test capabilities of the Seller's generating unit shall continue during the remainder of the contract term to be the amount of power and energy which the member shall be obligated to purchase and receive and the Seller shall be obligated to sell and deliver hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;Seller's obligation to furnish and the Member's obligation to receive and pay for electric power and energy hereunder shall commence upon completion of the generation and transmission facilities necessary for service hereunder and upon the availability to the Seller of necessary transmission and related facilities, including those of the Bureau of Reclamation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;The Member shall have the right during the term of this Agreement to continue to obtain power and energy from the power sources and in the amounts listed below:

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| | | |
|:---|:---|:---|
| Bureau of Reclamation | <u>110,000</u> | kw |
| Member's Generating Plant | XXX | kw |
| Other | XXX | kw |

---

provided, however, that if the Seller at any time and from time to time is unable to sell on a firm power rate basis the entire capacity of the Seller's generating unit, the Member shall reduce its purchases from the Bureau of Reclamation to the extent requested by the Seller and shall increase its purchases from the Seller in the amount of the requested reduction of purchases from the Bureau of Reclamation. The amount of reduction of Bureau of Reclamation power purchases which the Member shall be requested to make shall either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;bear the same ratio to the aggregate of the reductions which all Members shall be requested to make as the contract rate of delivery of the Member under its contract with the Bureau of Reclamation bears to the aggregate of the contract rates of delivery to all Members under their contracts with the Bureau of Reclamation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;be such other amount as the Seller and the Member may agree upon in order to minimize the loss in wheeling payments from, and billing penalty payments to, the Bureau of Reclamation under all the Members' contracts with the Bureau of Reclamation.

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To the extent that the reduction of power purchases from the Bureau of Reclamation by the Member pursuant to such request of the Seller results in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp; the loss of wheeling payments which otherwise would have been made to the Member by the Bureau of Reclamation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;in the Member's becoming liable for billing penalty payments under its power contract with the Bureau of Reclamation which it would not have otherwise incurred,

the amounts thereof shall be determined and the effects spread equitably among all the Members by means of a surcharge in the Rate Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;&nbsp;&nbsp;&nbsp;In addition to the supply under the preceding paragraph (d), the Member shall have the right to continue to purchase power and energy under the following contract(s) during the remainder of the term thereof and shall terminate such contract(s) as soon as it may legally do so if the Seller shall, with the approval or at the direction of the Administrator of the Rural Electrification Administration (hereinafter called the "Administrator"), so request: **None** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall not be obligated to supply power and energy hereunder to the Member in excess of that amount which, together with all amounts of power and energy supplied by the Seller to all other Members of the Seller, shall equal 88% of the test capability of the Seller's generating unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Electric</u> <u>Characteristics</u> <u>and</u> <u>Delivery</u> <u>Point(s).</u> Electric power and energy to be furnished hereunder shall be alternating current, three phase, sixty cycle. The Seller shall deliver such electric power and energy into the transmission system of the Bureau of Reclamation, and the Member shall receive such power and energy at the point(s) of delivery on the transmission system of the Bureau or the joint transmission system contemplated to be established by a Pooling Agreement between the Seller, Bureau and others, as shall be scheduled by the Member, and such other point or points as may be agreed upon by the Seller and the Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Substation.</u> Delivery of electric power and energy shall be through the necessary substation equipment at the point(s) of connection with the transmission system of the Bureau of Reclamation or the joint system. The Member shall own and maintain switching and protective equipment which may be reasonably necessary to enable the Member to take and use the electric power and energy hereunder.Meters and metering equipment shall be furnished, maintained and read by the Bureau of Reclamation and shall be located at the point of delivery on the low voltage side of such transforming equipment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rate.</u> (a) The Member shall pay the Seller for all electric power and energy furnished hereunder as the rates and on the terms and conditions set forth in Rate Schedule "A", attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors of the Seller at such intervals as it shall deem appropriate, but in any event not less frequently than once in each calendar year, shall review the rate for electric power and energy furnished hereunder and under similar agreements with other Members and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of the Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacements, insurance, taxes and administrative and general overhead expenses) of the generating plant, transmission system and related facilities of the Seller, the cost of any power and energy purchased for resale hereunder by the Seller, the cost of transmission service, make payments on account of principal of and interest on all indebtedness of the Seller, and to provide for the establishment and maintenance of reasonable reserves. The Seller shall cause a notice in writing to be given to the Member and other Members of the Seller and the Administrator which shall set out all the proposed revisions of the rate with the effective date thereof, which shall be not less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of the Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric power and energy furnished by the Seller to it hereunder after the effective date any such revisions at such revised rates; provided, however, that no such revision shall be effective unless approved in writing by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Meter</u> <u>Readings</u> <u>and</u> <u>Payment</u> <u>of</u> <u>Bills.</u> Appropriate operating procedures shall be established to monthly determine the electric power and energy delivered and to be billed by Seller to the Member. Electric power and energy furnished hereunder shall be paid for at the office of the Seller in Bismarck, North Dakota, monthly within fifteen (15) days after the bill therefor is mailed to the Member. If the Member shall fail to pay any such bill within such fifteen-day period, the Seller may discontinue delivery of electric power and energy hereunder upon fifteen (15) days' written notice to the Member of its intention so to do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Meter</u> <u>Testing</u> <u>and</u> <u>Billing</u> <u>Adjustment.</u> All meters shall be tested and calibrated as provided for in the contract between the Member and the Bureau of Reclamation. The Member shall request a special test of meters delivering power or energy to it under the Member's contract with the Bureau of Reclamation, upon the request of the Seller. If any special meter test made at the Seller's request shall disclose that the meters are recording accurately, the Seller shall reimburse the Member for the cost of such test. Meters registering not more than two per cent (2%) above or below normal shall be deemed to be accurate. The readings of any meter which shall have been disclosed by test to be inaccurate shall be corrected for the ninety (90) days previous to such test in accordance with the percentage of inaccuracy found by such

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test. If any meter shall fail to register for any period, the Member and the Seller shall agree as to the amount of energy furnished during such period and the Seller shall render a bill therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp; <u>Notice</u> <u>of</u> <u>Meter</u> <u>Reading</u> <u>or</u> <u>Test.</u> The Member shall notify the Seller in advance of the time of any meter reading or test so that the Seller's representative may be present at such meter reading or test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Right</u> <u>of</u> <u>Access.</u> Duly authorized representatives of either party hereto shall be permitted to enter the premises of the other party hereto at all reasonable times in order to carry out the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Continuity of</u> <u>Service.</u> The Seller shall use reasonable diligence to provide a constant and uninterrupted supply of electric power and energy hereunder. If the supply of electric power and energy shall fail or be interrupted, or become defective through act of God or of the public enemy, or because of accident, failure in the joint transmission system, labor troubles, or any other cause beyond the control of the Seller, the Seller shall not be liable therefor or for damages caused thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Term.</u> This Agreement shall become effective only upon approval in writing by the Administrator and shall remain in effect until January 1, 2002, and thereafter until terminated by either party's giving to the other not less than six months' written notice of its intention to terminate. Subject to the provisions of Article I hereof, service hereunder and the obligation of the Member to pay therefor shall commence upon completion of the facilities necessary to provide service.

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EXECUTED THE day and year first above mentioned.

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| | |
|:---|:---|
| Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| By: | /s/ Arthur Jones |
| Name: | Arthur Jones |
| Title: | President |

---

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dennis Lindberg |
| Name: | Dennis Lindberg |
| Title: | Secretary |

---

---

| | |
|:---|:---|
| East River Electric Cooperative, Member | East River Electric Cooperative, Member |
| By: | /s/ Arthur Jones |
| Name: | Arthur Jones |
| Title: | President |

---

---

| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ [illegible signature] |
| Name: | [illegible signature] |
| Title: | Secretary |

---

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To be attached to

Electric Service Contract between

BASIN ELECTRIC POWER COOPERATIVE

and its MEMBERS,

RATE SCHEDULE "A".

IT IS UNDERSTOOD that the rates, terms and conditions of this Rate Schedule "A" will be determined prior to commencement of service in accordance with Article 4(b) of the Agreement to which this Rate Schedule "A" is attached.

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AMENDMENT TO

WHOLESALE POWER CONTRACT

by and between

BASIN ELECTRIC POWER COOPERATIVE

and

<u>EAST</u> <u>RIVER</u> <u>ELECTRIC</u> <u>POWER</u> <u>COOPERATIVE,</u> INC.

AGREEMENT made as of <u>October</u> *<u>3</u>&nbsp;&nbsp;&nbsp;&nbsp;*, 1968, between Basin Electric Power Cooperative (hereinafter called the "Seller"), a corporation organized and existing under the laws of the State of North Dakota, and <u>East</u> <u>River</u> <u>Electric</u> <u>Power</u> <u>Cooperative,</u> <u>Inc</u>. , (hereinafter called the "Member"), a corporation organized and existing under the laws of the State of <u>South</u> <u>Dakota.</u>

WHEREAS, the Seller has constructed an electric generating plant and transmission system and may construct additional generating capacity or purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

WHEREAS, the Seller has contracted for the introduction of the power and energy produced by such electric generating plant into the transmission system of the Bureau of Reclamation for delivery to its members through facilities of the Bureau of Reclamation, including both transmission lines and substation equipment; and

WHEREAS, the Seller, along with other electric cooperatives, has entered into a contract with the Bureau of Reclamation to establish a "Joint Transmission System" including specifically described facilities and contemplated additions to said joint transmission system under certain conditions, over which said joint transmission system Seller may deliver to Member electric service under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric service similar in form to this agreement with REA borrowers which are Class "A" members of the Seller, and may enter into similar contracts with other such borrowers which may be or become Class "A" members; and

WHEREAS, the Seller may construct delivery facilities to make delivery of power and energy to its Members in addition to delivery facilities of the Joint Transmission System; and

WHEREAS, the member has heretofore entered into a wholesale power contract with Seller (hereinafter referred to as the "Power Contract") dated <u>April</u> <u>5</u>, <u>1962</u>&nbsp;&nbsp;&nbsp;&nbsp; , and the parties hereto desire to amend said Power Contract on the terms and conditions herein set forth:

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NOW, THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Paragraph 1 of the Power Contract is hereby amended to read as follows:

"l.&nbsp;&nbsp;&nbsp;&nbsp;<u>General.</u> The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below, to the extent that the Seller shall have such power and energy and facilities available, but not to <u>exceed 254,485KW;</u> provided, however, \*\* \*\* \*\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Paragraph 1 (b) of the Power Contract is hereby deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Paragraph 1 (f) of the Power Contract is hereby deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Paragraph 10 of the Power Contract is hereby amended by deleting the date "January 1, 2002," in line 2 thereof, and substituting therefore the date "January 1, <u>2010".</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;This Amendment to the Power Contract shall become effective when approved in writing by the Administrator of the Rural Electrification Administration.

EXECUTED the day and year first above mentioned.

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| | | | |
|:---|:---|:---|:---|
| | | Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| | | By: | /s/ Arthur Jones |
| ATTEST | ATTEST | Name: | Arthur Jones |
| By: | /s/ Dennis Lindberg | Title: | President |
| Name: | Dennis Lindberg |  |  |
| Title: | Secretary |  |  |

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| | | | |
|:---|:---|:---|:---|
| | | East River Electric Power Coop, Member | East River Electric Power Coop, Member |
| | | By: | /s/ Arthur Jones |
| | | Name: | Arthur Jones |
| ATTEST | ATTEST | Title: | President |
| By: | /s/ [illegible signature] |  |  |
| Name: | [illegible signature] |  |  |
| Title: | Secretary |  |  |

---

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For information purposes, we show the amended and deleted sections as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. General. The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from the other power sources listed below; provided, however, \*\*\*\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;(b) The maximum demand of the member supplied by the Seller in the month when the simultaneous maximum demands of the Member and all other Member cooperatives supplied by the Seller equal in the aggregate 88% of the test capabilities of the Seller's generating unit shall continue during the remainder of the contract term to be the amount of power and energy which the Member shall be obligated to sell and deliver hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;(f) The Seller shall not be obligated to supply power and energy hereunder to the Member in excess of that amount which, together with all amounts of power and energy supplied by the Seller to all other Members of the Seller, shall equal 88% of the test capability of the Seller's generating unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Term.</u> This Agreement shall become effective only upon approval in writing by the Administrator and shall remain in effect until January 1, 2002, and thereafter until terminated by either party's giving to the other not less than six months' written notice of its intention to terminate. Subject to the provisions of Article I hereof, service hereunder and the obligation of the Member to pay therefor shall commence upon completion of the facilities necessary to provide service.

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WHOLESALE POWER CONTRACT

by and between

BASIN ELECTRIC POWER COOPERATIVE

and

EAST RIVER ELECTRIC POWER COOPERATIVE, INC.

------

WHOLESALE POWER CONTRACT

by and between

BASIN ELECTRIC POWER COOPERATIVE

and

EAST RIVER ELECTRIC POWER COOPERATIVE, INC.

AGREEMENT made as of <u>March 3, 1</u><u>983</u>, between Basin Electric Power Cooperative (hereinafter called the "Seller"), a corporation organized and existing under the laws of the State of North Dakota, and East River Electric Power Cooperative, Inc. (hereinafter called the "Member"), a corporation organized and existing under the laws of the State of South Dakota:

WHEREAS, the Seller has constructed electric generating plants and a transmission system and may construct additional generating capacity or purchase or otherwise obtain electric power and energy for the purpose, among others, of supplying electric power and energy to borrowers from the Rural Electrification Administration which are or may become members of the Seller; and

WHEREAS, the Seller has contracted for the introduction of the power and energy produced by such electric generating plant into the transmission system of the Western Area Power Administration (hereinafter called "WAPA"), successor to the Bureau of Reclamation for delivery through facilities of WAPA, including both transmission lines and substation equipment to its Members; and

WHEREAS, the Seller, along with other electric cooperatives, has entered into a contract with WAPA to establish a "Joint Transmission System" including specifically described facilities and contemplating additions to said Joint Transmission System under certain conditions, over which said Joint Transmission System Seller may deliver to Member electric service under this contract; and

WHEREAS, the Seller has heretofore entered into or is about to enter into agreements for the sale of electric service similar in form to this agreement with REA borrowers which are Class "A" members of the Seller, and may enter into similar contracts with other such borrowers which may be or become Class "A" members; and

WHEREAS, the Seller may construct delivery facilities to make delivery of power and energy to its Members in addition to delivery facilities of the Joint Transmission System; and

WHEREAS, the Member has heretofore entered into a wholesale power contract with Seller (hereinafter referred to as the "Power Contract") dated April 5, 1962, and amended October 3, 1968, and the parties hereto desire to terminate said Power Contract and amendments thereto on the terms and conditions herein set forth:

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NOW, THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>GENERAL.</u> The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which the Member shall require in addition to power and energy available to the Member from other power sources listed below to the extent that the Seller shall have such power and energy and facilities available provided, however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the power and energy purchased hereunder shall be furnished in accordance with the load pattern of the Member system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Seller's obligation to furnish and the Member's obligation to receive and pay for electric power and energy hereunder shall commence upon completion of the generation and transmission facilities necessary for service hereunder and upon availability to the Seller of necessary transmission and related facilities including those of WAPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the member shall have the right during the term of this Agreement to continue to obtain power and energy from the Western Area Power Administration-Contract Rate of Delivery together with such hydro allocation or contract rate of delivery granted or assigned to Member by WAPA from time to time. (It is recognized by the Seller and Member that the Parties' obligation hereunder may be affected by the Public Utility Regulatory Policies Act of 1978 and amendments thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Electric Characteristics and Delivery Point(s).</u> Electric power and energy to be furnished hereunder shall be alternating current, three phase, sixty cycle. The Seller shall deliver such electric power and energy into the transmission system of WAPA, and the Member shall receive such power and energy at the point(s) of delivery on the transmission system of WAPA or the Joint Transmission System established by a Pooling Agreement between the Seller, WAPA and others, and at such other point or points as may be agreed upon by the Seller and the Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Substation.</u> Delivery of electric power and energy shall be through the necessary substation equipment at the point(s) of connection with the transmission system of WAPA or the Joint Transmission System. The Member shall own and maintain switching and protective equipment which may be reasonably necessary to enable the Member to take and use the electric power and energy hereunder. Meters and metering equipment shall be furnished, maintained and read by the WAPA and shall be located at the point of delivery on either the high or low voltage side of such transforming equipment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rate.</u> (a) The Member shall pay the Seller for all electric power and energy furnished hereunder at the rates and on the terms and conditions set forth in Rate Schedule "A", and shall be entitled to such credits provided in Exhibit "B", attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors of the Seller at such intervals as it shall deem appropriate, but in any event not less frequently than once in each calendar year, shall review the rate for electric power an energy furnished hereunder and under similar agreements with other Members and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of the Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacements, insurance taxes and administrative and general overhead expenses) of the generating plant, transmission system and related facilities of the Seller, the cost of any power and energy purchased for resale hereunder by the Seller, the cost of transmission service, make payments on account of principal of and interest on all indebtedness of the Seller, and to provide for the establishment and maintenance of reasonable reserves. The Seller shall cause a notice in writing to be given to the Member and other Members of the Seller and the Administrator which shall set out all the proposed revisions of the rate with the effective date thereof, which shall be not less than thirty (30) nor more than forty five (45) days after the date of the notice and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of the Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric power and energy furnished by the Seller to it hereunder after the effective date any such revisions at such revised rates; provided, however, that no such revision shall be effective unless approved in writing by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Meter Readings and Payment of Bills.</u> Appropriate operating procedures shall be established to monthly determine the electric power and energy delivered and to be billed by Seller to the Member. Electric power and energy furnished hereunder shall be paid for at the office of the Seller in Bismarck, North Dakota, monthly within fifteen (15) days after the bill therefore is mailed to the Member. If the Member shall fail to pay any such bill within such fifteen-day period, the Seller may discontinue delivery of electric power and energy hereunder upon fifteen (15) days' written notice to the Member of its intention so to do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Meter</u> <u>Testing</u> <u>and Billing</u> <u>Adjustment.</u> All meters shall be tested and calibrated as provided for in the contract between the Member and WAPA. The Member shall request a special test of meters delivering power or energy to it under the Member's contract with WAPA, upon the request of the Seller. If any special meter test made at the Seller's request shall disclose that the meters are recording accurately, the Seller shall reimburse the Member for the cost of such test. Meters registering not more than two

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percent (2%) above or below normal shall be deemed to be accurate. The readings of any meter which shall have been disclosed by test to be inaccurate shall be corrected for the ninety (90) days previous to such test in accordance with the percentage of inaccuracy found by such test. If any meter shall fail to register for any period, the Member and the Seller shall agree as to the amount of energy furnished during such period and the Seller shall render a bill therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u> <u>of</u> <u>Meter</u> <u>Reading</u> <u>or</u> <u>Test.</u> The Member shall notify the Seller in advance of the time of any meter reading or test so that the Seller's representative may be present at such meter reading or test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of Access.</u> Duly authorized representatives of either party hereto shall be permitted to enter the premises of the other party hereto at all reasonable times in order to carry out the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Continuity of Service.</u> The Seller shall use reasonable diligence to provide a constant and uninterrupted supply of electric power and energy hereunder. If the supply of electric power and energy shall fail or be interrupted, or become defective through act of God or of the public enemy, or because of accident, failure in the joint transmission system, labor troubles, or any other cause beyond the control of the Seller, the Seller shall not be liable therefore or for damages caused thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;Term. This Agreement shall become effective only upon approval in writing by the Administrator and shall remain in effect until January 1, 2020, and thereafter until terminated by either party's giving to the other not less than six months' written notice of its intention to terminate. Subject to the provisions of Article 1 hereof, service hereunder and the obligation of the Member to pay therefore shall commence upon completion of the facilities necessary to provide service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;This Power Contract and any Amendment thereto shall become effective when approved in writing by the Administrator of the Rural Electrification Administration. Upon the approval of the Administrator and effectiveness of this contract, the wholesale Power Contract between the parties hereto dated April 5, 1962, and all amendments thereto shall terminate, and this contract shall be substituted therefore.

EXECUTED THE day and year first above mentioned.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| | By: | /s/ Dennis Lindberg |
| (SEAL) | Name: | Dennis Lindberg |
|  | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Clarence Welander |
| Name: | Clarence Welander |
| Title: | Secretary |

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| | |
|:---|:---|
| East River Electric Power Cooperative, Member | East River Electric Power Cooperative, Member |
| By: | /s/ Virgil Fodness |
| Name: | Virgil Fodness |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dwight Nylund |
| Name: | Dwight Nylund |
| Title: | Secretary |

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EXHIBIT B

<u>CREDITS</u>

In consideration of the Member purchasing from the Seller its electric power and energy requirements hereunder, the Member shall be granted the credit(s) set forth in Seller's policy, "Member Financing of Shares of Basin Electric Facilities" adopted by the board of directors of Seller on the 12th day of July, 1978 as evidenced by Resolution No. R2.7-78. The Member shall receive such credit(s) when it has arranged or obtained a source of financing for electric capacity and energy for Seller or transmission or transformation facilities or both and transmission and transformation services or both used by the Seller which will be funded in whole or in part by a third party including but not limited to Heartland Consumers Power District or financed directly or indirectly by the Member.

Such policy and Resolution No. R2.7-78 are attached hereto and made a part hereof as set forth in full herein.

The terms and conditions of such policy shall remain an integral part of this Agreement notwithstanding the recision of, or amendment to such policy. Such policy shall remain as part of the terms and conditions of this Agreement for the term hereof or until this Agreement is amended in writing by the parties hereto.

Notwithstanding the effective date provided in Seller's Policy R2.7-78 such Policy shall become effective between the Parties hereto upon the approval of this Agreement by the Administrator of the Rural Electrification Administration.

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Exhibit B (Credits)

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative, Seller | Basin Electric Power Cooperative, Seller |
| | By: | /s/ Dennis Lindberg |
| (SEAL) | Name: | Dennis Lindberg |
|  | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Clarence Welander |
| Name: | Clarence Welander |
| Title: | Secretary |

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---

| | |
|:---|:---|
| East River Electric Power Cooperative, Member | East River Electric Power Cooperative, Member |
| By: | /s/ Virgil Fodness |
| Name: | Virgil Fodness |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Dwight Nylund |
| Name: | Dwight Nylund |
| Title: | Secretary |

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AGREEMENT TO REVISE AND SUBSTITUTE

PAGE 3 OF

WHOLESALE POWER CONTRACT

This Agreement made as of this 13th day of October 1983 between Basin Electric Power Cooperative, a North Dakota electric cooperative corporation (Basin Electric) and East River Electric Power Cooperative, Inc., a South Dakota cooperative corporation (East River):

W I T N E S S E T H :

WHEREAS, Basin Electric and East River entered into a wholesale power contract dated as of March 3, 1983 (Wholesale Power Contract); and

WHEREAS, by its terms, said Wholesale Power Contract was to become effective only upon approval in writing by the Administrator of the Rural Electrification Administration:

WHEREAS, Basin Electric and East River have agreed to revise the third page of the Wholesale Power Contract; and

NOW THEREFORE, in consideration of the mutual undertakings contained herein and in the Wholesale Power Contract, Basin Electric and East River agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp; Attached hereto as Exhibit A is a revised Page 3 to the Wholesale Power Contract.

2.&nbsp;&nbsp;&nbsp;&nbsp;The terms of said revised Page 3 are agreeable to Basin Electric and East River.

3.&nbsp;&nbsp;&nbsp;&nbsp;Page 3 of the Wholesale Power Contract is hereby deleted and Exhibit A is hereby substituted therefore.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly authorized, executed and attested as of the date first above mentioned.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SEAL** | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
|  | By: | /s/ Dennis Lindberg |
|  | Name: | Dennis Lindberg |
|  | Title: | President |

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| | |
|:---|:---|
| Attest: | /s/ Clarence Welander |
| Name: | Clarence Welander |
| Title: | Secretary |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SEAL** | East River Electric Power Cooperative | East River Electric Power Cooperative |
|  | By: | /s/ Virgil Fodness |
|  | Name: | Virgil Fodness |
|  | Title: | President |

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| | |
|:---|:---|
| Attest: | /s/ Dwight Nylund |
| Name: | Dwight Nylund |
| Title: | Secretary |

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Exhibit A

available to the Member from other power sources listed below to the extent that the Seller shall have such power and energy and facilities available provided, however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the power and energy purchased hereunder shall be furnished in accordance with the load pattern of the Member system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Seller's obligation to furnish and the Member's obligation to receive and pay for electric power and energy hereunder shall commence upon completion of the generation and transmission facilities necessary for service hereunder and upon availability to the Seller of necessary transmission and related facilities including those of WAPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Member shall have the right during the term of this Agreement to continue to obtain power and energy from the Western Area Power Administration at the Contract Rate of Delivery, together with such hydro allocation or contract rate of delivery possessed by, granted or assigned to (i)a new member of this Member which has assigned its allocation to the Member, or (ii) to a member of this Member which acquires an additional Western Area Power Administration allocation and assigns it to this Member. It is agreed by the Parties hereto that should Western Area Power Administration make additional hydro firm power available to its customers, the Member shall be entitled to its proportionate share thereof. (It is recognized by the Seller and Member that the Parties' obligations hereunder may be affected by the Public Utility Regulatory Policies Act of 1978 and amendments thereto).

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Electric</u> <u>Characteristics</u> <u>and</u> <u>Delivery</u> Point(s). Electric power and energy to be furnished hereunder shall be alternating current, three phase, sixty cycle. The Seller shall deliver such electric power and energy into the transmission system of WAPA, and the Member shall receive such power and energy at the point(s) of

Revised and substituted per agreement dated as of 10/13/83

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**AMENDMENT TO** 

**WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE** 

**AND**

**EAST RIVER ELECTRIC POWER COOPERATIVE, INC.**

This Amendment to Wholesale Power Contract is made as of this **<u>1st</u>** day of <u>December,</u> 1994, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 (Basin Electric), a North Dakota electric cooperative corporation, and East River Electric Power Cooperative, Inc., a South Dakota cooperative whose principal place of business is located in or near Madison, South Dakota (hereinafter **Member).**

W I T N E S S E T H :

WHEREAS, Basin Electric and Member have heretofore entered into a certain Wholesale Power Contract dated as of April 5, 1962, as amended **(Wholesale Contract**); and

WHEREAS, Basin Electric is seeking certain additional loans or loan guarantees (Loans) from the United States acting through the Administrator (Administrator) of the Rural Electrification Administration or its successor agency (REA); and

WHEREAS, as a condition to such Loans, the Administrator has required that the Wholesale Contract and other similar contracts between Basin Electric and other members be amended; and

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

I.&nbsp;&nbsp;&nbsp;&nbsp;The recitals contained in the Wholesale Contract are deleted and the following recitals are inserted in lieu thereof:

WHEREAS, Seller presently owns and operates electric generating plants, a transmission system and associated facilities, and has entered into contracts with others to provide for transmission facilities or service or otherwise obtain electric capacity and energy for the purpose, among others, of supplying electric capacity

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and energy to borrowers from the Rural Electrification Administration (REA) which are or may become members of Sell er; and

WHEREAS, Seller has financed and may, in the future, finance new facilities in whole or in part through loans made or guaranteed by the United States of America (hereinafter called the Government), acting through the Administrator; and

of Chicago, as Trustee, Fund Asset Management, Inc., and Morgan Guaranty Trust Company of New York, as Agent, Mortgagees, dated as of November 1, 1984. (Said Consolidated Mortgage and Security Agreement as it may have heretofore been, or hereafter be, amended, supplemented and/or restated from time to time being hereinafter called the Mortgage); and

WHEREAS, this Agreement and payments due to Seller under this Agreement will be pledged and assigned to secure the Notes, as provided in the Mortgage or other notes pursuant to other financial arrangements; and

WHEREAS, Member acknowledges that Seller and the Government are relying on this commitment from Member, and similar commitments from all other members having similar contracts, to purchase capacity and energy for its present and future load requirements hereunder to provide for (a) the financing of Seller's facilities, (b) the development of an organization to serve Member and (c) for a long-term planning and power supply acquisition program; and

WHEREAS, the Government is relying on this Agreement and similar contracts between Seller and other borrowers from the Rural Electrification Administration to assure that the Notes are repaid and the purposes of the Rural Electrification Act of 1936, as amended, are carried out and Seller and Member by executing this Agreement, acknowledge that reliance;

II.&nbsp;&nbsp;&nbsp;&nbsp;The provision of the Wholesale Contract entitled Rate (Section 4 of the Wholesale Contract) is deleted and the following paragraphs are inserted in lieu thereof:

<u>RATE.</u> Member shall pay Seller for all electric power and energy furnished hereunder at the rates and on the terms and conditions set forth in Rate Schedule

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"A", attached hereto and made a part hereof, as the same may be modified from time to time by Seller.

The Board of Directors of Seller at such intervals as it shall deem appropriate, but in any event not less frequently than once in each calendar year, shall review the rate for electric capacity and energy furnished hereunder and under similar contracts with other members, and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacement, insurance, taxes and administrative and general overhead expenses) of the generating plants, the transmission system and related facilities of Seller, the cost of any capacity and energy purchased for resale hereunder by Seller, the cost of transmission service, the cost of lease payments; interest expense and depreciation expense of Seller, and to provide for the establishment and maintenance of reasonable reserves. Seller shall cause a notice in writing to be given to Member and other members of Seller and the Administrator which shall set out all of the proposed revisions of rate with the effective date hereof, which shall not be less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric capacity and energy furnished by Seller to it hereunder after the effective date of any such revision at such revised rates; provided, however, that no such revision shall be effective unless approved in writing by the Administrator.

III.&nbsp;&nbsp;&nbsp;&nbsp;The following additional sections are inserted in the Wholesale Contract:

<u>TRANSFER BY</u> <u>THE</u> **<u>MEMBER.</u>** The Member agrees that during the term of this Agreement, so long as any of the Notes are outstanding, the Member will not, without the approval in writing of Seller and the Administrator, take or suffer to be taken any steps for reorganization or to consolidate with or merge into any organization, or to sell, lease or transfer (or make any agreement therefor) all or a substantial portion of its assets, whether now owned or hereafter acquired. Notwithstanding the foregoing, Member may take or suffer to be taken any steps for reorganization or to consolidate or merge into any corporation or to sell, lease or transfer (or make any agreement therefor) all or a substantial portion of its assets, whether now owned or hereafter acquired, so long as Member shall pay such portion of the outstanding indebtedness on the Notes, as well as other obligations and commitments of Seller at the time existing, as shall be determined by Seller with the prior written consent of the Administrator and shall otherwise comply

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with such reasonable terms and conditions as the Administrator and Seller shall require.

<u>SPECIFIC</u> <u>PERFORMANCE.</u> Seller and Member agree that the failure or threatened failure of Member to comply with the terms of the immediately preceding paragraph entitled <u>Transfer by Member</u> will cause irreparable injury to Seller and to the Government which cannot properly or adequately be compensated by the mere payment of money. Member agrees, therefore, that in the event of a breach or threatened breach by Member of the paragraph entitled <u>Transfer</u> <u>by</u> <u>the</u> <u>Member,</u> of this Agreement, that Seller, in addition to any other remedies that may be available to it judicially, shall have the right to obtain from any competent court a decree enjoining such breach or threatened breach of said paragraph and providing for the terms of said paragraph to be specifically enforced.

IV.&nbsp;&nbsp;&nbsp;&nbsp;The provision entitled "term" in the Wholesale Contract, as amended, is hereby amended by deleting the date appearing therein and substituting the date "December 31, 2039".

V.&nbsp;&nbsp;&nbsp;&nbsp;Except as amended hereby, the provision of the Wholesale Contract shall remain in full force and effect; provided, however, that to the extent any of the amending provisions hereof shall conflict with any other provision of the Wholesale Contract, this Amendment shall supersede such provision.

Executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| | By: | /s/ Bill Wagner |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | Name: | Bill Wagner |
|  | Title: | President |

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| | |
|:---|:---|
| Attest: | /s/ William Keller |
| Name: | William Keller |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
|  | By: | /s/ Wayne Wright |
|  | Name: | Wayne Wright |
|  | Title: | President |

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| | |
|:---|:---|
| Attest: | /s/ Keith Kleppen |
| Name: | Keith Kleppen |

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SUPPLEMENTAL AGREEMENT

THIS AGREEMENT, made this <u>1st</u> day of *<u>December:</u>&nbsp;&nbsp;&nbsp;&nbsp;*, 1994, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 (hereinafter called Basin Electric), an electric cooperative corporation organized and existing under the laws of the State of North Dakota, and East River Electric Power Cooperative, Inc., organized and existing under the laws of the State of South Dakota, with its principal office at 121 Southeast First Street, Madison, South Dakota 57042 (hereinafter called **Member),** and the United States of America (hereinafter called the **Government**), acting through the Administrator of the Rural Electrification Administration (hereinafter called the Administrator).

W I T N E S S E T H :

WHEREAS, Basin Electric and Member have entered into a contract for the purchase and sale of electric power and energy; which contract is attached hereto and is hereinafter called the **Power Contract;** and

**WHEREAS,** the execution of the Power Contract between Member and Basin Electric is subject to the approval of the Administrator under the terms of the loan contracts entered into with the Administrator by Basin Electric and Member, respectively; and

**WHEREAS,** the Government is relying on said Power Contract and similar contracts between Basin Electric and other borrowers from the Rural Electrification Administration to assure that the "Notes" referred to in the Power Contract are repaid and the purposes of the Rural Electrification Act of 1936, as amended, are carried out and Basin Electric and Member by executing this Supplemental Agreement, acknowledge that reliance;

**NOW, THEREFORE,** in consideration of the mutual undertakings herein contained, and the approval of the Administrator of the Power Contract, the parties hereto agree as follows:

Basin Electric, Member and the Administrator agree that if Member shall fail to comply with any provisions of the Power Contract, Basin Electric, or the Administrator, if the Administrator so elects, shall have the right to enforce the obligations of Member under the provisions of the Power Contract by instituting all necessary actions at law or suits in equity, including, without limitation, suits for specific performance. Such rights of the Administrator to enforce the provisions of the Power Contract are in addition to and shall not limit the rights which the Administrator shall otherwise have as third-party beneficiary of the Power Contract or pursuant to the assignment and pledge of such Power Contract and the payments required to be made thereunder as provided in the "Mortgage" referred

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to in the Power Contract. The Government shall not, under any circumstances, assume or be bound by the obligations of Basin Electric under the Power Contract except to the extent the Government shall agree in writing to accept and be bound by such obligations.

IN WITNESS **WHEREOF,** the parties hereto have caused this Agreement to be duly executed as of the day and year first above mentioned.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | By: | /s/ Bill Wagner |
|  | Title: | President |
|  | Dated: | December 16, 1994 |

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| | |
|:---|:---|
| Attest: | /s/ William Keller |
| Title: | Secretary |

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| | | |
|:---|:---|:---|
| | East River Electric Power Cooperative | East River Electric Power Cooperative |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL) | By: | /s/ Wayne Wright |
|  | Title: | President |
|  | Dated: | December 1, 1994 |

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| | |
|:---|:---|
| Attest: | /s/ Keith Kleppen |
| Title: | Secretary |

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| | |
|:---|:---|
| United States of America | United States of America |
| By: | /s/ [illegible signature] |
| Title: | Administrator of the Rural Electrification Administration |

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| |
|:---|
| **BASIN ELECTRIC <br>POWER COOPERATIVE** |
| 1717 EAST INTERSTATE AVENUE <br>BISMARCK, NORTH DAKOTA 58503-0564 <br>PHONE 701-223-0441<br>FAX: 701/224-5336 |

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December 2, 2002

Mr. Jeffrey L. Nelson Manager

East River Electric Power Cooperative

P.O. Box 227

Madison, SD 57042-0227

Dear Mr. Nelson:

Recently we have been visiting with your staff on establishing an electric power billing due date between Basin Electric and East River. Based on the premise that it be mutually agreeable between East River Electric Power Cooperative and Basin Electric Power Cooperative, a firm payment date is established as the first working day of each month by wire transfer.

This agreement will be effective with the November 2002 power billing, which will be due and payable January 2, 2003.

If you are in agreement with the above, please sign both letter agreements, keep one for your files, and return one to Basin Electric.

Sincerely,

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| | |
|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| By: | /s/ Wayne Backman |
| Name: | Wayne Backman |

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| | |
|:---|:---|
| East River Electric Power Cooperative | East River Electric Power Cooperative |
| By: | /s/ Greg Hollith |
| Title: | Assistant General <br>Manager-Admin. |
| Date: | February 12, 2003 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Equal*** <br>*Employment* <br>*Opportunity* <br>***Employer*** |

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**AMENDMENT TO** 

**WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE** 

**AND**

**EAST RIVER ELECTRIC POWER COOPERATIVE, INC.**

This Amendment to Wholesale Power Contract is made as of this 15th day of August, 2006, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58501 **(Seller),** a North Dakota electric cooperative corporation, and East River Electric Power Cooperative **(Member),** a South Dakota cooperative whose principal place of business is located in or near Madison, South Dakota.

WITNESSETH:

WHEREAS, Seller and Member entered into a certain Wholesale Power Contract dated as of April 5, 1962, as amended **(Wholesale Contract);** and

WHEREAS, Seller and Member are entering into this Agreement to extend the term of their Wholesale Contract;

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;Section 10 of the Wholesale Contract as amended by the Amendment to Wholesale Power Contract on December 1, 1994, Section IV, is hereby amended by deleting the date "December 31, 2039", and substituting the date "December 31, 2058".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp;This agreement is subject to the approval of the Administrator of the Rural Utilities Services.

Executed as of the day and year first above written.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| | By: | /s/ Wayne L. Child |
| | Name: | Wayne L. Child |
| (SEAL) | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Kermit Pearson |
| Name: | Kermit Pearson |
| Title: | Secretary |

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Page 1 of 2

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| | | |
|:---|:---|:---|
| | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
| | By: | /s/ Wayne Wright |
| | Name: | Wayne Wright |
| (SEAL) | Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ James Ryken |
| Name: | James Ryken |

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Page 2 of 2

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**SUPPLEMENT AND AMENDMENT TO** 

**WHOLESALE POWER CONTRACT** 

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE** 

**AND**

**EAST RIVER ELECTRIC POWER COOPERATIVE, INC.**

This Supplement and Amendment to Wholesale Power Contract is made as of this 17<sup>th</sup> day of March, 2008, by and between **Basin Electric Power Cooperative,** 1717 East Interstate Avenue, Bismarck, North Dakota 58501 **(Seller),** a North Dakota electric cooperative corporation, and East River Electric Power Cooperative, Inc. **(Member),** a South Dakota cooperative whose principal place of business is 121 SE First Street, Madison, South Dakota 57042.

**WITNESSETH:**

WHEREAS, Seller and Member entered into a Wholesale Power Contract **(Contract),** as amended from time to time in the following documents:

1.&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric Power Cooperative Wholesale Power Contract dated April 5, 1962;

2.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Wholesale Power Contract dated October 3, 1968;

3.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Wholesale Power Contract dated March 3, 1983;

4.&nbsp;&nbsp;&nbsp;&nbsp;Agreement to **Revise** and Substitute Page 3 of Wholesale Power Contract dated October 13, 1983;

5.&nbsp;&nbsp;&nbsp;&nbsp;Supplemental Agreement dated December 1, 1994;

6.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Wholesale Power Contract dated December 1, 1994; and

7.&nbsp;&nbsp;&nbsp;&nbsp;Amendment to Wholesale Power Contract dated August 15, 2006.

WHEREAS, the Member has entered into Supplemental Wholesale Power Contracts (Exhibit VI) individually with Agralite Electric Cooperative on April 26, 2007 **(Agralite),** Meeker Cooperative Light and Power Association on April 26, 2007 **(Meeker),** Redwood Electric Cooperative on April 24, 2007 **(Redwood)** and South Central Electric Association on April 24, 2007 **(South Central) (Agralite, Meeker, Redwood and South Central),** Minnesota rural electric cooperatives, to provide for the supplemental power and energy requirements of Agralite, Meeker, Redwood and South Central above the fixed amount of power and energy purchased from Great River Energy **(GRE)** and Western Area Power Administration **(Western);**

WHEREAS, pursuant to the Amended and Restated Power Purchase Contract between Agralite, Meeker, Redwood and South Central (individually} and GRE dated August 1, 2004 (hereinafter referred to as the "PPC"), Agralite, Meeker, Redwood and South Central gave individual notice during April, 2007 to GRE to fix Agralite, Meeker, Redwood and South Central's power and energy deliveries from GRE as of May 1, 2009; and

Page 1 of 9

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WHEREAS, the Seller agrees to provide the electric power and energy to the Member to meet its obligations to Agralite, Meeker, Redwood and South Central on the terms and conditions herein set forth.

NOW THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>EFFECT</u> <u>ON</u> <u>WHOLESALE</u> <u>POWER</u> <u>CONTRACT</u>**

Except as specifically provided for herein, the following terms and conditions apply only for all power and energy provided by Seller to Member to serve Agralite, Meeker, Redwood and South Central per Section 2A. To the extent any of the provisions herein differ from the applicable language in the Contract, as amended and supplemented, the provisions herein govern for sales by Member to Agralite, Meeker, Redwood and South Central. Except as amended hereby, the provisions of the Contract remain in full force and effect.

**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>GENERAL</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller the electric power and energy which Agralite, Meeker, Redwood and South Central shall require, in Agralite, Meeker, Redwood and South Central's historically defined service territory as of the date of this Supplement Agreement, in addition to the power and energy available to Agralite, Meeker, Redwood and South Central from GRE and Western, as provided below, to the extent that the Seller has the power and energy available. The term "historically defined service territory" shall, for the purposes of this Supplement and Amendment, be defined as all areas, including such areas not currently served by Agralite, Meeker, Redwood and South Central, located within the exterior boundary lines of Agralite, Meeker, Redwood and South Central's established service territory as of the date of this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Agralite, Meeker, Redwood and South Central shall, during the term of this Supplement and Amendment, continue to obtain power and energy from GRE in the Baseline Quantities to be established as of May 1, 2009, per Section 1.2 of the GRE PPC (Exhibit I) in effect as of the date of this Supplement and Amendment, hereinafter referred to as "GRE Policies and Procedures" (Exhibit II). The Western power and energy that is administered by GRE on behalf of Agralite, Meeker, Redwood and South Central is a part of the Baseline Quantities referenced herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;The Baseline Quantities shall consist of "Monthly Firm Reportable Power'', "Monthly Firm Billable Power", "Monthly Energy", "Monthly Interruptible Power" and "Monthly Interruptible Energy" as defined in the GRE PPC and the GRE Policies and Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event Agralite, Meeker, Redwood or South Central elect to reduce the Baseline Quantities per Section 1.2.15 of the GRE PPC, Seller, at its sole discretion, shall determine whether it will sell and deliver that additional power to the Member per Section 2A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;In the event Western reduces its allocation to Agralite, Meeker, Redwood or South Central, prior to the extension of a Western contract (Exhibit Ill), and GRE

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reduces the Baseline Quantities, Seller will supply the reduced Baseline Quantities per Section 7, Rates, in this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;In the event a Western contract (Exhibit Ill) is not extended, and the GRE Baseline Quantities are reduced, Seller will supply the reduced Baseline Quantities at rates consistent with similarly situated Members.

**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>ELECTRIC.CHARACTERISTICS</u>**

Electric capacity and energy to be furnished hereunder shall be alternating current, three-phase, 60 hertz.

**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>POINTS</u> <u>OF</u> <u>DELIVERY</u>**

Seller shall deliver the electric power and energy to the GRE/Xcel Energy transmission system at points of interconnection with the Western Area Power Administration/Basin Electric/Heartland Integrated System (hereinafter referred to as **"IS")** per Exhibit IV or where the IS delivers electric power and energy to the Midwest Independent System Operator **(MISO).**

**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>TRANSMISSION</u> <u>SERVICE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall obtain and pay the costs of transmission service to the Points of Delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Seller and Member agree that the Member has the obligation to obtain transmission from the Points of Delivery to the Load Metering Points. Member shall pay the cost of transmission service from the Points of Delivery to the Load Metering Points currently pursuant to the Transmission Service Contract between GRE and Agralite, Meeker, Redwood and South Central (individually) effective January 1, 1999 (Exhibit V). The Seller and the Member further agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Congestion</u> <u>Cost.</u>** Seller shall be responsible for congestion costs from the Points of Delivery to the Load Metering Points for power and energy deliveries, which Member receives from Seller under this Supplement and Amendment. Seller shall also be responsible for costs and/or receipts associated with Seller-approved Financial Transmission Rights **(FTR).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Losses.</u>** The Member shall be responsible for all energy requirements and monetary costs related to transmission losses from the Points of Delivery to the Load Metering Points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Transmission</u> <u>Facility</u> <u>Improvements.</u>** To the extent that the Member is assessed transmission upgrade costs due to the addition of Direct Assignment Facilities specifically associated with and due to transmission from the Points of Delivery to the Load Metering Points, then the Seller shall be responsible for such costs. Direct Assignment Facilities are those facilities or portions of facilities that are constructed by a transmission provider for the sole use/benefit of a particular transmission customer requesting service under an open-access transmission tariff and are not otherwise included within any transmission tariff.

Page 3 of 9

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**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>METERING</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Load</u> <u>Metering Points.</u>** The Load Metering Points shall be the points where, pursuant to Agralite, Meeker, Redwood and South Central's Transmission Service Contracts with GRE (Exhibit V), GRE delivers the power and energy to Agralite, Meeker, Redwood and South Central. Meters and metering equipment shall be furnished, maintained and read as provided for in Agralite, Meeker, Redwood and South Central's Transmission Service Agreements with GRE (Exhibit V).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Meter Readings and</u> <u>Payment of</u> <u>Bills.</u>** Appropriate operating procedures shall be established to monthly determine the electric power and energy delivered and to be billed by Seller to the Member. Electric power and energy furnished hereunder shall be paid for by immediately available funds, to the Seller's account, as directed, monthly within fifteen (15) days after the bill is mailed to the Member. Payments not received by the Seller within twenty (20) calendar days following the mailing of the bill to the Member will be assessed an interest charge in accordance with the terms of the Seller's policy on late payment of Member power bills. If there is a dispute between Seller and Member over the amount due under any power bill, Member shall nevertheless pay the full amount billed by Seller and then proceed to resolve the dispute in any manner available to it under this Agreement or law. In the event the Seller shall be found to have charged in excess of that properly chargeable hereunder, the Seller shall refund such amount, together with interest, at a rate equal to the interest rate charged by Seller on late payment of power bills. If the Member shall fail to pay any such bill within the fifteen (15) days after the bill is mailed, the Seller may discontinue delivery of electric power and energy hereunder upon fifteen (15) days written notice to the Member of its intention to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Meter</u> <u>Testing and Billing Adjustment.</u>** All meters shall be tested and calibrated as provided for in Agralite, Meeker, Redwood and South Central's Transmission Service Agreement with GRE (Exhibit V). Upon the request of Seller, the Member shall request a special test of meter(s) delivering power and energy at the Load Metering Points to the Member under Exhibit V. If any special meter tests made at the Seller's request shall disclose that the meters are recording accurately, the Seller shall reimburse the Member for the cost of such tests. Meters registering not more than 2% above or below normal shall be deemed to be accurate. Readings of any meter that shall have been disclosed by test to be inaccurate shall be corrected for the ninety (90) days previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter shall fail to register for any *period,* the Member and Seller shall agree to the amount of power and energy furnished during such period and the Seller shall render a bill therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice_of</u> <u>Meter Reading</u> <u>or</u> <u>Test.</u>** The Member shall notify the Seller in advance of the time of any meter reading or test so that the Seller's representative may be present at such meter reading or test.

**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>RATE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Class A</u> <u>Rate.</u>** Except as provided in Section 7D, the Member shall pay the Seller for all electric power and energy furnished under this Supplement and Amendment at the Seller's Class A Member rate, as the same may be modified from time to time in the

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Seller's Class A Member Rate Schedule and on the terms and conditions set forth in this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp; **<u>Board of</u> <u>Directors</u>** <u>-</u> **<u>Review of</u> <u>Rate.</u>** The Board of Directors of Seller, at such intervals as it shall deem appropriate but in any event not less frequently than once in each calendar year, shall review the rate for electric power and energy furnished hereunder and under similar contracts with other members and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacement, insurance, taxes and administrative and general overhead expenses) of the generating plants, the transmission system and related facilities of Seller, the cost of any power and energy purchased for resale hereunder by Seller, the cost of transmission service, the cost of lease payments, interest expense and depreciation expense of Seller, and to provide for the establishment and maintenance of reasonable reserves. Seller shall cause a notice in writing to be given to Member and other members of Seller and the Administrator of the Rural Utilities Service which shall set out the proposed revisions of rate with the effective date thereof, which shall not be less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate is proposed to be adjusted and established. The Member agrees that the rate from time to time established by the Board of Directors of Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric capacity and energy furnished by Seller to it hereunder after the effective date of any such revision at such revised rates; provided, however, that no such revision shall be effective unless approved by the Administrator of the Rural Utilities Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Ancillary</u> <u>Services.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Seller shall provide ancillary services or pay for all ancillary service charges for load served by Seller under this Agreement, as provided for under the **Seller's Policy for Payment of Ancillary Services for Member "All Requirements Deliveries"** in effect on the date of execution of this Agreement, as revised by any subsequent amendments to such Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;To the extent the Member qualifies for services and/or payments per the Ancillary Services Policy, Seller shall pay Member for any excess energy supplied by GRE to Agralite, Meeker, Redwood or South Central at the GRE average quarterly composite power and energy rate for such power and energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exceptions</u> <u>to</u> <u>Class</u> <u>A</u> <u>Member</u> <u>Rate</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Fixed Charge</u> <u>Components #1</u> <u>and</u> <u>#2.</u>** Member shall be assessed a Fixed Charge Component #1 and a Fixed Charge Component #2 energy charge on all power delivered to Member for Agralite, Meeker, Redwood and South Central under this Supplement and Amendment to the Wholesale Power Contract. These energy charges shall be determined prior to the beginning of each year. These charges shall be determined by dividing the Fixed Charge Component #1 and Fixed Charge Component #2 by the projected energy sales to those Class A Members to which the

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rate applies, exclusive of load development and market-based energy sales. The resultant mills per kWh value shall be in effect for the subject year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;**<u>PCA.</u>** Member shall not receive *any* PCA credits provided through December 31, 2008.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Deferred</u> <u>Revenue</u> <u>Assessment.</u>** Seller shall assess an additional 2.0 mills per kWh on all energy sold hereunder through December 31, 2011.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp; **<u>Resource Assessment.</u>** Seller shall assess an additional 5 mills per kWh on all energy sold hereunder through April 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Parity Assessment.</u>** The Member shall pay a Parity Assessment of 3.0 mills/kWh on billed monthly energy for the period of May 1, 2009, to April 30, 2024; or in the alternate, the Member may elect by not later than April 1, 2009 to make a one-time payment to Seller by May 1, 2009. The one-time payment amount will be determined as follows:

Present Value of (Parity Assessment Rate X Forecasted kWh Sales) Where:

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| | |
|:---|:---|
| Present Value Discount Rate | 6.85% |
| Parity Assessment Rate | 3.00 mills/kWh |
| Projected kWh Sales | Forecast as of 1st Quarter 2009 |

---

The forecasted energy sales amount will be mutually agreed upon by the Member and Seller. Revenues from the Parity Assessment will not be eligible for patronage allocations. The Member may make individual elections for Agralite, Meeker, Redwood and South Central.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;**<u>Electric Heat and</u> <u>Dual</u> <u>Heat Rates.</u>** If the Member's purchases for Agralite, Meeker, Redwood and South Central are expected to be less than 50% of Agralite, Meeker, Redwood and South Central's annual energy requirements, the following shall apply. The Member's electric heat demand credit and dual heat demand credit associated with Agralite, Meeker, Redwood and South Central shall not exceed 35% of the Seller's monthly base demand sales under this Supplement and Amendment; additionally, the sum of the Seller's electric heat energy and dual heat energy shall not exceed 35% of the Seller's monthly base energy sales under this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;**<u>"Other</u> <u>Equity"</u> <u>Balance.</u>** The foregoing exceptions to the Class A Rate do not entitle the Member to any allocation or distribution of the Other Equity balance achieved prior to the execution of this Supplement and Amendment to Wholesale Power Contract, exclusive of adjustments to Other Equity for income tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;**<u>New Service Area-Rate.</u>** In the event the Member proposes to serve areas within Agralite, Meeker, Redwood or South Central's historically defined service territory not served by Agralite, Meeker, Redwood or South Central as of the date of this Supplement and Amendment, the Member agrees that the rates described in Section

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7 will not automatically be extended to loads served in the new area(s). The Seller will institute rates for this new area load comparable to other Members of the Seller with new area loads beyond their historically defined service territories.

**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>PATRONAGE</u>**

Patronage from Seller shall be based upon all revenue received from Member per this Supplement and Amendment, exclusive of the Parity Assessment.

**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>LOAD</u> <u>DETERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;<u>Energy</u> <u>and</u> <u>Demand.</u>** The total energy and demand billed per this Supplement and Amendment shall be determined based upon the Load Metering Points. Per Seller's Class A Member Rate Schedule A provision on "Load Determination", the Rate Schedule terms "WD" and ' WE " shall be interpreted as follows:

"WD" = shall be defined as Monthly Firm Reportable Power.

"WE" - shall be defined as the Monthly Energy.

Note: This assumes the Agralite, Meeker, Redwood and South Central Western allocation is included in the Monthly Firm Reportable Power and the Monthly Energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Date and Time</u> <u>of</u> <u>Peak</u> <u>Billing Demand.</u>** The date and time of the Member's 30-minute monthly peak demand under the Contract, excluding the deliveries under this Supplement and Amendment shall be used to determine the date and time of the Billing Demand under this Supplement and Amendment. The date and time of the billing demand determination will be re-evaluated and subject to change by Seller at such time as the total purchases of the Member per this Supplement and Amendment exceeds five percent (5%) of the Member's maximum annual peak demand. However, any change to the determination of demand billing will preserve reasonable comparability for the Member in relation to all other Sellers' members, including those members receiving all requirements service.

**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>LOAD</u> <u>FORECASTS</u>**

If requested by Seller, Member shall assist with day-ahead forecast of Agralite, Meeker, Redwood and South Central's load and projected load management.

**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>ENERGY</u> <u>SCHEDULING</u>**

Seller shall schedule the Monthly Energy in accordance with the GRE Policies and Procedures (Exhibit II). It is the intent of both the Seller and the Member to implement dynamic scheduling.

**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>SERVICES</u>**

Seller's financial compensation to Member associated with Touchstone Energy programs shall be per Board of Directors policy and with respect to the Agralite, Meeker, Redwood and South

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Central cost shall be proportionate to the Seller's demand delivery to the Member for Agralite, Meeker, Redwood and South Central in relation to these four systems total demand.

**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>MAPP</u> <u>REPORTING</u>**

Seller shall report all Member load to MAPP or similar pool. Member shall assign to Seller the Member's scheduling rights of the Baseline Quantities. Member shall assign to the Seller the right to report to MAPP or similar pool the Monthly Firm Reportable Power as a firm capacity purchase from GRE. To satisfy MAPP firm power accreditation rules, Seller shall, at all times, have the right to schedule energy up to the amount of the Monthly Firm Reportable Power.

**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>EXHIBITS</u>**

Exhibits I through VI attached hereto and made a part hereof set forth provisions and conditions which may change from time to time:

Exhibit I: Amended and Restated Power Purchase Contracts between Agralite, Meeker, Redwood and South Central and GRE;

Exhibit II: GRE's Policies and Procedures under Amended and Restated Power Purchase Contracts;

Exhibit Ill: Agralite, Meeker, Redwood and South Central's Western Firm Electric Service Contracts;

Exhibit IV: Points of Delivery;

Exhibit V: Agralite, Meeker, Redwood and South Central's Transmission Service Agreements with GRE; and

Exhibit VI: Supplemental Wholesale Power Contracts between Member and Agralite, Meeker, Redwood and South Central.

The parties agree that these Exhibits shall remain in effect until superseded by a subsequent Exhibit executed by the parties.

**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>RURAL</u> <u>UTILITIES</u> <u>SERVICE</u> <u>APPROVAL</u>**

This Supplement and Amendment to the Wholesale Power Agreement and any amendments thereto shall become effective when approved in writing by the Administrator of the Rural Utilities Service.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| (SEAL) | By: | /s/ Ronald R. Harper |
|  | Name: | Ronald R. Harper |
|  | Title: | CEO & General Manager |

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| | |
|:---|:---|
| ATTEST: | /s/ Claire M. Olson |
| Name: | Claire M. Olson |
| Title: | Assistant Secretary |

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| | | |
|:---|:---|:---|
| | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
| | By: | /s/ Wayne Wright |
| (SEAL) | Name: | Wayne Wright |
|  | Title: | President |

---

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| | |
|:---|:---|
| ATTEST: | /s/ James Ryken |
| Name: | James Ryken |
| Title: | Secretary-Treasurer |

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**EXHIBIT IV** 

**P0INTS OF DELIVERY**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Interconnections** | **Interconnections** | **Interconnections** | **Interconnections** | **Interconnections** |
| **Substation**  | **Voltage** | **Entity** | **Line** | **Breaker** |
| Granite Falls | 69 kV | Great River | Willmar | 4352 |
| Granite Falls | 230 kV | Great River | Willmar | 982 |
| Granite Falls | 115 kV | NSP | Minnesota Valley | 1762 |
| Granite Falls | 115 kV | NSP | Marshall | 1562 |
| Granite Falls | 230 kV | NSP | Panther | 682 |
| Granite Falls | 230kV | NSP | Minnesota Valley | 1082 |
| Split Rock | 345 kV | NSP | White | 192/196 |
| Split Rock | 345kV | NSP | Sioux City | 392/396 |
| Sioux Falls | 230kV | NSP | Split Rock | 2882 |
| Sioux Falls | 115 kV | NSP | Lawrence | 462 |

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This Exhibit can be modified and/or substituted by mutual agreement in writing by the Parties.

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| | | | |
|:---|:---|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative | East River Electric Power Cooperative | East River Electric Power Cooperative |
| By: | /s/ Ronald R. Harper | By: | /s/ Jeffrey Nelson |
| Name: | Ronald R. Harper | Name: | Jeffrey Nelson |
| Title: | CEO & General Manager | Title: | General Manager |
| Date: | March 17, 2008 | Date: | March 17, 2008 |

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**AMENDMENT NO. 1 TO**

**THE SUPPLEMENT AND AMENDMENT TO THE** 

**WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE AND** 

**EAST RIVER ELECTRIC POWER COOPERATIVE, INC.**

This Amendment 1 to the Supplement and Amendment to the Wholesale Power Contract is made this <u>4</u> day of <u>February</u>, 2010, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota, 58501 **(Seller),** a North Dakota electric power cooperative corporation, and East River Electric Power Cooperative, Inc., 121 SE First Street, PO Box 227, Madison, South Dakota, 57042 **(Member),** a South Dakota cooperative existing under the laws of the State of South Dakota.

**WITNESSETH:**

WHEREAS, Seller and Member entered into a certain Wholesale Power Contract dated April 5, 1962, as amended; and

WHEREAS, Seller and Member entered into a Supplement and Amendment to the Wholesale Power Contract dated March 17, 2008 (Supplement and Amendment to the Wholesale Power Contract), to provide for the sale of power to the Member to serve supplemental requirements of four new Member cooperatives: Agralite, Meeker, Redwood, and South Central; and

WHEREAS, the Supplement and Amendment to the Wholesale Power Contract provides that if Agralite, Meeker, Redwood, or South Central elect to reduce certain Baseline Quantities from Great River Energy, Seller, at its sole discretion, shall determine whether it will sell and deliver that additional power to the Member; and

WHEREAS, Agralite, Meeker, Redwood, and South Central have elected to reduce certain Baseline Quantities and the Seller has decided to sell that additional power to the Member under the terms specified in this Amendment;

NOW THEREFORE, in consideration of the mutual undertakings herein contained the Parties agree as follows:

1.&nbsp;&nbsp;&nbsp;&nbsp;**<u>General.</u>**

**<u>Section 2</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract</u> <u>is</u> <u>hereby amended to add Subsection E which shall read as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;Effective May 1, 2010, Agralite, Meeker, Redwood, and South Central have elected to reduce the Baseline Quantities per Section 2.D(1). The Seller has

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determined that it will sell and deliver up to this additional power to the Member per the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller, Section 2.E. power for Member loads at the Rate specified in Section 7 to the extent Seller has the power available.

ii)&nbsp;&nbsp;&nbsp;&nbsp;The power purchased by Member per Section 2.E. shall be as shown on Exhibit VII.

iii)&nbsp;&nbsp;&nbsp;&nbsp;The power purchased by Member per Section 2.E. shall be deemed purchased prior to the purchase made by the Member per Section **2.A.**

2.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Rate.</u>**

**<u>Section</u> <u>7.A.</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract</u> <u>is hereby amended to read as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Sections 7.D. and 7.E., the Member shall pay the Seller for all electric capacity and energy furnished hereunder at the Seller's Class A Member rate, as the same may be modified from time to time in the Seller's Class A Member Rate Schedule and on the terms and conditions set forth in this Agreement.

**<u>Section</u> <u>7.D.</u> <u>(6)</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract is hereby amended as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electric Heat and Dual Heat Rates.</u> If the Member's purchases for Agralite, Meeker, Redwood, and South Central, including Section 2.E. purchases, are expected to be less than 50% of Agralite, Meeker, Redwood, and South Central's annual energy requirements, the following shall apply. The Member's electric heat demand credit and dual heat demand credit associated with Agralite, Meeker, Redwood, and South Central shall not exceed 35% of the Seller's monthly base demand sales under this Supplement and Amendment; additionally, the sum of the Seller's electric heat energy and dual heat energy shall not exceed 35% of the Member's monthly base energy sales under this Supplement and Amendment.

**<u>Section 7.E.</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract</u> <u>is hereby added as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exception</u> <u>to</u> <u>Class A</u> <u>Member</u> <u>Rates/Power</u> <u>Sold</u> <u>per</u> <u>Section</u> <u>2.E.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;<u>Fixed Charge Components</u> <u>#1 and #2.</u> Member shall be assessed a Fixed Charge Component #1 and Fixed Charge Component #2 energy charge on all power delivered to Member for Agralite, Meeker, Redwood, and South Central per Section 2.E. These energy charges shall be determined prior to the beginning of each year. These charges shall be determined by dividing the Fixed Charge Component #1 and Fixed Charge Component #2 by the projected energy sales to those Class A members to which the rate applies, exclusive of load development and

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market-based energy sales. The resultant mills per kWh value shall be in effect for the subject year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;<u>PCA</u>. Member shall not receive the remaining value of the PCA credits accumulated as of December 31, 2009.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp; <u>Resource Assessment.</u> Seller shall assess a nine (9) mill per kWh surcharge on the Seller's total Section 2.E. power cost to the Member as set forth in this Section 7 - Rate. The term of the Resource Assessment shall begin with May 1, 2010 and continue through April 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;<u>"Other</u> <u>Equity"</u> <u>Balance.</u> The foregoing exceptions to the Class A Rate do not entitle the Member to any allocation or distribution of the Other Equity balance achieved prior to execution of this Wholesale Power Contract, exclusive of adjustments to Other Equity for income tax.

3.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibits.</u>**

**<u>Section 14</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment</u> <u>to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract</u> <u>is</u> <u>hereby amended to read as follows:</u>**

Exhibits 1 through VII attached hereto and made a part hereof set forth provisions and conditions which may change from time to time:

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| | |
|:---|:---|
| Exhibit I: | Amended and Restated Power Purchase Contracts between Agralite, Meeker, Redwood and South Central and GRE; |
| Exhibit II: | GRE's Policies and Procedures under Amended and Restated Power Purchase Contracts; |
| Exhibit Ill: | Agralite, Meeker, Redwood and South Central's Western Firm Electric Service Contracts; |
| Exhibit IV: | Agralite, Meeker, Redwood and South Central's Transmission Service Agreements with GRE; and |
| Exhibit V: | Points of Delivery; |
| Exhibit VI: | Supplemental Wholesale Power Contracts between Member and Agralite, Meeker, Redwood and South Central. |
| Exhibit VII: | Additional Power Purchased by Member |

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The parties agree that these Exhibits shall remain in effect until superseded by a subsequent Exhibit executed by the parties.

4.&nbsp;&nbsp;&nbsp;&nbsp; **<u>Rural</u> <u>Utilities</u> <u>Service</u> <u>Approval.</u>**

This Amendment 1 to the Supplement and Amendment to the Wholesale Power Contract shall become effective when approved in writing by the Administrator of Rural Utilities Service.

Executed the day and year first above written.

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| | | |
|:---|:---|:---|
| | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| (SEAL) | By: | /s/ Ronald R. Harper |
|  | Name: | Ronald R. Harper |
|  | Title: | CEO & General Manager |

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| | |
|:---|:---|
| Attest: | /s/ Claire M. Olson |
| Name: | Claire M. Olson |
| Title: | Assistant Secretary |

---

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| | | |
|:---|:---|:---|
| | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
| | By: | /s/ James Ryken |
| (SEAL) | Name: | James Ryken |
|  | Title: | President |

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| | |
|:---|:---|
| Attest: | /s/ Ervin Fink |
| Name: | Ervin Fink |
| Title: | Secretary |

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**AMENDMENT NO. 2 TO**

**THE SUPPLEMENT AND AMENDMENT TO THE** 

**WHOLESALE POWER CONTRACT**

**BY AND BETWEEN**

**BASIN ELECTRIC POWER COOPERATIVE AND** 

**EAST RIVER ELECTRIC POWER COOPERATIVE, INC.**

This Amendment 2 to the Supplement and Amendment to the Wholesale Power Contract is made this <u>30</u> day of January, 2015, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503 (Seller), a North Dakota electric power cooperative corporation, and East River Electric Power Cooperative, Inc., 211 S. Harth Avenue, PO Box 227, Madison, South Dakota 57042 (Member) a South Dakota cooperative existing under the laws of the State of South Dakota.

**WITNESSETH:**

WHEREAS, Seller and Member entered into a certain Wholesale Power Contract dated April 5, 1962, as amended; and

WHEREAS, Seller and Member entered into a Supplement and Amendment to the Wholesale Power Contract dated March 17, 2008 (Supplement and Amendment to the Wholesale Power Contract), to provide for the sale of power to the Member to serve supplemental requirements of four new Member cooperatives: Agralite, Meeker, Redwood and South Central; and

WHEREAS, the Supplement and Amendment to the Wholesale Power Contract provides that if Agralite, Meeker, Redwood or South Central elect to reduce certain Baseline Quantities from Great River Energy, Seller, at its sole discretion, shall determine whether it will sell and deliver that additional power to the Member;

WHEREAS, by Amendment No. 1 dated February 4, 2010, Agralite, Meeker, Redwood and South Central elected to reduce certain Baseline Quantities and the Seller agreed to sell that additional power per specified terms; and

WHEREAS, Agralite, Meeker, Redwood and South Central have elected to further reduce certain Baseline Quantities and the Seller has decided to sell that additional power to the Member under the terms specified in this Amendment No. 2.

Page 1 of 5

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NOW THEREFORE, in consideration of the mutual undertakings herein contained, the Parties agree as follows:

**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>General.</u>**

**<u>Section 2 of</u> <u>the</u> <u>Supplement and Amendment to</u> <u>the</u> <u>Wholesale Power</u> <u>Contract</u> <u>is</u> <u>hereby amended to</u> <u>add Subsection F which shall read as</u> <u>follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Effective January 1, 2015, Agralite, Meeker, Redwood and South Central have elected to reduce the Baseline Quantities per Section 2.D(1). The Seller has determined that it will sell and deliver up to this additional power to the Member per the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall sell and deliver to the Member and the Member shall purchase and receive from the Seller, Section 2.F. power for Member loads at the Rate specified in Section 7 to the extent Seller has the power available.

ii)&nbsp;&nbsp;&nbsp;&nbsp;The power purchased by Member per Section 2.F. shall be as shown on Exhibit VIII.

iii)&nbsp;&nbsp;&nbsp;&nbsp;The power purchased by Member per Section 2.F. shall be deemed purchased prior to the purchase made by the Member per Section 2.A. and 2.E.

**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rate.</u>**

**<u>Section 7.A. of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power Contract</u> <u>is</u> <u>hereby amended to read as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Sections 7.D., 7.E. and 7.F., the Member shall pay the Seller for all electric capacity and energy furnished hereunder at the Seller's Class A Member rate, as the same may be modified from time to time in the Seller's Class A Member Rate Schedule and on the terms and conditions set forth in this Agreement.

**<u>Section</u> <u>7.D.4.</u> <u>is</u> <u>deleted</u> <u>effective</u> <u>January</u> <u>1,</u> <u>2016.</u>**

**<u>Section 7.D.(6)</u> <u>of</u> <u>the</u> <u>Supplement and Amendment to the Wholesale Power</u> <u>Contract</u> <u>is hereby amended to read as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;Electric Heat and Dual Heat Rates. If the Member's purchases for Agralite, Meeker, Redwood and South Central, including Section 2.E and Section 2.F. purchases, are expected to be less than 50% of Agralite, Meeker, Redwood and South Central's annual energy requirements, the following shall apply. The Member's electric heat demand credit and dual heat demand credit associated with Agralite, Meeker, Redwood and South Central shall not exceed 35% of the Seller's monthly base demand sales under this Supplement and Amendment; additionally, the sum of the Seller's electric heat energy and dual heat energy shall not exceed 35% of the Member's monthly base energy sales under this Supplement and Amendment.

**<u>Section</u> <u>7.E(3)</u> <u>of the</u> <u>Supplement and</u> <u>Amendment to the Wholesale</u> <u>Power</u> <u>Contract</u> <u>is</u> <u>deleted effective January 1, 2016.</u>**

Page 2 of 5

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**<u>Section</u> <u>7.F.</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the Wholesale Power</u> <u>Contract</u> <u>is</u> <u>hereby added to read as follows:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exception</u> <u>to</u> <u>Class</u> <u>A</u> <u>Member</u> <u>Rates/Power</u> <u>Sold</u> <u>per</u> <u>Section</u> <u>2.F</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Fixed Charge Components #1 and #2. Member shall be assessed a Fixed Charge Component #1 and Fixed Charge Component #2 energy charge on all power delivered to Member for Agralite, Meeker, Redwood and South Central per Section 2.F. These energy charges shall be determined prior to the beginning of each year. These charges shall be determined by dividing the Fixed Charge Component #1 and Fixed Charge Component #2 by the projected energy sales to those Class A members to which the rate applies, exclusive of load development and market-based energy sales. The resultant mills per kWh value shall be in effect for the subject year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;"Other Equity" Balance. The foregoing exceptions to the Class A Rate do not entitle the Member to any allocation or distribution of the Other Equity balance achieved prior to execution of this Wholesale Power Contract, exclusive of adjustments to Other Equity for income tax.

**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Future</u> <u>Retirements-Baseline</u> <u>Quantities.</u>**

Section 2 of the Supplement and Amendment to the Wholesale Power Supply is hereby amended to add Section G which shall read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;Member further agrees that all future reductions of the Baseline Quantities will be served by Basin Electric to the extent such power and energy is available. The Member's obligation to purchase all future reductions of the Baseline Quantities from Basin Electric is subject to two exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;In the event the Amended and Restated Power Purchase Contract (PPC) dated August 1, 2004 between Great River Energy and Agralite, or Meeker, or Redwood or South Central is terminated prior to December 31, 2045, the Member may purchase the amounts remaining in Baseline Quantities as of the date of termination of the PPC from power suppliers other than Basin Electric; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;Upon expiration of the PPC on December 31, 2045, the Member may purchase amounts remaining in the Baseline Quantities as of December 31, 2045 from power suppliers other than Basin Electric.

Page 3 of 5

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**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibits.</u>**

**<u>Section 14</u> <u>of</u> <u>the</u> <u>Supplement and</u> <u>Amendment to</u> <u>the</u> <u>Wholesale Power Contract is</u> <u>hereby amended to read as follows:</u>**

Exhibits I through VIII attached hereto and made a part hereof set forth provisions and conditions which may change from time to time.

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| | |
|:---|:---|
| Exhibit I: | Amended and Restated Power Purchase Contracts between Agralite, Meeker, Redwood and South Central and Great River Energy; |
| Exhibit II: | GRE's Policies and Procedures under Amended and Restated Power Purchase Contracts; |
| Exhibit Ill: | Agralite, Meeker, Redwood and South Central's Western Firm Electric Service Contracts. |
| Exhibit IV: | Points of Delivery. |
| Exhibit V: | Agralite, Meeker, Redwood and South Central's Transmission Service Agreements with GRE; |
| Exhibit VI: | Supplemental Wholesale Power Contracts between Member and Agralite, Meeker, Redwood and South Central. |
| Exhibit VII: | Additional Power Purchased by Member (Per Section 2.E); and |
| Exhibit VIII: | Additional Power Purchased by Member (Per Section 2.F) |

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The parties agree that these Exhibits shall remain in effect until superseded by a subsequent Exhibit executed by the parties.

**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Conflict.</u>**

To the extent they do not conflict with Amendment No. 2, the terms of the Wholesale Power Contract, as amended, shall remain in effect for the sale of this additional power.

**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Rural</u> <u>Utilities</u> <u>Service</u> <u>Approval.</u>**

This Amendment No. 2 to the Wholesale Power Contract shall become effective when approved in writing by the Administrator of the Rural Utilities Service.

Executed the day and year first above written.

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| | |
|:---|:---|
| Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| By: | /s/ Paul M. Sukut |
| Name: | Paul M. Sukut |
| Title: | CEO & General Manager |

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Page 4 of 5

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| | |
|:---|:---|
| ATTEST |  |
| By: | /s/ Claire M. Olson |
| Name: | Claire M. Olson |
| Title: | Assistant Secretary |

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| | |
|:---|:---|
| East River Electric Power Cooperative | East River Electric Power Cooperative |
| By: | /s/ James Ryken |
| Name: | James Ryken |
| Title: | President |

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| | |
|:---|:---|
| ATTEST | ATTEST |
| By: | /s/ Ervin Fink |
| Name: | Ervin Fink |
| Title: | Secretary |

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Page 5 of 5

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AMENDMENT NO. 3 TO

SUPPLEMENT AND AMENDMENT TO

THE WHOLESALE POWER CONTRACT

BY AND BETWEEN

BASIN ELECTRIC POWER COOPERATIVE

AND

EAST RIVER ELECTRIC POWER COOPERATIVE, INC.

This Amendment to Wholesale Power Contract is made as of this <u>25</u><sup>th</sup> day of <u>September</u>, 2015, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503 **(Seller),** a North Dakota electric cooperative corporation. and East River Electric Power Cooperative. Inc., **(Member), a** South Dakota cooperative whose principal place of business is located at 211 S. Harth Avenue, Madison, South Dakota 57042-0227.

WITNESSETH:

WHEREAS, Seller and Member entered into a certain Supplement and Amendment dated March 17, 2008, to the Wholesale Power Contract dated April 5, 1962, as amended; and

WHEREAS, Seller is joining a Regional Transmission Organization (RTO) named the Southwest Power Pool (SPP) on October 1, 2015; and

WHEREAS, Seller intends to modify its transmission service obligations to pay all Federal Energy Regulatory Commission (FERC) pro forma wheeling assessments related to the Seller's power supply obligations; and

WHEREAS, Seller and Member are entering into this Amendment No. 3 to modify and define Seller's Points of Delivery to Member; and

WHEREAS, Seller is planning for the eventual retirement of its existing generation sources and replacement with new sources that will require substantial financing; and

WHEREAS, Member acknowledges that Seller and potential lenders are relying on the Wholesale Power Contract with Member, and similar commitments from other members, to purchase capacity and energy for their present and future load requirement as security for the financing of Seller's facilities; and

WHEREAS, Seller and Member are entering into this Amendment No. 3 to extend the term of the Amended and Supplemented Wholesale Power Contract.

NOW, THEREFORE, In consideration of the mutual undertakings herein contained, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;Section 2.G. of the Supplement and Amendment to the Wholesale Power Contract is hereby deleted and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;Member further agrees that all future reductions of the Baseline Quantities will be served by Seller to the extent such power and energy is available. Seller has determined that it will sell and deliver this additional power to Member per the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall sell and deliver to Member and Member shall purchase and receive from Seller, Section 2.G. power for Member loads at the Rate specified in Section 7 to the extent Seller has the power available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;The power purchased by Member per Section 2.G. shall be deemed purchased prior to the purchases made by Member per Section 2.A., 2.E., and 2. F.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.&nbsp;&nbsp;&nbsp;&nbsp;Member's obligation to purchase all future reductions of the Baseline Quantities from Seller is subject to two exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;In the event the Amended and Restated Power Purchase Contract (PPC) dated August 1, 2004, between Great River Energy and Agralite, or Meeker, or Redwood, or South Central is terminated prior to December 31, 2045, Member may purchase the amounts remaining in the Baseline Quantities as of the date of termination of the PPC from power suppliers other than Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp; Upon expiration of the PPC on December 31, 2045, Member may purchase amounts remaining In the Baseline Quantities as of December 31, 2045, from a power supplier other than Sellar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp;Section 4 of the Supplement and Amendment to the Wholesale Power Contract Is

hereby deleted and replaced with the following:

**<u>POINTS</u> <u>OF</u> <u>DELIVERY.</u>**

Seller shall deliver the electric power and energy at any of the following points of interconnection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Per Exhibit IV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Where SPP delivers electric power to the Midcontinent Independent System Operator (MISO).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Seller's generation within Member's system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Member's interconnection with the MISO system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ill.&nbsp;&nbsp;&nbsp;&nbsp;Section 5 of the Supplement and Amendment to Wholesale Power Contract shall be amended to add Subsection 5.C. to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;<u>Transmission Customer/Market</u> <u>Participant Change</u>**<u>:</u>** In the event that Seller becomes the Transmission Service Customer and Market Participant with MISO on the behalf of Agralite, Meeker, Redwood, or South Central loads within the MISO footprint, the delivery points for the delivery of Seller power supply obligations as detailed In Section 4 of this Supplement and Amendment to the Wholesale Power Contract as amended shall automatically and immediately change to be the points where the Agralite, Meeker, Redwood or South Central electric system interconnects with the MISO transmission system. If and when Seller becomes the Transmission Service Customer and Market Participant with MISO, Member and Seller agree that

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| | |
|:---|:---|
| Amendment No. 3 (Basin/East River) | **Page2** |

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the Load Metering Points, as detailed In Section 6(A) of the Supplement and Amendment to the Wholesale Power Contract, shall be modified as necessary**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV.&nbsp;&nbsp;&nbsp;&nbsp;Section 7.A. of the Supplement and Amendment to the Wholesale Power Contract is hereby amended to **read as** follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Class</u> <u>A</u> <u>Rate.</u>** Except as provided in Sections 7.D., 7.E., 7.F., and 7.G., Member shall pay Seller for all electric power and energy furnished hereunder at Seller's Class A Member rate, as the same may be modified from time to time In Seller's Rate Schedule "A" and on the terms and conditions set forth In this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V.&nbsp;&nbsp;&nbsp;&nbsp;Section 7.D.(6) of the Supplement and Amendment to the Wholesale Power Contract is hereby amended to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electric</u> <u>Heat</u> <u>and</u> <u>Dual</u> <u>Heat</u> <u>Rates</u>. If Member's purchases for Agralite, Meeker, Redwood, and South Central including Section 2.E, 2.F, and 2.G purchases are expected to be less than 50% of Agralite, Meeker, Redwood, and South Central's annual energy requirements, the following shall apply: Member's electric heat demand credit and dual heat demand credit associated with Agralite, Meeker, Redwood, and South Central shall not exceed 35% of Seller's monthly base demand sales under this Supplement and Amendment; additionally, the sum of Seller's electric heat energy and dual heat energy shall not exceed 35% of Member's monthly base energy sales under this Supplement and Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI.&nbsp;&nbsp;&nbsp;&nbsp;Section 7.G of the Supplement and Amendment to the Wholesale Power Contract Is hereby added to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Exception</u> <u>to</u> <u>Class</u> <u>A</u> <u>Member</u> <u>Rates/power</u> <u>Sold</u> <u>per</u> <u>Section</u> <u>2.G,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Fixed Charge Components #1 and #2. Member shall be assessed a Fixed Charge Component #1 and Fixed Charge Component #2 energy charge on all power delivered to Member for Agralite, Meeker, Redwood, and South Central per Section 2.G. These energy charges shall be determined prior to the beginning of each year. These charges shall be determined by dividing the Fixed Charge Component #1 and Fixed Charge Component #2 by the projected energy sales to those Class A members to which the rate applies, exclusive of load development and market-based energy sales. The resultant mills per kWh value shall be in effect fer the subject year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;"Other Equity" Balance. The foregoing exceptions to the Class A Rate do not entitle Member to any allocation or distribution of the Other Equity balance achieved prior to execution of this Wholesale Power Contract, exclusive of adjustments to Other Equity for Income Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII.&nbsp;&nbsp;&nbsp;&nbsp;Effective Date: The terms of this Amendment No. 3 shall become effective October 1, 2015.

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| | |
|:---|:---|
| Amendment No. 3 (Basin/East River) | **Page3** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII.&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No. 3 is subject to the approval of the Administrator of the Rural Utilities Service.

(SEAL)

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| | | | |
|:---|:---|:---|:---|
| Attest: | /s/ Mark D. Foss | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| Name: | Mark D. Foss | By: | /s/ Paul Sukut |
| Title: | Assistant Secretary | Name: | Paul Sukut |
|  |  | Title: | CEO & General Manager |

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(SEAL)

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| | | | |
|:---|:---|:---|:---|
| Attest: | /s/ Ervin Fink | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
| Name: | Ervin Fink | By: | /s/ James Ryken |
| Title: | Secretary | Name: | James Ryken |
|  |  | Title: | President |

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| | |
|:---|:---|
| Amendment No. 3 (Basin/East River) | **Page4** |

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AMENDMENT TO

WHOLESALE POWER CONTRACT

BY AND BETWEEN

BASIN ELECTRIC POWER COOPERATIVE AND

EAST RIVER ELECTRIC POWER COOPERATIVE, INC.

This Amendment to Wholesale Power Contract is made as of this <u>25</u> day of <u>September</u>, 2015, by and between Basin Electric Power Cooperative, 1717 East Interstate Avenue, Bismarck, North Dakota 58503 **(Seller), a** North Dakota electric cooperative corporation, and East River Electric Power Cooperative, Inc. **(Member), a** South Dakota cooperative whose principal place of business is located at 211 S. Harth Avenue, Madison. South Dakota 57042-0227.

WITNESSETH:

WHEREAS, Seller **and Member** entered into a certain Wholesale Power Contract dated April 5, 1962. **as amended;** and

WHEREAS, Seller is joining a Regional Transmission Organization (RTO) named the Southwest Power Pool (SPP) on October 1, 2015; and

WHEREAS, Seller intends to modify its transmission service obligations to pay all Federal Energy Regulatory Commission (FERC) pro forma wheeling assessments related to the Seller's power supply obligations; and

WHEREAS. Seller and Member are entering into this Amendment to modify and define Seller's Points of Delivery to Member; and

WHEREAS, Seller is planning for the eventual retirement of its existing generation sources and replacement with new sources that will require substantial financing; and

WHEREAS, Member acknowledges that Seller and potential lenders are relying on the Wholesale Power Contract with Member, and similar commitments from other members, to purchase power and energy for their present and future load requirement as security for the financing of Seller's facilities; and

WHEREAS, Seller and Member are entering Into this Amendment to extend the term of their Wholesale Power Contract

NOW, THEREFORE, In consideration of the mutual undertakings herein contained, the parties hereby agree as follows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;Section 2 of the Wholesale Power Contract shall be amended as follows:

<u>Electric Characteristics and Delivery Point(s)</u>. Electric power and energy to be furnished hereunder shall be alternating current, three phase**,** sixty cycle. Seller shall deliver and

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Member shall receive such power and energy from Seller at any of the following points of Interconnection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;With the Southwest Power Pool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;With Midcontinent Independent System Operator- Northern States Power Company dba Xcel Energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;&nbsp;&nbsp;&nbsp;With Midcontinent Independent System Operator - Otter Tail Power Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)&nbsp;&nbsp;&nbsp;&nbsp;With Midcontinent Independent System Operator - Montana Dakota Utilities Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)&nbsp;&nbsp;&nbsp;&nbsp;With Midcontinent Independent System Operator - MidAmerican Energy Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)&nbsp;&nbsp;&nbsp;&nbsp;Seller's generation within Member's system.

Member shall provide, or cause to be provided, necessary time registration metering for each Delivery Point used to determine Seller's power supply obligation to Member.

Seller and Member shall establish appropriate criteria to calibrate, read, and maintain this metering equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp; Section 4 of the Wholesale Power Contract shall be amended as follows:

<u>Rate</u>- Member shall pay Seller for all electric power and energy furnished hereunder at the rates and on the terms and conditions set forth in Rate Schedule "A", attached hereto and made a part hereof, as the same may be modified from time to time by Seller. The Board of Directors of Seller, at such intervals as it shall deem appropriate but in any event not less frequently than once in each calendar year, shall review the rate for electric power and energy furnished hereunder and under similar contracts with other members and, if necessary, shall revise such rate so that it shall produce revenues which shall be sufficient, but only sufficient, with the revenues of Seller from all other sources, to meet the cost of the operation and maintenance (including, without limitation, replacement. insurance, taxes, and administrative and general overhead expenses) of the generating plants, the transmission system, and related facilities of Seller, the cost of any power and energy purchased for resale hereunder by Seller, the cost of transmission service, the cost of lease payments. interest expense and depreciation expense or principal repayments of Seller, and to provide for the establishment and maintenance of reasonable reserves. Seller shall cause a notice in writing to be given to Member and other members of Seller and, so long as Seller is contractually obligated to do so, to the Administrator of the Rural Utilities Service which shall set out the proposed revisions of rate with the effective date thereof, which shall not be less than thirty (30) nor more than forty-five (45) days after the date of the notice, and shall set forth the basis upon which the rate Is proposed to be adjusted and established. Member agrees that the rate from time to time established by the Board of Directors of Seller shall be deemed to be substituted for the rate herein provided and agrees to pay for electric power and energy furnished by Seller to it hereunder after the effective date of any such revision at such revised rates; provided, however, that for so long as Seller is contractually required to receive such approval, no such revision shall be effective unless approved by the Administrator of the Rural Utilities Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111.&nbsp;&nbsp;&nbsp;&nbsp;Section 10 of the Wholesale Power Contract as amended, is hereby amended by deleting the date December 31, 2058·, and substituting the date "December 31, 2075".

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|:---|:---|
| Amendment to WPC (Basin/East River) | **Page2** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV.&nbsp;&nbsp;&nbsp;&nbsp;Effective Date: The terms of this Amendment shall become effective October 1, 2015.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V.&nbsp;&nbsp;&nbsp;&nbsp; This Amendment Is subject to the approval of the Administrator of the Rural Utilities Service.

(SEAL)

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| | | | |
|:---|:---|:---|:---|
| | | Basin Electric Power Cooperative | Basin Electric Power Cooperative |
| Attest: | /s/ Mark D. Foss | By: | /s/ Paul Sukut |
| Name: | Mark D. Foss | Name: | Paul Sukut |
| Title: | Assistant Secretary | Title: | CEO & General Manager |

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(SEAL)

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| | | | |
|:---|:---|:---|:---|
| Attest: | /s/ Ervin Fink | East River Electric Power Cooperative, Inc. | East River Electric Power Cooperative, Inc. |
| Name: | Ervin Fink | By: | /s/ James Ryken |
| Title: | Secretary | Name: | James Ryken |
|  |  | Title: | President |

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| | |
|:---|:---|
| Amendment to WPC (Basin/East River) | **Page3** |

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## Exhibit 10.5

**Exhibit 10.5**

**<u>EMPLOYMENT</u> <u>AGREEMENT</u>**

**THIS EMPLOYMENT AGREEMENT** ("Agreement") is made and entered into effective as of the 22<sup>nd</sup> day of December 2025 ("Effective Date"), by and between Basin Electric Power Cooperative ("Employer") and Todd Brickhouse ("Employee").

This Agreement replaces and supersedes the Employment Agreement entered between the Employer and Employee dated the 1st day of January 2024.

In consideration of the mutual covenants contained in this Agreement, Employer and Employee agree as follows:

**ARTICLE 1.**

**<u>EMPLOYMENT,</u> <u>TERM,</u> <u>AND</u> <u>ROLE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment.</u>** Employer agrees to employ Employee, and Employee agrees to employment by Employer on the terms and conditions contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term.</u>** Employee's employment pursuant to this Agreement shall be effective as of the Effective Date through December 31, 2028 ("Term") unless earlier terminated in accordance with Article 3.

&nbsp;&nbsp;&nbsp;&nbsp;**1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Role.</u>** Employee shall serve Employer as Chief Executive Officer and General Manager. Employee is the senior executive officer of the Employer and the Employer's wholly owned subsidiaries. Employee may serve as i) an executive officer or director of other entities owned in part by the Employer and ii) an officer or director of other entities the Employer conducts business with or is associated with for utility industry activities (i and ii collectively "Affiliates").

&nbsp;&nbsp;&nbsp;&nbsp;**1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Responsibilities.</u>** Employee is responsible to the Board of Directors of the Employer and will directly report to the President of the Employer's Board of Directors. Employee shall perform all duties of this Role prescribed by the bylaws of the Employer and as reasonably assigned by the Board of Directors, which duties shall include strategic and long-term planning for, and oversight of the day-to-day operations of Employer.

Employee agrees to devote substantially all his business time and effort to carrying out the Role and Responsibilities under this agreement. To the extent such activities do not conflict with Employee's Role and Responsibilities under this agreement, Employee is permitted to serve on civic, charitable, religious or educational boards, committees, and foundations. Employee may serve on the board of directors of business entities by obtaining the prior written consent of the President of the Employer's Board of Directors.

**ARTICLE 2.**

**<u>COMPENSATION</u> <u>AND</u> <u>BENEFITS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Salary.</u>** For all services rendered by Employee under this Agreement Employer shall pay Employee a Salary at the rate of $1,900,000 per year less required withholdings in accordance with Employer's normal payroll cycle. From the Effective Date through December 31, 2025, Employee will be compensated at the Salary in effect immediately prior to the Effective Date.

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During the Term of this Agreement, Employee's Salary may be reviewed for possible increase by the Board of Directors, and the term Salary shall thereafter refer to the Salary so increased.

&nbsp;&nbsp;&nbsp;&nbsp;**2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Deferred Compensation.</u>** On each anniversary date of Employee's employment with Employer, in addition to the amounts to be paid to Employee pursuant to Section 2.1, Employer will make a payment of $50,000 to the Basin Electric Power Cooperative Executive Deferred Compensation Plan for the benefit of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;**2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacation</u> <u>and</u> <u>Sick</u> <u>Leave.</u>** Employee will accrue vacation and sick leave in accordance and consistent with Employer's policies as if Employee had begun employment with Employer in August 2000.

&nbsp;&nbsp;&nbsp;&nbsp;**2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Business Expenses and Spousal Travel.</u>** Employer will reimburse Employee for reasonable expenses incurred in the conduct of Employer or Affiliates' business. Employer assumes no obligation to reimburse Employee for expenses that are not in compliance with Employer's policies on travel and expenses, which policies may be modified from time to time in Employer's discretion.

Notwithstanding the Employer's policies on travel and expenses, Employee's spouse may travel with Employee during the Employee's conduct of business on behalf of Employer and Affiliates, and Employer will reimburse Employee for reasonable expenses associated with spousal travel. In the event Employee or Employee's spouse incurs a tax liability related to spousal travel on Employer-owned aircraft, Employer will reimburse Employee for any resulting tax liability. In the event Employee incurs expenses or a tax liability related to spousal travel on commercial aircraft, Employer will reimburse Employee.

&nbsp;&nbsp;&nbsp;&nbsp;**2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Benefits.</u>** Employee shall be entitled to receive such benefits as Employee is eligible under the terms of Employer's existing and future benefit plans. All benefits, including eligibility and participation requirements, are subject to the terms of the applicable benefit plan documents.

**ARTICLE 3.**

**<u>TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation.</u>** Employee may resign Employee's employment with or without Good Reason (as defined below) by written notice of resignation to the Board of Directors of Employer effective 30 days after receipt of such notice by the Board of Directors. In the event Employee resigns employment for Good Reason, Employee shall be entitled to Salary and Benefits specified in Article 4.4. Upon resignation of employment by Employee without Good Reason, Employer may elect to accelerate Employee's resignation date, in which case Employee will no longer be entitled to Salary after Employee's last day worked. "Good Reason" shall be the failure by Employer to comply with the provisions of Article 2 or a material breach by Employer of any other provisions of this Agreement, which failure or breach shall continue for more than 30 days after the date on which the Board of Directors of Employer receives written notice of such failure or breach.

&nbsp;&nbsp;&nbsp;&nbsp;**3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u> <u>Without</u> <u>Cause.</u>** Employer may terminate Employee's employment without Cause by a majority vote of the Board of Directors of Employer, effective immediately upon delivery of written notice of such termination to Employee, and Employee shall be entitled to Salary and Benefits specified in Article 3.4.

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&nbsp;&nbsp;&nbsp;&nbsp;**3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u> <u>For</u> <u>Cause.</u>** Employer may immediately terminate Employee's employment by a majority vote of the Board of Directors of Employer for Cause by written notice to Employee setting forth in reasonable detail the nature of such Cause. Only the following shall constitute "Cause" for such termination: disregard of Employer policies and procedures which is not cured, if curable, within 30 days after written notice is delivered to Employee or such violation recurs after such written notice and opportunity to cure has been provided; intentional and willful misconduct that may subject the Employer to criminal or civil liability; gross incompetence; insubordination, dishonesty; conviction of or plea of *nolo contendere* to a felony or to a misdemeanor involving moral turpitude; commission of an act of embezzlement or fraud against Employer or Affiliates; or Employee's failure to fulfill any other contractual requirement or any job responsibility delegated to Employee pursuant to Articles 1.3 and 1.4 which is not cured within 30 days after written notice is delivered to Employee or such failure recurs after such written notice and opportunity to cure has been provided.

&nbsp;&nbsp;&nbsp;&nbsp;**3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination Pa</u><u>y</u><u>ments</u>.** In the event of termination of Employee's employment by Employer without Cause or by Employee with Good Reason, Employee shall be entitled to the following: Employer shall continue to pay Employee's salary for a one-year period immediately following the date of termination at the rate in effect on the date of termination. Payment of such salary shall be made on the same periodic basis as salary payments would have been made to Employee had he not been terminated. Other than such salary, no other benefits will accrue or be paid during this period except that Employer shall also reimburse Employee for the premiums paid by Employee for medical insurance for Employee available pursuant to the Consolidated Omnibus Budget Reconciliation Act (commonly referred to as COBRA) during this one-year period, except that Employer's obligation to reimburse Employee for the premiums for such medical insurance shall cease if Employee becomes eligible for such coverage by virtue of his employment with another company or entity during this one year period. In the event that Employee becomes employed in any capacity during the one-year period immediately following the date of termination, Employer's obligation to pay Employee's salary pursuant to this Article 3.4 shall be reduced by the amount of Employee's compensation at the new employer which information Employee will provide Employer, provided, however, if Employee becomes employed by any other generation and transmission cooperative in the Role of Chief Executive Officer, General Manager, president, or senior executive officer during the one year period immediately following the date of termination, Employer's obligation to continue to pay Employee's salary shall cease on the effective date of such employment.

In the event of termination of Employee's employment by Employer for Cause, Employer will pay Employee for i) services rendered prior to the date of termination, ii) any accrued but unused vacation, and iii) properly documented unreimbursed Business Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;**3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u> <u>for</u> <u>Death</u> <u>or</u> <u>Disabili</u><u>ty</u>.** This Agreement shall terminate automatically upon Employee's death and shall also terminate in accordance with Employer's standard policies and applicable law in the event of Employee's disability.

**ARTICLE 4.**

**<u>RESTRICTIVE</u> <u>COVENANTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiali</u><u>ty</u>.** Employee agrees that at *all* times during Employee's employment and following the conclusion of Employee's employment pursuant to Article 4, Employee will hold in strictest confidence and not disclose Confidential Information (as defined below) to anyone who is not also an employee of the Employer or to any employee of the Employer who does not also

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have access to such Confidential Information, without express written authorization of the President of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;"Confidential Information" shall mean any trade secrets or Employer proprietary information, including but not limited to manufacturing techniques, processes, formulas, customer lists, inventions, experimental developments, research projects, operating methods, cost, pricing, financial data, business plans and proposals, data and information the Employer receives in confidence from any other party, or any other secret or confidential matters of the Employer. Additionally, Employee will not use any Confidential Information for Employee's own benefit or to the detriment of the Employer during Employee's employment or thereafter. Employee also certifies that employment with the Employer does not and will not breach any agreement or duty that Employee owes to anyone concerning confidential information belonging to others.

Employee affirms that he has signed and agrees to abide with the Employer's standard Secrecy Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-disparagement.</u>** Employee shall not disparage the Employer or any of its directors, officers, agents, or employees to any third party and Employer agrees not to disparage Employee to any third party. Employer and Employee agree that internal employee performance reviews and evaluations do not constitute "disparagement" for purposes of this Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;**4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-compete.</u>** Employee agrees that for a period of one year from Employee's last day of employment with Employer that Employee will not seek or accept employment with any member cooperative of the Employer.

**ARTICLE 5.**

**<u>GENERAL</u> <u>PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver,</u> <u>Modification or</u> <u>Amendment.</u>** No waiver, modification, or amendment of any term, condition or provision of this Agreement shall be valid or of any effect unless made in writing, signed by the party to be bound or its duly authorized representative, and specifying with particularity the nature and extent of such waiver, modification, or amendment. Any waiver by any party of any default of the other shall not affect or impair any right arising from, any subsequent default. Nothing in this Agreement shall limit the rights and remedies of the parties under this Agreement, except as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement.</u>** This Agreement incorporates the entire understanding between the parties as to its subject matter and replaces and supersedes all prior inducements, understandings, and agreements between the parties-with the express understanding that Employee's Secrecy Agreement, attached as Exhibit B, remains in full force and effect. Further, other than stated in this Agreement, Employee has been offered no oral or written promises, inducements, or representations, and Employee executes this Agreement without reliance on any oral or written promises, inducements, or representations other than those set forth in this Agreement. This Agreement may not be canceled, modified, or otherwise changed except by another written agreement signed by Employee and Employer. Employee and Employer represent that each has full legal authority to enter into this Agreement and has had a reasonable and adequate opportunity to consult with counsel regarding the effect of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;**5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Interpretation</u> <u>And</u> <u>Severability.</u>** The provisions of this Agreement shall be applied and interpreted in a manner consistent with each other so as to carry out the purpose and intent of the parties. If for any reason a provision is determined to be unenforceable or invalid, such provision or such part as may be unenforceable or invalid shall be deemed severed from this Agreement and replaced by another provision which, being valid and enforceable, most closely represents the original intentions of the parties. The Agreement as so modified shall be carried out with the same force and effect as if the severed and replaced provision or part had not been a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices.</u>** All notices and other communications required or permitted under this Agreement shall be in writing and sent either by certified first class mail (postage prepaid) or by email:

<u>If</u> <u>to</u> <u>Employer:</u>

Wayne Peltier, President Board of Directors

Email Address: [\*\*\*]

<u>If</u> <u>to</u> <u>Employee:</u>

Todd Brickhouse

Email Address: tbrickhouse@bepc.com

&nbsp;&nbsp;&nbsp;&nbsp;**5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Captions.</u>** The headings in this Agreement are for convenience of reference only and do not affect the interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts.</u>** This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. Electronic signatures are permissible for purposes of anything in this Agreement that requires a signature.

&nbsp;&nbsp;&nbsp;&nbsp;**5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Choice of Law and Exclusive Forum.</u>** This Agreement shall be construed and determined according to the laws of the State of North Dakota, the location of the headquarters of Employer. Any disputes arising out of this Agreement shall be determined exclusively by a state or federal court of appropriate jurisdiction in North Dakota. The parties acknowledge the existence of sufficient contacts with the State of North Dakota to confer jurisdiction upon courts in the state of North Dakota.

&nbsp;&nbsp;&nbsp;&nbsp;**5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors And</u> <u>Assigns.</u>** This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective heirs, representatives, successors, and assigns; provided, however, that the obligations of Employee under this Agreement are personal to Employee and, consequently, Employee may not assign or otherwise transfer any of Employee's obligations under this Agreement. Employer may assign all its rights and obligations under this Agreement to an affiliate of Employer, a successor of Employer, or any third party which purchases substantially all of Employer's assets, and in the event of such an assignment, Employee agrees that Employee will continue to honor Employee's obligations under this Agreement for the benefit of such assignee of Employer.

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**IN WITNESS WHEREOF,** the parties hereto have executed this Agreement:

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| | |
|:---|:---|
| **EMPLOYER:<br>BASIN ELECTRIC POWER COOPERATIVE** | **EMPLOYEE:<br>TODD BRICKHOUSE** |
| By: /s/ Wayne Peltier | By: /s/ Todd Brickhouse |
| Its: Wayne Peltier, President Board of Directors | Date: December 22, 2025 |
| Date: December 22, 2025 |  |

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*6*

## Exhibit 10.6

**Exhibit 10.6**

**BASIN ELECTRIC POWER COOPERATIVE** 

**DEFERRED COMPENSATION PLAN** 

**FOR THE BOARD OF DIRECTORS**

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation, hereby amends and restates the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors, effective January 1, 2009. It will continue for the purpose of providing deferred compensation solely for the members of the Board of Directors of Basin Electric Power Cooperative. Amounts attributable to deferrals under the Plan prior to 2009 shall be governed during that period by the Plan as in effect prior to 2009 and as administered for compliance with Section 409A of the Code pursuant to applicable guidance during that period. However, amounts attributable to those deferrals shall be governed by this Plan document subsequent to 2008.

**ARTICLE** I

**DEFINITIONS**

Section 1.1 When used in this Plan document, the following terms have the meanings indicated unless a different meaning is plainly required by the context.

"Account" means a deferred compensation account that Basin Electric will establish and maintain on its books for each Participant. Generally, an Account will be established for each Participant for amounts attributable to deferrals made by the Participant for all calendar years.

"Active Participant" means a member of the Board of Directors of Basin Electric who has made the election referred to in Section 2.2, and who has not ceased to be eligible under Section 2.3.

"Basin Electric" means Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation.

"Beneficiary'' means the person or persons who are to receive the benefits provided under this Plan in the event of a Participant's death because of a selection made by the Participant on a Beneficiary Designation Form or because of other applicable provisions of the Plan.

"Beneficiary Designation Form" means a form provided by Basin Electric Human Resources on which a Participant may designate a Beneficiary for purposes of the Plan.

"CEO" means Basin Electric's Chief Executive Officer.

"Change in Control Event" means a change in ownership of a corporation, a change in effective control of a corporation or a change in ownership of a substantial portion of a corporation's assets as defined in regulations under Section 409A of the Code.

"Change in Control Event with respect to the Participant" means a Change in Control Event that is considered to relate to a Participant because it relates to (a) the corporation for whom the Participant is performing services at the time of the event, (b) the corporation that is liable for the payment to the Participant under the Plan (or all such corporations if there are more than one), subject to any limits described in regulations under Section 409A of the Code or (c) a corporation that is a

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majority shareholder of a corporation identified in (a) or (b), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (a) or (b). For purposes of this definition, a majority shareholder is a shareholder owning more than 50% of the total fair market value and total voting power of such corporation. Further, attribution of stock ownership is determined as provided in regulations under Section 409A of the Code.

"Code" means the Internal Revenue Code of 1986, as amended.

"Deferral Election Form" means the election form executed in connection with this Plan by a Participant which provides for deferral of compensation in accordance with the terms of the Plan and which is hereby incorporated into the Plan by this reference.

"Disability" means with respect to a Participant that the Participant has a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which renders a Participant unable to engage in any substantial gainful activity. The existence or nonexistence of such Disability shall be established by the certificate of a medical doctor selected by or satisfactory to Basin Electric.

"Distribution Election Form" means the election form executed in connection with this Plan by a Participant which provides for distribution of the amount credited to the Participant's Account in accordance with the terms of the Plan and which is hereby incorporated into the Plan by this reference.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

"Participant" means a current or former Active Participant to whose Account amounts have been credited pursuant to Article 3 and who continues to have a balance in an Account.

"Plan" means the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors, which is maintained by Basin Electric for the purpose of providing deferred compensation for the members of its Board of Directors.

"Plan Year" means the calendar year.

"Related Employer" means each entity that is treated as part of a single employer with Basin Electric under Section 414 of the Code.

"Separation from Service" means that a Participant has ceased to be a member of the Board of Directors of Basin Electric and each Related Employer, other than on account of death, and has ceased all contractual relationships as an independent contractor with Basin Electric, provided that such cessation as such a member and independent contractor constitutes a good-faith and complete termination of the Participant's relationship with Basin Electric and each Related Employer.

"Unforeseeable Emergency" means a severe financial hardship to a Participant resulting from illness or accident of the Participant, the Participant's spouse, the Participant's Beneficiary or a dependent (as defined in Section 152 of the Code without regard to Sections 152(b)(l), (b)(2) and (d)(l)(B)) of the Participant, loss of the Participant's property due to casualty, other similar

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extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, or any other items included in the definition of unforeseeable emergency in regulations under Section 409A of the Code. Basin Electric will determine, in its sole discretion, whether such a severe financial hardship has taken place and may require that the Participant provide sufficient evidence to support such a determination. Basin Electric's determination regarding the timing and amount of such a distribution shall be final.

Section 1.2 Basin Electric agrees to perform its obligations in accordance with the Plan and the Deferral Election Forms and Distribution Election Forms.

Section 1.3 The singular form of any word shall include the plural and the masculine gender shall include the feminine wherever necessary for the proper interpretation of this Plan.

**ARTICLE** II

**ELIGIBILITY AND PARTICIPATION**

Section 2.1 An individual who is member of the Board of Directors of Basin Electric shall be eligible to become an Active Participant in the Plan.

Section 2.2 An eligible individual will become an Active Participant upon the execution of a Deferral Election Form.

Section 2.3 An individual will cease to be an Active Participant when the individual ceases to be a member of the Board of Directors of Basin Electric.

**ARTICLE** III

**DEFERRED COMPENSATION AND INTEREST**

Section 3.1 Basin Electric shall establish and maintain an Account for each Participant, or the designated Beneficiary of such Participant upon the death of the Participant, and shall credit such Account with amounts described in (a) Section 3.2 of this Plan deferred by the Participant pursuant to the terms of the Plan and the Participant's Deferral Election Form, and (b) Section 3.4 of this Plan.

Section 3.2 As a condition to Basin Electric's obligation to credit an Active Participant's Account with an amount described in Section 3.1, the Active Participant must elect to reduce the Active Participant's compensation for a calendar year by completing the Deferral Election Form provided by Basin Electric Human Resources. The Active Participant's election for any calendar year shall be made before the beginning of that calendar year and shall remain in effect for subsequent calendar years unless revoked or revised by the Active Participant for those calendar years by the completion of a subsequent Deferral Election Form (or other written instrument acceptable to Basin Electric Human Resources), which must be delivered to Basin Electric Human Resources prior to the beginning of the period for which such revocation or revision is to be effective; except, however, that in the first year in which a Participant becomes an Active Participant, such Active Participant may make an election to defer compensation for services to be performed subsequent to the election within 30 days after the date the individual becomes an Active Participant (the plan aggregation rules of the final 409A regulations shall apply to determine whether this option is permitted to apply to such Active Participant).

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Section 3.3 Any individual who ceases to satisfy the Plan's eligibility requirements as provided in Section 2.3 shall not be eligible to make any elections for the calendar year following the calendar year in which the individual ceases to satisfy such eligibility requirements and for each subsequent calendar year until the individual again satisfies such eligibility requirements, at which time such individual shall again become entitled to make an election under this Article III so long as any new election is filed in advance of the calendar year to which it applies pursuant to the requirements of this Article III.

Section 3.4 At the end of each calendar quarter, the Participant's deferred compensation account maintained under the terms of the trust used in connection with the Plan shall be adjusted for earnings or losses in accordance with the terms of the trust.

**ARTICLE** IV

**DISTRIBUTIONS**

Section 4.1 Distributions under the Plan shall commence in accordance with Section 4.2 hereof and shall be made in accordance with the terms and conditions of this Article *N* and the elections contained in the Distribution Election Forms. Distributions shall be made in the form of cash.

Section 4.2 The amount credited to the Account maintained for a Participant shall be distributed upon the first to occur of the following events: (i) the attainment of a distribution date selected by the Participant in the election form; (ii) the Participant's Separation from Service (iii) the Participant's Disability; or (iv) the death of the Participant (or the Participant's Beneficiary in the event of the Participant's prior death). Such distribution shall be made in accordance with the option designated by the Participant on a Distribution Election Fonn provided by Basin Electric Human Resources and in accordance with the remainder of this article.

Section 4.3 A Participant's Distribution Election Form must be completed at the time of the Participant's initial deferral election and will apply to all of the Participant Account. However, a Distribution Election Form made in 2008 will also be effective. Also, a new Distribution Election Form may be completed and will be effective as provided in Section 4.7.

Section 4.4 The distribution form options with respect to the Account of a Participant generally will include substantially equal monthly installment options of one to ten years. If a one year period is specified, then distribution will be made in a lump sum at the beginning of that period. Distribution in the event of an Unforeseeable Emergency may only be made in a lump sum.

Section 4.5 The Participant may make different elections on the Distribution Election Form (as permitted on that form) with respect to the form of distribution for any of the events for which a specific distribution form is not specified in the Plan.

Section 4.6 Installment payments for an Account of a Participant shall be treated as a single payment for purposes of distribution elections, as described in regulations under Section 409A of the Code.

Section 4.7 A Participant's distribution form options may be changed by filing a new election form provided by Basin Electric Human Resources for that purpose. Any election to make

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such a change that is made fewer than twelve months before an event will be void and of no effect with respect to that event. The change will apply to all benefits payable to the Participant under the Participant's Account and payment will commence 5 years after the first day of the calendar year next following the event to which the election applies (this *5* year delay requirement will not apply if the Participant dies or distribution is permitted to be made to the Participant because of an Unforeseeable Emergency described later in this section). In addition, any changes to a distribution form option must conform to applicable regulations under Section 409A of the Code.

Section 4.8 Basin Electric will pay the Participant's Account balance according to the distribution schedule properly elected for the Account pursuant to the election made by the Participant on the Distribution Election Form. Distribution in the case of the Participant's Separation from Service shall begin or be made during the first month of the calendar year next following the year in which the Participant's Separation from Service occurs. Distribution in the case of the Participant's death shall begin or be made during the month next following the Participant's death. Distribution in the case of the Participant's Disability shall begin or be made during the month next following the date that the Participant has been determined by Basin Electric to have incurred a Disability.

Section 4.9 A Participant may request and Basin Electric may determine to make a payment to a Participant from the Participant's Account in the event that the Participant incurs an Unforeseeable Emergency. Payment will be made as of the date the Participant is determined by Basin Electric to have the Unforeseeable Emergency. The amount of the payment will be limited as provided in Section 1.409A-3(i)(3) of Treasury Regulations.

Section 4.10 A payment will be treated as made upon the designated payment date if payment is made as provided in Section l.409A-3(d) of Treasury Regulations. If no distribution election has been made or no election is in effect, Basin Electric shall pay the accrued amount in one lump sum payment.

Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;Options to Accelerate Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, Basin Electric may, at its option (specified in writing), cause distribution to a Participant during a calendar year of the balance of the Participant's Account if the total amount credited to such Participant's Account at the time of the distribution is not greater than the limit for such calendar year on salary reduction (401(k)) contributions that may be made to a plan under Section 402(g)(l)(B) of the Code ($16,500 in 2009).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an affirmative vote of Basin Electric's board of directors, Basin Electric may elect to make lump sum distributions of the value of each Account held in the names of Participants if Basin Electric (by board vote) elects to terminate the Plan and make those distributions within the 30 days preceding or the twelve (12) months after a Change in Control Event that is a Change in Control Event with respect to the Participant for each Participant. However, distribution will only be made if permitted by Section l.409A-3(j)(4)(ix) of Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an affirmative vote of Basin Electric's board of directors, Basin Electric may elect to make lump sum distributions of the value of each Account held in the

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names of Participants if it elects to terminate the Plan for reasons other than described in Section 4.11(b) and make those distributions subsequent to 12 months after and within 24 months of that termination provided that distribution will only be made if permitted by Section 1.409A-3(j)(4)(ix)(C) of Treasury Regulations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The CEO shall permit a lump sum distribution of a portion or all of a Participant's Account to be made to an individual other than a Participant pursuant to a domestic relations order (as defined in Section 414(p)(l)(B) of the Code). The amount shall not exceed the balance of the Participant's Account as of the date of distribution. The CEO may also permit an election to be made by that individual pursuant to that order regarding the date of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The CEO may, in his or her sole discretion, permit a lump-sum distribution from a Participant's Account of an amount equal to Federal Insurance Contributions Act (FICA) taxes payable on compensation deferred under the Plan, any federal income tax attributable to such a distribution, any state, local or foreign taxes due to participation in the Plan, an amount required to be included in the Participant's income as a result of a failure to comply with the requirements of Section 409A of the Code, or any other amount permitted by Section l.409A-3(j)(4) of Treasury Regulations (in addition to the amounts described in the preceding provisions of this section). Basin Electric shall have no liability for any tax obligation a Participant may incur in connection with amounts deferred under this Plan.

Section 4.12 A Participant may designate a Beneficiary or revoke any Beneficiary designation by submitting a properly executed Beneficiary Designation Fonn, which will be provided upon request by Basin Electric Human Resources. Beneficiary designations are effective upon receipt by Basin Electric Human Resources. A Participant may change Beneficiaries without the consent of any prior Beneficiaries. If a Participant is not living at the time any distribution is made, including any installment payment, the distribution will be made to the Participant's Beneficiary. In the absence of a surviving Beneficiary, the distribution of a Participant's Account shall be paid to the Participant's estate.

Section 4.13 The CEO may determine to delay a payment for reasons described in Section l.409A-2(b)(7) of Treasury Regulations (such as a delay to assure a deduction for Basin Electric or to avoid violation of federal securities or other applicable laws). The CEO may also permit a Participant to elect to change the time or form of a payment under the Plan in order to satisfy the requirement of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA).

**ARTICLE V** 

**ADMINISTRATION OF THE PLAN**

Section 5.1 The Plan shall be administered by Basin Electric, which shall have the authority, duty and power to interpret and construe the provisions of the Plan as it deems appropriate. Basin Electric shall have the duty and responsibility of maintaining records, making the requisite calculations and dispersing the payments hereunder. Basin Electric's interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned.

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Section 5.2 Basin Electric shall be responsible for the general operation and administration of the Plan and for carrying out the provisions thereof. Basin Electric shall have the authority to interpret the Plan, to establish and revise rules, procedures, and regulations relating to the Plan and to make any other determinations which it believes necessary or advisable for the administration of the Plan. Basin Electric shall be responsible for the expenses incurred in the administration of the Plan. Basin Electric shall be responsible for determining eligibility for benefits, and the benefits payable pursuant to the Plan. Basin Electric shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or other person employed or engaged by Basin Electric with respect to the Plan. The procedures for filing claims for Plan benefits are described below. For claims procedures purposes, the "Claims Manager" shall be Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If for any reason a claim for benefits under this Plan is denied by Basin Electric, the Claims Manager shall deliver to the claimant a written explanation setting forth the specific reasons for the denial, pertinent references to the section under the Plan on which the denial is based, such other data as may be pertinent and information on the procedures to be followed by the claimant in obtaining a review of his or her claim, all written in a manner calculated to be understood by the claimant. For this purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The claimant's claim shall be deemed to be filed when presented orally or in writing to the Claims Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The Claims Manager's explanation shall be in writing delivered to the claimant within 90 days of the date the claim is filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The claimant shall have 60 days following his or her receipt of the denial of the claim to file with the Claims Manager a written request for review of the denial. For such review, the claimant or the claimant's representative may submit pertinent documents and written issues and comments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Claims Manager shall decide the issue on review and furnish the claimant with a copy within 60 days of receipt of the claimant's request for review of the claimant's claim. The decision on review shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, as well as specific references to the pertinent provisions in the Plan on which the decision is based. If a copy of the decision is not so furnished to the claimant within such 60 days, the claim shall be deemed denied on review.

Section 5.3 Basin Electric will provide to each Participant, or current Beneficiary, quarterly written statements showing the status of the Participant's deferred compensation account.

**ARTICLE VI** 

**AMENDMENT OR TERMINATION**

Section 6.1 Basin Electric intends the Plan to be permanent but reserves the right to amend or terminate the Plan at any time. Any such amendment or termination shall be made pursuant to a resolution of Basin Electric's Board of Directors and shall be effective as of the date provided in the resolution.

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Section 6.2 No amendment or termination of the Plan shall directly or indirectly reduce the balance of any Account as of the effective date of such amendment or termination. Basin Electric shall not credit the Accounts of any Participant with any further amounts after termination of the Plan. In the event of termination of the Plan, the Accounts of Participants shall be payable to Participants as provided in Article IV.

**ARTICLE VII** 

**GENERAL PROVISIONS**

Section 7.I Basin Electric shall pay benefits arising under the Plan and all costs, charges and expenses related thereto.

Section 7.2 The benefits payable hereunder or the right to receive future benefits under the Plan may not be anticipated, alienated, sold, transferred, assigned, pledged, encumbered, or subjected to any charge or legal process; and no interest or right to receive a benefit may be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings.

Section 7.3 The Plan shall at all times be considered entirely unfunded both for tax purposes and of purposes of Title I of BRISA. Funds invested hereunder shall continue for all purposes to be part of the general assets of Basin Electric and available to the general creditors of Basin Electric in the event of Basin Electric's bankruptcy (when Basin Electric is involved in a pending proceeding under the Federal Bankruptcy Code) or insolvency (when Basin Electric is unable to pay its debts as they mature). No Participant or any other person shall have any interests in any particular assets of Basin Electric by reason of the right to receive a benefit under the Plan and to the extent the Participant or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any general unsecured creditor of Basin Electric. The Plan constitutes a mere promise by Basin Electric to make payments to the Participants in the future.

Section 7.4 Nothing contained in the Plan shall constitute a guaranty by Basin Electric or any other person or entity that any funds or assets of Basin Electric will be sufficient to pay any benefit hereunder.

Section 7.5 No Participant shall have any right to a benefit under this Plan except in accordance with the terms of the Plan. Establishment of the Plan shall not be construed to give any Participant the right to be retained in the service of Basin Electric.

Section 7.6 If any person entitled to a benefit payment under the Plan is declared incompetent and a conservator or other person is legally charged with the care of such person or of his or her estate is appointed, any benefits under the Plan to which the person is entitled shall be paid to such conservator or other person legally charged with the care of the person or his or her estate. Except as provided above, when Basin Electric determines that such person is unable to manage his or her affairs, Basin Electric may provide for such payment or any part thereof to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment for the account of such person and a complete discharge of any liability of Basin Electric and the Plan therefore.

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Section 7.7 The Plan shall not be automatically terminated by a transfer or sale of assets of Basin Electric or by the merger or consolidation of Basin Electric into or with any other corporation or other entity, but the Plan shall be continued after such sale, merger or consolidation only if and to the extent that the transferee, purchaser or successor entity agrees to continue the Plan. In the event the Plan is not continued by the transferee, purchaser or successor entity, then the Plan shall terminate subject to the provisions of Article VI.

Section 7.8 Each Participant shall keep Basin Electric informed of his or her current address and the current address of his or her Beneficiary. Basin Electric shall not be obligated to search for any person. If the location of a Participant is not made known to Basin Electric within three (3) years after the date on which payment of the Participant's benefits payable under this Plan may first be made, payment may be made as though the Participant had died at the end of the three-year period. If, within one additional year after such three-year period has elapsed, or, within three (3) years after the actual death of a Participant, Basin Electric is unable to locate any designated Beneficiary of the Participant, then Basin Electric shall have no further obligation to pay any benefit hereunder to such Participant or designated Beneficiary and such benefits shall be irrevocably forfeited to Basin Electric.

Section 7.9 Notwithstanding any of the preceding provisions of the Plan, neither Basin Electric nor any individual acting as an employee or agent of Basin Electric shall be liable to any Participant, former Participant, or any other person for any claim, loss, liability or expense incurred in connection with the Plan, unless attributable to fraud or willful misconduct on the part of Basin Electric or any such employee or agent of Basin Electric.

Section 7.10 Each Participant shall receive a copy of the Plan and Basin Electric will make available for inspection by any Participant or designated Beneficiary a copy of the rules and regulations used by Basin Electric in administering the Plan.

Section 7.11 All questions pertaining to the construction, validity and effect of the Plan shall be determined in accordance with the laws of the United States and to the extent not preempted by such laws, by the laws of the State of North Dakota.

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Section 7.12&nbsp;&nbsp;&nbsp;&nbsp;Any provision of the Plan prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions of the Plan.

Dated this 2<sup>nd</sup> day of December, 2008

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: | /s/ Ronald R. Harper | /s/ Ronald R. Harper |
| Title: | Title: | CEO & General Manager |

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AMENDMENT NO. l OF

THE BASIN ELECTRIC POWER COOPERATIVE

DEFERRED COMPENSATION PLAN FOR THE BOARD OF DIRECTORS

(2009 Restatement)

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors (the "Plan") as restated effective as of January 1, 2009. This amendment is effective as of November 1, 2015.

Section 3.4 of the Plan shall be amended to read as follows:

Section 3.4 The amounts credited to the Account of each Participant shall be invested in a trust (a rabbi trust) maintained by Basin Electric. The Participant's Account shall be adjusted for earnings or losses in accordance with the investment of those amounts under the terms of that trust. Basin Electric may account for those earnings and losses under the trust or may have that accounting done by a recordkeeper selected by Basin Electric. Basin Electric shall direct the investment of those amounts, but may allow each Participant to request that investment of those amounts be made pursuant to elections or modified elections made by the Participant. Basin Electric may direct the trustee of that trust to invest those amounts consistent with those requests and elections or direct the recordkeeper to communicate those requests and elections to the trustee so that investment of those amounts are made consistent with all such requests and elections made by the Participant, subject to any contrary direction made by Basin Electric.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Its | Paul M. Sukut, CEO & General Manager |

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AMENDMENT NO. 2 OF

THE BASIN ELECTRIC POWER COOPERATIVE

DEFERRED COMPENSATION PLAN FOR THE BOARD OF DIRECTORS

(2009 Restatement)

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors (the "Plan'') as restated effective as of January I, 2009. This amendment is effective as of November 1, 2015.

Article 1.&nbsp;&nbsp;&nbsp;&nbsp;The definition of "Account'' in Section 1.1 of the Plan shall be amended to read as follows:

"Account'' means one of the deferred compensation accounts which Basin Electric establishes and maintains on its books for each Participant. Generally, an Account will be established for each Participant for amounts attributable to deferrals made by and on behalf of the Participant for all calendar years. However, if a Participant has an opportunity to elect and elects pursuant to the Plan a different manner of distribution than the Participant's previous election for deferrals in calendar years after 2015, then a separate Account will be established for that Participant for amounts attributable to those deferrals.

Article 2.&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 of the Plan shall be amended to read as follows:

Section 3.1 Basin Electric shall establish and maintain an Account for each Participant, or the designated Beneficiary of such Participant upon the death of the Participant, and shall credit such Account with amounts credited to the Participant's Account pursuant to (a) Section 3.2 of the Plan and (b) Section 3.4 of the Plan. However, in the case of a Participant who is permitted under Section 4.3 of the Plan to elect a different manner of distribution for deferrals in calendar years after 2015 and makes such election, a separate Account will be established for that Participant for amounts attributable to those deferrals.

Article 3.&nbsp;&nbsp;&nbsp;&nbsp;Section 3.4 of the Plan shall be amended by adding the following sentences to that section:

Notwithstanding the preceding provisions of this Section 3.4, if a correction is made under IRS Notice 2008-113 (or subsequent IRS guidance) and that guidance requires adjusting the earnings that are to be credited to a Participant's Account under this section, then such adjustment (reduction of the Participant's Account) shall be made (losses shall be taken into account but the amount of the adjustment shall not be negative). If there is an adjustment of a Participant's Account and any portion of the amount of the adjustment is part of the trust referred to in the preceding provisions of this Section 3.4, then that portion shall be used to reduce other contributions that would otherwise have been made to that trust by Basin Electric.

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Article 4.&nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 of the Plan shall be amended to read as follows:

Section 4.3 To be effective, a Participant's Distribution Election Form must be completed when required by regulations under Section 409A of the Code, which generally must be at the time of the Participant's initial deferral election. However, a Distribution Election Form made in 2008 will also be effective. Generally, an effective election will apply to all of the Participant Account. However, an individual who is an Active Participant in 2015 may elect before the end of 2015 a different manner of distribution for deferrals made on that Participant's behalf in calendar years after 2015. Further, a new Distribution Election Form may be completed and will be effective as provided in Section 4.7.

Article 5.&nbsp;&nbsp;&nbsp;&nbsp;Section 4.7 of the Plan shall be amended to read as follows:

Section 4.7 A Participant's distribution form options may be changed by filing a new election form provided by Basin Electric Human Resources for that purpose. Any election to make such a change that is made fewer than twelve months before an event will be void and of no effect with respect to that event. The change will apply to a portion specified by the Participant of the benefits payable to the Participant under an Account of the Participant and payment with respect to that portion will commence *5* years after the first day of the calendar year next following the event to which the election applies (this *5* year delay requirement will not apply if distribution is made to the Participant on account of the Participant's Disability or death or if distribution is permitted to be made to the Participant because of an Unforeseeable Emergency described later in this section). In addition, any changes to a distribution form option must conform to applicable regulations under Section 409A of the Code.

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| | |
|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Paul M. Sukut |
| Its | CEO & General Manager |

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AMENDMENT NO. 3 OF

THE BASIN ELECTRIC POWER COOPERATIVE DEFERRED

COMPENSATION PLAN FOR THE BOARD OF DIRECTORS

(2009 Restatement)

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors (the "Plan") as restated effective as of January 1, 2009. This amendment is effective as of November 1, 2016.

Article 1.&nbsp;&nbsp;&nbsp;&nbsp;The definition of "Account" in Section 1.1 of the Plan shall be amended to read as follows:

"Account" means one of the deferred compensation accounts which Basin Electric establishes and maintains on its books for each Participant. Generally, an Account will be established for each Participant for amounts attributable to deferrals made by and on behalf of the Participant for all calendar years. However, if a Participant has an opportunity to elect and elects pursuant to the Plan a different manner of distribution than the Participant's previous election for deferrals in calendar years after 2015, then a separate Account will be established for that Participant for amounts attributable to those deferrals. Also, if a Participant has an opportunity to elect and elects pursuant to the Plan a different manner of distribution than the Participant's previous elections for deferrals in calendar years after the election, then a separate Account will be established for that Participant for amounts attributable to those deferrals.

Article 2.&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 of the Plan shall be amended to read as follows:

Section 3.1 Basin Electric shall establish and maintain an Account for each Participant, or the designated Beneficiary of such Participant upon the death of the Participant, and shall credit such Account with amounts credited to the Participant's Account pursuant to (a) Section 3.2 of the Plan and (b) Section 3.4 of the Plan. However, in the case of a Participant who is permitted under Section 4.3 of the Plan to elect a different manner of distribution for deferrals in calendar years after 2015 and makes such election, a separate Account will be established for that Participant for amounts attributable to those deferrals. Also, in the case of a Participant who is permitted under Section 4.3 of the Plan to elect a different manner of distribution for deferrals in calendar years after the election and makes such election, a separate Account will be established for that Participant for amounts attributable to those deferrals.

Article 3.&nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 of the Plan shall be amended to read as follows:

Section 4.3 To be effective, a Participant's Distribution Election Form must be completed when required by regulations under Section 409A of the Code, which generally must be at the time of the Participant's initial deferral election. However, a Distribution Election Form made in 2008 will also be effective. Generally, an effective election will apply to all of the Participant Account. However, an individual who is an Active Participant in 2015 may elect before the end of 2015 a different manner of distribution for deferrals made on that Participant's behalf in calendar years after 2015. Also, if permitted by an action

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of the Board of Directors of Basin Electric during a year, an individual who is an Active Participant in that year may elect before the end of that year a different manner of distribution for deferrals made on that Participant's behalf in calendar years after that year (2016 shall be such a year). Further, a new Distribution Election Form may be completed and will be effective as provided in Section 4.7.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Its | CEO & General Manager | CEO & General Manager |
| Dated | Dated | November 14, 2016 |

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AMENDMENT NO. 4 OF

THE BASIN ELECTRIC POWER COOPERATIVE DEFERRED COMPENSATION PLAN FOR THE BOARD OF DIRECTORS

(2009 Restatement)

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors (the "Plan") as restated effective as of January 1, 2009. This amendment is effective as of November 1, 2018.

Article 3.&nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 of the Plan shall be amended to read as follows:

Section 4.3 To be effective, a Participant's Distribution Election Form must be completed when required by regulations under Section 409 A of the Code, which generally must be at the time of the Participant's initial deferral election. However, a Distribution Election Form made in 2008 will also be effective. Generally, an effective election will apply to all of the Participant Account. However, an individual who is an Active Participant in 2015 or later may, as permitted by Basin Electric, elect before the end of the calendar year immediately preceding the calendar year for which the election is to be effective, a different manner of distribution for deferrals made on the Participant's behalf in calendar years after 2015. Also, if permitted by Basin Electric during a year, an individual who is an Active Participant in that year may elect before the end of that year a different manner of distribution for deferrals made on that Participant's behalf in calendar years after that year (2016 shall be such a year). Further, a new Distribution Election Form may be completed and will be effective as provided in Section 4.7. Basin Electric retains the sole discretion to limit the frequency during which new deferral distribution elections may be made (e.g., Basin Electric may allow new deferral distribution elections to be made only once every 5 years).

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Its | CEO & General Manager | CEO & General Manager |
| Dated | Dated | December 21, 2018 |

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**AMENDMENT NO. 5 OF**

**THE BASIN ELECTRIC POWER COOPERATIVE** 

**DEFERRED COMPENSATION PLAN FOR THE BOARD OF DIRECTORS**

(2009 Restatement)

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors (the "Plan") as restated effective as of January 1, 2009. This amendment is effective as of April 1, 2018.

Article 1. Section 5.2 of the Plan shall be amended to read as follows:

Section 5.2 The procedures for filing claims for Plan benefits are described in the appendix attached hereto tilted "Claims Procedures for the Basin Electric Power Cooperative Executive Deferred Compensation Plan" and such appendix is hereby incorporated into the Plan by reference.

Article 2. A new appendix titled "Claims Procedures for the Basin Electric Power Cooperative Deferred Compensation Plan for the Board of Directors," shall be attached to the Plan to read as follows:

**APPENDIX**

**CLAIMS PROCEDURES FOR THE BASIN ELECTRIC POWER COOPERATIVE EXECUTIVE DEFERRED COMPENSATION PLAN**

The procedures for filing claims for Plan benefits are described below. For purposes of these claims procedures, the "Claims Manager" shall be Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Participant or the Participant's spouse or Beneficiary shall have the right to submit a claim for benefits in writing or by another method permitted by applicable rules or regulations to the Claims Manager. For purposes of the claims procedures in this Appendix, a Participant, a spouse of a Participant, or a Beneficiary who submits a claim for benefits under the Plan shall be referred to as a "claimant." The claim must specify the basis of it and the amount of the benefit claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For claims and appeals with respect to disability benefits, the Plan will ensure that all claims and appeals for disability benefits are adjudicated in a manner designed to ensure the independence and impartiality of the persons involved in making the decision. Accordingly, decisions regarding hiring, compensation, termination, promotion, or other similar matters with respect to any individual (such as a claims adjudicator or medical or vocational expert) must not be made based upon the likelihood that the individual will support the denial of benefits. For purposes of the claims procedures in this Appendix, a "disability claim" or "claim for disability benefits" means any claim the receipt of which is conditioned upon a finding of disability. It does not matter how the benefit is characterized by this Plan; if the Claims Manager must make a determination of disability (such as whether a Participant has a medically determinable physical

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or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which renders the Participant unable to engage in any substantial gainful activity) in order to decide a claim, the claim will be treated as a "disability claim" or "claim for disability benefits" for purposes of the claims procedures in this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;For claims other than claims for disability benefits, the Claims Manager shall act to deny or accept said claim within 90 days of the receipt of the claim by notifying the claimant of the Claims Manager's action, unless special circumstances require the extension of such 90 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 90 day period. Such notice shall specify the reason or reasons for such extension and the date by which a final decision can be expected. In no event shall such extension exceed a period of 90 days from the end of the initial 90 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;With respect to claims for disability benefits, the Claims Manager shall act to deny or accept said disability claim within a reasonable period of time, but no later than 45 days after the receipt of the disability claim by the Plan, by notifying the claimant of the Claims Manager's action. This 45 day period may be extended by the Plan for up to 30 days, provided that the Claims Manager determines that such an extension is necessary due to matters beyond the control of the Plan. If such an extension is necessary, the Claims Manager shall provide the claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 45 day period. Such notice shall specify the circumstances requiring the extension and the date by which the Claims Manager expects to render a decision. If, before the end of the first 30 day extension period, the Claims Manager determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within the extended period of time, the period for making a decision may be extended for up to an additional 30 days, provided that the Claims Manager notifies the claimant before the expiration of the initial 30 day extension period of the necessity of such an additional extension. The notice of the additional extension shall specify the circumstances requiring the additional extension and the date on which the Claims Manager expects to render a decision. Any notice of extension provided under this Section (d) of the Appendix shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and that the claimant shall be afforded at least 45 days within which to provide the specified information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim, other than a claim for disability benefits, in whole or in part, the Claims Manger's notification to the claimant of such denial shall be in writing, or by another method permitted by applicable rules or regulations, and shall specify in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the reason or reasons for denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the specific Section or Sections of the Plan upon which the denial is based;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a description of any additional material or information, if any, necessary for the claimant to perfect his or her claim, and an explanation as to why such information or material is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the claim review procedure specified in the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring a civil action pursuant to Section 502(a) of ERISA following a continued denial of the claimant's claim after appeal review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsection (e) of this Appendix and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to the Claims Manager of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on the Plan's behalf in connection with the denial of the claim, regardless of whether the advice was relied on in denying the claim; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination made by the Social Security Administration regarding the claimant, if presented to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the denial is based on a medical necessity or experimental treatment or similar exclusion or limit, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the scientific or clinical judgment for the denial, applying the Plan terms to the claimant's medical circumstances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;a statement that this explanation will be provided free of charge upon request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in denying the claim or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant is entitled to receive reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits free of charge on request. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-l(m)(8).)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim, other than a claim for disability benefits, be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant may have a full and fair review of the claim by the Claims Manager upon request therefore in writing, or by another method permitted by applicable rules or regulations, submitted by the claimant or the claimant's duly authorized representative and received by the Claims Manager within 60 days after the claimant receives notification in writing, or by another method permitted by applicable rules or regulations, that the claimant's claim has been denied. A full and fair review of the denial of the claimant's claim shall provide the claimant with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;upon request and free of charge, reasonable access to and copies of , all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-l(m)(8).); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;In connection with such review in Subsection (g) of this Appendix, the claimant or the claimant's duly authorized representative shall be entitled to review pertinent documents and submit the claimant's views as to the issues in writing or by another method permitted by applicable rules or regulations. The Claims Manager shall act to deny or accept the claim within 60 days after receipt of the claimant's request in writing or by another method permitted by applicable rules or regulations for review unless special circumstances require the extension of such 60 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing or by another method permitted by applicable rules or regulations of such extension before the expiration of such initial 60 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In all events with respect to review of a claim under Subsection (g) of this Appendix, the Claims Manager shall act to deny or accept the claim within one hundred twenty (120) days of the receipt of the claimant's request for review in writing or by another method permitted by applicable rules or regulations. The action of the Claims Manager shall be in the form of a notice, in writing or by another method permitted by applicable rules or regulations, to

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the claimant. In the event of a determination adverse to the claimant, such a notice shall set forth, in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the specific reason or reasons for the adverse determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;references to the specific Plan prov1s1ons on which the benefit determination is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-1 (m)(8).);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement describing any voluntary appeal procedures offered by the Plan and the claimant's right to obtain information about such procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim for disability benefits be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant, or the claimant's authorized representative, shall have 180 days from the date the claimant receives the denial of the claim for disability benefits to appeal the denial and have a full and fair review of the claim by the Claims Manager. Before the Plan can issue an adverse benefit determination on review of the initial denial of the claim for disability benefits, the Claims Manager shall provide the claimant, free of charge, with any new or additional evidence considered, relied upon, or generated by the Plan, insurer, or other person making the benefit determination (or at the direction of the Plan, insurer or such other person) in connection with the claim. Such evidence must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date. Furthermore, before the Claims Manager can issue an adverse benefit determination on review of a disability benefit claim based on a new or additional rationale, the Claims Manager shall provide the claimant, free of charge, with the rationale; the rationale must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;In addition to all of the requirements of Subsections (g)(l)-(3) of this Appendix, a full and fair review of a denial of a claim for disability benefit must provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the review does not afford deference to the initial denial and that it is conducted by an individual (or individuals) who is neither the individual who made the denial that is the subject of the appeal, nor the subordinate of such individual;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in deciding an appeal of any denial that is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the appropriate named fiduciary shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the denial of the claimant's claim for disability benefits be identified, without regard to whether the advice was relied upon in making the benefit determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the health care professional engaged for purposes of a consultation under this Subsection (k) of this Appendix shall be an individual who is neither an individual who was consulted in connection with the adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Claims Manager shall notify a claimant of its determination on review of the claim for disability benefits within 45 days after the receipt of the claimant's request for review, unless the Claims Manager determines that special circumstances (such as the need to hold a hearing, if the Plan's procedures provide for a hearing) require an extension of time for processing the claim. If the Claims Manager determines that an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 45 day period. In no event shall such extension exceed a period of 45 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Claims Manager expects to render the determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part on review, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsections (i)(1)-(4) of this Appendix, and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA and a description of any applicable contractual limitations period that applies to the claimant's right to bring such an action, including the calendar date on which the contractual limitations period expires for the claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant's medical circumstances, or a statement that such explanation will be provided free of change upon request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;In no event may a claimant commence legal action for benefits the claimant believes are due the claimant until the claimant has exhausted all of the remedies and procedures afforded the claimant by this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;In the case of a claim for disability benefits, if the Plan fails to strictly adhere to all the requirements of this Appendix with respect to a claim, the claimant is deemed to have exhausted the administrative remedies available under the Plan, except as provided in this Subsection (o) of this Appendix. Accordingly, the claimant is entitled to pursue any available remedies under Section 502(a) of ERISA on the basis that the Plan has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim. If a claimant chooses to pursue remedies under Section 502(a) of ERISA under such circumstances, the claim or appeal is deemed denied on review without the exercise of discretion by an appropriate fiduciary. Notwithstanding the foregoing, the administrative remedies available under a Plan with respect to claims for disability benefits will not be deemed exhausted based on de minimis violations that do not cause, and are not likely to cause, prejudice or harm to the claimant so long as the Plan demonstrates that the violation was for good cause or due to matters beyond the control of the Plan and that the violation occurred in the context of an ongoing, good faith exchange of information between the Plan and the claimant. This exception is not available if the violation is part of a pattern or practice of violations by the Plan. The claimant may request a written explanation of the violation from the Plan, and the Plan must provide such explanation within 10 days, including a specific description of its bases, if any, for asserting that the violation should not cause the administrative remedies available under the Plan to be deemed exhausted. If a court rejects the claimant's request for immediate review on the basis that the Plan met the standards for the exception under this Subsection (o) of this Appendix, the claim shall be considered as re-filed on appeal upon the Plan's receipt of the decision of the court. Within a

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reasonable time after the receipt of the decision, the Plan shall provide the claimant with notice of the resubmission.

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| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By | /s/ Paul M. Sukut | /s/ Paul M. Sukut |
| Its | CEO & General Manager | CEO & General Manager |
| Dated | Dated | December 19, 2018 |

---

## Exhibit 10.7

**Exhibit 10.7**

**BASIN ELECTRIC POWER COOPERATIVE** 

**EXECUTIVE DEFERRED COMPENSATION PLAN**

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation, hereby amends and restates the Basin Electric Power Cooperative Executive Deferred Compensation Plan, effective January 1, 2026. It will continue for the purpose of providing deferred compensation solely for a select group of management and highly compensated employees of Basin Electric Power Cooperative.

**ARTICLE I**

**DEFINITIONS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;When used in this Plan document, the following terms have the meanings indicated unless a different meaning is plainly required by the context.

"401(k) Compensation" means the Participant's "Compensation" as that term is defined in the Company 401(k) Plan.

"Account" means one of the deferred compensation accounts which Basin Electric establishes and maintains on its books for each Participant. Generally, an Account will be established for each Participant for amounts attributable to deferrals made by and on behalf of the Participant for all calendar years. However, if a Participant has an opportunity to elect and elects pursuant to this Plan a different manner of distribution than the Participant's previous election for deferrals in calendar years after 2015, then a separate Account will be established for that Participant for amounts attributable to those deferrals.

"Active Participant" means a member of a select group of management and highly-compensated employees of Basin Electric who is eligible or is designated as eligible to participate in this Plan by the CEO pursuant to Section 2.1 and has made the election referred to in Section 2.2, and who has not ceased to be eligible under Section 2.3.

"Applicable Matching Contribution Rate and Limit" means the rate and maximum limit at which a Participant's elective deferrals are matched by Basin Electric under the Company 401(k) Plan, disregarding any exclusion for Excess 401(a)(17) Compensation. For illustrative purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Applicable Matching Contribution Rate and Limit for a "*Qualified Employee for Enhanced Matching Contributions*" under the Company 401(k) Plan, is 3% of their 401(k) Compensation for each whole percentage of their elective deferrals under the Company 401(k) Plan, up to a maximum of 15% of their 401(k) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) The Applicable Matching Contribution Rate and Limit for a "*Participant who becomes an Employee of a Participating Employer or Related Employer prior to January 1, 2006*" under the Company 401(k) Plan, is 100% of their elective deferrals under the Company 401(k) Plan, up to a maximum of 5% of their 401(k) Compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Applicable Matching Contribution Rate and Limit for a "*Participant who becomes an Employee of a Participating Employer or Related Employer on or after January 1, 2006*" under the Company 401(k) Plan, is 100% of their elective deferrals under the Company 401(k) Plan, up to a maximum of 6% of their 401(k) Compensation.

"Basin Electric" means Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation.

"Beneficiary" means the person or persons who are to receive the benefits provided under this Plan in the event of a Participant's death because of a selection made by the Participant on a Beneficiary Designation Form or because of other applicable provisions of this Plan.

"Beneficiary Designation Form" means a form provided by Basin Electric Human Resources on which a Participant may designate a Beneficiary for purposes of this Plan.

"CEO" means Basin Electric's Chief Executive Officer.

"Change in Control Event" means a change in ownership of a corporation, a change in effective control of a corporation or a change in ownership of a substantial portion of a corporation's assets as defined in regulations under Section 409A of the Code.

"Change in Control Event with respect to the Participant" means a Change in Control Event that is considered to relate to a Participant because it relates to (a) the corporation for whom the Participant is performing services at the time of the event, (b) the corporation that is liable for the payment to the Participant under this Plan (or all such corporations if there are more than one), subject to any limits described in regulations under Section 409A of the Code or (c) a corporation that is a majority shareholder of a corporation identified in (a) or (b), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (a) or (b). For purposes of this definition, a majority shareholder is a shareholder owning more than 50% of the total fair market value and total voting power of such corporation. Further, attribution of stock ownership is determined as provided in regulations under Section 409A of the Code.

"Code" means the Internal Revenue Code of 1986, as amended.

"Company 401(k) Plan" means the Basin Electric Power Cooperative 401(k) Plan.

"Company Contribution" means a discretionary credit by Basin Electric to a Participant's Account in accordance with the provisions of Section 3.2(c). Company Contributions are credited at the sole discretion of Basin Electric and the fact that a Company Contribution is credited in one year shall not obligate Basin Electric to continue to make such Company Contribution in subsequent years.

"Deferral Election Form" means the election form executed in connection with this Plan by a Participant which provides for deferral of 401(k) Compensation in accordance with the terms of this Plan and which is hereby incorporated into this Plan by this reference.

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"Disability" means with respect to a Participant that the Participant (a) has a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which renders a Participant unable to engage in any substantial gainful activity or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of Basin Electric. The existence or nonexistence of such Disability shall be established by the certificate of a medical doctor selected by or satisfactory to Basin Electric.

"Distribution Election Form" means the election form executed in connection with this Plan by a Participant which provides for distribution of the amount credited to the Participant's Account in accordance with the terms of this Plan and which is hereby incorporated into this Plan by this reference.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

"Excess 401(a)(17) Compensation" means any 401(k) Compensation earned by a Participant that exceeds the annual dollar limit set by Code Section 401(a)(17).

"Participant" means a current or former Active Participant to whose Account amounts have been credited pursuant to Article 3 and who continues to have a balance in an Account.

"Plan" means the Basin Electric Power Cooperative Executive Deferred Compensation Plan, as of its original effective date, including any amendments thereto, which is maintained by Basin Electric Power Cooperative for the purpose of providing deferred compensation for a select group of management and highly-compensated employees.

"Plan Year" means the calendar year.

"Related Employer" means each entity that is treated as part of a single employer with Basin Electric under Section 414 of the Code.

"Separation from Service" means that a Participant has incurred a separation from service with Basin Electric and each Related Employer, other than on account of death, as provided in Section 1.409A-1(h) of the Treasury Regulations.

"Unforeseeable Emergency" means a severe financial hardship to a Participant resulting from illness or accident of the Participant, the Participant's spouse, the Participant's Beneficiary or a dependent (as defined in Section 152 of the Code without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)) of the Participant, loss of the Participant's property due to casualty, other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, or any other items included in the definition of unforeseeable emergency in regulations under Section 409A of the Code. Basin Electric will determine, in its sole discretion, whether such a severe financial hardship has taken place and may require that the

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Participant provide sufficient evidence to support such a determination. Basin Electric's determination regarding the timing and amount of such a distribution shall be final.

Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric agrees to perform its obligations in accordance with this Plan and the Deferral Election Forms and Distribution Election Forms.

Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;The singular form of any word shall include the plural and the masculine gender shall include the feminine wherever necessary for the proper interpretation of this Plan.

**ARTICLE II**

**ELIGIBILITY AND PARTICIPATION**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;Eligibility to participate in this Plan is limited to a select group of management and highly compensated employees of Basin Electric, including the CEO and all Senior Vice Presidents of Basin Electric and any other employee of Basin Electric designated by the CEO.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;An eligible individual will become an Active Participant upon the execution of a Deferral Election Form.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;The CEO will identify individuals who no longer will be Active Participants for a subsequent year prior to that year. An individual will also cease to be an Active Participant when the individual incurs a Separation from Service.

**ARTICLE III**

**DEFERRED COMPENSATION AND INTEREST**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric shall establish and maintain an Account for each Participant, or the designated Beneficiary of such a Participant upon the death of the Participant, and shall credit such Account with amounts credited to the Participant's Account pursuant to (a) Section 3.2 of this Plan and (b) Section 3.4 of this Plan. However, in the case of a Participant who is permitted under Section 4.3 of this Plan to elect a different manner of distribution for deferrals in calendar years after 2015 and makes such election, a separate Account will be established for that Participant for amounts attributable to those deferrals.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;The following credits shall be made to the Participant's Account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;As a condition to Basin Electric's obligation to credit an Active Participant's Account with an amount described in Section 3.1, the Active Participant must elect to reduce the Active Participant's 401(k) Compensation for a calendar year by completing the Deferral Election Form provided by Basin Electric Human Resources. The Active Participant's election for any calendar year shall be made before the beginning of that calendar year and shall remain in effect for subsequent calendar years unless revoked or revised by the Active Participant for those calendar years by the completion of a subsequent Deferral Election Form (or other written instrument acceptable to Basin Electric Human Resources), which must be delivered to Basin

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Electric Human Resources prior to the beginning of the period for which such revocation or revision is to be effective; except, however, that in the first year in which a Participant becomes an Active Participant, such Active Participant may make an election to defer 401(k) Compensation for services to be performed subsequent to the election within 30 days after the date the individual becomes an Active Participant (the plan aggregation rules of the final 409A regulations shall apply to determine whether this option is permitted to apply to such Active Participant). All credits to a Participant's Account that are attributable to a Participant's deferral of his or her 401(k) Compensation are 100% vested at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If (i) a Participant has made the maximum salary reduction (401(k)) contributions permissible for that Participant under the Company 401(k) Plan for a Plan Year, (ii) has Excess 401(a)(17) Compensation, and (iii) has elected to defer a portion of the Participant's 401(k) Compensation for the calendar year under Section 3.2(a) for that Plan Year, then Basin Electric shall credit an additional amount to that Participant's Account for that Plan Year. Such additional employer contribution amount under this Plan shall be calculated applying the same formula as the Participant's Applicable Matching Contribution Rate and Limit, but without applying the limit under Code Section 401(a)(17) to the Participant's 401(k) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric may, from time to time, in its sole and absolute discretion, credit Company Contributions to any Participant's Account in any amount determined by Basin Electric. Company Contributions may be made in the form of a matching contribution, a nonelective contribution or both and may be made in accordance with any formula selected by Basin Electric, which formula may be different from year to year. Company Contributions may be subject to any vesting schedule determined by Basin Electric at the time of the credit as communicated to the Participant. Basin Electric may, in its sole discretion, fully vest a Participant's unvested Company Contributions on a Change in Control Event with respect to the Participant, a Participant's death, a Participant's Disability, or any other event or circumstance determined appropriate by Basin Electric.

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;Any individual who ceases to satisfy the eligibility requirements in Section 2.1 or Section 2.3 shall not be eligible to make any elections for the calendar year following the calendar year in which the individual ceases to satisfy such eligibility requirements and for each subsequent calendar year until the individual again satisfies such eligibility requirements, at which time such individual shall again become entitled to make an election under this Article III so long as any new election is filed in advance of the calendar year to which it applies pursuant to the requirements of this Article III.

Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;The amounts credited to the Account of each Participant shall be invested in a trust (a rabbi trust) maintained by Basin Electric. The Participant's Account shall be adjusted for earnings or losses in accordance with the investment of those amounts under the terms of that trust. Basin Electric may account for those earnings and losses under the trust or may have that accounting done by a recordkeeper selected by Basin Electric. Basin Electric shall direct the

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investment of those amounts, but may allow each Participant to request that investment of those amounts be made pursuant to elections or modified elections made by the Participant. Basin Electric may direct the trustee of that trust to invest those amounts consistent with those requests and elections or direct the recordkeeper to communicate those requests and elections to the trustee so that investment of those amounts are made consistent with all such requests and elections made by the Participant, subject to any contrary direction made by Basin Electric. Notwithstanding the preceding provisions of this Section 3.4, if a correction is made under IRS Notice 2008-113 (or subsequent IRS guidance) and that guidance requires adjusting the earnings that are to be credited to a Participant's Account under this section, then such adjustment (reduction of the Participant's Account) shall be made (losses shall be taken into account but the amount of the adjustment shall not be negative). If there is an adjustment of a Participant's Account and any portion of the amount of the adjustment is part of the trust referred to in the preceding provisions of this Section 3.4, then that portion shall be used to reduce other contributions that would otherwise have been made to that trust by Basin Electric.

**ARTICLE IV**

**DISTRIBUTIONS**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;Distributions under this Plan shall commence in accordance with Section 4.2 hereof and shall be made in accordance with the terms and conditions of this Article IV and the elections contained in the Distribution Election Forms. Distributions shall be made in the form of cash.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;The amount credited to the Account maintained for a Participant shall be distributed upon the first to occur of the following events: (i) the attainment of a distribution date selected by the Participant in the election form; (ii) the Participant's Separation from Service (iii) the Participant's Disability; or (iv) the death of the Participant (or the Participant's Beneficiary in the event of the Participant's prior death). Such distribution shall be made in accordance with the option designated by the Participant on a Distribution Election Form provided by Basin Electric Human Resources and in accordance with the remainder of this article.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;To be effective, a Participant's Distribution Election Form must be completed when required by the regulations under Section 409A of the Code, which generally must be at the time the Participant's initial deferral election is made and submitted. However, a Distribution Election Form made in 2008 will also be effective. Generally, an effective election will apply to all of the Participant's Accounts. However, an individual who is an Active Participant in 2015 or later may, as permitted by Basin Electric, elect before the end of the calendar year immediately preceding the calendar year for which the election is to be effective, a different manner of distribution for deferrals made on that Participant's behalf in calendar years after 2015. Further, a new Distribution Election Form may be completed and will be effective as provided in Section 4.7. Basin Electric retains the sole discretion to limit the frequency during which new deferral distribution elections may be made (e.g., Basin Electric may allow new deferral distribution elections to be made only once every 5 years).

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;The distribution form options with respect to the Account of a Participant generally will include substantially equal annual installment options of one to ten years. The

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distribution form will also generally include an option for the distribution to be made in a single lump sum. Distribution in the event of an Unforeseeable Emergency may only be made in a lump sum.

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;The Participant may make different elections on the Distribution Election Form (as permitted on that form) with respect to the form of distribution for any of the events for which a specific distribution form is not specified in this Plan.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;Installment payments for an Account of a Participant shall be treated as a single payment for purposes of distribution elections, as described in regulations under Section 409A of the Code.

Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;A Participant's distribution form options may be changed by filing a new election form provided by Basin Electric Human Resources for that purpose. Any election to make such a change that is made fewer than twelve months before an event will be void and of no effect with respect to that event. The change will apply to a portion specified by the Participant of the benefits payable to the Participant under an Account of the Participant and payment with respect to that portion will commence 5 years after the first day of the calendar year next following the event to which the election applies (this 5 year delay requirement will not apply if distribution is made to the Participant on account of the Participant's Disability or death or if distribution is permitted to be made to the Participant because of an Unforeseeable Emergency described later in this Article). In addition, any changes to a distribution form option must conform to applicable regulations under Section 409A of the Code.

Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric will pay the Participant's Account balance according to the distribution schedule properly elected for the Account pursuant to the election made by the Participant on the Distribution Election Form. Distribution in the case of the Participant's Separation from Service shall begin or be made during the first month of the calendar year next following the year in which the Participant's Separation from Service occurs. Distribution in the case of the Participant's death shall begin or be made during the month next following the Participant's death. Distribution in the case of the Participant's Disability shall begin or be made during the month next following the date that the Participant has been determined by Basin Electric to have incurred a Disability.

Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;A Participant may request and Basin Electric may determine to make a payment to a Participant from the Participant's Account in the event that the Participant incurs an Unforeseeable Emergency. Payment will be made as of the date the Participant is determined by Basin Electric to have the Unforeseeable Emergency. The amount of the payment will be limited as provided in Section 1.409A-3(i)(3) of Treasury Regulations.

Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;A payment will be treated as made upon the designated payment date if payment is made as provided in Section I.409A-3(d) of Treasury Regulations. If no distribution election has been made or no election is in effect, Basin Electric shall pay the accrued amount in one lump sum payment.

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Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;Options to Accelerate Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, Basin Electric may, at its option (specified in writing), cause distribution to a Participant during a calendar year of the balance of the Participant's Account if the total amount credited to such Participant's Account at the time of the distribution is not greater than the limit for such calendar year on salary reduction (401(k)) contributions that may be made to a plan under Section 402(g)(1)(B) of the Code ($24,500 in 2026).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an affirmative vote of Basin Electric's board of directors, Basin Electric may elect to make lump sum distributions of the value of each Account held in the names of Participants if Basin Electric (by board vote) elects to terminate this Plan and make those distributions within the 30 days preceding or the twelve (12) months after a Change in Control Event that is a Change in Control Event with respect to the Participant for each Participant. However, distribution will only be made if permitted by Section 1.409A-3(j)(4)(ix) of Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an affirmative vote of Basin Electric's board of directors, Basin Electric may elect to make lump sum distributions of the value of each Account held in the names of Participants if it elects to terminate this Plan for reasons other than described in Section 4.11(b) and make those distributions subsequent to 12 months after and within 24 months of that termination provided that distribution will only be made if permitted by Section 1.409A-3(j)(4)(ix)(C) of Treasury Regulations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The CEO shall permit a lump sum distribution of a portion or all of a Participant's Account to be made to an individual other than a Participant pursuant to a domestic relations order (as defined in Section 414(p)(1)(B) of the Code). The amount shall not exceed the balance of the Participant's Account as of the date of distribution. The CEO may also permit an election to be made by that individual pursuant to that order regarding the date of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The CEO may, in his or her sole discretion, permit a lump-sum distribution from a Participant's Account of an amount equal to Federal Insurance Contributions Act (FICA) taxes payable on compensation deferred under this Plan, any federal income tax attributable to such a distribution, any state, local or foreign taxes due to participation in this Plan, an amount required to be included in the Participant's income as a result of a failure to comply with the requirements of Section 409A of the Code, or any other amount permitted by Section 1.409A-3(j)(4) of Treasury Regulations (in addition to the amounts described in the preceding provisions of this section). Basin Electric shall have no liability for any tax obligation a Participant may incur in connection with amounts deferred under this Plan.

Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;A Participant may designate a Beneficiary or revoke any Beneficiary designation by submitting a properly executed Beneficiary Designation Form, which will be provided upon request by Basin Electric Human Resources. Beneficiary designations are effective upon receipt by Basin Electric Human Resources. A Participant may change

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Beneficiaries without the consent of any prior Beneficiaries. If a Participant is not living at the time any distribution is made, including any installment payment, the distribution will be made to the Participant's Beneficiary. In the absence of a surviving Beneficiary, the distribution of a Participant's Account shall be paid to the Participant's estate.

Section 4.13&nbsp;&nbsp;&nbsp;&nbsp;The CEO may determine to delay a payment for reasons described in Section 1.409A-2(b)(7) of Treasury Regulations (such as a delay to assure a deduction for Basin Electric or to avoid violation of federal securities or other applicable laws). The CEO may also permit a Participant to elect to change the time or form of a payment under this Plan in order to satisfy the requirement of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (USERRA).

**ARTICLE V**

**ADMINISTRATION OF THE PLAN**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric shall be responsible for the general operation and administration of this Plan and for carrying out the provisions thereof. Basin Electric shall have the authority, duty and power to interpret and construe the provisions of this Plan as it deems appropriate. Basin Electric shall have the duty and responsibility of maintaining records, making the requisite calculations and dispersing the payments hereunder. Basin Electric shall have the authority to establish and revise rules, procedures, and regulations relating to this Plan and to make any other determinations which it believes necessary or advisable for the administration of this Plan. Basin Electric shall be responsible for the expenses incurred in the administration of this Plan. Basin Electric shall be responsible for determining eligibility for benefits and the benefits payable pursuant to this Plan. Basin Electric shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or other person employed or engaged by Basin Electric with respect to this Plan. Basin Electric's interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;The procedures for filing claims for Plan benefits are described in the appendix attached hereto titled "Claims Procedures for the Basin Electric Power Cooperative Executive Deferred Compensation Plan" and such appendix is hereby incorporated into this Plan by reference.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric will provide to each Participant, or current Beneficiary, quarterly written statements showing the status of the Participant's deferred compensation account.

**ARTICLE VI**

**AMENDMENT OR TERMINATION**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric intends this Plan to be permanent but reserves the right to amend or terminate this Plan at any time. Any such amendment or termination shall be made pursuant to a resolution of Basin Electric's Board of Directors and shall be effective as of the date provided in the resolution.

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Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;No amendment or termination of this Plan shall directly or indirectly reduce the balance of any Account as of the effective date of such amendment or termination. Basin Electric shall not credit the Accounts of any Participant with any further amounts after termination of this Plan. In the event of termination of this Plan, the Accounts of Participants shall be payable to Participants as provided in Article IV.

**ARTICLE VII**

**GENERAL PROVISIONS**

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;Basin Electric shall pay benefits arising under this Plan and all costs, charges and expenses related thereto.

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in Section 4.11(d) with respect to domestic relations orders, the benefits payable hereunder or the right to receive future benefits under this Plan may not be anticipated, alienated, sold, transferred, assigned, pledged, encumbered, or subjected to any charge or legal process; and no interest or right to receive a benefit may be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;This Plan shall at all times be considered entirely unfunded both for tax purposes and of purposes of Title I of ERISA. Funds invested hereunder shall continue for all purposes to be part of the general assets of Basin Electric and available to the general creditors of Basin Electric in the event of Basin Electric's bankruptcy (when Basin Electric is involved in a pending proceeding under the Federal Bankruptcy Code) or insolvency (when Basin Electric is unable to pay its debts as they mature). No Participant or any other person shall have any interests in any particular assets of Basin Electric by reason of the right to receive a benefit under this Plan and to the extent the Participant or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any general unsecured creditor of Basin Electric. This Plan constitutes a mere promise by Basin Electric to make payments to the Participants in the future.

Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Plan shall constitute a guaranty by Basin Electric or any other person or entity that any funds or assets of Basin Electric will be sufficient to pay any benefit hereunder.

Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;No Participant shall have any right to a benefit under this Plan except in accordance with the terms of this Plan. Establishment of this Plan shall not be construed to give any Participant the right to be retained in the service of Basin Electric.

Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;If any person entitled to a benefit payment under this Plan is declared incompetent and a conservator or other person is legally charged with the care of such person or of his or her estate is appointed, any benefits under this Plan to which the person is entitled shall be paid to such conservator or other person legally charged with the care of the person or his or her estate. Except as provided above, when Basin Electric determines that such person is unable to manage his or her affairs, Basin Electric may provide for such payment or any part thereof to

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be made to any other person or institution then contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment for the account of such person and a complete discharge of any liability of Basin Electric and this Plan therefore.

Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;This Plan shall not be automatically terminated by a transfer or sale of assets of Basin Electric or by the merger or consolidation of Basin Electric into or with any other corporation or other entity, but this Plan shall be continued after such sale, merger or consolidation only if and to the extent that the transferee, purchaser or successor entity agrees to continue this Plan. In the event this Plan is not continued by the transferee, purchaser or successor entity, then this Plan shall terminate subject to the provisions of Article VI.

Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall keep Basin Electric informed of his or her current address and the current address of his or her Beneficiary. Basin Electric shall not be obligated to search for any person. If the location of a Participant is not made known to Basin Electric within three (3) years after the date on which payment of the Participant's benefits payable under this Plan may first be made, payment may be made as though the Participant had died at the end of the three-year period. If, within one additional year after such three-year period has elapsed, or, within three (3) years after the actual death of a Participant, Basin Electric is unable to locate any designated Beneficiary of the Participant, then Basin Electric shall have no further obligation to pay any benefit hereunder to such Participant or designated Beneficiary and such benefits shall be irrevocably forfeited to Basin Electric.

Section 7.9&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any of the preceding provisions of this Plan, neither Basin Electric nor any individual acting as an employee or agent of Basin Electric shall be liable to any Participant, former Participant, or any other person for any claim, loss, liability or expense incurred in connection with this Plan, unless attributable to fraud or willful misconduct on the part of Basin Electric or any such employee or agent of Basin Electric.

Section 7.10&nbsp;&nbsp;&nbsp;&nbsp;Each Participant shall receive a copy of this Plan and Basin Electric will make available for inspection by any Participant or designated Beneficiary a copy of the rules and regulations used by Basin Electric in administering this Plan.

Section 7.11&nbsp;&nbsp;&nbsp;&nbsp;All questions pertaining to the construction, validity and effect of this Plan shall be determined in accordance with the laws of the United States and to the extent not preempted by such laws, by the laws of the State of North Dakota.

Section 7.12&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Plan prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions of this Plan.

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**APPENDIX**

**CLAIMS PROCEDURES FOR THE BASIN ELECTRIC POWER COOPERATIVE**

**EXECUTIVE DEFERRED COMPENSATION PLAN** 

The procedures for filing claims for Plan benefits are described below. For purposes of these claims procedures, the "Claims Manager" shall be Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Participant or the Participant's spouse or Beneficiary shall have the right to submit a claim for benefits in writing or by another method permitted by applicable rules or regulations to the Claims Manager. For purposes of the claims procedures in this Appendix, a Participant, a spouse of a Participant, or a Beneficiary who submits a claim for benefits under this Plan shall be referred to as a "claimant." The claim must specify the basis of it and the amount of the benefit claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For claims and appeals with respect to disability benefits, this Plan will ensure that all claims and appeals for disability benefits are adjudicated in a manner designed to ensure the independence and impartiality of the persons involved in making the decision. Accordingly, decisions regarding hiring, compensation, termination, promotion, or other similar matters with respect to any individual (such as a claims adjudicator or medical or vocational expert) must not be made based upon the likelihood that the individual will support the denial of benefits. For purposes of the claims procedures in this Appendix, a "disability claim" or "claim for disability benefits" means any claim the receipt of which is conditioned upon a finding of disability. It does not matter how the benefit is characterized by this Plan; if the Claims Manager must make a determination of disability (such as whether a Participant has a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which renders the Participant unable to engage in any substantial gainful activity) in order to decide a claim, the claim will be treated as a "disability claim" or "claim for disability benefits" for purposes of the claims procedures in this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;For claims other than claims for disability benefits, the Claims Manager shall act to deny or accept said claim within 90 days of the receipt of the claim by notifying the claimant of the Claims Manager's action, unless special circumstances require the extension of such 90 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 90 day period. Such notice shall specify the reason or reasons for such extension and the date by which a final decision can be expected. In no event shall such extension exceed a period of 90 days from the end of the initial 90 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;With respect to claims for disability benefits, the Claims Manager shall act to deny or accept said disability claim within a reasonable period of time, but no later than 45 days after the receipt of the disability claim by this Plan, by notifying the claimant of the Claims Manager's action. This 45 day period may be extended by this Plan for up to 30 days, provided that the Claims Manager determines that such an extension is necessary due to matters beyond the control of this Plan. If such an extension is necessary, the Claims Manager shall provide the

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claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 45 day period. Such notice shall specify the circumstances requiring the extension and the date by which the Claims Manager expects to render a decision. If, before the end of the first 30 day extension period, the Claims Manager determines that, due to matters beyond the control of this Plan, a decision cannot be rendered within the extended period of time, the period for making a decision may be extended for up to an additional 30 days, provided that the Claims Manager notifies the claimant before the expiration of the initial 30 day extension period of the necessity of such an additional extension. The notice of the additional extension shall specify the circumstances requiring the additional extension and the date on which the Claims Manager expects to render a decision. Any notice of extension provided under this Section (d) of the Appendix shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and that the claimant shall be afforded at least 45 days within which to provide the specified information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim, other than a claim for disability benefits, in whole or in part, the Claims Manager's notification to the claimant of such denial shall be in writing, or by another method permitted by applicable rules or regulations, and shall specify in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the reason or reasons for denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the specific Section or Sections of this Plan upon which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a description of any additional material or information, if any, necessary for the claimant to perfect his or her claim, and an explanation as to why such information or material is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the claim review procedure specified in this Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring a civil action pursuant to Section 502(a) of ERISA following a continued denial of the claimant's claim after appeal review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in

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a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsection (e) of this Appendix and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to the Claims Manager of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on this Plan's behalf in connection with the denial of the claim, regardless of whether the advice was relied on in denying the claim; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination made by the Social Security Administration regarding the claimant, if presented to this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the denial is based on a medical necessity or experimental treatment or similar exclusion or limit, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the scientific or clinical judgment for the denial, applying this Plan terms to the claimant's medical circumstances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;a statement that this explanation will be provided free of charge upon request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of this Plan relied upon in denying the claim or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of this Plan do not exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant is entitled to receive reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits free of charge on request. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-1(m)(8).)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim, other than a claim for disability benefits, be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant may have a full and fair review of the claim by the Claims Manager upon request therefore in writing, or by another method permitted by applicable rules or regulations, submitted by the claimant or the claimant's duly authorized representative and received by the Claims Manager within 60 days after the claimant receives notification in writing, or by another method

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permitted by applicable rules or regulations, that the claimant's claim has been denied. A full and fair review of the denial of the claimant's claim shall provide the claimant with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;upon request and free of charge, reasonable access to and copies of, all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-1(m)(8).); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;In connection with such review in Subsection (g) of this Appendix, the claimant or the claimant's duly authorized representative shall be entitled to review pertinent documents and submit the claimant's views as to the issues in writing or by another method permitted by applicable rules or regulations. The Claims Manager shall act to deny or accept the claim within 60 days after receipt of the claimant's request in writing or by another method permitted by applicable rules or regulations for review unless special circumstances require the extension of such 60 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing or by another method permitted by applicable rules or regulations of such extension before the expiration of such initial 60 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In all events with respect to review of a claim under Subsection (g) of this Appendix, the Claims Manager shall act to deny or accept the claim within one hundred twenty (120) days of the receipt of the claimant's request for review in writing or by another method permitted by applicable rules or regulations. The action of the Claims Manager shall be in the form of a notice, in writing or by another method permitted by applicable rules or regulations, to the claimant. In the event of a determination adverse to the claimant, such a notice shall set forth, in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the specific reason or reasons for the adverse determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;references to the specific Plan provisions on which the benefit determination is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-1(m)(8).);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement describing any voluntary appeal procedures offered by this Plan and the claimant's right to obtain information about such procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim for disability benefits be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant, or the claimant's authorized representative, shall have 180 days from the date the claimant receives the denial of the claim for disability benefits to appeal the denial and have a full and fair review of the claim by the Claims Manager. Before this Plan can issue an adverse benefit determination on review of the initial denial of the claim for disability benefits, the Claims Manager shall provide the claimant, free of charge, with any new or additional evidence considered, relied upon, or generated by this Plan, insurer, or other person making the benefit determination (or at the direction of this Plan, insurer or such other person) in connection with the claim. Such evidence must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date. Furthermore, before the Claims Manager can issue an adverse benefit determination on review of a disability benefit claim based on a new or additional rationale, the Claims Manager shall provide the claimant, free of charge, with the rationale; the rationale must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;In addition to all of the requirements of Subsections (g)(1)-(3) of this Appendix, a full and fair review of a denial of a claim for disability benefits must provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the review does not afford deference to the initial denial and that it is conducted by an individual (or individuals) who is neither the individual who made the denial that is the subject of the appeal, nor the subordinate of such individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in deciding an appeal of any denial that is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the appropriate named fiduciary shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the medical or vocational experts whose advice was obtained on behalf of this Plan in connection with the denial of the claimant's claim for disability benefits be identified, without regard to whether the advice was relied upon in making the benefit determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the health care professional engaged for purposes of a consultation under this Subsection (k) of this Appendix shall be an individual who is neither an individual

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who was consulted in connection with the adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Claims Manager shall notify a claimant of its determination on review of the claim for disability benefits within 45 days after the receipt of the claimant's request for review, unless the Claims Manager determines that special circumstances (such as the need to hold a hearing, if this Plan's procedures provide for a hearing) require an extension of time for processing the claim. If the Claims Manager determines that an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 45 day period. In no event shall such extension exceed a period of 45 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Claims Manager expects to render the determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part on review, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsections (i)(1)-(4) of this Appendix, and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA and a description of any applicable contractual limitations period that applies to the claimant's right to bring such an action, including the calendar date on which the contractual limitations period expires for the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to this Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on behalf of this Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination regarding the claimant presented by the claimant to this Plan made by the Social Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of this Plan to the claimant's medical circumstances, or a statement that such explanation will be provided free of charge upon request; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of this Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of this Plan do not exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;In no event may a claimant commence legal action for benefits the claimant believes are due to the claimant until the claimant has exhausted all of the remedies and procedures afforded to the claimant by this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;In the case of a claim for disability benefits, if this Plan fails to strictly adhere to all the requirements of this Appendix with respect to a claim, the claimant is deemed to have exhausted the administrative remedies available under this Plan, except as provided in this Subsection (o) of this Appendix. Accordingly, the claimant is entitled to pursue any available remedies under Section 502(a) of ERISA on the basis that this Plan has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim. If a claimant chooses to pursue remedies under Section 502(a) of ERISA under such circumstances, the claim or appeal is deemed denied on review without the exercise of discretion by an appropriate fiduciary. Notwithstanding the foregoing, the administrative remedies available under a Plan with respect to claims for disability benefits will not be deemed exhausted based on de minimis violations that do not cause, and are not likely to cause, prejudice or harm to the claimant so long as this Plan demonstrates that the violation was for good cause or due to matters beyond the control of this Plan and that the violation occurred in the context of an ongoing, good faith exchange of information between this Plan and the claimant. This exception is not available if the violation is part of a pattern or practice of violations by this Plan. The claimant may request a written explanation of the violation from this Plan, and this Plan must provide such explanation within 10 days, including a specific description of its bases, if any, for asserting that the violation should not cause the administrative remedies available under this Plan to be deemed exhausted. If a court rejects the claimant's request for immediate review on the basis that this Plan met the standards for the exception under this Subsection (o) of this Appendix, the claim shall be considered as re-filed on appeal upon this Plan's receipt of the decision of the court. Within a reasonable time after the receipt of the decision, this Plan shall provide the claimant with notice of the resubmission.

## Exhibit 10.8

**Exhibit 10.8**

**Executive Benefit Restoration Plan** 

**Basin Electric Power Cooperative** 

**REA#: 35-045**

**(Taxable Cooperative)**

**<u>Intent</u> <u>and</u> <u>Construction</u>.** Basin Electric Power Cooperative (the**"Cooperative")** hereby adopts and establishes an unfunded deferred compensation plan effective October 1, 2015, which shall be known as the Basin Electric Power Cooperative Executive Benefit Restoration Plan (the **"Plan").** This Plan is intended to be an unfunded and unsecured plan sponsored and maintained by the Cooperative primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees of the Cooperative and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions.</u>** In addition to terms defined in quotations in parentheticals, the following definitions shall apply for purposes of the Plan:

**"Actuarial Equivalent"** means a benefit of equivalent present value to a stated benefit under the Plan, determined in accordance with Section 21 of the Retirement Security Plan ("RS Plan") (or successor provision) as of the date specified hereunder.

**"Affiliate"** means any corporation, trade or business which is treated as a single employer with the Cooperative under Sections 414(b) or 414(c) of the Code.

**"Beneficiary"** shall mean the beneficiary of a Participant designated pursuant to Section 8(c).

**"Board"** means the Board of Directors of the Cooperative.

**"Code"** means the Internal Revenue Code of 1986, as amended.

**"Disability" or"Disabled"** means the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Participant satisfies the requirements necessary for the receipt of total disability benefits under the Long-Term Disability Plan for Employees of NRECA Member Systems (the "LTD Plan"), as the LTD Plan may be amended from time to time (whether or not the Cooperative or Affiliate for whom the Participant was employed actually participates in the LTD Plan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Participant has continued to make participant contributions to the RS Plan, if required, for the six-month period commencing with the first day of the month coincident with or next following the date his active employment ceased.

**"ERISA"** shall mean the Employee Retirement Income Security Act of 1974, as amended, including regulations and applicable authorities promulgated thereunder.

**"NRECA"** means the National Rural Electric Cooperative Association.

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**"Normal Retirement Date"** means the date designated by the Cooperative or Affiliate in its RS Plan adoption agreement, as applicable.

**"Participant"** means an employee of the Cooperative or its Affiliates who is designated by the Cooperative's Board as an eligible participant. Participation in the Plan is limited to a select group of management or highly compensated employees.

**"Pension Limitation"** means the difference between the Actuarial Equivalent lump sum of (i) the Participant's accrued benefit from the RS Plan as calculated by NRECA without the limitations provided in Code§§ 415 and 401(a)(17), and (ii) the Participant's accrued benefit from the RS Plan as calculated by NRECA after application of the limitations of Code §§ 415 and 401(a)(17), each of which is calculated at the time a Participant is entitled to a payment hereunder without regard to any subsequent deferral election under Section 6, except as otherwise provided in this Plan. For purposes of determining a Participant's Pension Limitation, the definitions and rules in the RS Plan shall apply to this Plan, unless otherwise provided herein.

**"Plan"** means this Basin Electric Power Cooperative Executive Benefit Restoration Plan.

**"Plan Year"** means the 12-month period beginning on January 1 and ending on December 31.

**"RS Plan Benefit Election Date"** means the date on or after a Participant's Normal Retirement Date on which a Participant elects to commence benefits from the RS Plan but has not separated from service and thus may continue to accrue benefits under the RS Plan.

**"RS Plan"** means the Retirement Security Plan sponsored by NRECA as adopted by the Cooperative and its Affiliates, as applicable.

**"Specified Employee"** has the meaning set forth in Section 409A(a)(2)(B)(i) of the Code and Treas. Reg. Section 1.409A-1(i).

**"Valuation Date"** means each business day of the Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Participation</u>.** The participants in the Plan eligible for benefits shall be Participants who are a select group of management or highly compensated employees of the Cooperative and its Affiliates whose compensation and/or benefits exceeds or are limited by Code §§ 401(a)(17) and/or 415 and who are designated in writing by the Board as Participants, and who have a Pension Limitation. Participants in the Plan are specified in Attachment A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Benefit</u> <u>Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Plan benefit payable to a Participant under the Plan is the amount of the Pension Limitation for the Participant, adjusted for earnings or losses in accordance with Section 3(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In determining the Participant's pension benefit from the RS Plan to determine the Pension Limitation, there shall be included in the calculation amounts paid in cash to the Participant or his Beneficiary, transferred to an individual retirement account or annuity for the benefit of the Participant or Beneficiary or transferred to the Participant's account in the NRECA 401(k) Pension Plan in such a manner to insure that periods of benefit service are not included more than once in any determination of Plan accruals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event a Participant has received Plan benefits, commenced receiving Plan benefits or is eligible to receive a Plan benefit, and subsequently earns another or additional Plan benefit, the Pension Limitation shall be calculated separately for the initial and each later or additional Plan benefit. Notwithstanding the foregoing, there will be no duplication of benefits, as determined in the sole discretion of the Cooperative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If a Participant incurs a RS Plan Benefit Election Date, the Participant's Pension Limitation shall be determined as of such date and the Participant's benefit under this Plan shall be based on such amount with respect to participation in the RS Plan through the RS Plan Benefit Election Date. If the Participant accrues additional Plan benefits after his or her RS Plan Benefit Election Date, the Pension Limitation for the additional Plan benefits will be determined in accordance with subsection (c) at the time otherwise specified by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;After the Pension Limitation is determined, an amount equal to the Pension Limitation will be credited to an account under the Plan on behalf of the Participant and shall be adjusted for earnings or losses until paid, based upon the performance of investment option(s) selected by the Participant. A Participant may make changes to his or her selections in accordance with procedures established by the Cooperative. Earnings and losses shall be computed on each Valuation Date. The Cooperative shall select investment options made available to Participants for the deemed investment of their account. The Cooperative may change, discontinue, or add to the investment options made available under the Plan at any time in its sole discretion. The Cooperative shall not be obligated to make actual investments in any investment option(s) selected by a Participant and Participants do not have any real or beneficial ownership in any investment option. The account established pursuant to this subsection (e) shall be maintained for bookkeeping purposes only and shall not represent any actual investment made by the Cooperative or a trust. The Participant shall at all times remain an unsecured creditor of the Cooperative. Participants may request statements annually setting out the amounts in his or her Account. In the case of death benefits this paragraph shall apply to the Beneficiary (or Beneficiaries) in lieu of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in the Plan to the contrary, if a Participant is a Specified Employee as of the date of his or her separation from service, then no distribution shall be made upon the Participant's separation from service before the date that is six months after the Participant's separation of service (or, if earlier, the date of death) (the **"Specified Employee Payment Date").** Any payments to which a Specified Employee otherwise would have been entitled under the Plan during the period between the Participant's separation from service and the Specified Employee Payment date shall be paid in a lump sum payment on the Specified Employee Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Form</u> <u>of</u> <u>Benefit</u> <u>Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Participant will determine the manner in which benefits are paid on the election form attached hereto as Attachment B. In the event the Participant does not make an election under this section, the default form of payment shall be 60 equal monthly installments, except to the extent adjusted to reflect earnings or losses through the date the installments are paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Participants elections with respect to the form of payment must be made no later than thirty (30) days after the Participant first becomes eligible to participate in the Plan. In accordance with Treasury Regulation Section 1.409A-2(a)(7)(iii), a Participant is treated as initially eligible to participate in the Plan as of the first day of the Participant's taxable year

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immediately following the first year the Participant accrues a benefit under the Plan. Notwithstanding the foregoing, if a Participant has accrued a benefit or deferred compensation under another similar nonqualified deferred compensation plan of the Cooperative or its Affiliates in any year prior to accruing a benefit under this Plan, the Participant will not be eligible to make an election under this Section 4 and the default form of payment will apply. Whether another nonqualified deferred compensation plan of the Cooperative and its Affiliates is similar is determined under the plan aggregation rules of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any subsequent change in the form of payment shall be subject to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Cooperative and its Affiliates shall make arrangements to satisfy any federal, state or local income tax withholding requirements, employment taxes, or other requirements applicable to the granting, crediting, vesting, or payment of benefits under the Plan. There shall be deducted from any payment under the Plan or any other compensation payable to the Participant all taxes which are required to be withheld by the Cooperative and its Affiliates in respect to such payment or the Plan. Determining withholding and payment of taxes shall be the responsibility of the Cooperative and its Affiliates and not NRECA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Timing</u> <u>of</u> <u>Benefit</u> <u>Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Plan benefit shall be payable to the Participant (or if deceased, to the Participant's Beneficiary) within 60 days following the earliest of the following dates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)When the Participant separates from service with the Cooperative and its Affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The disability of the Participant (for this purpose, the Plan's definition of Disability shall not apply and a Participant is considered disabled only if the Participant is disabled within the meaning of Code § 409A(a)(2)(C)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The death of the Participant.

Any change to the time of payment shall be subject to Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The timing of benefits payments may be accelerated only as allowed by Code§ 409A and the regulations and guidance thereunder, including Treasury Regulation § 1.409A-3(j). All or part of a Participant's benefit under the Plan may be paid earlier than the date specified in subsection (a) to satisfy a domestic relations order (as defined in Code§ 414(p)(1)(B)), to pay Federal Insurance Contribution Act, state, local or foreign taxes (not exceeding the amount of such tax), and to avoid a violation of any federal, state, local or foreign ethics or conflicts of interest law. Similarly, if payments have commenced under an installment series but have not concluded, future installment payments may be accelerated if allowed by this subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Participant</u> <u>or</u> <u>Cooperative</u> <u>Election</u> <u>to</u> <u>Modify</u> <u>the</u> <u>Timing</u> <u>of</u> <u>Benefit</u> <u>Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Participant or Cooperative may elect to change the timing of a benefit payment or change the form of distribution subject to certain requirements. This subsequent election shall be made in conformance with Code § 409A and the guidance issued by the Department of the Treasury and Internal Revenue Service with respect to the application of

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Code § 409A. A subsequent election to delay the timing of a benefit payment or to change the form of benefit payment shall be effective only if in writing and the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)An election related to a benefit payment to be made upon a specified time or pursuant to a fixed schedule may not be made less than twelve (12) months before the date of the first scheduled payment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The election shall not take effect until at least twelve (12) months after the date on which the election is made, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Except in the case of elections relating to distributions on account of death or disability, the additional deferral with respect to which such election is made shall be for a period of not less than five (5) years from the date such payment would otherwise have been made (or in the case of installment payments, five (5) years from the date the first payment was scheduled to be paid).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subsequent deferral elections under this Section 6 may be made by the Participant on the election form attached hereto as Attachment C or another form that the Cooperative determines is acceptable, in its complete discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u> <u>and</u> <u>Amendment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Board, at its sole discretion, may amend any or all provisions of this Plan at any time by written instrument identified as an amendment effective as of a specified date. The Plan may be terminated in whole or in part at any time at the sole discretion of the Board, so long as such termination is consistent with the following requirements of Code § 409A:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The termination and liquidation does not occur proximate to a downturn in the financial health of the Cooperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)All deferred compensation arrangements that would be aggregated with the Plan under Treas. Reg. Section 1.409A-1(c), if the same Participant participated in such arrangements, shall be terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)No benefit payments (other than payments that would have been payable under the Plan terms if the termination had not occurred) are made within 12 months of termination of this Plan, and all benefit payments are made within 24 months of termination of this Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Cooperative and its Affiliates do not adopt a new plan that would be aggregated with this Plan under Treas. Reg. 1.409A-1(c), if the same Participant participated in both plans, for 3 years after the termination of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Termination of the Plan may also occur in connection with the Cooperative's insolvency or change in control, provided such termination meets the requirements of regulations issued under Code § 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Such termination or amendment shall not reduce any benefit accrued by a Participant in this Plan prior to the effective date of the termination or amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Board, at its sole discretion, may freeze this Plan at any time by written instrument identified as an amendment effective as of a specified date. If this Plan is frozen, then after the effective date of the freezing of the Plan, no additional employees will become Participants and the Plan benefit of any Participant will not increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Death</u> <u>of</u> <u>Participant.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Death Prior to Commencement</u> <u>of</u> <u>Benefits</u>. In the event of a Participant's death prior to the date on which Plan benefits are to begin, the amount of the benefit to be paid to the Participant's Beneficiaries is determined using the same calculation methodology used in the RS Plan to determine the amount payable to the Participant's Beneficiaries from the RS Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Death</u> <u>Following</u> <u>Commencement of Benefits.</u> In the event of the death of a Participant whose Plan benefits have begun as installment payments, Plan benefits will continue to the Participant's Beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Beneficiary</u> <u>Designation.</u> Each Participant under the Plan may from time to time name any beneficiary or beneficiaries to receive the Participant's interest in the Plan in the event of the Participant's death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Cooperative and shall be effective only when filed by the Participant in writing with the Cooperative during the Participant's lifetime. If a Participant fails to designate a beneficiary or a designated beneficiary predeceases the Participant and no contingent beneficiary or beneficiaries have been designated, then the Participant's designated beneficiary shall be the Participant's beneficiary under the RS Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Disability</u>.** A Participant who becomes Disabled, and whose participation in the RS Plan continues under the RS Plan waiver will cease accruing Plan benefits as of the date on which he is determined to be Disabled. The Plan benefit will be calculated as of the date on which the Participant is declared Disabled, and the Cooperative will distribute the Plan benefit to the Participant in accordance with the terms of the Plan, provided, however, that benefits shall not be distributed unless the Participant is disabled within the meaning of Code § 409A(a)(2)(C). If the Participant resumes active employment with the Cooperative or its Affiliates, and is again eligible for coverage in the Plan, Plan benefits shall be calculated by excluding the period of time the Participant was Disabled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>Assets</u> <u>of</u> <u>the</u> <u>Plan</u> <u>and</u> <u>Benefit Payments</u>.** The benefits under this Plan shall be payable from the general assets of the Cooperative and its Affiliates. The Cooperative and its Affiliates may elect to place assets in a granter trust to provide itself with a source of funds to meet its liabilities under the Plan, provided that the assets of such trust remain subject to the general creditors of the Cooperative and its Affiliates. No part of the Participant's benefit shall be liable for the debts, contracts, or engagements of any Participant, nor shall a Participant's benefit be subject to execution, levy, attachment, or garnishment. No Participant (or his or her successor or assigns) shall have any right to alienate, anticipate, sell, transfer, encumber, or assign any benefits or payments hereunder in any manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u> <u>Administrative</u> <u>Powers</u> <u>and</u> <u>Duties.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;General administration of the Plan shall be placed in the Board. The Board shall have the power to take all actions required to carry out the provisions of the Plan and shall further

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have the following powers and duties which shall be exercised in a manner consistent with the provisions of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)To construe and interpret the provisions of the Plan and make rules and regulations under the Plan to the extent deemed advisable by the Board,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)To decide all questions as to eligibility to become a Participant in the Plan and as to the rights of Participants under the Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)To file or cause to be filed all such reports and other statements as may be required by any federal or state statute, agency or authority for the Plan, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)To do such other acts as it deems reasonably required to administer the Plan in accordance with its provisions or as may be provided for or required by law for the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;<u>Grant</u> <u>of Discretion</u>.** In discharging the duties assigned to it under the Plan, the Board and its delegates have the discretion and final authority to interpret and construe the terms of the Plan; to determine coverage and eligibility for and amount of benefits under the Plan; to adopt, amend, and rescind rules, regulations and procedures pertaining to its duties under the Plan and the administration of the Plan; and to make all other determinations deemed necessary or advisable for the discharge of its duties or the administration of the Plan. The discretionary authority of the Board and its delegates is final, absolute, conclusive and exclusive, and binds all parties so long as exercised in good faith. Any judicial review of any decision of the Board or its delegates shall be limited to the arbitrary and capricious standard of review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Claims</u> <u>Procedures</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Claims Submission.** Benefits will be paid without Participants or Beneficiaries making a formal claim. However, a Participant or Beneficiary may file a claim (the **"Claimant")** in writing with the Cooperative if the Participant or Beneficiary believes an error has been made in determining benefits under the plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Claims Adjudicator.** All claims for benefits under the Plan shall be determined by the Cooperative, which shall be the administrator and named fiduciary of the Plan for purposes of Section 503 of ERISA with respect to adjudication of such claims for benefits under the Plan. Notwithstanding the foregoing, the Cooperative may appoint an individual or entity to review claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Claim for Benefits.** Upon the submission of a claim for benefits, notice of a decision with respect to the claim shall be furnished within 90 days after the claim is filed whether the claim is approved or denied, unless the Cooperative determines that special circumstances beyond the control of the Plan require an extension of time, in which case the Cooperative may have up to an additional 90 days to process the claim. If circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished by the Cooperative to the Claimant prior to the expiration of the initial 90 day period. The notice of extension shall indicate the circumstances requiring the extension and the date by which the notice of the decision with respect to the claim shall be furnished.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**Claim for Disability Benefits.** In the case of a claim for disability benefits, then in lieu of Section 13(c) the Claimant shall be notified within 45 days after the claim is filed whether the claim is approved or denied, unless the Cooperative determines that an extension is necessary due to matters beyond the control of the Plan, in which case the Cooperative may have up to an additional 30 days to process the claim. If the Cooperative determines that an extension of time for processing is required, the Cooperative shall furnish written notice of the extension to the Claimant before the end of the initial 45 day period. If the Cooperative determines that a second extension is necessary due to matters beyond the control of the Plan, the Cooperative may have up to an additional 30 days to process the claim. If the Cooperative determines that a second extension of time for processing is required, the Cooperative shall furnish written notice of the extension to the Claimant before the end of the first 30 day extension period. Any notice of extension shall describe the special circumstances necessitating the additional time and the date by which the Cooperative expects to render its decision. Furthermore, any notice of extension shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues. The Claimant will be provided at least 45 days to provide any specified information needed to resolve any issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Denial.** If a claim is wholly or partially denied, notice shall be provided in writing and worded in a manner calculated to be understood by the claimant and shall set forth (a) the reason or reasons for the denial, (b) specific reference to pertinent provisions of the Plan on which the denial was based, (c) a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary, (d) an explanation of the claims review procedure and the time limits applicable to such procedures, including a statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following a denial of the claim on review, and (e) in the case of a claim for disability benefits, if an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is available at no charge upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;**Deadline to File Claim.** To be considered timely under the Plan's claims procedures, a claim must be filed under Section 13(a) within one year after the Claimant knew or reasonably should have known of the principal facts upon which the claim is based. Knowledge of all facts that the Participant knew or reasonably should have known shall be imputed to the claimant for the purpose of applying this deadline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;**Appeals.** Within 90 days following receipt of notice of a claim denial the Claimant may file an appeal of the denial of a claim in writing with the Cooperative requesting a review of such denial. Prior to a decision on the appeal by the Cooperative, the Claimant or the Claimant's duly authorized representative may review and receive, without charge, all relevant documents, information and records, and submit issues and comments in writing for consideration. The reviewer shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim regardless of whether the information was submitted or considered in the initial benefit determination. Within 60 days following receipt of an appeal, the Cooperative shall render a written decision, unless special circumstances require an extension of time for processing, in which case a decision will be rendered not later than 120 days after receipt of a request for appeal. If circumstances require an extension of time for reviewing an appeal, written notice of the extension shall be furnished to the Claimant or the Claimant's authorized representative prior to the commencement of the extension. Any notice of extension

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shall explain the special circumstances necessitating the additional time and the expected date of decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;**Appeal of Disability Claim Denials.** In the case of a request for appeal of a denied disability claim, then in lieu of Section 13(g) the request must be made in writing to the Cooperative within 180 days after receiving notice of denial. The decision on appeal will be made within 45 days after the Cooperative's receipt of a request for appeal, unless special circumstances require an extension of time for processing, in which case a decision will be rendered not later than 90 days after receipt of a request for appeal. A notice of such an extension must be provided to the Claimant within the initial 45 day period and must explain the special circumstances and provide an expected date of decision. Additionally, the review will not afford deference to the initial determination and will be conducted by an appropriate person who is neither the party who made the initial determination that is the subject of the appeal nor a subordinate of such party. In deciding an appeal that is based in whole or in part on a medical judgment, the reviewer will consult with health care professionals with appropriate training and experience in the field of medicine involved in the medical judgment. The review will provide for the identification of the medical or vocational experts whose advice was obtained in connection with the Claimant's determination, without regard to whether the advice was relied upon in the determination, and any health care professional engaged for purposes of the appeal will not be an individual who was consulted in connection with the determination that is the subject of the appeal, nor a subordinate of any such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Decision on Appeal.** The Cooperative's decision on appeal shall be in writing, worded in a manner calculated to be understood by the claimant, and shall set forth (a) the reason or reasons for the decision, (b) specific reference to pertinent provisions of the plan on which the decision is based, (c) a statement that the Claimant may receive on request all relevant records at no charge, (d) a statement of the Claimant's right to sue under Section 502(a) of ERISA, and (e) in the case of a disability benefits appeal, if an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is available at no charge upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;**Exhaustion of Administrative Remedies.** The exhaustion of the claims procedures is mandatory for resolving every claim and dispute arising under this Plan. As to such claims and disputes: (a) no Claimant shall be permitted to commence any legal action to recover Plan benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until the claims procedures have been exhausted in their entirety; and (b) in any such legal action all explicit and all implicit determinations by the Cooperative (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;**Deadline to File Action.** No legal action to recover Plan benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, may be brought by any Claimant on any matter pertaining to this Plan unless the legal action is commenced in the proper forum before the earlier of: (a) 30 months after the claimant knew or reasonably should have known of the principal facts on which the claim is based, or (b) six months after the Claimant has exhausted the claims procedure under this Plan. Knowledge of all facts that the Participant knew or reasonably should have known shall be imputed to every Claimant who is or claims to be a Beneficiary of the

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Participant or otherwise claims to derive an entitlement by reference to the Participant for the purpose of applying the previously specified periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I)&nbsp;&nbsp;&nbsp;&nbsp;**Plan Administrator Discretion; Court Review.** The Cooperative and all persons determining or reviewing claims have full discretion to determine benefit claims under the Plan. Any interpretation, determination or other action of such persons shall be subject to review only if it is arbitrary or capricious or otherwise an abuse of discretion. Any review of a final decision or action of the persons reviewing a claim shall be based only on such evidence presented to or considered by such persons at the time they made the decision that is the subject of review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Cooperative shall notify NRECA in writing upon the occurrence of any of the following: The adoption, amendment or termination of the Plan, including a copy of the signed Plan as adopted or amended and the Board resolution authorizing such action or the resolution authorizing the termination of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;All notices sent to NRECA shall be mailed to:

Debi Strong

Deferred Compensation Group

Insurance & Financial Services Department

National Rural Electric Cooperative Association

4301 Wilson Boulevard

Arlington, Virginia 22203

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.&nbsp;&nbsp;&nbsp;&nbsp;<u>No</u> <u>Right</u> <u>to</u> <u>Employment.</u>** Nothing in the Plan shall constitute, nor be interpreted to constitute, a promise or representation of the employment or continued employment of any individual by the Cooperative or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.&nbsp;&nbsp;&nbsp;&nbsp;<u>No</u> <u>Waiver</u> <u>or Estoppel</u>.** No term, condition or provision of the Plan shall be deemed to have been waived, and there shall be no estoppel against the enforcement of any provision of the Plan, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.&nbsp;&nbsp;&nbsp;&nbsp;<u>Misstatements</u> <u>of Information</u>.** In the event of any misstatement of any fact affecting benefits and eligibility for benefits, the true facts shall be used to determine eligibility and benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable</u> <u>Law</u>.** The provisions of this Plan shall be construed according to the laws of the state of North Dakota, except as preempted by Federal law and in accordance with the Code and ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code</u> <u>§ 409A</u>.** Notwithstanding any provision to the contrary in this Plan, each provision in this Plan shall be interpreted to permit the deferral of compensation in accordance with Code § 409A and the guidance issued thereunder. Any provision of the Plan that would conflict with such requirements shall not be valid or enforceable.

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**IN WITNESS WHEREOF,** this Plan has been executed by the duly authorized officer of the Cooperative.

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| | | | |
|:---|:---|:---|:---|
| Date: | November 23, 2015 | By: | /s/ Paul Sukut |
|  |  | Name:&nbsp;&nbsp;&nbsp;&nbsp; Paul Sukut | Name:&nbsp;&nbsp;&nbsp;&nbsp; Paul Sukut |
|  |  | Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CEO & General Manager | Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CEO & General Manager |

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**<u>ATTACHMENT</u> <u>A</u>**

**EXECUTIVE BENEFIT RESTORATION PLAN**

**PARTICIPANTS**

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**<u>ATTA</u><u>C</u><u>HMENT</u> <u>B</u>**

**INITIAL DEFERRAL ELECTION BY PARTICIPANT**

**(FORM OF PAYMENT)**

This election form may be used to elect the form of payment with respect to a Participant's benefit under the Basin Electric Power Cooperative Executive Benefit Restoration Plan (the "Plan") pursuant to Section 4 of the Plan. This election form must be completed and returned to the Cooperative no later than the election deadline specified under Section 4 of the Plan to be effective. The election becomes irrevocable as of the election deadline. An incomplete or improperly completed election form will be invalid and the default form of payment under the Plan will apply.

I hereby elect the following form of payment with respect to my benefit under the Plan *(check one):*

___&nbsp;&nbsp;&nbsp;&nbsp;equal monthly installments (specify up to 60 installments), except to the extent adjusted to reflect earnings or losses through the date the installments are paid.

Single lump sum payment

If no election is made with respect to the form of payment, payment will be made in 60 equal monthly installments, except to the extent adjusted to reflect earnings or losses through the date the installments are paid.

By executing this election form I acknowledge that I have consulted with my own tax advisor regarding the tax consequences of participating in the Plan and making this election.

I hereby make this election as of this _ day of _______________________

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| |
|:---|
| Participant Signature |
| Participant Name |

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**<u>ATTACHMENT</u> <u>C</u>**

**SUBSEQUENT DEFERRAL ELECTION BY PARTICIPANT**

This election form may be used to change the time or form of payment with respect to a Participant's benefit under the Basin Electric Power Cooperative Executive Benefit Restoration Plan (the "Plan") subject to Section 6 of the Plan. An incomplete or improperly completed election form will be invalid and have no effect. Notwithstanding any election made in this form, distributions relating to death or disability will not be deferred under the Plan. This form is not an exhaustive list of permissible subsequent deferral elections permitted under Section 6. Participants may propose alternative subsequent deferral elections, subject to the terms of the Plan and approval by the Cooperative in its sole discretion.

I hereby elect to *(check* one):

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| | |
|:---|:---|
| ![picture1.jpg](picture1.jpg) | Change my single lump sum payment to __&nbsp;&nbsp;&nbsp;&nbsp; equal monthly installments (up to 60 installments) and defer commencement of such installments for __&nbsp;&nbsp;&nbsp;&nbsp;years (at least 5) from the date the single lump sum payment would otherwise have been made. |
| ![picture1.jpg](picture1.jpg) | Change my monthly installments to a single lump sum payment and defer the single lump sum payment for ___ &nbsp;&nbsp;&nbsp;&nbsp;years (at least 5) from the date the first installment payment was scheduled to be paid. |
| ![picture1.jpg](picture1.jpg) | Change my monthly installments to___ &nbsp;&nbsp;&nbsp;&nbsp;equal monthly installments (up to 60 installments) and defer such monthly installments for___ &nbsp;&nbsp;&nbsp;&nbsp;years (at least 5) from the date the first original installment payment was scheduled to be paid. |
| ![picture1.jpg](picture1.jpg) | Defer my single lump sum payment for_ &nbsp;&nbsp;&nbsp;&nbsp;years (at least 5) from the date such payment would otherwise have been made. |
| ![picture1.jpg](picture1.jpg) | Defer my monthly installments for___ &nbsp;&nbsp;&nbsp;&nbsp;years (at least 5) from the date the first installment payment was scheduled to be paid. |

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By executing this election form I acknowledge that I have consulted with my own tax advisor regarding the tax consequences of making this election.

I hereby make this election as of this_ day of _________________________

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| |
|:---|
| Participant Signature |
| Participant Name |

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**AMENDMENT NO. I OF**

**THE EXECUTIVE BENEFIT RESTORATION PLAN**

**FOR BASIN ELECTRIC POWER COOPERATIVE**

Basin Electric Power Cooperative, a North Dakota rural electric cooperative corporation ("Basin Electric"), hereby amends the Executive Benefit Restoration Plan for Basin Electric Power Cooperative (the "Plan"), which was effective November 23, 2015. This amendment is effective as of April 1, 2018.

Article 1.&nbsp;&nbsp;&nbsp;&nbsp;Section 13 of the Plan shall be amended to read as follows:

Section 13&nbsp;&nbsp;&nbsp;&nbsp;The procedures for filing claims for Plan benefits are described in the appendix attached hereto tilted "Claims Procedures for the Executive Benefit Restoration Plan for Basin Electric Power Cooperative " and such appendix is hereby incorporated into the Plan by reference.

(a).&nbsp;&nbsp;&nbsp;&nbsp;A new appendix titled "Claims Procedures for the Executive Benefit Restoration Plan for Basin Electric Power Cooperative," shall be attached to the Plan to read as follows:

**APPENDIX**

**CLAIMS PROCEDURES FOR THE EXECUTIVE BENEFIT RESTORATION PLAN**

**FOR BASIN ELECTRIC POWER COOPERATIVE**

The procedures for filing claims for Plan benefits are described below. For purposes of these claims procedures, the "Claims Manager" shall be Basin Electric.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Participant or the Participant's spouse or Beneficiary shall have the right to submit a claim for benefits in writing or by another method permitted by applicable rules or regulations to the Claims Manager. For purposes of the claims procedures in this Appendix, a Participant, a spouse of a Participant, or a Beneficiary who submits a claim for benefits under the Plan shall be referred to as a "claimant." The claim must specify the basis of it and the amount of the benefit claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For claims and appeals with respect to disability benefits, the Plan will ensure that all claims and appeals for disability benefits are adjudicated in a manner designed to ensure the independence and impartiality of the persons involved in making the decision. Accordingly, decisions regarding hiring, compensation, termination, promotion, or other similar matters with respect to any individual (such as a claims adjudicator or medical or vocational expert) must not be made based upon the likelihood that the individual will support the denial of benefits. For purposes of the claims procedures in this Appendix, a "disability claim" or "claim for disability benefits" means any claim the receipt of which is conditioned upon a finding of disability. It does not matter how the benefit is characterized by this Plan; if the Claims Manager must make a determination of disability (such as whether a Participant has a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which renders the Participant unable to engage

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in any substantial gainful activity) in order to decide a claim, the claim will be treated as a "disability claim" or "claim for disability benefits" for purposes of the claims procedures in this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;For claims other than claims for disability benefits, the Claims Manager shall act to deny or accept said claim within 90 days of the receipt of the claim by notifying the claimant of the Claims Manager's action, unless special circumstances require the extension of such 90 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 90 day period. Such notice shall specify the reason or reasons for such extension and the date by which a final decision can be expected. In no event shall such extension exceed a period of 90 days from the end of the initial 90 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;With respect to claims for disability benefits, the Claims Manager shall act to deny or accept said disability claim within a reasonable period of time, but no later than 45 days after the receipt of the disability claim by the Plan, by notifying the claimant of the Claims Manager's action. This 45 day period may be extended by the Plan for up to 30 days, provided that the Claims Manager determines that such an extension is necessary due to matters beyond the control of the Plan. If such an extension is necessary, the Claims Manager shall provide the claimant with notification in writing, or by another method permitted by applicable rules or regulations, of such extension before the expiration of the initial 45 day period. Such notice shall specify the circumstances requiring the extension and the date by which the Claims Manager expects to render a decision. If, before the end of the first 30 day extension period, the Claims Manager determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within the extended period of time, the period for making a decision may be extended for up to an additional 30 days, provided that the Claims Manager notifies the claimant before the expiration of the initial 30 day extension period of the necessity of such an additional extension. The notice of the additional extension shall specify the circumstances requiring the additional extension and the date on which the Claims Manager expects to render a decision. Any notice of extension provided under this Section (d) of the Appendix shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and that the claimant shall be afforded at least 45 days within which to provide the specified information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim, other than a claim for disability benefits, in whole or in part, the Claims Manger's notification to the claimant of such denial shall be in writing, or by another method permitted by applicable rules or regulations, and shall specify in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the reason or reasons for denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the specific Section or Sections of the Plan upon which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a description of any additional material or information, if any, necessary for the claimant to perfect his or her claim, and an explanation as to why such information or material is necessary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the claim review procedure specified in the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring a civil action pursuant to Section 502(a) of ERISA following a continued denial of the claimant's claim after appeal review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsection (e) of this Appendix and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to the Claims Manager of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on the Plan's behalf in connection with the denial of the claim, regardless of whether the advice was relied on in denying the claim; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination made by the Social Security Administration regarding the claimant, if presented to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the denial is based on a medical necessity or experimental treatment or similar exclusion or limit, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;an explanation of the scientific or clinical judgment for the denial, applying the Plan terms to the claimant's medical circumstances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;a statement that this explanation will be provided free of charge upon request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in denying the claim or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant is entitled to receive reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits free of charge on request. (Whether a document, record, or other information

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is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-l(m)(8).)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim, other than a claim for disability benefits, be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant may have a full and fair review of the claim by the Claims Manager upon request therefore in writing, or by another method permitted by applicable rules or regulations, submitted by the claimant or the claimant's duly authorized representative and received by the Claims Manager within 60 days after the claimant receives notification in writing, or by another method permitted by applicable rules or regulations, that the claimant's claim has been denied. A full and fair review of the denial of the claimant's claim shall provide the claimant with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;upon request and free of charge, reasonable access to and copies of , all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-l(m)(8).); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;In connection with such review in Subsection (g) of this Appendix, the claimant or the claimant's duly authorized representative shall be entitled to review pertinent documents and submit the claimant's views as to the issues in writing or by another method permitted by applicable rules or regulations. The Claims Manager shall act to deny or accept the claim within 60 days after receipt of the claimant's request in writing or by another method permitted by applicable rules or regulations for review unless special circumstances require the extension of such 60 day period. If such extension is necessary, the Claims Manager shall provide the claimant with notification in writing or by another method permitted by applicable rules or regulations of such extension before the expiration of such initial 60 day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In all events with respect to review of a claim under Subsection (g) of this Appendix, the Claims Manager shall act to deny or accept the claim within one hundred twenty (120) days of the receipt of the claimant's request for review in writing or by another method permitted by applicable rules or regulations. The action of the Claims Manager shall be in the form of a notice, in writing or by another method permitted by applicable rules or regulations, to the claimant. In the event of a determination adverse to the claimant, such a notice shall set forth, in a manner calculated to be understood by the claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the specific reason or reasons for the adverse determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;references to the specific Plan provisions on which the benefit determination is based;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a statement that the claimant will be provided, on request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits. (Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to 29 C.F.R. §2560.503-l(m)(8).);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a statement describing any voluntary appeal procedures offered by the Plan and the claimant's right to obtain information about such procedures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Should a claim for disability benefits be denied in whole or in part and should the claimant be dissatisfied with the Claims Manager's disposition of the claim, the claimant, or the claimant's authorized representative, shall have 180 days from the date the claimant receives the denial of the claim for disability benefits to appeal the denial and have a full and fair review of the claim by the Claims Manager. Before the Plan can issue an adverse benefit determination on review of the initial denial of the claim for disability benefits, the Claims Manager shall provide the claimant, free of charge, with any new or additional evidence considered, relied upon, or generated by the Plan, insurer, or other person making the benefit determination (or at the direction of the Plan, insurer or such other person) in connection with the claim. Such evidence must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date. Furthermore, before the Claims Manager can issue an adverse benefit determination on review of a disability benefit claim based on a new or additional rationale, the Claims Manager shall provide the claimant, free of charge, with the rationale; the rationale must be provided as soon as possible and sufficiently in advance of the date on which the notice of the denial of the claim on review must be provided, so as to give the claimant a reasonable opportunity to respond prior to that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;In addition to all of the requirements of Subsections (g)(l)-(3) of this Appendix, a full and fair review of a denial of a claim for disability benefit must provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the review does not afford deference to the initial denial and that it is conducted by an individual (or individuals) who is neither the individual who made the denial that is the subject of the appeal, nor the subordinate of such individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;in deciding an appeal of any denial that is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the appropriate named fiduciary shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;the medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the denial of the claimant's claim for disability benefits be

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identified, without regard to whether the advice was relied upon in making the benefit determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;the health care professional engaged for purposes of a consultation under the Subsection (k) of this Appendix shall be an individual who is neither an individual who was consulted in connection with the adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Claims Manager shall notify a claimant of its determination on review of the claim for disability benefits within 45 days after the receipt of the claimant's request for review, unless the Claims Manager determines that special circumstances (such as the need to hold a hearing, if the Plan's procedures provide for a hearing) require an extension of time for processing the claim. If the Claims Manager determines that an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 45 day period. In no event shall such extension exceed a period of 45 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Claims Manager expects to render the determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;In the event the Claims Manager denies a claim for disability benefits in whole or in part on review, the Claims Manager will notify the claimant in writing, or by another method permitted by applicable rules or regulations, of such denial. The notification of the denial shall set forth, in a culturally and linguistically appropriate manner calculated to be understood by the claimant, all of the information required for a notice under Subsections (i)(l)-(4) of this Appendix, and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;a statement of the claimant's right to bring an action under Section 502(a) of ERISA and a description of any applicable contractual limitations period that applies to the claimant's right to bring such an action, including the calendar date on which the contractual limitations period expires for the claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;a discussion of the decision, including an explanation of the basis for disagreeing with or not following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;a disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant's medical circumstances, or a statement that such explanation will be provided free of change upon request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;In no event may a claimant commence legal action for benefits the claimant believes are due the claimant until the claimant has exhausted all of the remedies and procedures afforded the claimant by this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;In the case of a claim for disability benefits, if the Plan fails to strictly adhere to all the requirements of this Appendix with respect to a claim, the claimant is deemed to have exhausted the administrative remedies available under the Plan, except as provided in this Subsection (o) of this Appendix. Accordingly, the claimant is entitled to pursue any available remedies under Section 502(a) of ERISA on the basis that the Plan has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim. If a claimant chooses to pursue remedies under Section 502(a) of ERISA under such circumstances, the claim or appeal is deemed denied on review without the exercise of discretion by an appropriate fiduciary. Notwithstanding the foregoing, the administrative remedies available under a Plan with respect to claims for disability benefits will not be deemed exhausted based on de minimis violations that do not cause, and are not likely to cause, prejudice or harm to the claimant so long as the Plan demonstrates that the violation was for good cause or due to matters beyond the control of the Plan and that the violation occurred in the context of an ongoing, good faith exchange of information between the Plan and the claimant. This exception is not available if the violation is part of a pattern or practice of violations by the Plan. The claimant may request a written explanation of the violation from the Plan, and the Plan must provide such explanation within 10 days, including a specific description of its bases, if any, for asserting that the violation should not cause the administrative remedies available under the Plan to be deemed exhausted. If a court rejects the claimant's request for immediate review on the basis that the Plan met the standards for the exception under this Subsection (o) of this Appendix, the claim shall be considered as re-filed on appeal upon the Plan's receipt of the decision of the court. Within a reasonable time after the receipt of the decision, the Plan shall provide the claimant with notice of the resubmission.

---

| | | |
|:---|:---|:---|
| BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE | BASIN ELECTRIC POWER COOPERATIVE |
| By: /s/ Paul Sukut | By: /s/ Paul Sukut | By: /s/ Paul Sukut |
| Its: | CEO & General Manager | CEO & General Manager |
| Date: | Date: | December 19, 2018 |

---

## Exhibit 21.1

**Exhibit 21.1**

**Basin Electric Power Cooperative**

Principal Subsidiaries of Registrant at December 31, 2025\*

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Organization** |
| Dakota Coal Company | North Dakota |
| Dakota Gasification Company | North Dakota |

---

\*Pursuant to Item 601(b)(21) of Regulation S-K, the registrant has omitted the names of subsidiaries, which, considered in the aggregate as a single subsidiary, would not constitute a "significant subsidiary" (as defined under Rule 1-02(w) of Regulation S-X) as of December 31, 2025.

## Exhibit 23.1

**Exhibit 23.1**

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the use in this Registration Statement on Form S-4 of our report dated April 15, 2026, relating to the financial statements of Basin Electric Power Cooperative. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota

April 15, 2026

## Exhibit 25.1

**Exhibit 25.1**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM T-1**

**STATEMENT OF ELIGIBILITY UNDER**

**THE TRUST INDENTURE ACT OF 1939 OF A**

**CORPORATION DESIGNATED TO ACT AS TRUSTEE**

Check if an Application to Determine Eligibility of

a Trustee Pursuant to Section 305(b)(2) □

**U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION**

(Exact name of Trustee as specified in its charter)

**91-1821036**

I.R.S. Employer Identification No.

800 Nicollet Mall<br>Minneapolis, Minnesota 55402 <br> <u>(Address of principal executive offices)</u> <u>(Zip Code)</u>

Quinton M. DePompolo

U.S. Bank Trust Company, National Association

60 Livingston Avenue

St. Paul, MN 55107

(651) 466-7108

(Name, address and telephone number of agent for service)

**BASIN ELECTRIC POWER COOPERATIVE**

(Issuer with respect to the Securities)

---

| | |
|:---|:---|
| North Dakota | 45-0277395 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

1717 East Interstate Avenue<br>Bismarck, North Dakota 58503 <br> <u>(Address of Principal Executive Offices)</u> <u>(Zip Code)</u>

**2025 Series A Bonds due 2055**

**(Title of the Indenture Securities)**

------

**<u>FORM T-1</u>**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; GENERAL INFORMATION.** Furnish the following information as to the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)*Name and address of each examining or supervising authority to which it is subject.*

Comptroller of the Currency

Washington, D.C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)*Whether it is authorized to exercise corporate trust powers.* 

Yes

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp; AFFILIATIONS WITH THE OBLIGOR.** *If the obligor is an affiliate of the Trustee, describe each such affiliation.*

None

**Items 3-15&nbsp;&nbsp;&nbsp;&nbsp;** *Items 3-15 are not applicable because to the best of the Trustee's knowledge, the obligor is not in default under any Indenture for which the Trustee acts as Trustee.*

**Item 16.&nbsp;&nbsp;&nbsp;&nbsp; LIST OF EXHIBITS:** *List below all exhibits filed as a part of this statement of eligibility and qualification.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.A copy of the Articles of Association of the Trustee, attached as Exhibit 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.A copy of the certificate of authority of the Trustee to commence business, attached as Exhibit 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.A copy of the authorization of the Trustee to exercise corporate trust powers, included as Exhibit 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.A copy of the existing bylaws of the Trustee, attached as Exhibit 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.A copy of each Indenture referred to in Item 4. Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The consent of the Trustee required by Section 321(b) of the Trust Indenture Act of 1939, attached as Exhibit 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Report of Condition of the Trustee as of December 31, 2025, published pursuant to law or the requirements of its supervising or examining authority, attached as Exhibit 7.

------

**SIGNATURE**

Pursuant to the requirements of the Trust Indenture Act Of 1939, as amended, the Trustee, U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, has duly caused this statement of eligibility and qualification to be signed on its behalf by the undersigned, thereunto duly authorized, all in the City of St. Paul, State of Minnesota on the 15<sup>th</sup> of April, 2026.

---

| | |
|:---|:---|
| By: | /s/ Quinton M. DePompolo |
|  | Quinton M. DePompolo |
|  | Vice President |

---

------

**<u>Exhibit 1</u>**

**ARTICLES OF ASSOCIATION**

**OF**

**U. S. BANK TRUST COMPANY, NATIONAL ASSOCIATION**

For the purpose of organizing an association (the "Association") to perform any lawful activities of national banks, the undersigned enter into the following Articles of Association:

**FIRST.** The title of this Association shall be U. S. Bank Trust Company, National Association.

**SECOND.** The main office of the Association shall be in the city of Portland, county of Multnomah, state of Oregon. The business of the Association will be limited to fiduciary powers and the support of activities incidental to the exercise of those powers. The Association may not expand or alter its business beyond that stated in this article without the prior approval of the Comptroller of the Currency.

**THIRD.** The board of directors of the Association shall consist of not less than five nor more than twenty-five persons, the exact number to be fixed and determined from time to time by resolution of a majority of the full board of directors or by resolution of a majority of the shareholders at any annual or special meeting thereof. Each director shall own common or preferred stock of the Association or of a holding company owning the Association, with an aggregate par, fair market, or equity value of not less than $1,000, as of either (i) the date of purchase, (ii) the date the person became a director, or (iii) the date of that person's most recent election to the board of directors, whichever is more recent. Any combination of common or preferred stock of the Association or holding company may be used.

Any vacancy in the board of directors may be filled by action of a majority of the remaining directors between meetings of shareholders. The board of directors may increase the number of directors up to the maximum permitted by law. Terms of directors, including directors selected to fill vacancies, shall expire at the next regular meeting of shareholders at which directors are elected, unless the directors resign or are removed from office. Despite the expiration of a director's term, the director shall continue to serve until his or her successor is elected and qualified or until there is a decrease in the number of directors and his or her position is eliminated.

Honorary or advisory members of the board of directors, without voting power or power of final decision in matters concerning the business of the Association, may be appointed by resolution of a majority of the full board of directors, or by resolution of shareholders at any annual or special meeting. Honorary or advisory directors shall not be counted to determined the number of directors of the Association or the presence of a quorum in connection with any board action, and shall not be required to own qualifying shares.

**FOURTH.** There shall be an annual meeting of the shareholders to elect directors and transact whatever other business may be brought before the meeting. It shall be held at the main office or any other convenient place the board of directors may designate, on the day of each year specified therefor in the Bylaws, or if that day falls on a legal holiday in the state in which the

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Association is located, on the next following banking day. If no election is held on the day fixed or in the event of a legal holiday on the following banking day, an election may be held on any subsequent day within 60 days of the day fixed, to be designated by the board of directors, or, if the directors fail to fix the day, by shareholders representing two-thirds of the shares issued and outstanding. In all cases, at least 10 days' advance notice of the meeting shall be given to the shareholders by first-class mail.

In all elections of directors, the number of votes each common shareholder may cast will be determined by multiplying the number of shares he or she owns by the number of directors to be elected. Those votes may be cumulated and cast for a single candidate or may be distributed among two or more candidates in the manner selected by the shareholder. On all other questions, each common shareholder shall be entitled to one vote for each share of stock held by him or her.

A director may resign at any time by delivering written notice to the board of directors, its chairperson, or to the Association, which resignation shall be effective when the notice is delivered unless the notice specifies a later effective date.

A director may be removed by the shareholders at a meeting called to remove him or her, when notice of the meeting stating that the purpose or one of the purposes is to remove him or her is provided, if there is a failure to fulfill one of the affirmative requirements for qualification, or for cause; provided, however, that a director may not be removed if the number of votes sufficient to elect him or her under cumulative voting is voted against his or her removal.

**FIFTH.** The authorized amount of capital stock of the Association shall be 1,000,000 shares of common stock of the par value of ten dollars ($10) each; but said capital stock may be increased or decreased from time to time, according to the provisions of the laws of the United States. The Association shall have only one class of capital stock.

No holder of shares of the capital stock of any class of the Association shall have any preemptive or preferential right of subscription to any shares of any class of stock of the Association, whether now or hereafter authorized, or to any obligations convertible into stock of the Association, issued, or sold, nor any right of subscription to any thereof other than such, if any, as the board of directors, in its discretion, may from time to time determine and at such price as the board of directors may from time to time fix.

Transfers of the Association's stock are subject to the prior written approval of a federal depository institution regulatory agency. If no other agency approval is required, the approval of the Comptroller of the Currency must be obtained prior to any such transfers.

Unless otherwise specified in the Articles of Association or required by law, (1) all matters requiring shareholder action, including amendments to the Articles of Association must be approved by shareholders owning a majority voting interest in the outstanding voting stock, and (2) each shareholder shall be entitled to one vote per share.

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Unless otherwise specified in the Articles of Association or required by law, all shares of voting stock shall be voted together as a class, on any matters requiring shareholder approval.

Unless otherwise provided in the Bylaws, the record date for determining shareholders entitled to notice of and to vote at any meeting is the close of business on the day before the first notice is mailed or otherwise sent to the shareholders, provided that in no event may a record date be more than 70 days before the meeting.

The Association, at any time and from time to time, may authorize and issue debt obligations, whether subordinated, without the approval of the shareholders. Obligations classified as debt, whether subordinated, which may be issued by the Association without the approval of shareholders, do not carry voting rights on any issue, including an increase or decrease in the aggregate number of the securities, or the exchange or reclassification of all or part of securities into securities of another class or series.

**SIXTH.** The board of directors shall appoint one of its members president of this Association and one of its members chairperson of the board and shall have the power to appoint one or more vice presidents, a secretary who shall keep minutes of the directors' and shareholders' meetings and be responsible for authenticating the records of the Association, and such other officers and employees as may be required to transact the business of this Association. A duly appointed officer may appoint one or more officers or assistant officers if authorized by the board of directors in accordance with the Bylaws.

The board of directors shall have the power to:

(1)Define the duties of the officers, employees, and agents of the Association.

(2)Delegate the performance of its duties, but not the responsibility for its duties, to the officers, employees, and agents of the Association.

(3)Fix the compensation and enter employment contracts with its officers and employees upon reasonable terms and conditions consistent with applicable law.

(4)Dismiss officers and employees.

(5)Require bonds from officers and employees and to fix the penalty thereof.

(6)Ratify written policies authorized by the Association's management or committees of the board.

(7)Regulate the manner any increase or decrease of the capital of the Association shall be made; provided that nothing herein shall restrict the power of shareholders to increase or decrease the capital of the Association in accordance with law, and nothing shall raise or lower from two-thirds the percentage required for shareholder approval to increase or reduce the capital.

(8)Manage and administer the business and affairs of the Association.

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(9)Adopt initial Bylaws, not inconsistent with law or the Articles of Association, for managing the business and regulating the affairs of the Association.

(10)Amend or repeal Bylaws, except to the extent that the Articles of Association reserve this power in whole or in part to the shareholders.

(11)Make contracts.

(12)Generally perform all acts that are legal for a board of directors to perform.

**SEVENTH.** The board of directors shall have the power to change the location of the main office to any authorized branch within the limits of the city of Portland, Oregon, without the approval of the shareholders, or with a vote of shareholders owning two-thirds of the stock of the Association for a location outside such limits and upon receipt of a certificate of approval from the Comptroller of the Currency, to any other location within or outside the limits of the city of Portland, Oregon, but not more than thirty miles beyond such limits. The board of directors shall have the power to establish or change the location of any office or offices of the Association to any other location permitted under applicable law, without approval of shareholders, subject to approval by the Comptroller of the Currency.

**EIGHTH.** The corporate existence of this Association shall continue until termination according to the laws of the United States.

**NINTH.** The board of directors of the Association, or any shareholder owning, in the aggregate, not less than 25 percent of the stock of the Association, may call a special meeting of shareholders at any time. Unless otherwise provided by the Bylaws or the laws of the United States, or waived by shareholders, a notice of the time, place, and purpose of every annual and special meeting of the shareholders shall be given by first-class mail, postage prepaid, mailed at least 10, and no more than 60, days prior to the date of the meeting to each shareholder of record at his/her address as shown upon the books of the Association. Unless otherwise provided by the Bylaws, any action requiring approval of shareholders must be effected at a duly called annual or special meeting.

**TENTH.** These Articles of Association may be amended at any regular or special meeting of the shareholders by the affirmative vote of the holders of a majority of the stock of the Association, unless the vote of the holders of a greater amount of stock is required by law, and in that case by the vote of the holders of such greater amount; provided, that the scope of the Association's activities and services may not be expanded without the prior written approval of the Comptroller of the Currency. The Association's board of directors may propose one or more amendments to the Articles of Association for submission to the shareholders.

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In witness whereof, we have hereunto set our hands this <u>11</u><sup>th</sup> of June, 1997.

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| |
|:---|
| /s/ Jeffrey T. Grubb |
| Jeffrey T. Grubb |
| /s/ Robert D. Sznewajs |
| Robert D. Sznewajs |
| /s/ Dwight V. Board |
| Dwight V. Board |
| /s/ P. K. Chatterjee |
| P. K. Chatterjee |
| /s/ Robert Lane |
| Robert Lane |

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**<u>Exhibit 2</u>**

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| | |
|:---|:---|
| ![a07.jpg](a07.jpg) | Office of the Comptroller of the Currency |
| ![a07.jpg](a07.jpg) | Washington, DC 20219 |

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**CERTIFICATE OF CORPORATE EXISTENCE AND FIDUCIARY POWERS**

I, Jonathan Gould, Comptroller of the Currency, do hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Comptroller of the Currency, pursuant to Revised Statutes 324, et seq, as amended, and 12 USC 1, et seq, as amended, has possession, custody, and control of all records pertaining to the chartering, regulation, and supervision of all national banking associations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. "U.S. Bank Trust Company National Association," Portland, Oregon (Charter No. 23412), is a national banking association formed under the laws of the United States and is authorized thereunder to transact the business of banking and exercise fiduciary powers on the date of this certificate.

IN TESTIMONY WHEREOF, today, December 1, 2025, I have hereunto subscribed my name and caused my seal of office to be affixed to these presents at the U.S. Department of the Treasury, in the City of Washington, District of Columbia.

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| |
|:---|
| /s/ Jonathan Gould, |
| Comptroller of the Currency |

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![a05.jpg](a05.jpg)

2026-00320-C

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**<u>Exhibit 4</u>**

**U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION**

**<u>AMENDED AND RESTATED BYLAWS</u>**

<u>ARTICLE I</u>

<u>Meetings of Shareholders</u>

Section 1.1. <u>Annual Meeting</u>. The annual meeting of the shareholders, for the election of directors and the transaction of any other proper business, shall be held at a time and place as the Chairman or President may designate. Notice of such meeting shall be given not less than ten (10) days or more than sixty (60) days prior to the date thereof, to each shareholder of the Association, unless the Office of the Comptroller of the Currency (the "OCC") determines that an emergency circumstance exists. In accordance with applicable law, the sole shareholder of the Association is permitted to waive notice of the meeting. If, for any reason, an election of directors is not made on the designated day, the election shall be held on some subsequent day, as soon thereafter as practicable, with prior notice thereof. Failure to hold an annual meeting as required by these Bylaws shall not affect the validity of any corporate action or work a forfeiture or dissolution of the Association.

Section 1.2. <u>Special Meetings</u>. Except as otherwise specially provided by law, special meetings of the shareholders may be called for any purpose, at any time by a majority of the board of directors (the "Board"), or by any shareholder or group of shareholders owning at least ten percent of the outstanding stock.

Every such special meeting, unless otherwise provided by law, shall be called upon not less than ten (10) days nor more than sixty (60) days prior notice stating the purpose of the meeting.

Section 1.3. <u>Nominations for Directors</u>. Nominations for election to the Board may be made by the Board or by any shareholder.

Section 1.4. <u>Proxies</u>. Shareholders may vote at any meeting of the shareholders by proxies duly authorized in writing. Proxies shall be valid only for one meeting and any adjournments of such meeting and shall be filed with the records of the meeting.

Section 1.5. <u>Record Date</u>. The record date for determining shareholders entitled to notice and to vote at any meeting will be thirty days before the date of such meeting, unless otherwise determined by the Board.

Section 1.6. <u>Quorum and Voting</u>. A majority of the outstanding capital stock, represented in person or by proxy, shall constitute a quorum at any meeting of shareholders, unless otherwise provided by law, but less than a quorum may adjourn any meeting, from time to time, and the meeting may be held as adjourned without further notice. A majority of the votes cast shall decide every question or matter submitted to the shareholders at any meeting, unless otherwise provided by law or by the Articles of Association.

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Section 1.7. <u>Inspectors</u>. The Board may, and in the event of its failure so to do, the Chairman of the Board may appoint Inspectors of Election who shall determine the presence of quorum, the validity of proxies, and the results of all elections and all other matters voted upon by shareholders at all annual and special meetings of shareholders.

Section 1.8. <u>Waiver and Consent</u>. The shareholders may act without notice or a meeting by a unanimous written consent by all shareholders.

Section 1.9. <u>Remote Meetings</u>. The Board shall have the right to determine that a shareholder meeting not be held at a place, but instead be held solely by means of remote communication in the manner and to the extent permitted by the General Corporation Law of the State of Delaware.

<u>ARTICLE II</u>

<u>Directors</u>

Section 2.1. <u>Board of Directors</u>. The Board shall have the power to manage and administer the business and affairs of the Association. Except as expressly limited by law, all corporate powers of the Association shall be vested in and may be exercised by the Board.

Section 2.2. <u>Term of Office</u>. The directors of this Association shall hold office for one year and until their successors are duly elected and qualified, or until their earlier resignation or removal.

Section 2.3. <u>Powers</u>. In addition to the foregoing, the Board shall have and may exercise all of the powers granted to or conferred upon it by the Articles of Association, the Bylaws and by law.

Section 2.4. <u>Number</u>. As provided in the Articles of Association, the Board of this Association shall consist of no less than five nor more than twenty-five members, unless the OCC has exempted the Association from the twenty-five-member limit. The Board shall consist of a number of members to be fixed and determined from time to time by resolution of the Board or the shareholders at any meeting thereof, in accordance with the Articles of Association. Between meetings of the shareholders held for the purpose of electing directors, the Board by a majority vote of the full Board may increase the size of the Board but not to more than a total of twenty-five directors, and fill any vacancy so created in the Board; provided that the Board may increase the number of directors only by up to two directors, when the number of directors last elected by shareholders was fifteen or fewer, and by up to four directors, when the number of directors last elected by shareholders was sixteen or more. Each director shall own a qualifying equity interest in the Association or a company that has control of the Association in each case as required by applicable law. Each director shall own such qualifying equity interest in his or her own right and meet any minimum threshold ownership required by applicable law.

Section 2.5. <u>Organization Meeting</u>. The newly elected Board shall meet for the purpose of organizing the new Board and electing and appointing such officers of the Association as may be appropriate. Such meeting shall be held on the day of the election or as soon thereafter as practicable, and, in any event, within thirty days thereafter, at such time and place as the

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Chairman or President may designate. If, at the time fixed for such meeting, there shall not be a quorum present, the directors present may adjourn the meeting until a quorum is obtained.

Section 2.6. <u>Regular Meetings</u>. The regular meetings of the Board shall be held, without notice, as the Chairman or President may designate and deem suitable.

Section 2.7. <u>Special Meetings</u>. Special meetings of the Board may be called at any time, at any place and for any purpose by the Chairman of the Board or the President of the Association, or upon the request of a majority of the entire Board. Notice of every special meeting of the Board shall be given to the directors at their usual places of business, or at such other addresses as shall have been furnished by them for the purpose. Such notice shall be given at least twelve hours (three hours if meeting is to be conducted by conference telephone) before the meeting by telephone or by being personally delivered, mailed, or electronically delivered. Such notice need not include a statement of the business to be transacted at, or the purpose of, any such meeting.

Section 2.8. <u>Quorum and Necessary Vote</u>. A majority of the directors shall constitute a quorum at any meeting of the Board, except when otherwise provided by law; but less than a quorum may adjourn any meeting, from time to time, and the meeting may be held as adjourned without further notice. Unless otherwise provided by law or the Articles or Bylaws of this Association, once a quorum is established, any act by a majority of those directors present and voting shall be the act of the Board.

Section 2.9. <u>Written Consent</u>. Except as otherwise required by applicable laws and regulations, the Board may act without a meeting by a unanimous written consent by all directors, to be filed with the Secretary of the Association as part of the corporate records.

Section 2.10. <u>Remote Meetings</u>. Members of the Board, or of any committee thereof, may participate in a meeting of such Board or committee by means of conference telephone, video or similar communications equipment by means of which all persons participating in the meeting can hear each other and such participation shall constitute presence in person at such meeting.

Section 2.11. <u>Vacancies</u>. When any vacancy occurs among the directors, the remaining members of the Board may appoint a director to fill such vacancy at any regular meeting of the Board, or at a special meeting called for that purpose.

<u>ARTICLE III</u>

<u>Committees</u>

Section 3.1. <u>Advisory Board of Directors</u>. The Board may appoint persons, who need not be directors, to serve as advisory directors on an advisory board of directors established with respect to the business affairs of either this Association alone or the business affairs of a group of affiliated organizations of which this Association is one. Advisory directors shall have such powers and duties as may be determined by the Board, provided, that the Board's responsibility for the business and affairs of this Association shall in no respect be delegated or diminished.

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Section 3.2. <u>Trust Audit Committee</u>. At least once during each calendar year, the Association shall arrange for a suitable audit (by internal or external auditors) of all significant fiduciary activities under the direction of its trust audit committee, a function that will be fulfilled by the Audit Committee of the financial holding company that is the ultimate parent of this Association. The Association shall note the results of the audit (including significant actions taken as a result of the audit) in the minutes of the Board. In lieu of annual audits, the Association may adopt a continuous audit system in accordance with 12 C.F.R. § 9.9(b).

The Audit Committee of the financial holding company that is the ultimate parent of this Association, fulfilling the function of the trust audit committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Must not include any officers of the Association or an affiliate who participate significantly in the administration of the Association's fiduciary activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Must consist of a majority of members who are not also members of any committee to which the Board has delegated power to manage and control the fiduciary activities of the Association.

Section 3.3. <u>Executive Committee</u>. The Board may appoint an Executive Committee which shall consist of at least three directors and which shall have, and may exercise, to the extent permitted by applicable law, all the powers of the Board between meetings of the Board or otherwise when the Board is not meeting.

Section 3.4. <u>Trust Management Committee</u>. The Board of this Association shall appoint a Trust Management Committee to provide oversight of the fiduciary activities of the Association. The Trust Management Committee shall determine policies governing fiduciary activities. The Trust Management Committee or such sub-committees, officers or others as may be duly designated by the Trust Management Committee shall oversee the processes related to fiduciary activities to assure conformity with fiduciary policies it establishes, including ratifying the acceptance and the closing out or relinquishment of all trusts. The Trust Management Committee will provide regular reports of its activities to the Board.

Section 3.5. <u>Other Committees</u>. The Board may appoint, from time to time, committees of one or more persons who need not be directors, for such purposes and with such powers as the Board may determine; however, the Board will not delegate to any committee any powers or responsibilities that it is prohibited from delegating under any law or regulation. In addition, either the Chairman or the President may appoint, from time to time, committees of one or more officers, employees, agents or other persons, for such purposes and with such powers as either the Chairman or the President deems appropriate and proper. Whether appointed by the Board, the Chairman, or the President, any such committee shall at all times be subject to the direction and control of the Board.

Section 3.6. <u>Meetings, Minutes and Rules</u>. An advisory board of directors and/or committee shall meet as necessary in consideration of the purpose of the advisory board of directors or committee, and shall maintain minutes in sufficient detail to indicate actions taken or

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recommendations made; unless required by the members, discussions, votes or other specific details need not be reported. An advisory board of directors or a committee may, in consideration of its purpose, adopt its own rules for the exercise of any of its functions or authority.

<u>ARTICLE IV</u>

<u>Officers</u>

Section 4.1 <u>Who Shall Constitute</u>. The Officers of the Association shall be a Chief Executive Officer, a President, a Secretary, and other officers such as Vice Chair, Executive Vice Presidents, Senior Vice Presidents, Vice Presidents, Assistant Vice Presidents, Assistant Secretaries, Trust Officers, Assistant Trust Officers, Controller, and Assistant Controller, as the Board may appoint from time to time. 1'he Board may appoint or elect a person as a Vice Chair without regard to whether such person is a member of the Board. The Board may choose to delegate authority to elect officers other than the Chief Executive Officer, President, Secretary, Vice Chairs and Senior Executive Vice Presidents, to the President. Any person may hold two offices. The President shall at all times be a member of the Board of Directors.

Section 4.2 <u>Term of Office</u>. All officers shall be elected for and shall hold office until their respective successors are elected and qualified or until their earlier death, resignation, retirement, disqualification or removal from office, subject to the right of the Board of Directors in its sole discretion to discharge any officer at any time. The Board may choose to delegate authority to remove officers other than the Chairman, Chief Executive Officer, President, Secretary, Vice Chair and Senior Executive Vice Presidents, to the President.

Section 4.3. <u>Chairman of the Board</u>. The Board may appoint one of its members to be Chairman of the Board to serve at the pleasure of the Board. The Chairman shall supervise the carrying out of the policies adopted or approved by the Board; shall have general executive powers, as well as the specific powers conferred by these Bylaws; and shall also have and may exercise such powers and duties as from time to time may be conferred upon or assigned by the Board.

Section 4.4. <u>President</u>. The Board may appoint one of its members to be President of the Association. In the absence of the Chairman, the President shall preside at any meeting of the Board. The President shall have general executive powers, and shall have and may exercise any and all other powers and duties pertaining by law, regulation or practice, to the office of President, or imposed by these Bylaws. The President shall also have and may exercise such powers and duties as from time to time may be conferred or assigned by the Board.

Section 4.5. <u>Vice President</u>. The Board may appoint one or more Vice Presidents who shall have such powers and duties as may be assigned by the Board and to perform the duties of the President on those occasions when the President is absent, including presiding at any meeting of the Board in the absence of both the Chairman and President.

Section 4.6. <u>Secretary</u>. The Board shall appoint a Secretary, or other designated officer who shall be Secretary of the Board and of the Association, and shall keep accurate minutes of all meetings. The Secretary shall attend to the giving of all notices required by these Bylaws to be

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given; shall be custodian of the corporate seal, records, documents and papers of the Association; shall provide for the keeping of proper records of all transactions of the Association; shall, upon request, authenticate any records of the Association; shall have and may exercise any and all other powers and duties pertaining by law, regulation or practice, to the Secretary, or imposed by these Bylaws; and shall also perform such other duties as may be assigned from time to time by the Board. The Board may appoint one or more Assistant Secretaries with such powers and duties as the Board, the President or the Secretary shall from time to time determine.

Section 4.7. <u>Other Officers</u>. The Board may appoint, and may authorize the Chairman, the President or any other officer to appoint, any officer as from time to time may appear to the Board, the Chairman, the President or such other officer to be required or desirable to transact the business of the Association.

Such officers shall exercise such powers and perform such duties as pertain to their several offices, or as may be conferred upon or assigned to them by these Bylaws, the Board, the Chairman, the President or such other authorized officer. Any person may hold two offices.

<u>ARTICLE V</u>

<u>Stock</u>

Section 5.1. The Board may authorize the issuance of stock either in certificated or in uncertificated form. Certificates for shares of stock shall be in such form as the Board may from time to time prescribe. If the Board issues certificated stock, the certificate shall be signed by the President, Secretary or any other such officer as the Board so determines. Shares of stock shall be transferable on the books of the Association, and a transfer book shall be kept in which all transfers of stock shall be recorded. Every person becoming a shareholder by such transfer shall, in proportion to such person's shares, succeed to all rights of the prior holder of such shares. Each certificate of stock shall recite on its face that the stock represented thereby is transferable only upon the books of the Association properly endorsed. The Board may impose conditions upon the transfer of the stock reasonably calculated to simplify the work of the Association for stock transfers, voting at shareholder meetings, and related matters, and to protect it against fraudulent transfers.

<u>ARTICLE VI</u>

<u>Corporate Seal</u>

Section 6.1. The Association shall have no corporate seal; provided, however, that if the use of a seal is required by, or is otherwise convenient or advisable pursuant to, the laws or regulations of any jurisdiction, the following seal may be used, and the Chairman, the President, the Secretary and any Assistant Secretary' shall have the authority to affix such seal:

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<u>ARTICLE VII</u>

<u>Miscellaneous Provisions</u>

Section 7.1. <u>Execution of Instruments</u>. All agreements, checks, drafts, orders, indentures, notes, mortgages, deeds, conveyances, transfers, endorsements, assignments, certificates, declarations, receipts, discharges, releases, satisfactions, settlements, petitions, schedules, accounts, affidavits, bonds, undertakings, guarantees, proxies and other instruments or documents may be signed, countersigned, executed, acknowledged, endorsed, verified, delivered or accepted on behalf of the Association, whether in a fiduciary capacity or otherwise, by any officer of the Association, or such employee or agent as may be designated from time to time by the Board by resolution, or by the Chairman or the President by written instrument, which resolution or instrument shall be certified as in effect by the Secretary or an Assistant Secretary of the Association. The provisions of this section are supplementary to any other provision of the Articles of Association or Bylaws.

Section 7.2. <u>Records</u>. The Articles of Association, the Bylaws as revised or amended from time to time and the proceedings of all meetings of the shareholders, the Board, and standing committees of the Board, shall be recorded in appropriate minute books provided for the purpose. The minutes of each meeting shall be signed by the Secretary, or other officer appointed to act as Secretary of the meeting.

Section 7.3. <u>Trust Files</u>. There shall be maintained in the Association files all fiduciary records necessary to assure that its fiduciary responsibilities have been properly undertaken and discharged.

Section 7.4. <u>Trust Investments</u>. Funds held in a fiduciary capacity shall be invested according to the instrument establishing the fiduciary relationship and according to law. Where such instrument does not specify the character and class of investments to be made and does not vest in the Association a discretion in the matter, funds held pursuant to such instrument shall be invested in investments in which corporate fiduciaries may invest under law.

Section 7.5. <u>Notice</u>. Whenever notice is required by the Articles of Association, the Bylaws or law, such notice shall be by mail, postage prepaid, e-mail, in person, or by any other means by which such notice can reasonably be expected to be received, using the address of the person to receive such notice, or such other personal data, as may appear on the records of the Association.

Except where specified otherwise in these Bylaws, prior notice shall be proper if given not more than 30 days nor less than 10 days prior to the event for which notice is given.

<u>ARTICLE VIII</u>

<u>Indemnification</u>

Section 8.1. The Association shall indemnify such persons for such liabilities in such manner under such circumstances and to such extent as permitted by Section 145 of the Delaware General Corporation Law, as now enacted or hereafter amended. The Board may authorize the purchase and maintenance of insurance and/or the execution of individual agreements for the purpose of such indemnification, and the Association shall advance all reasonable costs and

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expenses (including attorneys' fees) incurred in defending any action, suit or proceeding to all persons entitled to indemnification under this Section 8.1. Such insurance shall be consistent with the requirements of 12 C.F.R. § 7.2014 and shall exclude coverage of liability for a formal order assessing civil money penalties against an institution-affiliated party, as defined at 12 U.S.C. § 1813(u).

Section 8.2. Notwithstanding Section 8.1, however, (a) any indemnification payments to an institution-affiliated party, as defined at 12 U.S.C. § 1813(u), for an administrative proceeding or civil action initiated by a federal banking agency, shall be reasonable and consistent with the requirements of 12 U.S.C. § 1828(k) and the implementing regulations thereunder; and (b) any indemnification payments and advancement of costs and expenses to an institution-affiliated party, as defined at 12 U.S.C. § 1813(u), in cases involving an administrative proceeding or civil action not initiated by a federal banking agency, shall be in accordance with Delaware General Corporation Law and consistent with safe and sound banking practices.

<u>ARTICLE IX</u>

<u>Bylaws: Interpretation and Amendment</u>

Section 9.1. These Bylaws shall be interpreted in accordance with and subject to appropriate provisions of law, and may be added to, altered, amended, or repealed, at any regular or special meeting of the Board.

Section 9.2. A copy of the Bylaws and all amendments shall at all times be kept in a convenient place at the principal office of the Association, and shall be open for inspection to all shareholders during Association hours.

<u>ARTICLE X</u>

<u>Miscellaneous Provisions</u>

Section 10.1. <u>Fiscal Year</u>. The fiscal year of the Association shall begin on the first day of January in each year and shall end on the thirty-first day of December following.

Section 10.2. <u>Governing Law</u>. This Association designates the Delaware General Corporation Law, as amended from time to time, as the governing law for its corporate governance procedures, to the extent not inconsistent with Federal banking statutes and regulations or bank safety and soundness.

\*\*\*

(November 6, 2025)

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**<u>Exhibit 6</u>**

**CONSENT**

In accordance with Section 321(b) of the Trust Indenture Act of 1939, the undersigned, U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION hereby consents that reports of examination of the undersigned by Federal, State, Territorial or District authorities may be furnished by such authorities to the Securities and Exchange Commission upon its request therefor.

Dated: April 15, 2026

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| | |
|:---|:---|
| By: | /s/ Quinton M. DePompolo |
|  | Quinton M. DePompolo |
|  | Vice President |

---

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**<u>Exhibit 7</u>**

**U.S. Bank Trust Company, National Association**

**Statement of Financial Condition**

**as of 12/31/2025**

**($000's)**

---

| | |
|:---|:---|
| | **12/31/2025** |
| **Assets** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and Balances Due From | $2035855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depository Institutions |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities | 4696 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Funds | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans & Lease Financing Receivables | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed Assets | 623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible Assets | 574084 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Assets | 173370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | **$2788628** |
| **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | $0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fed Funds | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury Demand Notes | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading Liabilities | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Borrowed Money | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acceptances | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated Notes and Debentures | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Liabilities | 237596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | **$237596** |
| **Equity** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common and Preferred Stock | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surplus | 1171635 |
| &nbsp;&nbsp;&nbsp;&nbsp;Undivided Profits | 1379197 |
| &nbsp;&nbsp;&nbsp;&nbsp;Minority Interest in Subsidiaries | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Equity Capital** | **$2551032** |
| **Total Liabilities and Equity Capital** | **$2788628** |

---

## Exhibit 99.1

**Exhibit 99.1**

**THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action to be taken you should immediately consult your broker, bank manager, lawyer, accountant, investment adviser or other professional adviser.** 

**LETTER OF TRANSMITTAL** 

**Relating to the** 

**BASIN ELECTRIC POWER COOPERATIVE** 

**Offer to Exchange** 

**$700,000,000 aggregate principal amount of** 

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055** 

**for** 

**$700,000,000 aggregate principal amount of** 

**5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055**

**that have been registered under the Securities Act of 1933, as amended (the "Securities Act")** 

**pursuant to the Prospectus, dated , 2026** 

**The Exchange Offer (as defined below) will expire at 5:00 p.m., New York City time, on , 2026, unless extended by Basin Electric (as defined below) with respect to the Original Bonds (as defined below) (such date and time, as it may be extended, the "expiration date"). Tendered Original Bonds may be withdrawn at any time before 5:00 p.m., New York City time, on the expiration date.**

***The Exchange Agent is*:**

**U.S. Bank Trust Company, National Association**

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| | | |
|:---|:---|:---|
| *By Mail:* | *By Hand or Overnight Courier:* | *For Information or Confirmation by Email or Telephone:* |
| U.S. Bank Trust Company,<br>National Association<br>Corporate Trust Services<br>P.O. Box 64111<br>St. Paul, MN 55164-0111 | U.S. Bank Trust Company, <br>National Association<br>Corporate Trust Services<br>60 Livingston Avenue<br>1st Fl – Bond Drop Window<br>St. Paul, MN 55107 | 1-800-934-6802<br>cts.specfinance@usbank.com |

---

**DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.** 

The undersigned hereby acknowledges receipt of the prospectus, dated , 2026 (the "Prospectus"), of Basin Electric Power Cooperative, an electric cooperative corporation organized under the laws of the State of North Dakota ("Basin Electric"), and this letter of transmittal (the "Letter of Transmittal"), which together constitute Basin Electric's offer to exchange (the "Exchange Offer") up to $700,000,000 aggregate principal amount of its outstanding 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 (CUSIP Nos. 070101 AJ9 and U06865 AB2) (the "Original Bonds") for a like principal amount of its 5.850% First Mortgage Obligations, 2025 Series A Bonds due 2055 that have been registered under the Securities Act (CUSIP No. 070101 AK6) (the "Exchange Bonds").

For each Original Bond accepted for exchange, the holder of such Original Bond will receive an Exchange Bond having a principal amount equal to that of the surrendered Original Bond. The Exchange Bonds will bear interest from the last date on which interest was paid on the Original Bonds. Original Bonds accepted for exchange will cease to accrue interest from and after the date of completion of the Exchange Offer. Holders of Original Bonds

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whose Original Bonds are accepted for exchange will not receive any payment for accrued interest on the Original Bonds otherwise payable on any interest payment date, the record date for which occurs on or after completion of the Exchange Offer and will be deemed to have waived their rights to receive such accrued interest on the Original Bonds.

Original Bonds tendered prior to the expiration date may be withdrawn at any time before 5:00 p.m., New York City time, on the expiration date.

There is no procedure for guaranteed late delivery of the Original Bonds in connection with the Exchange Offer.

This Letter of Transmittal is to be completed by a holder of Original Bonds either if certificates are to be forwarded herewith or if a tender of Original Bonds is to be made by book-entry transfer to the account maintained by the Exchange Agent (as defined above) at The Depository Trust Company ("DTC") pursuant to the procedures set forth in the sections of the Prospectus entitled "THE EXCHANGE OFFER—Procedures for Tendering" and "—Book-Entry Transfer" and a computer-generated agent's message (as defined below) is not delivered. Tenders by book-entry transfer may also be made by delivering an agent's message in lieu of this Letter of Transmittal. The term "agent's message" means a computer-generated message, transmitted by DTC to, and received by, the Exchange Agent and forming a part of a book-entry confirmation, which states that DTC has received an express acknowledgment from the tendering participant that such participant has received and agrees to be bound by, and makes the representations and warranties contained in, this Letter of Transmittal and that Basin Electric may enforce this Letter of Transmittal against such participant.

**Delivery of documents to DTC does not constitute delivery to the Exchange Agent.** 

The undersigned has completed the appropriate boxes below and signed this Letter of Transmittal to indicate the action the undersigned desires to take with respect to the Exchange Offer.

List below the Original Bonds to which this Letter of Transmittal relates. If the space provided below is inadequate, the relevant certificate numbers and principal amount of Original Bonds should be listed on a separate signed schedule affixed hereto.

[*Remainder of page intentionally left blank*]

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**DESCRIPTION OF ORIGINAL BONDS** 

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| | | | |
|:---|:---|:---|:---|
| | **1** | **2** | **3** |
| **Name(s) and Address(es) of**<br>**Holder(s)**<br>**(Please fill in, if blank)** | **Certificate**<br>**Numbers\*** | **Aggregate Principal<br>Amount of Original Bonds** | **Aggregate Principal<br>Amount of Original Bonds<br>Tendered\*\*** |

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\* Need not be completed if Original Bonds are being tendered by book-entry transfer.

\*\* Unless otherwise indicated in this column, a holder will be deemed to have tendered ALL of the Original Bonds represented by the Original Bonds listed in column 2. See Instruction 2. Original Bonds tendered hereby must be in denominations of principal amount of $2,000 and any integral multiples of $1,000 in excess of $2,000. See Instruction 1.

□ **CHECK HERE IF TENDERED ORIGINAL BONDS ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH DTC AND COMPLETE THE FOLLOWING:**

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Tendering Institution: | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Account Number: | Transaction Code Number: |

---

By crediting the Original Bonds to the Exchange Agent's account at DTC's Automated Tender Offer Program ("ATOP") and by complying with applicable ATOP procedures with respect to the Exchange Offer, including, if applicable, transmitting to the Exchange Agent an agent's message in which the holder of the Original Bonds acknowledges and agrees to be bound by the terms of, and makes the representations and warranties contained in, this Letter of Transmittal, the participant in DTC confirms on behalf of itself and the beneficial owner(s) of such Original Bonds all provisions of this Letter of Transmittal (including all representations and warranties) applicable to it and such beneficial owner(s) as fully as if it had completed the information required herein and executed and transmitted this Letter of Transmittal to the Exchange Agent.

□ **CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE TEN ADDITIONAL COPIES OF THE PROSPECTUS AND OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.**

Name: <br> Address: 

The undersigned represents that it is not participating, does not intend to participate, and has no arrangement or understanding with anyone to participate, in the distribution (within the meaning of the Securities Act) of the Exchange Bonds. If the undersigned is a broker-dealer that will receive Exchange Bonds for its own account in exchange for Original Bonds that were acquired as a result of market-making activities or other trading activities, it represents and acknowledges that it may be a statutory underwriter and will deliver a prospectus (or to the extent permitted by law, make available a prospectus to purchasers) in connection with any resale of such Exchange Bonds; however, by so acknowledging and by delivering such a prospectus, the undersigned will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. In addition, such broker-dealer represents that it is not acting on behalf of any person who could not truthfully make the foregoing representations.

**PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.**

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Ladies and Gentlemen:

Upon the terms and subject to the conditions of the Exchange Offer, the undersigned hereby tenders to Basin Electric the aggregate principal amount of Original Bonds indicated above. Subject to, and effective upon, the acceptance for exchange of such Original Bonds tendered hereby, the undersigned hereby sells, assigns and transfers to, or upon the order of, Basin Electric all right, title and interest in and to such Original Bonds as are being tendered hereby.

The undersigned hereby irrevocably constitutes and appoints the Exchange Agent as the undersigned's true and lawful agent and attorney-in-fact with respect to such tendered Original Bonds, with full power of substitution, among other things, to cause the Original Bonds to be assigned, transferred and exchanged. The undersigned hereby represents and warrants that the undersigned has full power and authority to tender, sell, assign and transfer such Original Bonds, and to acquire Exchange Bonds issuable upon the exchange of such tendered Original Bonds, and that, when such Original Bonds are accepted for exchange by Basin Electric, Basin Electric will acquire good and unencumbered title thereto, free and clear of all liens, restrictions, charges and encumbrances and such Original Bonds will not be subject to any adverse claim. The undersigned hereby further represents that the Exchange Bonds acquired hereby will be acquired in the ordinary course of its business, that it is not participating, does not intend to participate, and has no arrangement or understanding with anyone to participate, in the distribution (within the meaning of the Securities Act) of such Exchange Bonds, that it is not an "affiliate" of Basin Electric (as defined in Rule 405 under the Securities Act), or if it is an affiliate, that it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable in connection with the resale of the Exchange Bonds, that it is not a broker-dealer that purchased any of the Original Bonds from Basin Electric for resale pursuant to Rule 144A or any other available exemption under the Securities Act, and that it is not acting on behalf of any person who could not truthfully make the foregoing representations and warranties.

The Securities and Exchange Commission (the "SEC") has taken the position that broker-dealers may fulfill their prospectus delivery requirements with respect to the Exchange Bonds (other than a resale of Exchange Bonds received in exchange for an unsold allotment from the original sale of the Original Bonds) with the Prospectus. The Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Bonds received in exchange for Original Bonds where such Original Bonds were acquired as a result of market-making activities or other trading activities. Basin Electric has agreed that, for a period of 180 days after the expiration date of the Exchange Offer (or until such broker-dealer no longer holds registrable securities), Basin Electric will promptly send additional copies of the Prospectus, as amended or supplemented, to any broker-dealer that requests such documents for use in connection with any such resale. By accepting the Exchange Offer, each broker-dealer that receives Exchange Bonds pursuant to the Exchange Offer acknowledges and agrees to notify Basin Electric prior to using the Prospectus in connection with the sale or transfer of such Exchange Bonds and that, upon receipt of notice from Basin Electric of the happening of any event that makes any statement in the Prospectus untrue in any material respect or that requires the making of any changes in the Prospectus in order to make the statements therein (in the light of the circumstances under which they were made) not misleading, such broker-dealer will suspend use of the Prospectus until (i) Basin Electric has amended or supplemented the Prospectus to correct such misstatement or omission and (ii) either Basin Electric has furnished copies of the amended or supplemented Prospectus to such broker-dealer or, if Basin Electric has not otherwise agreed to furnish such copies and declines to do so after such broker-dealer so requests, such broker-dealer has obtained a copy of such amended or supplemented Prospectus as filed with the SEC. Except as described above, the Prospectus may not be used for or in connection with an offer to resell, a resale or any other retransfer of Exchange Bonds. A broker-dealer that acquired Original Bonds in a transaction other than as part of its market-making activities or other trading activities will not be able to participate in the Exchange Offer.

The undersigned acknowledges that this Exchange Offer is being made upon the belief that, based on existing interpretations of the Securities Act by the SEC staff set forth in several no-action letters to third parties, the Exchange Bonds issued under the Exchange Offer in exchange for the Original Bonds may be offered for resale, resold and otherwise transferred by holders thereof (other than holders that are broker-dealers) without further compliance with the registration and prospectus delivery provisions of the Securities Act. However, the SEC has not considered the Exchange Offer in the context of a no-action letter and there can be no assurance that the SEC staff would make a similar determination with respect to this Exchange Offer as in other circumstances. The undersigned

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represents that it is not participating, does not intend to participate, and has no arrangement or understanding with anyone to participate, in a distribution (within the meaning of the Securities Act) of Exchange Bonds. If any holder of the Original Bonds is an "affiliate" of Basin Electric (as defined in Rule 405 under the Securities Act) that does not comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable or intends to participate in the Exchange Offer for the purpose of distributing the Exchange Bonds, or is a broker-dealer that purchased any of the Original Bonds from Basin Electric for resale pursuant to Rule 144A or any other available exemption under the Securities Act, such holder (i) will not be able to rely on the interpretations of the SEC staff set forth in the above-mentioned no-action letters, (ii) will not be entitled to tender its Original Bonds in the Exchange Offer and (iii) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of Original Bonds unless such sale or transfer is made pursuant to an exemption from such requirements. If the undersigned is a broker-dealer that will receive Exchange Bonds for its own account in exchange for Original Bonds that were acquired as a result of market-making activities or other trading activities, it represents and acknowledges that it will deliver a prospectus (or to the extent permitted by law, make a prospectus available to purchasers) in connection with any resale of such Exchange Bonds; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. In addition, such broker-dealer represents that it is not acting on behalf of any person who could not truthfully make the foregoing representations.

The undersigned will, upon request, execute and deliver any additional documents deemed by Basin Electric to be necessary or desirable to complete the sale, assignment and transfer of the Original Bonds tendered hereby. All authority conferred or agreed to be conferred in this Letter of Transmittal and every obligation of the undersigned hereunder shall be binding upon the successors, assigns, heirs, executors, administrators, trustees in bankruptcy and legal representatives of the undersigned and shall not be affected by, and shall survive, the death or incapacity of the undersigned. This tender may be withdrawn only in accordance with the procedures set forth in the section of the Prospectus entitled "THE EXCHANGE OFFER—Withdrawal Rights."

Unless otherwise indicated herein in the box entitled "Special Issuance Instructions" below, please deliver the Exchange Bonds (and, if applicable, substitute certificates representing Original Bonds for any Original Bonds not exchanged) in the name of the undersigned, or in the case of a book-entry delivery of Original Bonds, please credit the account indicated above maintained at DTC. Similarly, unless otherwise indicated under the box entitled "Special Delivery Instructions" below, please send the Exchange Bonds (and, if applicable, substitute certificates representing Original Bonds for any Original Bonds not exchanged) to the undersigned at the address shown above in the box entitled "Description of Original Bonds."

**THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED "DESCRIPTION OF ORIGINAL BONDS" ABOVE AND SIGNING THIS LETTER OF TRANSMITTAL WILL BE DEEMED TO HAVE TENDERED THE ORIGINAL BONDS AS SET FORTH IN SUCH BOX ABOVE.** 

[*Remainder of page intentionally left blank*]

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**SPECIAL ISSUANCE INSTRUCTIONS**

**(See Instructions 3 and 4)**

To be completed ONLY if certificates for Original Bonds not exchanged and/or Exchange Bonds are to be issued in the name of and sent to someone other than the person(s) whose signature(s) appear(s) on this Letter of Transmittal below, or if Original Bonds delivered by book-entry transfer that are not accepted for exchange are to be returned by credit to an account maintained at DTC other than the account indicated above.

Issue Original Bonds not exchanged and/or Exchange Bonds to:

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| |
|:---|
| Name(s): |
| **(Please Type or Print)** |
| **(Please Type or Print)** |
| Address: |
| **(Include ZIP Code)** |

---

---

| | |
|:---|:---|
| Taxpayer Identification or Social Security Number: | Taxpayer Identification or Social Security Number: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;□ Credit unexchanged Original Bonds delivered by book-entry transfer to the DTC account set forth below. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;□ Credit unexchanged Original Bonds delivered by book-entry transfer to the DTC account set forth below. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC Account Number, if applicable: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC Account Number, if applicable: |

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**SPECIAL DELIVERY INSTRUCTIONS**

**(See Instructions 3 and 4)**

To be completed ONLY if certificates for Original Bonds not exchanged and/or Exchange Bonds are to be sent to someone other than the person(s) whose signature(s) appear(s) on this Letter of Transmittal below or to such person(s) at an address other than shown in the box entitled "Description of Original Bonds" on this Letter of Transmittal above.

Mail Original Bonds not exchanged and/or Exchange Bonds to:

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| |
|:---|
| Name(s): |
| **(Please Type or Print)** |
| **(Please Type or Print)** |
| Address: |
| **(Include ZIP Code)** |

---

**IMPORTANT: THIS LETTER OF TRANSMITTAL OR AN AGENT'S MESSAGE IN LIEU THEREOF (TOGETHER WITH THE CERTIFICATES FOR ORIGINAL BONDS OR A BOOK-ENTRY CONFIRMATION AND ALL OTHER REQUIRED DOCUMENTS) MUST BE RECEIVED BY THE EXCHANGE AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.** 

**PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL** 

**CAREFULLY BEFORE COMPLETING ANY BOX ABOVE.**

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**PLEASE SIGN HERE** 

**(TO BE COMPLETED BY ALL TENDERING HOLDERS)**

**(Complete IRS Form W-9 or Appropriate IRS Form W-8)**

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| | |
|:---|:---|
| X | |
| X | |
| **(Signature(s) of Holder)** | **(Date)** |

---

If a holder is tendering any Original Bonds, this Letter of Transmittal must be signed by the registered holder(s) as the name(s) appear(s) on the certificate(s) for the Original Bonds or on the security position listing of DTC or by any person(s) authorized to become the registered holder(s) by endorsements and documents transmitted herewith. If signature is by a trustee, executor, administrator, guardian, officer or other person acting in a fiduciary or representative capacity, please set forth below the full title of such person. See Instruction 3.

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| |
|:---|
| Name(s): |
| **(Please Type or Print)** |
| Capacity (full title): |
| Address: |
| **(Include ZIP Code)** |
| Daytime Area Code and Telephone Number: |
| Taxpayer Identification or Social Security Number: |

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**SIGNATURE GUARANTEE** 

**(If required by Instruction 3)** 

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| | |
|:---|:---|
| Signature(s) Guaranteed by an Eligible Institution:  | Signature(s) Guaranteed by an Eligible Institution:  |
| X | |
| **(Authorized Signature)** | **(Date)** |
| Name: | |
| Title: | |
| Name of Firm: | |
| Address of Firm: | |
| **(Include ZIP Code)** | **(Include ZIP Code)** |
| Daytime Area Code and Telephone Number: | |

---

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**INSTRUCTIONS TO LETTER OF TRANSMITTAL**

**Forming Part of the Terms and Conditions of the Exchange Offer** 

**1. Delivery of this Letter of Transmittal and Original Bonds.** 

This Letter of Transmittal is to be completed by holders of Original Bonds either if certificates are to be forwarded herewith or if tenders are to be made pursuant to the procedures for delivery by book-entry transfer set forth in the section of the Prospectus entitled "THE EXCHANGE OFFER—Book-Entry Transfer" and an agent's message is not delivered. Tenders by book-entry transfer may also be made by delivering an agent's message in lieu of this Letter of Transmittal. The term "agent's message" means a computer-generated message, transmitted by DTC to, and received by, the Exchange Agent and forming a part of a book-entry confirmation, which states that DTC has received an express acknowledgment from the tendering participant that such participant has received and agrees to be bound by, and makes the representations and warranties contained in, this Letter of Transmittal and that Basin Electric may enforce this Letter of Transmittal against such participant. Certificates for all physically tendered Original Bonds, or a book-entry confirmation, as the case may be, as well as a properly completed and duly executed Letter of Transmittal (or agent's message in lieu thereof) and any other documents required by this Letter of Transmittal, must be received by the Exchange Agent at the address set forth herein (or its account at DTC with respect to an agent's message) before the expiration date. Original Bonds tendered hereby must be in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000.

The method of delivery of this Letter of Transmittal, the Original Bonds and all other required documents is at the election and risk of the tendering holders, and delivery will be deemed made only when actually received or confirmed by the Exchange Agent. If Original Bonds are sent by mail, it is suggested that the mailing be by registered mail, properly insured, with return receipt requested, made sufficiently in advance of the expiration date to permit delivery to the Exchange Agent before 5:00 p.m., New York City time, on the expiration date. Basin Electric reserves the right to reject any particular Original Bond not properly tendered, or any acceptance that might, in Basin Electric's judgment, be unlawful. Basin Electric also reserves the right to waive any defects or irregularities with respect to the form of, or procedures applicable to, the tender of any particular Original Bond before the expiration date. Unless waived, any defects or irregularities in connection with tenders of Original Bonds must be cured before the expiration date.

See the section of the Prospectus entitled "THE EXCHANGE OFFER."

**2. Partial Tenders (not applicable to holders that tender by book-entry transfer).** 

If less than all of the Original Bonds evidenced by a submitted certificate are to be tendered, the tendering holder(s) should fill in the principal amount of Original Bonds to be tendered in the box above entitled "Description of Original Bonds—Principal Amount of Original Bonds Tendered." A reissued certificate representing the balance of any non-tendered Original Bonds will be sent to such tendering holder, unless otherwise provided in the appropriate box on this Letter of Transmittal, promptly after the expiration date. **All of the Original Bonds delivered to the Exchange Agent will be deemed to have been tendered unless otherwise indicated.** 

**3. Signatures on this Letter of Transmittal; Bond Powers and Endorsements; Guarantee of Signatures.** 

If this Letter of Transmittal is signed by the registered holder of the Original Bonds tendered hereby, the signature must correspond exactly with the name as written on the face of the certificates or as written on DTC's security position listing as the holder of such Original Bonds, as applicable, without any change whatsoever.

If any tendered Original Bonds are owned of record by two or more joint owners, all of such owners must sign this Letter of Transmittal.

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If any tendered Original Bonds are registered in different names on several certificates, it will be necessary to complete, sign and submit as many separate copies of this Letter of Transmittal as there are different registrations of certificates.

When this Letter of Transmittal is signed by the registered holder or holders of the Original Bonds specified herein and tendered hereby, no endorsements of certificates or separate bond powers are required. If, however, the Exchange Bonds are to be issued, or any untendered Original Bonds are to be reissued, to a person other than the registered holder, then endorsements of any certificates transmitted hereby or separate bond powers are required. Signatures on such certificate(s) must be guaranteed by an Eligible Institution (as defined below).

If this Letter of Transmittal is signed by a person other than the registered holder or holders of any certificate(s) specified herein, such certificate(s) must be endorsed by the registered holder or accompanied by appropriate bond powers duly executed by the registered holder, in either case signed exactly as the name or names of the registered holder or holders appear(s) on the certificate(s) and signatures on such certificate(s) must be guaranteed by an Eligible Institution.

If this Letter of Transmittal or any certificates or bond powers are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should so indicate when signing, and, unless waived by Basin Electric, proper evidence satisfactory to Basin Electric of their authority to so act must be submitted.

**Endorsements on certificates for Original Bonds or signatures on bond powers required by this Instruction 3 must be guaranteed by a firm that is a financial institution (including most banks, savings and loan associations and brokerage houses) that is a participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges Medallion Program (each an "Eligible Institution").** 

**Signatures on this Letter of Transmittal need not be guaranteed by an Eligible Institution, provided the Original Bonds are tendered: (i) by a registered holder of Original Bonds (which term, for purposes of the Exchange Offer, includes any participant in the DTC system whose name appears on a security position listing as the holder of such Original Bonds) who has not completed the box entitled "Special Issuance Instructions" or "Special Delivery Instructions" on this Letter of Transmittal or (ii) for the account of an Eligible Institution.** 

**4. Special Issuance and Delivery Instructions.** 

Tendering holders of Original Bonds should indicate in the applicable box(es) the name and address to which Exchange Bonds issued pursuant to the Exchange Offer and/or substitute certificates evidencing Original Bonds not exchanged are to be issued or sent, if different from the name or address of the person signing this Letter of Transmittal. In the case of issuance in a different name, the taxpayer identification or social security number of the person named must also be indicated. Holders tendering Original Bonds by book-entry transfer may request that Original Bonds not exchanged be credited to such account maintained at DTC as such holder may designate hereon. If no such instructions are given, such Original Bonds not exchanged will be returned to the name and address of the person signing this Letter of Transmittal.

**5. Transfer Taxes.** 

Except as set forth in this Instruction 5, Basin Electric will pay all transfer taxes, if any, applicable to the transfer of Original Bonds to it or its order pursuant to the Exchange Offer. If, however, Exchange Bonds and/or substitute Original Bonds not exchanged are to be delivered to, or are to be registered or issued in the name of, any person other than the registered holder of the Original Bonds tendered hereby, or if tendered Original Bonds are registered in the name of any person other than the person signing this Letter of Transmittal or if a transfer tax is imposed for any reason other than the transfer of Original Bonds to Basin Electric or its order pursuant to the Exchange Offer, the amount of any such transfer taxes (whether imposed on the registered holder or any other

------

persons) will be payable by the tendering holder. If satisfactory evidence of payment of such taxes or exemption therefrom is not submitted herewith, the amount of such transfer taxes will be billed directly to such tendering holder.

**Except as provided in this Instruction 5, it will not be necessary for transfer tax stamps to be affixed to the Original Bonds specified in this Letter of Transmittal.** 

**6. Waiver of Conditions.** 

Because Basin Electric may, subject to applicable law, amend or modify the Exchange Offer, and such amendment or modification may be deemed to be a waiver of a condition, it has the right, subject to applicable law, to waive satisfaction of conditions enumerated in the Prospectus. Accordingly, Basin Electric has, subject to applicable law, effectively retained the ability to waive the conditions to consummation of the Exchange Offer.

**7. No Conditional Tenders.** 

No alternative, conditional, irregular or contingent tenders will be accepted. All tendering holders of Original Bonds, by execution of this Letter of Transmittal or delivery of an agent's message in lieu thereof, shall waive any right to receive notice of the acceptance of their Original Bonds for exchange.

Neither Basin Electric, the Exchange Agent nor any other person is obligated to give notice of any defect or irregularity with respect to any tender of Original Bonds nor shall any of them incur any liability for failure to give any such notice.

**8. Mutilated, Lost, Stolen or Destroyed Original Bonds.** 

Any holder whose Original Bonds have been mutilated, lost, stolen or destroyed should contact the Exchange Agent at the address indicated above for further instructions.

**9. Withdrawal Rights.** 

Tenders of Original Bonds may be withdrawn at any time before 5:00 p.m., New York City time, on the expiration date.

For a withdrawal of a tender of Original Bonds to be effective, a written notice of withdrawal must be received by the Exchange Agent at the address set forth above before 5:00 p.m., New York City time, on the expiration date. Any such notice of withdrawal must (i) specify the name of the person having tendered the Original Bonds to be withdrawn (the "Depositor"), (ii) identify the Original Bonds to be withdrawn (including the relevant certificate number or numbers and the principal amount of such Original Bonds), (iii) contain a statement that such holder is withdrawing its election to have such Original Bonds exchanged, (iv) be signed by the holder in the same manner as the original signature on the Letter of Transmittal by which such Original Bonds were tendered (including any required signature guarantees) or be accompanied by documents of transfer to have the Trustee register the transfer of such Original Bonds in the name of the person withdrawing the tender, together with satisfactory evidence of payment of applicable transfer taxes or exemption therefrom, and (v) specify the name in which such Original Bonds are registered, if different from that of the Depositor. If Original Bonds have been tendered pursuant to the procedures for book-entry transfer set forth in the section of the Prospectus entitled "THE EXCHANGE OFFER—Book-Entry Transfer," any notice of withdrawal must specify the number of the account at DTC from which the Original Bonds were tendered and specify the name and number of the account at DTC to be credited with the withdrawn Original Bonds and otherwise comply with the procedures of DTC. A withdrawal also must comply with any other applicable requirements set forth in the section of the Prospectus entitled "THE EXCHANGE OFFER—Withdrawal Rights." All questions as to the validity, form and eligibility (including time of receipt) of such notices will be determined by Basin Electric, whose determination shall be final and binding on all parties. Any Original Bonds so withdrawn will be deemed not to have been validly tendered for exchange for purposes of the Exchange

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Offer, and no Exchange Bonds will be issued with respect thereto unless the Original Bonds so withdrawn are validly re-tendered. Any Original Bonds that have been tendered for exchange but which are not exchanged for any reason will be returned to the holder thereof without cost to such holder (or, in the case of Original Bonds tendered by book-entry transfer into the Exchange Agent's account at DTC pursuant to the book-entry transfer procedures set forth in the section of the Prospectus entitled "THE EXCHANGE OFFER—Book-Entry Transfer," such Original Bonds will be credited to an account maintained with DTC for the Original Bonds) promptly after withdrawal, rejection of tender or termination of the Exchange Offer. Properly withdrawn Original Bonds may be re-tendered by following the procedures described above at any time before 5:00 p.m., New York City time, on the expiration date.

**10. Taxpayer Information; IRS Form W-9; IRS Form W-8.** 

Under U.S. federal income tax law, a tendering holder whose Original Bonds are accepted for exchange for Exchange Bonds may be subject to backup withholding on reportable payments made on the Exchange Bonds unless the holder provides the Exchange Agent, Basin Electric, or other payor with its correct taxpayer identification number ("TIN") and certain other information on Internal Revenue Service ("IRS") Form W-9 or an applicable IRS Form W-8 (available from the IRS website at *www.irs.gov*), or otherwise establishes an exemption. If the Exchange Agent, Basin Electric, or other payor is not provided with the correct TIN or an adequate basis for an exemption, and backup withholding may apply to any reportable payments on the Exchange Bonds made to such holder. Such reportable payments generally will be subject to information reporting, even if the Exchange Agent, Basin Electric, or other payor is provided with a TIN. Backup withholding is not an additional tax. Rather, the U.S. federal income tax liability of a person subject to backup withholding will be reduced by the amount withheld. If withholding results in an overpayment of taxes, a refund may be obtained, provided that the required information is timely furnished to the IRS.

To prevent backup withholding on reportable payments made on the Exchange Bonds, each holder that is a "United States person" for U.S. federal income tax purposes (a "U.S. Holder") should provide a properly completed and executed IRS Form W-9. Please see the instructions to IRS Form W-9 for further information, which can be obtained from the IRS website at *www.irs.gov*.

Certain holders (including, among others, generally all corporations and certain non-U.S. Holders) are not subject to backup withholding. Exempt U.S. Holders may establish their exempt status on IRS Form W-9. A non-U.S. Holder may qualify as an exempt recipient by submitting a properly completed IRS Form W-8BEN, Form W-8BEN-E, W-8ECI, W-8EXP or W-8IMY, as the case may be, signed under penalties of perjury, attesting to that holder's exempt status. The applicable IRS Form W-8 can be obtained from the IRS website at *www.irs.gov*.

Basin Electric reserves the right in its sole discretion to take all necessary or appropriate measures to comply with its obligations regarding backup withholding. You are urged to consult your own tax advisor for further guidance regarding the completion of IRS Form W-9 or the appropriate IRS Form W-8 to claim exemption from backup or other tax withholding.

**11. Requests for Assistance or Additional Copies.** 

Questions relating to the procedure for tendering Original Bonds, as well as requests for additional copies of the Prospectus and this Letter of Transmittal and requests for other related documents, may be directed to the Exchange Agent, at the address, telephone number and email address set forth above.

**IMPORTANT: THIS LETTER OF TRANSMITTAL OR AN AGENT'S MESSAGE IN LIEU THEREOF (TOGETHER WITH THE CERTIFICATES FOR ORIGINAL BONDS OR A BOOK-ENTRY CONFIRMATION AND ALL OTHER REQUIRED DOCUMENTS) MUST BE RECEIVED BY THE EXCHANGE AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.**