Document:

exv10w1

Exhibit 10.1

TEXAS CAPITAL BANCSHARES, INC.

COMMON STOCK ($0.01 PAR VALUE PER SHARE)

EQUITY DISTRIBUTION AGREEMENT

January 27, 2010

 

January 27, 2010

To Morgan Stanley & Co. Incorporated

1585 Broadway

New York, New York 10036

Ladies and Gentlemen:

     Texas Capital Bancshares, Inc., a Delaware corporation (the “Company”), proposes to issue and
sell through Morgan Stanley & Co. Incorporated, as sales agent (the “Manager”), on the terms set
forth in this equity distribution agreement (this “Agreement”), shares of its common stock, par
value $0.01 (the “Shares”), having an aggregate gross sales price of up to $40,000,000 (the
“Maximum Aggregate Gross Sales Price”). The shares of common stock, par value $0.01, of the
Company to be outstanding after giving effect to the sales contemplated hereby are hereinafter
referred to as the “Common Stock”.

     The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement (File No. 333-158586), including a prospectus, on Form S-3, relating to the
securities (the “Shelf Securities”), including the Shares, to be issued from time to time by the
Company. The registration statement as of its most recent effective date, including the
information (if any) deemed to be part of the registration statement at the time of effectiveness
pursuant to Rule 430A or Rule 430B under the Securities Act of 1933, as amended (the “Securities
Act”), is hereinafter referred to as the “Registration Statement”, and the related prospectus
covering the Shelf Securities and filed as part of the Registration Statement, together with any
amendments or supplements thereto as of the most recent effective date of the Registration
Statement, is hereinafter referred to as the “Basic Prospectus”. “Prospectus Supplement” means the
final prospectus supplement, relating to the Shares, filed by the Company with the Commission
pursuant to Rule 424(b) under the Securities Act on or before the second business day after the
date hereof, in the form furnished by the Company to the Manager in connection with the offering of
the Shares. Except where the context otherwise requires, “Prospectus” means the Basic Prospectus,
as supplemented by the Prospectus Supplement and the most recent Interim Prospectus Supplement (as
defined in Section 6(c) below), if any. For purposes of this Agreement, “free writing prospectus”
has the meaning set forth in Rule 405 under the Securities Act. “Permitted Free Writing
Prospectuses” means the documents listed on Schedule I hereto or otherwise approved in writing by
the Manager in accordance with Section 6(b), and “broadly available road show” means a “bona fide
electronic road show” as defined in Rule 433(h)(5) under the Securities Act that has been made
available without restriction to any person. As used herein, the terms “Registration Statement”,
“Basic Prospectus”, “Prospectus Supplement”, “Interim Prospectus Supplement” and “Prospectus” shall
include the documents, if any, incorporated by reference therein. The terms “supplement”,
“amendment” and “amend” as used herein with respect to the Registration Statement, the Basic
Prospectus, the Prospectus Supplement, any Interim Prospectus Supplement, the Prospectus or any
free writing prospectus shall include all documents subsequently filed by the Company with the
Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that
are deemed to be incorporated by reference therein (the “Incorporated Documents”).

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     1. Representations and Warranties. The Company represents and warrants to and agrees with the
Manager that:

     (a) The Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect; and no proceedings for such purpose are
pending before or threatened by the Commission. The Company was not, at the time of filing the
Registration Statement and each amendment thereto, and is not, an “ineligible issuer,”as defined in
Rule 405 under the Securities Act.

     (b) (i) (A) At the respective times the Registration Statement and each amendment thereto
became effective, (B) at each deemed effective date with respect to the Manager pursuant to Rule
430B(f)(2) under the Securities Act (each, a “Deemed Effective Time”), (C) as of each time Shares
are sold pursuant to this Agreement (each, a “Time of Sale”), (D) at each Settlement Date (as
defined below) and (E) at all times during which a prospectus is required by the Securities Act to
be delivered (whether physically or through compliance with Rule 172 under the Securities Act or
any similar rule) in connection with any sale of Shares (the “Delivery Period”), the Registration
Statement complied and will comply in all material respects with the requirements of the Securities
Act and the rules and regulations under the Securities Act; (ii) the Basic Prospectus complied, or
will comply, at the time it was, or will be filed, with the Commission, complies as of the date
hereof (if filed with the Commission on or prior to the date hereof) and, as of each Time of Sale
and at all times during the Delivery Period, will comply in all material respects with the rules
and regulations under the Securities Act; (iii) each of the Prospectus Supplement, any Interim
Prospectus Supplement and the Prospectus will comply, as of the date that such document is filed
with the Commission, as of each Time of Sale, as of each Settlement Date and at all times during
the Delivery Period, in all material respects with the rules and regulations under the Securities
Act; and (iv) the Incorporated Documents, when they were filed with the Commission, conformed in
all material respects to the requirements of the Exchange Act and the rules and regulations of the
Commission thereunder, and any further Incorporated Documents so filed and incorporated by
reference, when they are filed with the Commission, will conform in all material respects to the
requirements of the Exchange Act and the rules and regulations of the Commission thereunder.

     (c) (i) As of the date hereof, at the respective times the Registration Statement and each
amendment thereto became effective and at each Deemed Effective Time, the Registration Statement
did not 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; (ii)
as of each Time of Sale, the Prospectus (as amended and supplemented at such Time of Sale) and any
Permitted Free Writing Prospectus then in use, considered together (collectively, the “General
Disclosure Package”), did not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; (iii) as of its date, the Prospectus did not contain an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
and (iv) at any Settlement Date, the Prospectus (as amended and supplemented at such Settlement
Date) did not and will not contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the

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statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that this representation and warranty shall not apply to any
statement or omission made in reliance upon and in conformity with information furnished in writing
to the Company by the Manager expressly for use in the Prospectus or in the General Disclosure
Package.

     (d) Any free writing prospectus that the Company is required to file pursuant to Rule 433(d)
under the Securities Act has been, or will be, filed with the Commission in accordance with the
requirements of the Securities Act and the applicable rules and regulations of the Commission
thereunder. Each free writing prospectus that the Company has filed, or is required to file,
pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or
referred to by the Company complies or will comply in all material respects with the requirements
of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each
free writing prospectus, as of its issue date and at all subsequent times through the completion of
the public offer and sale of the Shares or until any earlier date that the Company notified or
notifies the Manager, did not, does not and will not include any material information that
conflicted, conflicts or will conflict with the information contained in the Registration Statement
or the Prospectus.

     (e) (i)(A) At the time of filing of the Registration Statement, (B) at the time of the most
recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Securities Act
(whether such amendment was by post-effective amendment, incorporated report filed pursuant to
Section 13 or 15(d) of the Exchange Act or form of prospectus) and (C) at the time the Company or
any person acting on its behalf (within the meaning, for this clause only, of Rule 163(c)) made any
offer relating to the Shelf Securities in reliance on the exemption of Rule 163 under the
Securities Act, the Company was not an “ineligible issuer” as defined in Rule 405 of the Securities
Act; and (ii)(A) at the time of filing of the Registration Statement, (B) at the earliest time
thereafter that the Company or another offering participant made a bona fide offer (within the
meaning of Rule 164(h)(2) under the Securities Act) of the Shares and (C) at the date hereof, the
Company was not and is not an “ineligible issuer” as defined in Rule 405 under the Securities Act.

     (f) The Shares have been duly authorized and, when issued and delivered by the Company
pursuant to this Agreement, will be validly issued and fully paid and non assessable; no holder of
the Shares will be subject to personal liability by reason of being such a holder; and the issuance
of the Shares is not subject to the preemptive or other similar rights of any securityholder of the
Company.

     (g) There are no contracts or documents which are required to be described in the Registration
Statement or the Prospectus or to be filed as exhibits thereto which have not been so described and
filed as required.

     (h) The Registration Statement is not the subject of a pending proceeding or examination under
Section 8(d) or 8(e) of the Securities Act, and the Company is not the subject of a pending
proceeding under Section 8A of the Securities Act in connection with the offering of the Shares.

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     (i) The statements set forth in each of the Registration Statement, the General Disclosure
Package and the Prospectus under the headings “Certain U.S. Federal Income Tax Consequences to
Non-U.S. Holders of Common Stock,” “Description of Common Stock” and “Plan of Distribution,” under
the heading “Regulation and Supervision” in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2008 (which is incorporated by reference in the Prospectus) and in Item 15 of
the Registration Statement, insofar as they purport to describe the provisions of the laws and
documents referred to therein, are accurate and complete in all material respects.

     (j) To the knowledge of the Company, there are no affiliations or associations between any
member of the FINRA and any of the Company’s officers, directors or beneficial owners of 5% or more
of the Company’s outstanding Common Stock, except as set forth in the Registration Statement,
General Disclosure Package or Prospectus or as disclosed in writing to the Manager.

     (k) The Shares are not required to be approved for listing on the Exchange upon official
notice of issuance.

     (l) Except as otherwise disclosed in the Registration Statement, the General Disclosure
Package and the Prospectus, there are no persons with registration rights or other similar rights
to have any securities registered by the Company under the Securities Act, including by reason of
filing of the Registration Statement.

     (m) The financial statements and the related notes thereto of the Company and its consolidated
Subsidiaries (as defined below) included or incorporated by reference in the Registration
Statement, the General Disclosure Package and the Prospectus present fairly in all material
respects the financial position of the Company and its consolidated Subsidiaries as of the dates
indicated and the results of their operations and the changes in their cash flows for the periods
specified; such financial statements have been prepared in conformity with U.S. generally accepted
accounting principles applied on a consistent basis throughout the periods covered thereby; the
other financial information included or incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus has been derived from the accounting records of
the Company and its consolidated Subsidiaries and presents fairly in all material respects the
information shown thereby.

     (n) The statistical information required by Commission Industry Guide 3 included or
incorporated by reference in the Registration Statement, the General Disclosure Package and the
Prospectus present fairly in all material respects the information set forth therein, is in
compliance in all material respects with the Securities Act and the rules and regulations of the
Commission thereunder and such Guide 3, and is consistent in all material respects with the
Company’s financial statements included or incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus, except as noted therein. Nothing has come to
the attention of the Company that has caused the Company to believe that the other statistical and
market related data included or incorporated by reference in the Registration Statement, the
General Disclosure Package and the Prospectus is not based on or derived from sources that are
generally believed to be reliable.

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     (o) The Company and each of its subsidiaries (collectively, the “Subsidiaries”) have been duly
organized and are validly existing and in good standing under the laws of their respective
jurisdictions of organization (or, in the case of Texas Capital Bank, National Association (the
“Bank”), is duly chartered and validly existing as a national banking association), are duly
qualified to do business and are in good standing in each jurisdiction in which their respective
ownership or lease of property or the conduct of their respective businesses requires such
qualification, and have all power and authority necessary to own or hold their respective
properties and to conduct the businesses in which they are engaged, except where the failure to be
so qualified or in good standing or have such power or authority would not, individually or in the
aggregate, have a material adverse effect on the business, properties, management, financial
position, stockholders’ equity, results of operations or prospects of the Company and its
Subsidiaries taken as a whole or on the performance by the Company of its obligations hereunder (a
“Material Adverse Effect”). The Bank is the only significant Subsidiary of the Company.

     (p) Since the date of the most recent financial statements of the Company included or
incorporated by reference in the Registration Statement, the General Disclosure Package and the
Prospectus, (i) there has not been any change in the capital stock, long-term debt, notes payable
or current portion of long-term debt of the Company or any of its Subsidiaries, or any dividend or
distribution of any kind declared, set aside for payment, paid or made by the Company on any class
of capital stock, or any Material Adverse Effect; (ii) neither the Company nor any of its
Subsidiaries has entered into any transaction or agreement that is material to the Company and its
Subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that
is material to the Company and its Subsidiaries taken as a whole; (iii) neither the Company nor any
of its Subsidiaries has sustained any material loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or
regulatory authority; and (iv) there has not occurred any material adverse change, or any
development involving a prospective material adverse change, in the condition, financial or
otherwise, or in the earnings, business or operations of the Company and its Subsidiaries, taken as
a whole, from that set forth in the General Disclosure Package, except in each case as otherwise
disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

     (q) The Company has an authorized capitalization as set forth in the Registration Statement,
the General Disclosure Package and the Prospectus; all the outstanding shares of capital stock of
the Company have been duly authorized and validly issued and are fully paid and non-assessable and
are not subject to any pre-emptive or similar rights; except as described in or expressly
contemplated by the Registration Statement, the General Disclosure Package and the Prospectus,
there are no outstanding rights (including, without limitation, pre-emptive rights), warrants or
options to acquire, or instruments convertible into or exchangeable for, any shares of capital
stock or other equity interest in the Company or any of its Subsidiaries, or any contract,
commitment, agreement, understanding or arrangement of any kind relating to the issuance of any
capital stock of the Company or any such Subsidiary, any such convertible or exchangeable
securities or any such rights, warrants or options; the capital stock of the Company conforms in
all material respects to the description thereof contained in the Registration Statement, the

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General Disclosure Package and the Prospectus; and all the outstanding shares of capital stock
or other equity interests of each Subsidiary owned, directly or indirectly, by the Company have
been duly authorized and validly issued, are fully paid and non-assessable, except, in the case of
the Bank, as provided in 12 U.S.C. §55, and are owned directly or indirectly by the Company, free
and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or
any other claim of any third party.

     (r) The Company has been duly registered as a bank holding company and qualified as a
financial holding company under the applicable provisions of the Bank Holding Company Act of 1956,
as amended. The Company and the Bank are in compliance in all material respects with all applicable
laws administered by and regulations of the Board of Governors of the Federal Reserve System (the
“Federal Reserve Board”), the Federal Deposit Insurance Corporation (the “FDIC”), the Office of the
Comptroller of the Currency (the “OCC”) and any other federal or state bank regulatory authority
(collectively, the “Bank Regulatory Authorities”) with jurisdiction over the Company or the Bank,
other than where such failures to comply would not, individually or in the aggregate, have a
Material Adverse Effect. Except as otherwise disclosed in the Registration Statement, the General
Disclosure Package and the Prospectus, neither the Company nor the Bank is a party to any written
agreement or memorandum of understanding with, or a party to, any commitment letter or similar
undertaking to, or is subject to any order or directive by, or is a recipient of an extraordinary
supervisory letter that is enforceable against the Company or the Bank and would result in
sanctions against the Company or the Bank from, or has adopted any board resolutions at the request
of, any Bank Regulatory Authority which restricts materially the conduct of its business, or in any
manner relates to its capital adequacy, its credit policies or its management except, in each case,
as individually or in the aggregate would not reasonably expected to have a Material Adverse
Effect, nor have any of them been advised by any Bank Regulatory Authority that it is contemplating
issuing or requesting (or is considering the appropriateness of issuing or requesting) any such
order, decree, agreement, memorandum of understanding, extraordinary supervisory letter, commitment
letter or similar submission, or any such board resolutions.

     (s) The Company has full right, power and authority to execute and deliver this Agreement and
issue and sell the Shares and to perform its obligations hereunder; and all action required to be
taken for the due and proper authorization, execution and delivery by it of this Agreement, the
issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby
or by the Registration Statement, the General Disclosure Package and the Prospectus has been duly
and validly taken.

     (t) This Agreement has been duly authorized, executed and delivered by the Company.

     (u) Neither the Company nor any of its Subsidiaries is (i) in violation of its charter or
by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due performance or
observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries is bound or to which

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any of the property or assets of the Company or any of its Subsidiaries is subject; or (iii)
in violation of any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii)
above, for any such default or violation that would not, individually or in the aggregate, have a
Material Adverse Effect.

     (v) The execution, delivery and performance by the Company of this Agreement, the issuance and
sale of the Shares and the consummation of the transactions contemplated hereby 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, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any of its Subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound or to which any of the property or assets of the Company or any of its Subsidiaries is
subject; (ii) result in any violation of the provisions of the charter or by-laws or similar
organizational documents of the Company or any of its Subsidiaries; or (iii) result in the
violation of any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except in the case of clauses (i) and (iii)
above, for any such conflict, breach, violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect.

     (w) No consent, approval, authorization, order, registration or qualification of or with any
court or arbitrator or governmental or regulatory authority is required for the execution, delivery
and performance by the Company of this Agreement, the issuance and sale of the Shares and the
consummation of the transactions contemplated hereby, except (i) for such consents, approvals,
authorizations, orders and registrations or qualifications as have already been made or obtained or
will be made or obtained prior to the date hereof; (ii) registration under the Securities Act of
the offer and sale of the Shares, which has been effected; (iii) as may be required under
applicable state securities laws in connection with the sale of the Shares by the Manager or under
the rules and regulations of the NASDAQ Global Select Market (the “Exchange”) or the Financial
Industry Regulatory Authority, Inc. (“FINRA”); or (iv) where the failure to obtain such consent,
authorization, order or qualification would not have a Material Adverse Effect.

     (x) Except as described in the Registration Statement, the General Disclosure Package and the
Prospectus, there are no legal, governmental or regulatory investigations, actions, suits or
proceedings pending or, to the knowledge of the Company, threatened, to which the Company or any of
its Subsidiaries is or may be a party or to which any property of the Company or any of its
Subsidiaries is or may be the subject that (i) individually or in the aggregate, if determined
adversely to the Company or any of its Subsidiaries, would reasonably be expected to have a
Material Adverse Effect or (ii) are required to be described in the Registration Statement or the
Prospectus and are not so described.

     (y) Ernst & Young LLP, who have certified certain financial statements of the Company and its
Subsidiaries, is an independent registered public accounting firm with respect to the Company and
its Subsidiaries within the applicable rules and regulations adopted by the

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Commission and the Public Company Accounting Oversight Board (United States) and as required
by the Securities Act.

     (z) The Company and its Subsidiaries have good and marketable title to, or have valid rights
to lease or otherwise use, all items of real and personal property that are material to the
respective businesses of the Company and its Subsidiaries, in each case free and clear of all
liens, encumbrances, claims and defects and imperfections of title except those that (i) do not
materially interfere with the use made or to be made of such property by the Company and its
Subsidiaries, (ii) are disclosed in the Registration Statement, the General Disclosure Package and
Prospectus or (iii) would not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect.

     (aa) The Company and its Subsidiaries own or possess adequate rights to use all material
patents, patent applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or procedures)
necessary to carry on their businesses as presently conducted; and the Company and its Subsidiaries
have not received any notice of any claim of infringement of or conflict with any such rights of
others that, individually or in the aggregate, if determined adversely to the Company or any of its
Subsidiaries, would reasonably be expected to have a Material Adverse Effect.

     (bb) Except as would not have a Material Adverse Effect, no relationship, direct or indirect,
exists between or among the Company or any of its Subsidiaries, on the one hand, and the directors,
officers, stockholders, customers or suppliers of the Company or any of its Subsidiaries, on the
other, that is required by the Securities Act to be described in a registration statement to be
filed with the Commission and that is not so described in the Registration Statement, the General
Disclosure Package and the Prospectus.

     (cc) The Company is not and, after giving effect to the offering and sale of the Shares and
the application of the proceeds thereof as described in the Registration Statement, the General
Disclosure Package and the Prospectus, will not be required to register as an “investment company”
or an entity “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively,
the “Investment Company Act”).

     (dd) The Company and its Subsidiaries have paid all federal, state, local and foreign taxes
and filed all tax returns required to be paid or filed through the date hereof, or requests for
extensions to file such tax returns have been timely filed or granted and have not expired, except
where the Company and its Subsidiaries are contesting in good faith such taxes and except where the
failure to so file or pay would not reasonably be expected to have a Material Adverse Effect; and
except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the
Prospectus, there is no tax deficiency that has been asserted against the Company or any of its
Subsidiaries or any of their respective properties or asset.

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     (ee) The Company and its Subsidiaries possess all licenses, certificates, permits and other
authorizations issued by, and have made all declarations and filings with, the appropriate federal,
state, local or foreign governmental or regulatory authorities that are necessary for the ownership
or lease of their respective properties or the conduct of their respective businesses as described
in the Registration Statement, the General Disclosure Package and the Prospectus, except where the
failure to possess or make the same would not, individually or in the aggregate, have a Material
Adverse Effect; and except as described in the Registration Statement, the General Disclosure
Package and the Prospectus or would not, individually or in the aggregate, have a Material Adverse
Effect, neither the Company nor any of its Subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or has knowledge that any
such license, certificate, permit or authorization will not be renewed in the ordinary course.

     (ff) No labor disturbance by or dispute with employees of the Company or any of its
Subsidiaries exists or, to the knowledge of the Company, is contemplated or threatened and the
Company is not aware of any existing or imminent labor disturbance by, or dispute with, the
employees of any of its or its Subsidiaries’ principal suppliers, contractors or customers, except
as would not have a Material Adverse Effect.

     (gg) The Company and its Subsidiaries (i) are in compliance with any and all applicable
federal, state, local and foreign laws, rules, regulations, requirements, decisions and orders
relating to the protection of human health or safety, the environment, natural resources, hazardous
or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”),
(ii) have received and are in compliance with all permits, licenses, certificates or other
authorizations or approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (iii) have not received notice of any actual or potential liability under
or relating to any Environmental Laws, including for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except
for any such failure to comply, or failure to receive required permits, licenses or approvals, or
liability, as would not, individually or in the aggregate, have a Material Adverse Effect.

     (hh) (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member
of its “Controlled Group” (defined as any organization which is a member of a controlled group of
corporations within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended
(the “Code”)) would have any liability (each, a “Plan”) has been maintained in material compliance
with its terms and the requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning
of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan
excluding transactions effected pursuant to a statutory or administrative exemption; (iii) for each
Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no
failure to satisfy the minimum funding standards (within the meaning of Sections 412 or 430 of the
Code or Section 302 of ERISA) applicable to such Plan, has occurred or is reasonably expected to
occur, whether or not waived; (iv) no determination that any Plan is, or is expected to be, in “at
risk” status (within the

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meaning of Section 430 of the Code or Title IV of ERISA) has occurred or is reasonably
expected to occur; (v) the fair market value of the assets of each Plan exceeds the present value
of all benefits accrued under such Plan (determined based on those assumptions used to fund such
Plan); (vi) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or
is reasonably expected to occur; and (vii) neither the Company nor any member of the Controlled
Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other
than contributions to the Plan or premiums to the PBGC, in the ordinary course and without default)
in respect of a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of
ERISA).

     (ii) The Company and its Subsidiaries maintain an effective system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that
information required to be disclosed by the Company in reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the Commission’s rules and forms, including controls and procedures designed to ensure that such
information is accumulated and communicated to the Company’s management as appropriate to allow
timely decisions regarding required disclosure. The Company and its Subsidiaries have carried out
evaluations of the effectiveness of their disclosure controls and procedures as required by Rule
13a-15 of the Exchange Act.

     (jj) The Company and its Subsidiaries maintain systems of “internal control over financial
reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of
the Exchange Act and have been designed by, or under the supervision of, their respective principal
executive and principal financial officers, or persons performing similar functions, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles, including, but not limited to internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or
specific authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain
asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences. Except as disclosed in the Registration Statement, the General Disclosure Package and
the Prospectus, there are no material weaknesses in the Company’s internal controls. Prior to the
filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009,
each of the Company’s auditors and the Audit Committee of the Company’s Board of Directors (the
“Board”) had been advised of (A) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably likely to adversely
affect the Company’s ability to record, process, summarize and report financial information and (B)
any fraud, whether or not material, that involves management or other employees who have a
significant role in the Company’s internal control over financial reporting; and, since such date,
neither the Company’s auditors nor the Audit Committee of the Board have been advised of any such
significant deficiencies and material weaknesses or fraud.

A-10

 

     (kk) Except as would not have a Material Adverse Effect, the Company and its Subsidiaries
maintain insurance of the types and in the amounts that they reasonably believe to be adequate in
their respective businesses and consistent with insurance coverage maintained by similar companies
and businesses, and as required by the rules and regulations of all governmental agencies having
jurisdiction over the Company or the Bank, all of which insurance is in full force and effect.

     (ll) Neither the Company nor any of its subsidiaries nor, to the Company’s knowledge, any
affiliate, director, officer, employee, agent or representative of the Company or of any of its
subsidiaries or affiliates, has taken or will take any action in furtherance of an offer, payment,
promise to pay, or authorization or approval of the payment or giving of money, property, gifts or
anything else of value, directly or indirectly, to any “government official” (including any officer
or employee of a government or government-owned or controlled entity or of a public international
organization, or any person acting in an official capacity for or on behalf of any of the
foregoing, or any political party or party official or candidate for political office) to influence
official action or secure an improper advantage; and the Company and its subsidiaries and
affiliates have conducted their businesses in compliance with applicable anti-corruption laws and
have instituted and maintain and will continue to maintain policies and procedures designed to
promote and achieve compliance with such laws and with the representation and warranty contained
herein.

     (mm) The operations of the Company and its subsidiaries are in material compliance with all applicable financial recordkeeping and reporting
requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions
where the Company and its subsidiaries conduct business, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines issued, administered or enforced by any
governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is
pending or, to the best knowledge of the Company, threatened.

     (nn) (i) The Company represents that neither the Company nor any of its Subsidiaries
(collectively, the “Entity”) or, to the knowledge of the Entity, any director, officer, employee,
agent, affiliate or representative of the Entity, is an individual or entity (“Person”) that is, or
is owned or controlled by a Person that is:

     (A) the subject of any sanctions administered or enforced by the U.S.
Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the United
Nations Security Council (“UNSC”), the European Union (“EU”), Her Majesty’s Treasury
(“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor

A-11

 

     (B) located, organized or resident in a country or territory that is the
subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran,
North Korea, Sudan and Syria).

     (ii) The Entity represents and covenants that it will not, directly or indirectly, use
the proceeds of the offering, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other Person:

     (A) to fund or facilitate any activities or business of or with any Person or
in any country or territory that, at the time of such funding or facilitation, is
the subject of Sanctions; or

     (B) in any other manner that will result in a violation of Sanctions by any
Person (including any Person participating in the offering, whether as agent,
advisor, investor or otherwise).

     (iii) The Entity represents and covenants that, except as detailed in Schedule II, for
the past 5 years, it has not knowingly engaged in, is not now knowingly engaged in, and will
not engage in, any dealings or transactions with any Person, or in any country or territory,
that at the time of the dealing or transaction is or was the subject of Sanctions.

     (oo) Except as described in the Registration Statement, the General Disclosure Package and
Prospectus, no Subsidiary of the Company is currently prohibited, directly or indirectly, under any
agreement or other instrument to which it is a party or is subject, from paying any dividends to
the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying
to the Company any loans or advances to such Subsidiary from the Company or from transferring any
of such Subsidiary’s properties or assets to the Company or any other Subsidiary.

     (pp) Except as would not have a Material Adverse Effect, neither the Company nor any of its
Subsidiaries is a party to any contract, agreement or understanding with any person (other than
this Agreement) that would give rise to a valid claim against the Company or any of its
Subsidiaries or the Manager for a brokerage commission, finder’s fee or like payment in connection
with the offering and sale of the Shares.

     (qq) The Company has not taken, directly or indirectly, any action designed to or that could
reasonably be expected to cause or result in the unlawful stabilization or manipulation of the
price of the Shares to facilitate the sale or resale of the Shares.

     (rr) None of the Company, any of its Subsidiaries or, to the Company’s knowledge, any agent
thereof acting on behalf of them has taken, and none of them will take, any action that could
reasonably be expected to cause this Agreement or the issuance or sale of the Shares or the
application of the proceeds thereof to violate Regulation T, Regulation U or Regulation X of the
Federal Reserve Board.

     (ss) No forward-looking statement (within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act) contained or incorporated in the

A-12

 

Registration Statement, the General Disclosure Package and Prospectus has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good faith.

     (tt) There is and has been no failure on the part of the Company or any of the Company’s
directors or officers, in their capacities as such, to comply with any provision of the
Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) and the rules and regulations promulgated in
connection therewith, including Section 402 related to loans and Sections 302 and 906 related to
certifications.

     (uu) There are no securities or preferred stock of or guaranteed by the Company or any of its
Subsidiaries that are rated by a “nationally recognized statistical rating organization,” as such
term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities Act.

     Any certificate signed by any officer of the Company or any of its Subsidiaries delivered to
the Manager or to counsel for the Manager shall be deemed a representation and warranty by the
Company to the Manager as to the matters covered thereby.

     2. Sale of Securities. On the basis of the representations, warranties and agreements herein
contained, but subject to the terms and conditions herein set forth, the Company and the Manager
agree that the Company may from time to time seek to sell Shares through the Manager, acting as
sales agent as follows:

     (a) The Company may submit its orders to the Manager by telephone (including any price, time
or size limits or other customary parameters or conditions) to sell Shares on any Trading Day (as
defined herein) which order shall be confirmed by the Manager (and accepted by the Company) orally
or by electronic mail using a form substantially similar to that attached hereto as Exhibit A to be
executed by the Chief Executive Officer or the Chief Financial Officer of the Company (it being
understood, that any oral confirmation and acceptance shall be deemed to have the same effect as
any confirmation and acceptance delivered by electronic mail pursuant to this Section 2(a)). As
used herein, “Trading Day” shall mean any trading day on the Exchange, other than a day on which
the Exchange is scheduled to close prior to its regular weekday closing time.

     (b) Subject to the terms and conditions hereof, the Manager shall use its commercially
reasonable efforts to execute any Company order to sell Shares submitted to it hereunder and with
respect to which the Manager has agreed to act as sales agent. The Company acknowledges and agrees
that (i) there can be no assurance that the Manager will be successful in selling the Shares, (ii)
the Manager will incur no liability or obligation to the Company or any other person or entity if
it does not sell Shares for any reason and (iii) the Manager shall be under no obligation to
purchase Shares on a principal basis pursuant to this Agreement.

     (c) The Company shall not authorize the issuance and sale of, and the Manager shall not sell,
any Share at a price lower than any minimum price therefor designated by the Company pursuant to
Section 2(a) above. In addition, the Company or the Manager may, upon notice to the other party
hereto by telephone (confirmed promptly by email or facsimile), suspend an offering of the Shares
pursuant to this Agreement; provided, however, that such suspension or

A-13

 

termination shall not affect or impair the parties’ respective obligations with respect to the
Shares sold hereunder prior to the receipt of such notice.

     (d) The Manager shall provide written confirmation (which may be by facsimile or email) to the
Company following the close of trading on the Exchange each day in which Shares are sold under this
Agreement setting forth (i) the amount of Shares sold on such day, (ii) the gross offering proceeds
received from such sale and (iii) the commission payable by the Company to the Manager with respect
to such sales.

     (e) At each Time of Sale, Settlement Date and Representation Date (as defined below), the
Company shall be deemed to have affirmed each representation and warranty contained in this
Agreement. Any obligation of the Manager to use its commercially reasonable efforts to sell the
Shares on behalf of the Company as sales agent shall be subject to the continuing accuracy of the
representations and warranties of the Company herein, to the performance by the Company of its
obligations hereunder and to the continuing satisfaction of the additional conditions specified in
Section 5 of this Agreement.

     (f) Notwithstanding
any other provision of this Agreement, the Company and the Manager
agree that no sales of Shares shall take place, the Company shall not
request the sales of any Shares that would be sold and the Manager shall not be obligated
to sell or offer to sell (1) except as otherwise agreed upon by the
Company and the Manager, during any period in which the Company’s insider trading policy, as it
exists on the date of this Agreement, would prohibit the purchase or sale of Common Stock by
persons subject to such policy, (2) except as otherwise agreed upon
by the Company and the Manager, during the period from the date of
issuance of any earnings release by the Company and the date on which
the Company’s next subsequent Annual Report on Form 10-K or
Quarterly Report on Form 10-Q, as the case may be, is filed with the
Commission or (3) during any other period in which the Company is, or could be
deemed to be, in possession of material non-public information; provided, that, in the event that
the Company intends to amend, supplement, revise or otherwise change its insider trading policy,
(A) written notice of such intent and a copy of such amendment, supplement or revision shall be
given to the Manager at least 10 days before such amendment, supplement or revision becomes
effective and (B) such amendment, supplement or revision is reasonably satisfactory to the Manager
in all material respects.

     3. Fee. (a) The fee payable to the Manager for sales of the Shares with respect to which the
Manager acts as sales agent hereunder shall be equal to (1) 1.0% of the Maximum Aggregate Gross
Sales Price to be paid on the date hereof and (2) 1.0% of the gross offering proceeds of such
Shares, to be paid from time to time as such Shares are sold.

     (b) The Company shall reimburse the Manager for 50% of all reasonable fees and disbursements of counsel for the Manager incurred
by it in connection with the offering contemplated by this Agreement  after
the date hereof.

     4. Payment, Delivery and Other Obligations. Settlement for sales of the Shares pursuant to
this Agreement will occur on the third Trading Day (or such earlier day as is industry practice for
regular-way trading) following the date on which such sales are made (each such day, a “Settlement
Date”). On each Settlement Date, the Shares sold through the Manager for settlement on such date
shall be issued and delivered by the Company to an account designated by the Manager against
payment of the net proceeds from the sale of such Shares. Settlement for all such Shares shall be
effected by free delivery of the Shares by the Company or its transfer agent to the Manager’s
account or its designee’s account (provided that the Manager shall have

A-14

 

given the Company written notice of such designee prior to the Settlement Date) at The
Depository Trust Company or by such other means of delivery as may be mutually agreed upon by the
parties hereto, which in all cases shall be freely tradable, transferable, registered shares in
good deliverable form, in return for payment in same day funds delivered to the account designated
by the Company. If the Company, or its transfer agent (if applicable), shall default on its
obligation to deliver the Shares on any Settlement Date, the Company shall (i) hold the Manager
harmless against any loss, claim, damage, or expense (including reasonable legal fees and
expenses), as incurred, arising out of or in connection with such default by the Company and (ii)
pay the Manager any commission, discount or other compensation to which it would otherwise be
entitled absent such default.

     5. Conditions to the Manager’s Obligations. The obligations of the Manager are subject to the
following conditions:

     (a) Since the later of (A) the date of this Agreement and (B) the immediately preceding
Representation Date:

     (i) there shall not have occurred any downgrading, nor shall any notice have been given
of any intended or potential downgrading or of any review for a possible change that does
not indicate the direction of the possible change, in the rating accorded any of the
securities of the Company or any of its Subsidiaries by any “nationally recognized
statistical rating organization”, as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act; and

     (ii) there shall not have occurred any change, or any development involving a
prospective change, in the condition, financial or otherwise, or in the earnings, business
or operations of the Company and its Subsidiaries, taken as a whole, from the respective
dates of the Registration Statement, the Prospectus and the General Disclosure Package that,
in the Manager’s judgment, is material and adverse and that makes it, in the Manager’s
judgment, impracticable to market the Shares on the terms and in the manner contemplated in
the Prospectus.

     (b) The Manager shall have received on each Representation Date a certificate, dated such
Representation Date and signed by an executive officer of the Company, to the effect set forth in
Section 5(a)(i) above and to the effect that (i) the representations and warranties of the Company
contained in this Agreement are true and correct in all material respects as of such Representation
Date; (ii) the Company has complied in all material respects with all of the agreements and
satisfied all of the conditions on its part to be performed or satisfied hereunder on or before
such Representation Date; (iii) no stop order suspending the effectiveness of the Registration
Statement has been issued and no proceeding for that purpose has been initiated or, to the
knowledge of the Company, threatened by the Commission; (iv) the Prospectus Supplement, any Interim
Prospectus Supplement and each Permitted Free Writing Prospectus have been timely filed with the
Commission under the Securities Act (in the case of a Permitted Free Writing Prospectus, to the
extent required by Rule 433 under the Securities Act), and all requests for additional information
on the part of the Commission have been complied with or otherwise satisfied; (v) as of such
Representation Date and as of each Time of Sale, if any,

A-15

 

subsequent to the immediately preceding Representation Date, the Registration Statement did
not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading; and (vi) as of such
Representation Date and as of each Time of Sale, if any, subsequent to the immediately preceding
Representation Date, the General Disclosure Package did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that no such certificate shall apply to any statements or omissions
made in reliance upon and in conformity with information furnished in writing to the Company by the
Manager expressly for use in the General Disclosure Package.

     The officer signing and delivering such certificate may rely upon the best of his or her
knowledge as to proceedings threatened.

     (c) The Manager shall have received on each Representation Date, and on such other dates as
may be reasonably requested by the Manager, an opinion of Winstead PC, outside counsel for the
Company, dated such date, substantially to the effect that:

     (i) the Registration Statement, including any Rule 462(b) Registration Statement, has
been declared effective under the Securities Act; any required filing of the Prospectus
pursuant to Rule 424(b) has been made in the manner and within the time period required by
Rule 424(b) (without reference to Rule 424(b)(8)); any required filing of each Issuer Free
Writing Prospectus pursuant to Rule 433 has been made in the manner and within the time
period required by Rule 433(d); and, to such counsel’s knowledge, no stop order
suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration
Statement has been issued under the Securities Act and no proceedings for that purpose have
been instituted or are pending or, to our knowledge, threatened by the Commission;

     (ii) the Registration Statement, including any Rule 462(b) Registration Statement and
the Rule 430A Information, the Prospectus and each amendment or supplement to the
Registration Statement and Prospectus, as of their respective effective or issue dates
(other than the financial statements, notes and  schedules
and other financial information and statistical data
included therein or omitted therefrom, as to which such counsel need express no opinion)
complied as to form in all material respects with the requirements of the Securities Act and
the Securities Act Regulations;

     (iii) the Company is duly incorporated and validly existing as a corporation in good
standing under the laws of the State of Delaware and the Bank is validly existing as a
national banking association under the laws of the United States. The Company is duly
registered as a bank holding company and qualified as a financial holding company under the
Bank Holding Company Act of 1956, as amended. The Company is duly qualified and in good
standing as a foreign corporation under the laws of the State of Texas;

     (iv) all the outstanding shares of capital stock of the Company have been duly and
validly authorized and issued and are fully paid and non-assessable; the capital stock

A-16

 

of the Company conforms in all material respects to the description thereof contained
in the Registration Statement, General Disclosure Package and Prospectus; and all the
outstanding shares of capital stock or other equity interests of the Bank have been duly and
validly authorized and issued, are fully paid and non-assessable, except, as provided in 12
U.S.C. §55;

     (v) the Company has full right, power and authority to execute and deliver this
Agreement and to perform its obligations hereunder; and all action required to be taken for
the due and proper authorization, execution and delivery by the Company of this Agreement,
the issue and sale of the Shares and the consummation by the Company of the transactions
contemplated hereby or by the Registration Statement as it relates to
the Shares, General Disclosure Package and
Prospectus has been duly and validly taken;

     (vi) this Agreement has been duly authorized, executed and delivered by the Company;

     (vii) the Shares to be issued and sold by the Company hereunder have been duly
authorized, and when issued and delivered by the Company pursuant to this Agreement, will be
validly issued, fully paid and non-assessable and are free of statutory preemptive rights
and, to such counsel’s knowledge, contractual preemptive rights or similar rights;

     (viii) this Agreement conforms in all material respects to the description thereof
contained in the Registration Statement, General Disclosure Package and Prospectus;

     (ix) the execution, delivery and performance by the Company of this Agreement, the
compliance by the Company with the terms hereof, the issuance and sale of the Shares and the
consummation of the transactions contemplated hereby or by the
Registration Statement as it relates to the Shares,
General Disclosure Package and Prospectus 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, or result
in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Company or any of its Subsidiaries pursuant to, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to
which any of the property or assets of the Company or any of its Subsidiaries is subject and
that is filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended
December 31, 2008, (ii) result in any violation of the provisions of the charter or by-laws
or similar organizational documents of the Company or any of its Subsidiaries or (iii)
result in the violation of any law or statute or any judgment, order or regulation of any
court or arbitrator or governmental or regulatory authority except, in the case of clauses
(i) and (iii) above, for such conflict, breach, violation or default that would not,
individually or in the aggregate, have a Material Adverse Effect;

     (x) no consent, approval, authorization, or order of or filing with any federal,
Delaware state, New York state or Texas state governmental authority or, to such

A-17

 

counsel’s knowledge, any federal, Delaware state, New York state or Texas state court
is required for the issuance and sale of the Shares, the Company’s execution, delivery or
performance of this Agreement and the consummation of the transactions contemplated thereby,
other than (a) those that have been obtained under the Securities Act, the Exchange Act or
the rules of the Exchange, and (b) those under state securities
or blue sky laws or FINRA (as to
which such counsel need express no opinion);

     (xi) to the knowledge of such counsel, except as described in the Registration
Statement, General Disclosure Package and Prospectus, there are no legal, governmental or
regulatory investigations, actions, suits or proceedings pending or threatened required to
be disclosed in the Registration Statement, General Disclosure Package or Prospectus;

     (xii) the descriptions in the Registration Statement, General Disclosure Package and
Prospectus of statutes, legal, governmental and regulatory proceedings and contracts and
other documents are accurate in all material respects; the statements in the Registration
Statement, General Disclosure Package and Prospectus under the headings “Certain U.S.
Federal Income Tax Consequences to Non-U.S. Holders of Common Stock” and “Description of
Common Stock” and under the heading “Regulation and Supervision” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2008 (which is incorporated by reference
in the Prospectus), to the extent that they constitute summaries of the terms of stock,
matters of law or regulation or legal conclusions, fairly summarize the matters described
therein in all material respects;

     (xiii) the Company is not and, after giving effect to the offering and sale of the
Shares and the application of the proceeds thereof as described in the Registration
Statement, General Disclosure Package and Prospectus, will not be required to register as an
“investment company” or an entity “controlled” by an “investment company” within the meaning
of the Investment Company Act;

     (xiv) the execution and delivery of this Agreement by the Company, the issuance and
sale of the Shares or the use of the proceeds from the sale of the Shares, as described in
the Prospectus under the caption “Use of Proceeds”, will not violate Regulation T, U or X of
the Federal Reserve Board;

     (xv)
(A) in the opinion of such counsel each Incorporated
Document (other than the financial statements, notes and schedules and other financial and statistical data
included therein or omitted therefrom, as to which such counsel need not express any
opinion) complied as to form as of its filing date in all
material respects to the requirements of the Exchange Act and the applicable rules and
regulations of the Commission thereunder and (B) nothing has come to the attention of such counsel that
causes such counsel to believe that (1) any part of the Registration

A-18

 

Statement,
when such part became effective (other than the financial statements,
notes and
 schedules and other financial and statistical data included therein or omitted
therefrom, as to which such counsel need not express any belief), contained any untrue
statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (2) the Registration
Statement (other than the financial statements, notes and  schedules and other financial
and statistical data included therein or omitted therefrom as to which such counsel need not
express any belief), on the date of this Agreement and at each Deemed Effective Time,
contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading,
(3) the Prospectus (other than the financial statements, notes and schedules and other
financial and statistical data included therein or omitted therefrom, as to which such
counsel need not express any belief) as of its date, or, as amended or supplemented, if
applicable, as of such date, contained or contains any untrue statement of a material fact
or omitted or omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading or (4)
the General Disclosure Package (other than the financial statements,
notes and  schedules
and other financial and statistical data included therein or omitted therefrom, as to which
such counsel need not express any belief), as amended or supplemented, if applicable, as of
such date, contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     (d) The Manager shall have received on each Representation Date, and on such other dates as
may be reasonably requested by the Manager, an opinion of Simpson Thacher & Bartlett LLP, counsel
for the Manager, dated such date, in form and substance reasonably satisfactory to the Manager.

     The opinion of counsel for the Company described in Section 5(c) above shall be rendered to
the Manager at the request of the Company and shall so state therein.

     (e) The Manager shall have received on each date specified in Section 6(o), a letter dated
such date in form and substance satisfactory to the Manager, from Ernst & Young LLP, independent
public accountants for the Company, (A) confirming that they are an independent registered public
accounting firm within the meaning of the Securities Act, the Exchange Act and the Public Company
Accounting Oversight Board, (B) stating, as of such date, the conclusions and findings of such firm
with respect to the financial information and other matters ordinarily covered by accountants’
“comfort letters” to underwriters in connection with registered public offerings (the first such
letter, the “Initial Comfort Letter”) and (C) updating the Initial Comfort Letter with any
information that would have been included in the Initial Comfort Letter had it been given on such
date and modified as necessary to relate to the Registration Statement, the Prospectus Supplement,
the Prospectus or any issuer free writing prospectus, as amended and supplemented to the date of
such letter.

     (f) On
each date specified in Section 6(p) (and only to the extent
required by the terms of Section 6(p)), (1) the Manager shall have received a letter dated
such date in form and substance satisfactory to the Manager, from the Chief

A-19

 

Financial Officer of the Company, stating, as of such date, the conclusions and findings of
such individual, in his or her capacity as Chief Financial Officer of the Company, with respect to
certain current financial information requested by the Manager, (2) the Chairman of the Company’s
Audit Committee of the Board shall have participated in a conference call with the Manager
regarding such current financial information and other matters and (3) the Manager shall have
received the monthly financials of the Company and/or its Subsidiaries from which such current
financial information is derived.

     (g) All filings with the Commission required by Rule 424 under the Act to have been filed by
each Time of Sale or related Settlement Date shall have been made within the applicable time period
prescribed for such filing by Rule 424 (without reliance on Rule 424(b)(8)).

     (h) In the event that a supplemental listing is required by the Nasdaq Listing Rules, the Shares
shall have been approved for listing on the Exchange.

     (i) The Common Stock shall be an “actively-traded security” excepted from the requirements of
Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule.

     (j) If, between the Time of Sale of any Shares and the corresponding settlement of the sale of
such Shares on the scheduled Settlement Date, an event occurs which would result in the failure of
any of the conditions described in Section 5(a) or the Company would be unable to deliver the
certificate contemplated by Section 5(b), then the Manager may cause the Company to cancel the sale
by the Company to any purchaser thereof of all or a portion of such Shares and each of the Manager
and the Company shall be released from any of its obligations under Section 4 with respect to such
Shares. The Company shall hold the Manager harmless against any loss, claim, damage or expense
(including reasonable legal fees and expenses), as incurred, arising out of or in connection with
the cancellation of any sale pursuant to this Section 5(i).

     6. Covenants of the Company. The Company covenants with the Manager as follows:

     (a) To furnish to the Manager copies of the Registration Statement (excluding exhibits) and
copies of the Prospectus (or the Prospectus as amended or supplemented) in such quantities as the
Manager may from time to time reasonably request. In case the Manager is required to deliver,
under the Securities Act (whether physically or through compliance with Rule 172 under the
Securities Act or any similar rule), a prospectus relating to the Shares after the nine-month
period referred to in Section 10(a)(3) of the Securities Act, or after the time a post-effective
amendment to the Registration Statement is required pursuant to Item 512(a) of Regulation S-K under
the Securities Act, upon the request of the Manager, and at its own expense, the Company shall
prepare and deliver to the Manager as many copies as the Manager may reasonably request of an
amended Registration Statement or amended or supplemented prospectus complying with Item 512(a) of
Regulation S-K or Section 10(a)(3) of the Securities Act, as the case may be.

A-20

 

     (b) Before amending or supplementing the Registration Statement or the Prospectus, to furnish
to the Manager a copy of each such proposed amendment or supplement and not to file any such
proposed amendment or supplement to which the Manager reasonably objects (other than any prospectus
supplement relating to the offering of Shelf Securities other than the Common Stock). To furnish
to the Manager a copy of each proposed free writing prospectus to be prepared by or on behalf of,
used by, or referred to by the Company and not to use or refer to any proposed free writing
prospectus to which the Manager reasonably objects. Not to take any action that would result in
the Manager or the Company being required to file with the Commission pursuant to Rule 433(d) under
the Securities Act a free writing prospectus prepared by or on behalf of the Manager that the
Manager otherwise would not have been required to file thereunder.

     (c) To file, subject to Section 6(b) above, promptly all reports and any definitive proxy or
information statements required to be filed by the Company with the Commission pursuant to Section
13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus Supplement
and for the duration of the Delivery Period. For the duration of the Delivery Period, to include
in its quarterly reports on Form 10-Q, and in its annual reports on Form 10-K, a summary detailing,
for the relevant reporting period, (i) the number of Shares sold through the Manager pursuant to
this Agreement, (ii) the net proceeds received by the Company from such sales and (iii) the
compensation paid by the Company to the Manager with respect to such sales (or alternatively,
prepare a prospectus supplement (each, an “Interim Prospectus Supplement”) with such summary
information and, at least once a quarter and subject to Section 6(b) above, file such Interim
Prospectus Supplement pursuant to Rule 424(b) under the Securities Act (and within the time periods
required by Rule 424(b) and Rules 430A, 430B or 430C under the Securities Act)).

     (d) To file any Permitted Free Writing Prospectus to the extent required by Rule 433 under the
Securities Act and to provide copies of the Prospectus and such Prospectus Supplement and each
Permitted Free Writing Prospectus (to the extent not previously delivered or filed on the
Commission’s Electronic Data Gathering, Analysis and Retrieval system or any successor system
thereto) to the Manager via electronic mail in “.pdf” format on such filing date to an electronic
mail account designated by the Manager and, at the Manager’s request, to also furnish copies of the
Prospectus and such Prospectus Supplement to the Exchange and each other exchange or market on
which sales of the Shares were effected, in each case, as may be required by the rules or
regulations of the Exchange or such other exchange or market.

     (e) During the Delivery Period to advise the Manager, promptly after it receives notice
thereof, of the issuance of any stop order by the Commission, of the suspension of the
qualification of the Shares for offering or sale in any jurisdiction, of the initiation or
threatening of any proceeding for any such purpose, or of any request by the Commission for the
amending or supplementing of the Registration Statement, the Prospectus Supplement, the Prospectus
or any Permitted Free Writing Prospectus or for additional information; and, in the event of the
issuance of any such stop order or of any order preventing or suspending the use of any prospectus
relating to the Shares or suspending any such qualification, to promptly use its best efforts to
obtain its withdrawal.

A-21

 

     (f) If, after the date hereof and during the Delivery Period, either (i) any event shall occur
or condition exist as a result of which the Prospectus would include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or (ii) for any other
reason it shall be necessary during such same period to amend or supplement the Prospectus or to
file any document in order to comply with the Securities Act or the Exchange Act, to promptly
advise the Manager by telephone (with confirmation in writing or electronic mail) and to promptly
prepare and file, subject to Section 6(b) above, with the Commission an amendment or supplement to
the Registration Statement or the Prospectus which will correct such statement or omission or
effect such compliance and to furnish to the Manager as many copies as the Manager may reasonably
request of such amendment or supplement.

     (g) To endeavor to qualify the Shares for offer and sale under the securities or Blue Sky laws
of such jurisdictions as the Manager shall reasonably request and to continue such qualifications
in effect so long as necessary under such laws for the distribution of the Shares.

     (h) To make generally available to the Company’s security holders and to the Manager, as soon
as practicable, an earnings statement covering a period of at least twelve (12) months beginning
after each effective date of the Registration Statement (as determined for purposes of Rule 158(c)
of the Securities Act) which shall satisfy the provisions of Section 11(a) of the Securities Act
and the rules and regulations of the Commission thereunder with respect to the Shares. For the
avoidance of doubt, such earnings statement will not need to be made generally available to the
Company’s security holders and to the Manager more than once per fiscal quarter.

     (i) Whether or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its
obligations under this Agreement, including: (i) the fees, disbursements and expenses of the
Company’s counsel and the Company’s accountants in connection with the registration and delivery of
the Shares under the Securities Act and all other fees or expenses in connection with the
preparation and filing of the Registration Statement, any Prospectus Supplement, the Prospectus,
any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company and
amendments and supplements to any of the foregoing, including the filing fees payable to the
Commission relating to the Shares (within the time required by Rule 456(b)(1), if applicable), all
printing costs associated therewith, and the mailing and delivering of copies thereof to the
Manager, in the quantities hereinabove specified, (ii) all costs and expenses related to the
transfer and delivery of the Shares, including any transfer or other taxes payable thereon, (iii)
the cost of printing or producing any Blue Sky or Legal Investment memorandum in connection with
the offer and sale of the Shares under state securities laws and all expenses in connection with
the qualification of the Shares for offer and sale under state securities laws as provided in
Section 6(g) above, including filing fees and the reasonable fees and disbursements of counsel for
the Manager in connection with such qualification and in connection with the Blue Sky or Legal
Investment memorandum, (iv) all filing fees and the reasonable fees and disbursements of counsel to
the Manager incurred in any required review and qualification by the FINRA; provided, however, that
the aggregate fees and disbursement of counsel in connection with this subsection (iv) and
subsection (iii) above shall not exceed $10,000 without the prior

A-22

 

written
consent of the Company, (v) all costs and expenses, if any, incident to listing the Shares on
the Exchange, (vi) the costs and charges of any transfer agent, registrar or depositary, and (vii)
all other costs and expenses incident to the performance of the obligations of the Company
hereunder for which provision is not otherwise made in this Section. It is understood, however,
that except as provided in this Section 6, Section 3(b) and Section 8, the Manager will pay all of
its costs and expenses, including fees and disbursements of counsel incurred prior to the date
hereof and any advertising expenses connected with any offers the Manager may make.

     (j) If the third anniversary of the initial effective date of the Registration Statement
occurs before all the Shares have been sold, prior to such third anniversary, to file, subject to
Section 6(b), a new shelf registration statement and to take any other action necessary to permit
the public offering of the Shares to continue without interruption (references herein to the
Registration Statement shall include the new registration statement declared effective by the
Commission).

     (k) In the event that a supplemental listing is required by the Nasdaq Listing Rules, to use
its commercially reasonable efforts to cause the Shares to be listed for trading on the Exchange
and to maintain such listing and, in the event that a Change in
Number of Shares Outstanding form is required to be filed, to timely
file such form with the Exchange.

     (l) Upon commencement of the offering of the Shares under this Agreement (and upon the
recommencement of the offering of the Shares under this Agreement following the termination of a
suspension of sales hereunder), and each time that (i) the Registration Statement or the Prospectus
is amended or supplemented (other than (1) in connection with the filing of a prospectus supplement
that contains solely the information required by the second sentence of Section 6(c), (2) in
connection with the filing of any report or other document under Section 13, 14 or 15(d) of the
Exchange Act or (3) by a prospectus supplement relating solely to the offering of Shelf Securities
other than the Shares) or (ii) there is filed with the Commission any document incorporated by
reference into the Prospectus (other than a Current Report on Form 8-K, unless the Manager shall
otherwise reasonably request) (such commencement date (and any such recommencement date, if
applicable) and each such date referred to in (i) and (ii) above, a “Representation Date”), to
furnish or cause to be furnished to the Manager forthwith a certificate dated and delivered as of
such date, in form reasonably satisfactory to the Manager, to the effect that the statements
contained in the certificate referred to in Section 5(b) of this Agreement are true and correct as
of such Representation Date, as though made at and as of such time modified as necessary to relate
to the Registration Statement and the Prospectus as amended and supplemented to the time of
delivery of such certificate.

     (m) On each Representation Date, the Company shall cause to be furnished to the Manager, dated
as of such date, in form and substance satisfactory to the Manager, the written opinion of Winstead
PC, legal counsel for the Company, substantially as described in Section 5(c), modified as
necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to
the time of delivery of such opinion.

     (n) Upon request of the Manager, on each Representation Date, Simpson Thacher & Bartlett LLP,
counsel to the Manager, shall furnish to the Manager a written opinion, dated as of such date in
form and substance reasonably satisfactory to the Manager.

A-23

 

     With respect to Sections 6(m) and 6(n) above, in lieu of delivering such an opinion for
Representation Dates subsequent to the commencement of the offering of the Shares under this
Agreement such counsel may furnish the Manager with a letter (a “Reliance Letter”) to the effect
that the Manager may rely on a prior opinion delivered under Section 6(m) or Section 6(n), as the
case may be, to the same extent as if it were dated the date of such letter (except that statements
in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as
amended or supplemented as of such subsequent Representation Date).

     (o) Upon commencement of the offering of the Shares under this Agreement (and upon the
recommencement of the offering of the Shares under this Agreement following the termination of a
suspension of sales hereunder) and each time that (i) the Registration Statement or the Prospectus
is amended or supplemented to include additional financial information, (ii) the Company files an
annual report on Form 10-K or quarterly report on Form 10-Q, (iii) there is filed with the
Commission any document (other than an annual report on Form 10-K or quarterly report on Form 10-Q)
incorporated by reference into the Prospectus which contains additional or amended financial
information or (iv) on such other dates as may be reasonably requested by the Manager, Ernst &
Young LLP, independent public accountants of the Company, shall deliver to the Manager the comfort
letter(s) as described in Section 5(e).

     (p) Each
time that there is furnished with the Commission by the Company any
earnings release or other document with comparable financial
information, but only if sales of Shares are contemplated to occur on
or after such date but prior to the date on which the Company’s
next subsequent Annual Report on Form 10-K or Quarterly Report on
Form 10-Q, as the case may be, is filed with the Commission, the Company shall (1) deliver to
the Manager the Chief Financial Officer’s certificate as described in Section 5(f), (2) direct or
cause the Chairman of the Company’s Audit Committee of the Board to participate in a conference
call with the Manager regarding such matters as described in Section 5(f) and (3) deliver to the
Manager the monthly financials of the Company and/or its Subsidiaries as described in Section 5(f).

     (q) To comply with the Due Diligence Protocol attached hereto on Schedule III and any other
due diligence review or call reasonably requested by the Manager.

     (r) To reserve and keep available at all times, free of preemptive rights, Shares for the
purpose of enabling the Company to satisfy its obligations hereunder.

     (s) That it consents to the Manager trading in other shares of the Common Stock for the
Manager’s own account and for the account of its clients at the same time as sales of the Shares
occur pursuant to this Agreement.

     (t) That each acceptance by the Company of an order confirmation in accordance with Section
2(a) hereunder shall be deemed to be an affirmation to the Manager that the representations and
warranties of the Company contained in or made pursuant to this Agreement are true and correct in
all material respects as of the date of such acceptance as though made at and as of such date, and
an undertaking that such representations and warranties will be true and correct in all material
respects as of the Time of Sale and the Settlement Date for the Shares relating to such acceptance
as though made at and as of each of such dates (except that such representations and warranties
shall be deemed to relate to the Registration Statement and the Prospectus as amended and
supplemented relating to such Shares).

A-24

 

     (u) Prior to instructing the Manager pursuant to Section 2 hereof to make sales on any given
day (or as otherwise agreed between the Company and the Manager), (1) the Board shall have approved
the sale of Shares to be sold pursuant to this Agreement and
shall have provided to the Manager an authorizing resolution
approving such sale and
(2) the Pricing Committee of the Board, authorized by the
Board, shall have approved parameters establishing the minimum price
and maximum number of Shares to be sold and shall have provided to
the Manager authorizing resolution(s) reflecting approval of such
parameters.
The instructions provided to the Manager by the Company, pursuant to Section 2, on such day shall
reflect the terms of such authorizing resolutions of the Board and
the Pricing Committee of the Board.

     (v) Not to sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any
option to sell or otherwise dispose of or agree to dispose of, directly or indirectly, any shares
of the Common Stock or securities convertible into or exchangeable or exercisable for the Common
Stock or warrants or other rights to purchase the Common Stock or any other securities of the
Company that are substantially similar to the Common Stock or permit the registration under the
Securities Act of any shares of the Common Stock, except for (i) the registration of the Shares and
the sales through the Manager pursuant to this Agreement, (ii) any shares of Common Stock issued by
the Company upon the exercise of an option or warrant or the conversion of a security outstanding
on the date hereof and referred to in the Prospectus, (iii) any shares of Common Stock issued or
options to purchase Common Stock granted pursuant to existing employee benefit plans of the Company
or (iv) any shares of Common Stock issued pursuant to any non-employee director stock plan,
dividend reinvestment plan or stock purchase plan of the Company, during the Delivery Period,
without (A) giving the Manager at least three (3) business days’ prior written notice specifying
the nature of the proposed sale and the date of such proposed sale and (B) the Manager suspending
activity under this program for such period of time as requested by the Company.

     7. Covenants of the Manager. The Manager covenants with the Company not to take any action
that would result in the Company being required to file with the Commission under Rule 433(d) a
free writing prospectus prepared by or on behalf of the Manager that otherwise would not be
required to be filed by the Company thereunder, but for the action of the Manager.

     8. Indemnity and Contribution. (a) The Company agrees to indemnify and hold harmless the
Manager, the directors, officers, employees, agents of the Manager and each person, if any, who
controls the Manager within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act and each affiliate of the Manager within the meaning of Rule 405 under the
Securities Act from and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) caused by any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement, the Prospectus, the Prospectus
Supplement (including any Interim Prospectus Supplement), the General Disclosure Package, any free
writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d)
under the Securities Act, or any amendment or supplement thereto, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, except

A-25

 

insofar as such losses, claims, damages or liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information relating to the Manager
furnished to the Company in writing by the Manager expressly for use therein.

     (b) The Manager agrees to indemnify and hold harmless the Company, its directors, its officers
who sign the 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 to the same
extent as the foregoing indemnity from the Company to the Manager, but only with reference to
information relating to the Manager furnished to the Company in writing by the Manager expressly
for use in the Registration Statement, the Prospectus, the Prospectus Supplement (including any
Interim Prospectus Supplement), the General Disclosure Package, any free writing prospectus that
the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, or
any amendment or supplement thereto.

     (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b),
such person (the “indemnified party”) shall promptly notify the person against whom such indemnity
may be sought (the “indemnifying party”) in writing, and the indemnifying party, upon request of
the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In
any such proceeding, any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them.
It is understood that the indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all such indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by the Manager, in the
case of parties indemnified pursuant to Section 8(a), and by the Company, in the case of parties
indemnified pursuant to Section 8(b). The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such settlement or judgment.
No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding.

     (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to
an indemnified party or insufficient in respect of any losses, claims, damages or

A-26

 

liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Manager, on the other hand, from the offering of the Shares or (ii) if the allocation
provided by Section 8(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in Section 8(d)(i) above but also
the relative fault of the Company, on the one hand, and of the Manager, on the other hand, in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits
received by the Company, on the one hand, and the Manager, on the other hand, in connection with
the offering of the Shares shall be deemed to be in the same respective proportions as the net
proceeds from the offering of the Shares (before deducting expenses) received by the Company bear
to the total commissions received by the Manager. The relative fault of the Company, on the one
hand, and the Manager, on the other hand, shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company or by the Manager
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

     (e) The Company and the Manager agree that it would not be just or equitable if contribution
pursuant to this Section 8 were determined by pro rata allocation or by any other method of
allocation that does not take account of the equitable considerations referred to in Section 8(d).
The amount paid or payable by an indemnified party as a result of the losses, claims, damages and
liabilities referred to in Section 8(d) shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8, the Manager shall not be required to contribute any amount in excess
of the amount by which the total price at which the Shares sold by it were offered to the public
exceeds the amount of any damages that the Manager 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 remedies provided for in this Section 8 are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any indemnified party at law or in equity.

     (f) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of the Manager, any person controlling the Manager or
any affiliate of the Manager or by or on behalf of the Company, its officers or directors or any
person controlling the Company and (iii) acceptance of and payment for any of the Shares.

A-27

 

     9. Effectiveness. This Agreement shall become effective upon the execution and delivery
hereof by the parties hereto.

     10. Termination. ((a) The Company shall have the right, by giving written notice as
hereinafter specified, to terminate this Agreement in its sole discretion at any time. Any such
termination shall be without liability of any party to any other party, except that (i) with
respect to any pending sale through the Manager for the Company, the obligations of the Company,
including, but not limited to, its obligations under Section 4 above, shall remain in full force
and effect notwithstanding such termination; and (ii) the provisions of Section 1, Section 3(b) and
Section 8 of this Agreement shall remain in full force and effect notwithstanding such termination.

     (b) The Manager shall have the right, by giving written notice as hereinafter specified, to
terminate this Agreement in its sole discretion at any time. Any such termination shall be without
liability of any party to any other party except that (i) with respect to any pending sale through
the Manager for the Company, the obligations of the Company, including, but not limited to, its
obligations under Section 4 above, shall remain in full force and effect notwithstanding such
termination; and (ii) the provisions of Section 1, Section 3(b) and Section 8 of this Agreement
shall remain in full force and effect notwithstanding such termination.

     (c) This Agreement shall remain in full force and effect until and unless terminated pursuant
to Section 10(a) or (b) above or otherwise by mutual agreement of the parties; provided that any
such termination by mutual agreement or pursuant to this clause (c) shall in all cases be deemed to
provide that Section 1, Section 3(b) and Section 8 of this Agreement shall remain in full force and
effect.

     (d) Any termination of this Agreement shall be effective on the date specified in such notice
of termination; provided that such termination shall not be effective until the close of business
on the date of receipt of such notice by the Manager or the Company, as the case may be. If such
termination shall occur prior to the Settlement Date for any sale of Shares, such sale shall settle
in accordance with the provisions of Section 4.

     11. Entire Agreement. (a) This Agreement, including the schedules and exhibits attached
hereto, represents the entire agreement between the Company and the Manager with respect to the
preparation of any Registration Statement, Prospectus Supplement or the Prospectus, the conduct of
the offering and the sale and distribution of the Shares.

     (b) The Company acknowledges that in connection with the offering of the Shares: (i) the
Manager has acted and will act at arm’s length and owes no fiduciary duties to, the Company or any
other person, (ii) the Manager owes the Company only those duties and obligations set forth in this
Agreement and prior written agreements (to the extent not superseded by this Agreement), if any,
and (iii) the Manager may have interests that differ from those of the Company. The Company waives
to the full extent permitted by applicable law any claims it may have against the Manager arising
from an alleged breach of fiduciary duty in connection with the sale and distribution of the
Shares.

A-28

 

     12. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

     13. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

     14. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

     15. Notices. All communications hereunder shall be in writing and effective only upon receipt
and if to the Manager shall be delivered, mailed, telefaxed or sent to Morgan Stanley & Co.
Incorporated, 1585 Broadway, New York, NY 10036, facsimile number: (212) 761-0316 (Attn: Equity
Capital Markets Syndicate Desk) with a copy to Lesley Peng, Esq., Simpson Thacher &
Bartlett LLP; 425 Lexington Avenue, New York, NY 10017, and if to the Company shall be delivered,
mailed or sent to 2000 McKinney Avenue, Suite 700, Dallas, Texas 75201, with a copy to Norman
Miller, Esq., Winstead PC, 5400 Renaissance Tower, 1201 Elm Street, Dallas, Texas 75270.

     16. Successors and Assigns. This Agreement will inure to the benefit of and be binding upon
the parties hereto and their respective successors and the officers, directors, employees, agents,
affiliates and controlling persons referred to in Section 8 hereof, and no other person will have
any right or obligation hereunder. This Agreement may not be assigned by either party without the
prior consent of the other party.

[Signature page follows]

A-29

 

	 	 	 	 	 
	 	Very truly yours,

TEXAS CAPITAL BANCSHARES, INC.

 	 
	 	By:  	/s/
Peter B. Bartholow 	 
	 	 	Name:  	Peter B. Bartholow 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	Accepted as of the date first written above
	 
	 	 	 	 
	MORGAN STANLEY & CO.
	INCORPORATED
	 
	 	 	 	 
	By:
	 	/s/ Ken Pott 	 	 
	 

	 	 

Name:  Ken Pott
	 	 
	 

	 	Title:    Managing Director	 	 

[Signature Page to Equity Distribution Agreement]

 

 

SCHEDULE I

Permitted Free Writing Prospectuses

None.

 I-1

 

 

SCHEDULE II

Transactions subject to Sanctions

None.

 II-1

 

 

SCHEDULE III

Due Diligence Protocol

     Set forth below are guidelines for use by the Company and the Manager in connection with the
Manager’s continuous due diligence efforts in connection with the sale and distribution of the
Shares pursuant to the Agreement. For the avoidance of doubt, the Company has agreed that no sales
under the Agreement will be requested or made at any time the Company is, or could be deemed to be,
in possession of material non-public information with respect to the Company.

	 	1.	 	On or immediately prior to each Representation Date, in addition to the
documents provided pursuant to Sections 6(l), (m), (n) and (o) of the Agreement, the
Manager expects to conduct a due diligence call with the appropriate business,
financial and legal representatives of the Company.
	 
	 	2.	 	On the date of or promptly after the Company’s management report becomes
available for a given month (but no later than the last business day of the immediately
succeeding month), the Manager expects to conduct a due diligence call with the
appropriate business, financial, accounting and legal representatives of the Company
and that the Company shall provide the certificate referred to in Section 5(b) of the
Agreement.
	 
	 	3.	 	In the event that the Company requests the Manager to sell on any one Trading
Day an amount of Shares that would be equal to or greater than 15% of the average daily
trading volume (calculated based on the most recent three completed Trading Days) of
the Company’s common stock, the Manager expects to conduct a due diligence call with
the appropriate business, financial, accounting and legal representatives of the
Company and that the Company shall provide the certificate referred to in Section 5(b)
of the Agreement.

     The foregoing is an expression of current intent only, and shall not in any manner limit the
Manager’s rights under the Agreement, including the Manager’s right to require such additional due
diligence procedures and document review as the Manager may reasonably request pursuant to the
Agreement.

 III-1

 

 

Exhibit A

[Morgan Stanley & Co. Incorporated Letterhead]

                    , 2010

TEXAS CAPITAL BANCSHARES, INC.

2000 McKinney Avenue

Suite 700

Dallas, Texas 75201

Attention:                     

VIA ELECTRONIC MAIL

TRANSACTION CONFIRMATION

Dear                     :

     This Confirmation sets forth the terms of the agreement of Morgan Stanley & Co. Incorporated
(the “Manager”) with Texas Capital Bancshares, Inc. (the “Company”) relating to the sale of shares
of the Company’s common stock, par value $0.01 per share, having an aggregate gross sales price of
up to $40,000,000 pursuant to the Equity Distribution Agreement between the Company and the
Manager, dated January 27, 2010 (the “Agreement”). Unless otherwise defined below, capitalized
terms defined in the Agreement shall have the same meanings when used herein.

     By countersigning or otherwise indicating in writing the Company’s acceptance of this
Confirmation (an “Acceptance”), the Company shall have agreed with the Manager to engage in the
following transaction:

	 	 	 
	Aggregate Gross Price of Shares to be sold:
	 	 
	 

	 	 
	 

	Minimum price at which Shares may be sold:
	 	 
	 

	 	 
	 

	Date(s) on which Shares may be sold:
	 	 
	 

	 	 
	 

	Compensation to Manager (if different than the Agreement):
	 	 
	 

	 	 

     The transaction set forth in this Confirmation will not be binding on the Company or the
Manager unless and until the Company delivers its Acceptance; provided, however, that neither the
Company nor the Manager will be bound by the terms of this Confirmation unless the

A-1

 

Company delivers its Acceptance by            a.m./p.m. (New York time) on [the date
hereof/                    , 2010].

     By delivering its Acceptance, the Company shall be deemed to have represented to the Manager
at the time of such Acceptance that the General Disclosure Package, as of the time of such
Acceptance, does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

     The transaction, if it becomes binding on the parties, shall be subject to all of the
representations, warranties, covenants and other terms and conditions of the Agreement, except to
the extent amended or modified hereby, all of which are expressly incorporated herein by reference.
Each of the representations and warranties set forth in the Agreement shall be deemed to have been
made at and as of every Time of Sale, every Settlement Date and every Representation Date.

     If the foregoing conforms to your understanding of our agreement, please so indicate your
Acceptance by signing below.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	MORGAN STANLEY & CO. INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

ACCEPTED as of the date

first above written

TEXAS CAPITAL BANCSHARES, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:	 	 
	Title:	 	 

[Note: The Company’s Acceptance may also be evidenced by a separate written acceptance referencing
this Confirmation and delivered in accordance with the Agreement]

A-2ex10_1.htm

     

     

    

     

    Second
Amended and Restated Unsecured Credit Agreement

     

    
      	
              Revolving
      Credit Commitment:

            	
              $150,000,000 

            
	
              Letter
      of Credit Commitment:

            	
              $9,000,0001

            
	
              Total
      Commitment

            	
              $159,000,000 

            

    

    

    Dated
as of January 26, 2010

    

    Among

     

    The
Empire District Electric Company
as
Borrower

     

    and

     

    UMB
Bank, N.A.

    Individually
And As Administrative Agent

     

    and

     

    Bank
of America, N.A.

    Individually
And As Syndication Agent

     

    and

     

    Wells
Fargo Bank, N.A.

    Individually
And As Documentation Agent

     

    and

     

    The
Other Financial Institutions Party Hereto

    as
Banks

     

    Arranged
By

    UMB
Bank, N.A.

    

    

      

    

      
      1 Original commitment of $76,000,000 has
been reduced to $9,000,000 pursuant to the terms of the originally issued letter
of credit and the terms of this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                Section
      1.

              	
                Definitions

              	
                1

              
	
                1.1.

              	
                Certain
      Definitions

              	
                1

              
	
                1.2.

              	
                Interpretation

              	
                7

              
	
                Section
      2.

              	
                The
      Credit.

              	
                8

              
	
                2.1.

              	
                Loans

              	
                8

              
	
                2.2.

              	
                Revolving
      Credit Commitments and Letter of Credit Commitments

              	
                9

              
	
                2.3.

              	
                Procedure
      For Borrowing on Revolving Credit Notes

              	
                10

              
	
                2.4.

              	
                Letter
      of Credit.

              	
                10

              
	
                Section
      3.

              	
                Interest

              	
                12

              
	
                3.1.

              	
                Elections

              	
                12

              
	
                3.2.

              	
                ABR
      Portions

              	
                13

              
	
                3.3.

              	
                LIBOR
      Portions

              	
                13

              
	
                3.4.

              	
                Computation

              	
                13

              
	
                3.5.

              	
                Minimum
      Amounts

              	
                13

              
	
                3.6.

              	
                Manner
      of Rate Selection

              	
                14

              
	
                3.7.

              	
                Lawful
      Rate

              	
                14

              
	
                3.8.

              	
                Schedule
      B

              	
                14

              
	
                Section
      4.

              	
                Fees,
      Prepayments, Terminations and Application of Payments

              	
                15

              
	
                4.1.

              	
                Facility
      Fee

              	
                15

              
	
                4.2.

              	
                Usage
      Fee

              	
                15

              
	
                4.3.

              	
                Letter
      of Credit Fees

              	
                15

              
	
                4.4.

              	
                Agent’s
      Fee

              	
                15

              
	
                4.5.

              	
                Prepayments

              	
                16

              
	
                4.6.

              	
                Credit
      Reductions

              	
                16

              
	
                4.7.

              	
                Place
      and Application of Payments

              	
                16

              
	
                4.8.

              	
                Capital
      Adequacy

              	
                17

              
	
                4.9.

              	
                Upfront
      Fees

              	
                17

              
	
                Section
      5.

              	
                Conditions
      Precedent.

              	
                17

              
	
                5.1.

              	
                Initial
      Extension of Credit

              	
                17

              
	
                5.2.

              	
                Each
      Extension of Credit Under a Revolving Credit Note

              	
                18

              
	
                Section
      6.

              	
                Representations
      and Warranties

              	
                18

              
	
                6.1.

              	
                Organization
      and Qualification

              	
                18

              
	
                6.2.

              	
                Subsidiaries

              	
                18

              
	
                6.3.

              	
                Financial
      Reports

              	
                19

              
	
                6.4.

              	
                No
      Material Adverse Change

              	
                19

              
	
                6.5.

              	
                Litigation;
      Tax Returns; Approvals

              	
                19

              
	
                6.6.

              	
                Regulation
      U

              	
                19

              
	
                6.7.

              	
                No
      Default

              	
                19

              
	
                6.8.

              	
                ERISA

              	
                19

              
	
                6.9.

              	
                Full
      Disclosure

              	
                19

              
	
                6.10.

              	
                Corporate
      Authority and Validity of Obligations

              	
                19

              
	
                6.11.

              	
                No
      Default Under Other Agreements

              	
                20

              
	
                6.12.

              	
                Status
      Under Certain Laws

              	
                20

              
	
                6.13.

              	
                Compliance
      with Laws

              	
                20

              
	
                6.14.

              	
                Ownership
      of Property

              	
                20

              
	
                6.15.

              	
                Solvency

              	
                20

              
	
                6.16.

              	
                Pari
      Passu

              	
                20

              
	
                Section
      7.

              	
                Covenants

              	
                21

              
	
                7.1.

              	
                Maintenance
      of Property

              	
                21

              
	
                7.2.

              	
                Taxes

              	
                21

              
	
                7.3.

              	
                Maintenance
      of Insurance

              	
                21

              
	
                7.4.

              	
                Financial
      Reports

              	
                21

              
	
                7.5.

              	
                Inspection

              	
                22

              
	
                7.6.

              	
                Consolidation,
      Merger and Sale of Assets

              	
                22

              

      

       

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                7.7.

              	
                Liens

              	
                22

              
	
                7.8.

              	
                Notice
      of Suit or Material Adverse Change in Business or Default

              	
                23

              
	
                7.9.

              	
                ERISA

              	
                24

              
	
                7.10.

              	
                Use
      of Proceeds

              	
                24

              
	
                7.11.

              	
                Compliance
      with Laws

              	
                24

              
	
                7.12.

              	
                Fiscal
      Year

              	
                24

              
	
                7.13.

              	
                Maintenance
      of Existence

              	
                24

              
	
                7.14.

              	
                Maximum
      Total Indebtedness to Total Capitalization Ratio

              	
                24

              
	
                7.15.

              	
                Minimum
      Interest Coverage Ratio

              	
                24

              
	
                7.16.

              	
                Acquisitions

              	
                24

              
	
                7.17.

              	
                Patriot
      Act

              	
                25

              
	
                Section
      8.

              	
                Events
      of Default and Remedies

              	
                25

              
	
                8.1.

              	
                Events
      of Default

              	
                25

              
	
                8.2.

              	
                Remedies
      for Non-Bankruptcy Defaults

              	
                26

              
	
                8.3.

              	
                Remedies
      for Bankruptcy Defaults

              	
                27

              
	
                Section
      9.

              	
                Change
      in Circumstances Regarding LIBOR Portions

              	
                27

              
	
                9.1.

              	
                Change
      of Law

              	
                27

              
	
                9.2.

              	
                Unavailability
      of Deposits or Inability to Ascertain

              	 
      
	 
      	
                the
      Adjusted LIBOR Rate

              	
                27

              
	
                9.3.

              	
                Taxes
      and Increased Costs

              	
                27

              
	
                9.4.

              	
                Funding
      Indemnity

              	
                28

              
	
                9.5.

              	
                Discretion
      of Bank as to Manner of Funding

              	
                29

              
	
                Section
      10.

              	
                The
      Administrative Agent

              	
                29

              
	
                10.1.

              	
                Appointment
      and Powers

              	
                29

              
	
                10.2.

              	
                Powers

              	
                29

              
	
                10.3.

              	
                General
      Immunity

              	
                29

              
	
                10.4.

              	
                No
      Responsibility for Loans, Recitals, etc.

              	
                29

              
	
                10.5.

              	
                Right
      to Indemnity

              	
                30

              
	
                10.6.

              	
                Action
      Upon Instructions of Required Banks

              	
                30

              
	
                10.7.

              	
                Employment
      of Agents and Counsel

              	
                30

              
	
                10.8.

              	
                Reliance
      on Documents; Counsel

              	
                30

              
	
                10.9.

              	
                May
      Treat Payee as Owner

              	
                30

              
	
                10.10.

              	
                Agent’s
      Reimbursement

              	
                30

              
	
                10.11.

              	
                Rights
      as a Bank

              	
                30

              
	
                10.12.

              	
                Bank
      Credit Decision

              	
                31

              
	
                10.13.

              	
                Resignation
      of Agent

              	
                31

              
	
                10.14.

              	
                Duration
      of Agency

              	
                31

              
	
                Section
      11.

              	
                Miscellaneous

              	
                31

              
	
                11.1.

              	
                Amendments
      and Waivers

              	
                31

              
	
                11.2.

              	
                Waiver
      of Rights

              	
                32

              
	
                11.3.

              	
                Several
      Obligations

              	
                32

              
	
                11.4.

              	
                Non-Business
      Day

              	
                32

              
	
                11.5.

              	
                Documentary
      Taxes

              	
                32

              
	
                11.6.

              	
                Representations

              	
                32

              
	
                11.7.

              	
                Notices

              	
                33

              
	
                11.8.

              	
                Costs
      and Expenses; Indemnity

              	
                33

              
	
                11.9.

              	
                Counterparts

              	
                33

              
	
                11.10.

              	
                Successors
      and Assigns; Governing Law; Entire Agreement

              	
                33

              
	
                11.11.

              	
                No
      Joint Venture

              	
                34

              
	
                11.12.

              	
                Severability

              	
                34

              
	
                11.13.

              	
                Table
      of Contents and Headings

              	
                34

              
	
                11.14.

              	
                Sharing
      of Payments

              	
                34

              
	
                11.15.

              	
                Jurisdiction;
      Venue; Waiver of Jury Trial

              	
                34

              
	
                11.16.

              	
                Participants

              	
                34

              

      

       

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                11.17.

              	
                Assignment
      Agreements

              	
                35

              
	
                11.18.

              	
                Withholding
      Taxes

              	
                36

              
	
                11.19.

              	
                Confidentiality

              	
                37

              
	
                11.20.

              	
                Register

              	
                38

              
	
                11.21.

              	
                SPCs

              	
                38

              
	
                11.22.

              	
                Facsimile
      Signatures

              	
                38

              
	
                11.23.

              	
                Defaulting
      Bank

              	
                38

              
	
                11.24.

              	
                Statutory
      Statement

              	
                39

              

      

    

    

 

    
      EXHIBITS

      

      A-1      
Revolving Credit Note

      A-2       Letter
of Credit Note

      B           Pricing
Schedule

      C           Subsidiaries

      D-1        Kansas
Counsel’s Opinion Letter

      D-2        Missouri
Counsel’s Opinion Letter

      E           Compliance
Certificate

      F           Liens

      G           Notice
of Payment Request

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

    

    The
Empire District Electric Company

     

    Second
Amended and Restated Unsecured Credit Agreement

    Originally
Dated July 15, 2005

     

    January
26, 2010

    UMB Bank,
N.A.

    Kansas
City, Missouri

    

    Bank of
America, N.A.

    St.
Louis, Missouri

    

    Wells
Fargo Bank, N.A.

    Overland
Park, Kansas

    

    The Other
Financial Institutions Party Hereto

    

    This
Second Amendment and Restatement of that certain Unsecured Credit Agreement
between the parties hereto dated July 15, 2005 (the “Original Credit
Agreement”), is made as of this 26th day
of January, 2010 and amends and restates the Original Credit Agreement, as
previously amended and restated, in its entirety.  Unless the context
otherwise requires, all references to the Original Credit Agreement in any Loan
Document shall be deemed references to this Agreement.

     

    The
undersigned, The Empire District Electric Company, a Kansas corporation (the
“Company”) hereby applies to you for your several commitments, subject to all
the terms and conditions hereof and on the basis of representations and
warranties hereinafter set forth, to make an unsecured credit (the “Credit”)
including a revolving credit (“Revolving Credit”) and a Letter of Credit
facility available to the Company, all as more fully set forth
herein.  Each of you is hereinafter referred to individually as “Bank”
and collectively as “Banks.”  UMB Bank, N.A., in its individual
capacity is sometimes referred to herein as “UMB”, and in its capacity as
Administrative Agent for the Banks is hereinafter in such capacity referred to
as the “Agent” and in its capacity of issuer of the Letter of Credit is referred
to as L/C Issuer.  Bank of America, N.A. is also sometimes referred to
herein as “Syndication Agent” and Wells Fargo Bank, N.A. is also sometimes
referred to herein as “Documentation Agent.”  All capitalized terms
not defined in the text of this Agreement or the Letter of Credit are defined in
Section 1 hereof.

     

    
      	
              SECTION
      1.

            	
              Definitions.

            

    

     

    1.1.           Certain
Definitions.  The terms hereinafter set forth when used herein
shall have the following meanings:

     

    “ABR”
means a fluctuating rate of interest equal to the highest of (a) the Prime Rate,
(b) the sum of the Federal Funds Effective Rate most recently determined by
the Agent, plus one-half percent (1/2%) per annum or (c) the one (1) month LIBOR
rate plus one percent (1%) per annum.

     

    “ABR
Portion” shall have the meaning specified in Section 3.1 hereof.

     

    “Adjusted
LIBOR Rate” means a rate per annum determined pursuant to the following
formula:

    
    

     

    
      	 	 Adjusted LIBOR
      Rate =   	 LIBOR  Rate 
	 	 	 1 – Reserve
      Percentage

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Affiliate”
shall mean, for any Person, any other Person that directly or indirectly
controls, or is under common control with, or is controlled by, such
Person.  As used in this definition, “control” means the power,
directly or indirectly, to direct or cause the direction of management or
policies of a Person (through ownership of voting securities, by contract or
otherwise), provided that, in any event for purposes of this definition any
Person that owns directly or indirectly securities having ten percent (10%) or
more of the ordinary voting power for the election of directors of a corporation
or ten percent (10%) or more of the partnership or other ownership interests of
any other Person will be deemed to control such corporation or other
Person.

     

    “Agent”
shall have the meaning specified in the first paragraph of this
Agreement.

     

    “Agreement”
shall mean this Second Amended and Restated Credit Agreement as may be
supplemented and amended from time to time.

     

    “Applicable
Margin” shall mean on any date, (a) when used to determine the interest payable
on Loans comprising any LIBOR Portion or ABR Portion, the applicable number of
basis points set forth in the Pricing Schedule attached hereto as Exhibit B
and incorporated herein by reference under the heading for “Applicable Margin
for LIBOR Portions” or “Applicable Margin for ABR Portions,” as the case may be,
and (b) when used to determine the Facility Fee or the Usage Fee, the applicable
number of basis points set forth in such Pricing Schedule under such respective
titles.

     

    “Bank”
and “Banks” shall have the meanings specified in the first paragraph of this
Agreement.

     

    “Borrowing”
shall have the meaning set forth in Section 2.2 hereof.

     

    “Business
Day” shall mean any day, except Saturday or Sunday, on which banks are open for
business in Kansas City, Missouri or Chicago, Illinois, and, with respect to
LIBOR Portions, dealing in United States dollar deposits in London,
England.

     

    “Change
of Control” shall mean the occurrence after the date of this Agreement
of:  (i) any Person, or two or more Persons acting in concert,
acquiring beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended), directly or indirectly, of securities of the Company (or other
securities convertible into such securities) representing greater than
thirty-three and one-third percent (331⁄3%) of the combined voting power of all
securities of the Company entitled to vote in the election of directors; or (ii)
any Person, or two or more Persons acting in concert, acquiring by contract or
otherwise, or entering into a contract or arrangement which, upon consummation,
will result in its or their acquisition of, or control over, securities of the
Company (or other securities convertible into such securities) representing
greater than thirty-three and one-third percent (331⁄3%) of the combined voting
power of all securities of the Company entitled to vote in the election of
directors.

     

    “Closing
Date” shall mean January 26, 2010.

     

    “Commitment”
shall mean a Revolving Credit Commitment and a Letter of Credit Commitment of
any Bank.

     

    “Commitment
Percentage” shall mean a Revolving Credit Percentage or a Letter of Credit
Commitment Percentage, as applicable.

     

    “Credit”
shall have the meaning specified in the second paragraph of this
Agreement.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    “Credit
Termination Date” shall have the meaning set forth in Section 2.1
hereof.

     

    “Defaulting
Bank” shall mean any Bank that (a) fails to fund its portion of Loans to the
Company, (b) fails to pay any other amount required under the Agreement, (c) has
become insolvent or whose holding company or any affiliate has become insolvent,
or (d) has defaulted under other syndicated credit facilities.

     

    “Documentation
Agent” means Wells Fargo Bank, N.A.

     

    “EBITDA”
means, with reference to any period, Net Income for such period plus all amounts
deducted in arriving at such Net Income amount in respect of (a) Interest
Charges for such period, plus (b) foreign, federal, state and local income taxes
of the Company, and its Subsidiaries paid or accrued for such period, plus
(c) all amounts properly charged by the Company and its Subsidiaries for
depreciation and amortization of intangible assets during such
period.

     

    “Effective
Date” shall mean the later of (i) the Closing Date or (ii) if required, the date
as of which the Company receives the approval of the Kansas Corporation
Commission to enter into this Agreement.

     

    “Environmental
Laws” shall mean all federal, state and local environmental, health and safety
statutes and regulations, including without limitation all statutes and
regulations establishing quality criteria and standards for air, water, land and
toxic or hazardous wastes and substances.

     

    “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     

    “Event of
Default” shall mean any event or condition identified as such in
Section 8.1 hereof.

     

    “Exposure”
shall mean, as to any Bank, the sum of such Bank’s (a) unused Revolving
Credit Commitment and unused Letter of Credit Commitment, if any, and
(b) all outstanding Loans, if any.

     

    “FERC”
means the Federal Energy Regulatory Commission.

     

    “Federal
Funds Effective Rate” shall mean for any day, an interest rate per annum equal
to the weighted average of the rates on overnight federal funds transactions
with members of the Federal Reserve System arranged by federal funds brokers, as
published for such day by the Federal Reserve Bank of New York, or if such rate
is not so published for such day, the average of the quotations for such day on
such transactions received by the Agent from three (3) federal funds brokers of
recognized standing selected by it.

     

    “GAAP”
shall mean generally accepted accounting principles as in effect in the United
States on the date hereof applied by the Company on a basis consistent with the
preparation of the Audit Report referred to in Section 6.3 hereof.

     

    “Granting
Bank” shall have the meaning set forth in Section 11.21.

     

    “Indebtedness”
shall mean as of any time the same is to be determined, the aggregate
of:

     

    (a)           all
indebtedness with respect to borrowed money;

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (b)           all
reimbursement and other obligations with respect to letters of credit, banker’s
acceptances, customer advances and other extensions of credit whether or not
representing obligations for borrowed money;

     

    (c)           the
aggregate amount of capitalized lease obligations;

     

    (d)           all
indebtedness secured by any lien or any security interest on any Property,
whether or not the same would be classified as a liability on a balance
sheet;

     

    (e)           all
indebtedness representing the deferred purchase price of Property, but excluding
all trade payables incurred in the ordinary course of business; and

     

    (f)           all
guaranties, endorsements (other than any liability arising out of the
endorsement of items for deposit or collection in the ordinary course of
business) and other contingent obligations in respect of, or any obligations to
purchase or otherwise acquire, any of the foregoing.

     

    Indebtedness
of the Company shall be computed and determined, without duplication, on a
consolidated basis for the Company and its Subsidiaries after the elimination of
intercompany items in accordance with GAAP.  No portion of the Stated
Amount of the Letter of Credit shall be included in the computation of
Indebtedness except to the extent of any Letter of Credit Loan.

     

    “Interest
Charges” shall mean, with reference to any period, the sum of all interest
charges (including imputed interest charges with respect to capitalized lease
obligations, all amortization of debt discount and expense) of the Company and
its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP.

     

    “Interest
Coverage Ratio” shall mean, as of any time the same is to be determined, the
ratio of (a) consolidated EBITDA for the most recent four (4) fiscal quarters
then ended to (b) consolidated Interest Charges for such four (4) fiscal
quarters.

     

    “Interest
Period” shall mean (a) with respect to any LIBOR Portion, the period used for
the computation of interest commencing on the date the relevant LIBOR Portion is
made, continued or effected by conversion and concluding on the date one (1),
two (2) or three (3) months thereafter as selected by the Company in its notice
as provided herein; provided that all of the foregoing provisions relating to
Interest Periods are subject to the following:

     

    (a)           if
any Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period shall be extended to the next succeeding Business Day,
unless in the case of an Interest Period for a LIBOR Portion the result of such
extension would be to carry such Interest Period into another calendar month in
which event such Interest Period shall end on the immediately preceding Business
Day;

     

    (b)           no
Interest Period may extend beyond the Credit Termination Date;

     

    (c)           the
interest rate to be applicable to each LIBOR Portion for each Interest Period
shall apply from and including the first day of such Interest Period to but
excluding the last day thereof; and

     

    (d)           no
Interest Period may be selected if after giving effect thereto the Company will
be unable to make a principal payment scheduled to be made during

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    such
Interest Period without paying part of a LIBOR Portion on a date other than the
last day of the Interest Period applicable thereto.

     

    For
purposes of determining an Interest Period, a month means a period starting on
one day in a calendar month and ending on a numerically corresponding day in the
next calendar month; provided,
however, if an Interest Period begins on the last day of a month or if
there is no numerically corresponding day in the month in which an Interest
Period is to end, then such Interest Period shall end on the last Business Day
of such month.

     

    “L/C
Issuer” shall mean UMB Bank, N.A.

     

    “Letter
of Credit” shall have the meaning specified in Section 2.4(a)
hereof.

     

    “Letter
of Credit Commitment” and “Letter of Credit Commitments” shall have the meanings
specified in Section 2.2 hereof.

     

    “Letter
of Credit Commitment Percentage” shall have the meaning specified in Section 2.2
hereof.

     

    “Letter
of Credit Fee” shall have the meaning specified in Section 4.3
hereof.

     

    “Letter
of Credit Loans” shall have the meaning specified in Section 2.1
hereof.

     

    “Letter
of Credit Note” or “Letter of Credit Notes” shall have the meanings specified in
Section 2.2 hereof.

     

    “LIBOR
Index Rate” shall mean, for any Interest Period applicable to a LIBOR Portion,
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
period comparable to such Interest Period, which appears on Reuters Screen
LIBOR01 Page as of 11:00 a.m. (London, England time) on the day two (2) Business
Days before the commencement of such Interest Period.

     

    “LIBOR
Portion” shall have the meaning specified in Section 3.1 hereof.

     

    “LIBOR
Rate” shall mean for each Interest Period applicable to a LIBOR Portion,
(a) the LIBOR Index Rate for such Interest Period, if such rate is
available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic
average of the rates of interest per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) at which deposits in U.S. dollars in immediately
available funds are offered to the Agent at 11:00 a.m. (London, England time)
two (2) Business Days before the beginning of such Interest Period by three
(3) or more major banks in the London interbank market selected by the
Agent for a period equal to such Interest Period and in an amount equal or
comparable to the principal amount of the LIBOR Portion scheduled to be made by
the Agent during such Interest Period.

     

    “Loan”
shall mean either a Revolving Credit Loan or a Letter of Credit Loan and “Loans”
shall mean any two or more of the foregoing.

     

    “Loan
Documents” shall mean this Agreement and any and all exhibits hereto, each Note,
and any and all other agreements, instruments and documents heretofore or
hereafter executed and delivered to or in favor of and for the benefit of the
Agent and the Banks, or any of them, in connection with the Loans made and the
transactions contemplated under this Agreement, as the same may be amended,
revised, amended and restated, replaced, supplemented or otherwise modified from
time to time.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    “Material
Adverse Effect” shall mean a material adverse effect on (a) the business,
assets, liabilities, results of operations or financial condition of the Company
and its subsidiaries, taken as a whole, (b) the ability of the Company to
perform its obligations under this Agreement or any of the other Loan Documents
or (c) the validity or enforceability against the Company of this Agreement, any
of the other Loan Documents, or the rights and remedies of the Agent or the
Banks hereunder or thereunder.

     

    “Mortgage”
shall have the meaning specified in Section 7.7(i) hereof.

     

    “Net
Income” shall mean, with reference to any period, the net income (or net loss)
of the Company and its Subsidiaries for such period as computed on a
consolidated basis in accordance with GAAP.

     

    “Note”
shall mean a Revolving Credit Note or a Letter of Credit Note and “Notes” shall
mean any two or more of the foregoing.

     

    “PBGC”
shall mean the Pension Benefit Guaranty Corporation.

     

    “Person”
shall mean and include any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation,
institution, entity, party or government (whether federal, state, county, city,
municipal, or otherwise, including, without limitation, any instrumentality,
division, agency, body or department thereof).

     

    “Plan”
shall mean any employee benefit plan covering any officers or employees of the
Company or any Subsidiary, any benefits of which are, or are required to be,
guaranteed by the PBGC.

     

    “Pricing
Schedule” shall have the meaning as set forth in Section 3.8
hereof.

     

    “Prime
Rate” means for any day the rate of interest announced by UMB from time to time
as its prime commercial rate in effect on such day, with any change in the Prime
Rate resulting from a change in said prime commercial rate to be effective as of
the date of the relevant change in said prime commercial rate, such rate not
necessarily being the lowest rate charged by UMB to any customer.

     

    “Property”
shall mean all assets and properties of any nature whatsoever, whether real or
personal, tangible or intangible, including, without limitation, intellectual
property.

     

    “Quarterly
Compliance Certificate” shall have the meaning set forth in Section 7.4(c)
hereof.

     

    “Register”
shall have the meaning specified in Section 11.20 hereof.

     

    “Required
Banks” shall mean any Bank or Banks which in the aggregate hold at least
sixty-six and two-thirds percent (662⁄3%) of the Total Exposure.

     

    “Reserve
Percentage” means the daily arithmetic average maximum rate, expressed as a
decimal, at which reserves (including, without limitation, any supplemental,
marginal and emergency reserves) are imposed on members banks of the Federal
Reserve System during the applicable Interest Period by the Board of Governors
of the Federal Reserve System (or any successor) under Regulation D on
“eurocurrency liabilities” (as such term is defined in Regulation D), subject to
any amendments of such reserve requirement by such Board or its successor,
taking into account any transitional adjustments thereto.  For
purposes of this definition, the LIBOR Portions shall be deemed to be
eurocurrency liabilities
as defined in Regulation D without benefit or credit for any prorations,
exemptions or offsets under Regulation D.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    “Revolving
Credit” shall have the meaning specified in the second paragraph of this
Agreement.

     

    “Revolving
Credit Commitment” and “Revolving Credit Commitments” shall have the meanings
specified in Section 2.2 hereof.

     

    “Revolving
Credit Commitment Percentage” shall have the meaning specified in Section 2.2
hereof.

     

    “Revolving
Credit Loan” and “Revolving Credit Loans” shall have the meanings specified in
Section 2.1 hereof.

     

    “Revolving
Credit Note” or “Revolving Credit Notes” shall have the meanings specified in
Section 2.2 hereof.

     

    “SPC”
shall have the meaning set forth in Section 11.21.

     

    “Stated
Amount” shall have the meaning specified in section 2.4(a) hereof.

     

    “Subsidiary”
shall mean, for any Person, any corporation or other entity of which more than
fifty percent (50%) of the outstanding stock or comparable equity interests
having ordinary voting power for the election of the Board of Directors of such
corporation or similar governing body in the case of a non-corporate entity
(irrespective of whether or not, at the time, stock or other equity interests of
any other class or classes of such corporation or other entity shall have or
might have voting power by reason of the happening of any contingency) is at the
time directly or indirectly owned by such Person or by one or more of its
Subsidiaries.

     

    “Syndication
Agent” means Bank of America, N.A.

     

    “Total
Assets” means all assets of the Company as shown on its most recent quarterly or
annual consolidated balance sheet, as determined in accordance with
GAAP.

     

    “Total
Exposure” shall mean the aggregate Exposure for all Banks.

     

    “UMB”
shall have the meaning specified in the first paragraph of this
Agreement.

     

    1.2.           Interpretation.  Capitalized
terms defined elsewhere in this Agreement shall, unless otherwise specified,
have the meanings so ascribed to them in all provisions of this Agreement or the
Letter of Credit.  The foregoing definitions are equally applicable to
both the singular and plural forms of the terms defined.  All
references to time of day herein are references to Kansas City, Missouri time
unless otherwise specifically provided.  Where the character or amount
of any asset or liability or item of income or expense is required to be
determined or any consolidation or other accounting computation is required to
be made for the purposes of this Agreement, it shall be done in accordance with
GAAP except where such principles are inconsistent with the specific provisions
of this Agreement.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    SECTION
2.               The
Credit.

     

    2.1.           Loans.

     

    (a)               Subject
to all of the terms and conditions hereof, the Banks, except as otherwise
expressly provided herein, agree to continue to extend the Credit to the Company
of up to One Hundred Fifty-Nine Million Dollars ($159,000,000), One Hundred
Fifty Million Dollars ($150,000,000) of which may be borrowed by the Company in
its discretion from time to time, be repaid and borrowed again (“Revolving
Credit Loans”), during the period from the Closing Date to and including
January 26, 2013 (the “Credit Termination Date”) and up to Nine Million
Dollars ($9,000,000) of which may be borrowed and repaid (“Letter of Credit
Loans”) only in accordance with Section 2.4 hereof and the terms of the Letter
of Credit Notes (no amounts may be repaid and reborrowed on the Letter of Credit
Notes).  The aggregate amount of the Revolving Credit Loans
outstanding at any one time shall not exceed the Revolving Credit Commitments,
as in effect from time to time and the aggregate amount of the Letter of Credit
Loans outstanding at any one time shall not exceed the Letter of Credit
Commitments, as in effect from time to time.

     

    (b)               Loan
Rebalancing.  Immediately prior to the Effective Date,
$32,000,000 aggregate principal amount of Revolving Credit Loans were
outstanding under the Original Credit Agreement (the “Outstanding Loan
Amount”).  In order to continue such Revolving Credit Loans under this
Agreement on and after the Effective Date in accordance with the Revolving
Credit Commitments of the Banks as set forth in Section 2.2 hereof, (x)
effective immediately prior to the Effective Date, the Company shall be deemed
to have (i) repaid all Revolving Credit Loans outstanding under the Original
Credit Agreement pursuant to Section 4.5 of the Original Agreement and (ii)
terminated all Revolving Credit Commitments of the Banks under the Original
Credit Agreement pursuant to Section 4.6 of the Original Credit Agreement (which
commitments shall be replaced by the Revolving Credit Commitments of the Banks
hereunder pursuant to Section 2.2 hereof)  and (y) effective as of the
Effective Date, the Company shall be deemed to have borrowed Revolving Credit
Loans in an aggregate amount equal to the Outstanding Loan Amount from the Banks
hereunder in accordance with their respective Revolving Credit Commitments as
set forth in Section 2.2 hereof.

     

    In order to effectuate (and in full
satisfaction of) the foregoing (and without any requirement to comply with any
of the notice requirements set forth in the Original Credit Agreement or in this
Agreement): (x) each Bank that was not a party to the Original Credit Agreement
and each Bank that has increased its Revolving Credit Commitment under this
Agreement as compared to the Original Credit Agreement shall make available to
the Agent its pro rata share of the Outstanding Loan Amount (less, in the case
of a Bank that was party to the Original Credit Agreement, the portion of the
Outstanding Loan Amount owing to such Bank immediately prior to the Effective
Date), (y) the Agent shall remit to each Bank that was a party to the Original
Credit Agreement (but not a party hereto) and each Bank party hereto that has
reduced its Revolving Credit Commitment under this Agreement as compared to the
Original Credit Agreement its proportionate share of the payments referenced in
clause (x) above and (z) the Company shall pay to the Agent all accrued interest
and fees that accrued under the Original Credit Agreement up to but not
including the Effective Date and the Agent shall remit to each Bank that was a
party to the Original Credit Agreement its proportionate share of such
amounts.  After giving effect to the foregoing, all outstanding
Revolving Credit Loans shall be deemed to have been made hereunder on the
Effective Date and shall be considered LIBOR Portions, each with an Interest
Period ending on the date that is one (1) month following the Effective
Date.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    2.2.                         Revolving Credit Commitments and
Letter of Credit Commitments.  The respective maximum aggregate
principal amounts of the Credit (which is subject to reduction pursuant to
Section 4.6 hereof) at any one time separately for Revolving Credit Loans and
for Letter of Credit Loans outstanding and the percentage for each portion of
the Credit available at any time which each Bank agrees to make available to the
Company (its “Revolving Credit Commitment Percentage” or “Letter of Credit
Commitment Percentage,” as the case may be) are as follows (collectively, the
“Revolving Credit Commitments” and individually, a “Revolving Credit Commitment”
and collectively, the “Letter of Credit Commitments” and individually, a “Letter
of Credit Commitment,” as the case may be):

     

    
      	
              Revolving Credit
  Commitments

            
	 	 	 
	
              UMB
      Bank, N.A.

            	
              $28,000,000

            	
              18-2/3%

            
	 	 	 
	
              Bank
      of America, N.A.

            	
              $25,000,000

            	
              16-2/3%

            
	 	 	 
	
              Wells
      Fargo Bank, N.A.

            	
              $25,000,000

            	
              16-2/3%

            
	 	 	 
	
              Regions
      Bank

            	
              $24,000,000

            	
              16.0%

            
	 	 	 
	
              U.S.
      Bank, National Association

            	
              $24,000,000

            	
              16.0%

            
	 	 	 
	
              Arvest
      Bank

            	
              $24,000,000

            	
              16.0%

            
	 	 	 
	
              TOTAL

            	
              $150,000,000

            	
              100.00%

            

    

     

    
 

    
      	
              Letter of Credit
  Commitments

            
	 
      	 
      	 
      
	
              UMB
      Bank, N.A.

            	
              $1,498,500

            	
              16.65%

            
	 	 	 
	
              Bank
      of America, N.A.

            	
              $1,320,300

            	
              14.67%

            
	 	 	 
	
              M&I
      Marshall & Ilsley Bank

            	
              $1,320,300

            	
              14.67%

            
	 	 	 
	
              PNC
      Bank, National Association (formerly National City Bank of the
      Midwest)

            	
              $1,320,300

            	
              14.67%

            
	 	 	 
	
              U.S.
      Bank, National Association

            	
              $1,320,300

            	
              14.67%

            
	 	 	 
	
              Wells
      Fargo Bank, N.A.

            	
              $1,320,300

            	
              14.67%

            
	 	 	 
	
              Comerica
      Bank

            	
                 $900,000

            	
              10.00%

            
	 	 	 
	
              TOTAL

            	
              $9,000,000

            	
              100.00%

            
	 	 	 
	
              TOTAL
      COMMITMENTS:

            	
              $159,000,000

            	 
      

    

    

    The
obligations of the Banks hereunder are several and not joint and no Bank shall
under any circumstances be obligated to extend credit under the Credit in excess
of its Revolving Credit Commitment, its Letter of Credit Commitment or its
applicable Commitment Percentage of credit outstanding under the separate
portions of the Credit.

     

    All Loans
made by the Banks on the same date are hereinafter referred to as a
“Borrowing.”  Each Borrowing on a Revolving Credit Loan shall be in a
minimum amount as provided in Section 3.5 hereof and each Borrowing shall
be made pro rata by the Banks in accordance with their respective applicable
Commitment Percentages.  All Loans made by each Bank shall be
evidenced by a Revolving Credit Note or a Letter of Credit Note of the Company
(individually a “Revolving Credit Note” and collectively the “Revolving Credit
Notes” or a “Letter of Credit Note” and

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    collectively,
“Letter of Credit Notes,” as the case may be) payable to the order of such Bank
in the amount of its Revolving Credit Commitment or its Letter of Credit
Commitment, each Revolving Credit Note to be in the form (with appropriate
insertions) attached hereto as Exhibit A-1 and each Letter of Credit Note to be
in the form (with appropriate insertions) attached hereto as Exhibit
A-2.  Without regard to the face principal amount of each Note, the
actual principal amount at any time outstanding and owing by the Company on
account thereof during the period ending on the Credit Termination Date shall be
the sum of all advances then or theretofore made thereon less all principal
payments actually received thereon during such period.

     

    2.3.           Procedure For Borrowing on Revolving
Credit Notes.  The Company shall notify the Agent (which may be
written or oral, but which must be given prior to 11:00 a.m. (Kansas City time))
of the date (which may, subject to the immediately preceding parenthetical and
Section 3 hereof, be the date on which such notice is given) upon which it
requests that any advance be made to it under the Revolving Credit Commitments,
and the Agent shall promptly (but in any event not later than 2:00 p.m. Kansas
City time) notify each Bank in writing of its receipt of each such
notice.  Subject to all of the terms and conditions hereof, each Bank
shall make available to the Agent its share of each advance, and the proceeds of
each advance, to the extent received by the Agent from the Banks, shall be made
available to the Company at the office of the Agent in Kansas City and in funds
there current.  Each Loan from each Bank shall initially constitute
part of an ABR Portion except to the extent the Company has otherwise timely
elected a LIBOR Portion, all as provided in Section 3
hereof.  Unless the Agent shall have been notified by a Bank prior to
the date a Loan is to be made by such Bank hereunder that such Bank does not
intend to make its pro rata share of such Loan available to the Agent, the Agent
may assume that such Bank has made such share available to the Agent on such
date and the Agent may in reliance upon such assumption (but shall not be
required to) make available to the Company a corresponding amount.  If
such corresponding amount is not in fact made available to the Agent by such
Bank and the Agent has made such amount available to the Company such Bank shall
be deemed to be a Defaulting Bank and  the Agent shall be entitled to
receive such amount from such Defaulting Bank forthwith upon its demand (or, if
such Defaulting Bank fails to pay such amount forthwith upon such demand, to
recover such amount, together with interest thereon at the rate otherwise
applicable thereto under Section 3 hereof, from the Company and if not paid
by the Company the Agent shall have a priority right to set off such amount
against repayment of the Loans which are due the Defaulting Bank), together with
interest thereon in respect of each day during the period commencing on the date
such amount was made available to the Company and ending on but excluding the
date the Agent recovers such amount at the Federal Funds Effective Rate for each
day as determined by the Agent (or in the case of a day which is not a Business
Day, then for the preceding Business Day).  Nothing in this
Section 2.3 shall be deemed to permit any Bank to breach its obligations to
make Loans under this Agreement or to limit the Company’s claims against any
Bank for such breach.

     

    Each
request for any advance under the Revolving Credit Commitments will be deemed to
be a confirmation that no Event of Default has occurred and is
continuing.

     

    2.4.           Letter of
Credit.

     

    (a)               General
Terms.  Subject to the terms and conditions hereof, as part of
the Credit, the L/C Issuer has issued an irrevocable, standby letter of credit
dated March 6, 2006 (the “Letter of Credit”) for the account of the Company to
LSP Services Plum Point, LLC, as Project Management Company (“Beneficiary”), in
an initial aggregate undrawn face amount of up to Seventy-Six Million Dollars
($76,000,000) (the “Stated Amount”) as the same has been and may be further
reduced from time to time in accordance with the terms of the Letter of
Credit.  As of the Effective Date, the Stated Amount of the Letter of
Credit has been reduced to $9,000,000.  The Letter of Credit may be
transferred one or more times by the Beneficiary or its transferee or
transferees who may also direct the L/C Issuer on a case-by-case basis, as set
forth in the Letter of Credit, to not effect any scheduled
reduction.  The

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    Letter of
Credit has been issued by the L/C Issuer, but each Bank shall be obligated to
reimburse the L/C Issuer for such Bank’s Letter of Credit Commitment Percentage
of the amount of each drawing thereunder and, accordingly, each drawing on the
Letter of Credit shall constitute usage of the Letter of Credit Commitment of
each Bank pro rata in an amount equal to its Letter of Credit Commitment
Percentage.

     

    (b)               Application.  The
Company has previously executed an application for the Letter of Credit dated
March 6, 2006 (the “Application”).  In the event of any conflict
between the terms of the Application and the terms of this Agreement, the terms
of this Agreement shall control.  Notwithstanding anything contained
in the Application to the contrary:  (i) the Company shall pay fees in
connection with the Letter of Credit as set forth in Sections 4.1 and 4.3
hereof, and (ii) the L/C Issuer will not call for the funding by the Company of
any amount under the Letter of Credit before being presented with a drawing
thereunder.  The L/C Issuer will give notice of non-renewal before the
time necessary to prevent an automatic extension of the Letter of Credit if
before such required notice date (i) the expiration date of the Letter of Credit
if so extended would be after July 15, 2010, (ii) the Letter of Credit
Commitments have been terminated, or (iii) an Event of Default exists and the
Agent, at the request or with the consent of the Required Banks, has given the
L/C Issuer instructions not to so permit the extension of the expiration date of
the Letter of Credit.

     

    (c)               Reimbursement
Obligations.  Unless the Company advises the L/C Issuer that it
desires to directly pay any drawing on the Letter of Credit, all drawings on the
Letter of Credit shall be deemed to be requests for Letter of Credit Loans and a
Letter of Credit Loan shall be made in the amount of and on the date of each
such drawing.  Each Letter of Credit Loan from each Bank shall
initially bear interest at the ABR until and unless the Company makes a timely
election for such Loan to bear interest at a LIBOR rate as provided in
Section 3 hereof.  The obligation of the Company to reimburse the
L/C Issuer for all drawings under the Letter of Credit (“Reimbursement
Obligations”) shall be governed by the Application subject to the terms of the
Letter of Credit Note, except that if the Company desires to pay any drawing on
the Letter of Credit directly and not have such Letter of Credit deemed to be a
request for a Letter of Credit Loan, reimbursement shall be made by the Company
no later than 2:00 p.m. (Kansas City time) on the date when each drawing is to
be paid if the Company has been informed of such drawing by the L/C Issuer on or
before 11:30 a.m. (Kansas City time) on the date when such drawing is to be paid
or, if notice of such drawing is given to the Company after 11:30 a.m. (Kansas
City time) on the date when such drawing is to be paid, by 2:00 p.m. (Kansas
City time) on the following Business Day, in immediately available funds at the
Agent’s principal office in Kansas City, Missouri, or such other office as the
Agent may designate in writing to the Company.  If the Company does
not make any such reimbursement payment on the date due and the Banks fund their
participations therein in the manner set forth in Section 2.4(d) below, then all
payments thereafter received by the Agent in discharge of the relevant
Reimbursement Obligations shall be distributed in accordance with Section 2.4(d)
below.

     

    In the
event the expiration date of the Letter of Credit extends beyond July 15, 2010
for any reason and such date is not extended or renewed, the Company shall, not
later than July 15, 2010, or if an Event of Default has occurred and is
occurring, not later than the fifth (5th)
Business Day following a request by the Agent, at the direction of the Required
Banks, deposit with the Agent and pledge to the Banks cash or cash equivalents
equal to One Hundred Percent (100%) of the Available Amount of the Letter of
Credit then in effect in a form and substance and subject to documentation
reasonably acceptable to the Agent.  Such cash and cash equivalents
shall be held by Agent in a cash collateral account (the “Cash Collateral
Account”) maintained by the Agent.  The Cash Collateral Account shall
be in the name of Company and shall be pledged to, and subject to the control of
the Agent for the benefit of Agent and the Banks, in a manner reasonably
satisfactory to Agent.  The Company

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    hereby
pledges and grants to the Agent, on behalf of itself and the Banks, a security
interest in all such cash and cash equivalents held in the Cash Collateral
Account from time to time and all proceeds thereof, as security for the payment
of all amounts due in respect of the obligations under the Letter of
Credit.  All such cash and cash equivalents in the Cash Collateral
Account shall be released to the Company upon the cure of any such Events of
Default.  This paragraph shall constitute a security agreement under
applicable law.

     

    (d)               Participating
Interests.  Each Bank (other than the Bank acting as L/C Issuer
in issuing the Letter of Credit), by its acceptance hereof, severally agrees to
purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell to each
such Bank, an undivided percentage participating interest, to the extent of each
Bank’s Letter of Credit Commitment Percentage, in the Letter of Credit issued
by, and each Reimbursement Obligation owed to, the L/C Issuer.  Upon
any failure by the Company to pay any Reimbursement Obligation at the time
required, as set forth in Section 2.4(c) above, or if the L/C Issuer is required
at any time to return to the Company or to a trustee, receiver, liquidator,
custodian or other Person any portion of any payment of any Reimbursement
Obligation, each Bank shall, not later than the Business Day it receives a
certificate in the form of Exhibit G attached hereto from the L/C Issuer (with a
copy to the Agent) to such effect, if such certificate is received before 2:00
p.m. (Kansas City time), or not later than 2:00 p.m. (Kansas City time) the
following Business Day, if such certificate is received after such time, pay to
the Agent for the account of the L/C Issuer an amount equal to such Bank’s
Letter of Credit Commitment Percentage of such unpaid or recaptured
Reimbursement Obligation together with interest on such amount accrued from the
date the related payment was made by the L/C Issuer to the date of such payment
by such Bank at a rate per annum equal to the Federal Funds Effective Rate for
each such day.  Each such Bank shall thereafter be entitled to receive
its Letter of Credit Commitment Percentage of each payment received in respect
of the relevant Reimbursement Obligation and of interest paid thereon, with the
L/C Issuer retaining its Letter of Credit Commitment Percentage thereof as a
Bank hereunder.  The several obligations of the Banks to the L/C
Issuer under this Section 2.4 shall be absolute, irrevocable, and unconditional
under any and all circumstances whatsoever and shall not be subject to any
set-off, counterclaim or defense to payment which any Bank may have or have had
against the Company, the L/C Issuer, the Agent, any Bank or any other Person
whatsoever.  Without limiting the generality of the foregoing, such
obligations shall not be affected by any Default or Event of Default or by any
reduction or termination of any Commitment of any Bank, and each payment by a
Bank under this Section 2.4 shall be made without any offset, abatement,
withholding or reduction whatsoever.

     

    (e)               Indemnification.  The
Banks shall, to the extent of their respective Letter of Credit Commitment
Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the
Company) against any cost, expense (including reasonable counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result
from the L/C Issuer’s gross negligence or willful misconduct) that the L/C
Issuer may suffer or incur in connection with the Letter of Credit issued by
it.  The obligations of the Banks under this Section 2.4(e) and all
other parts of this Section 2.4 shall survive termination of this Agreement and
of the Application, the Letter of Credit, and all drafts and other documents
presented in connection with drawings thereunder.

     

    
      	
              SECTION
      3.

            	
              Interest.

            

    

     

    3.1.           Elections.  Subject
to all of the terms and conditions of this Section 3, portions of the principal
indebtedness evidenced by the Notes (all of the indebtedness evidenced by the
Notes bearing interest at the same rate for the same period of time being
hereinafter referred to as a “Portion”) may, at the election of the Company,
bear interest with reference to the ABR (the “ABR Portions”) or with reference
to the Adjusted LIBOR Rate (“LIBOR Portions”), and Portions may be

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    converted
from time to time from one basis to the other.  All of the
indebtedness evidenced by the Notes which is not part of a LIBOR Portion shall
constitute a single ABR Portion.  All of the indebtedness evidenced by
the Notes which bears interest with reference to a particular Adjusted LIBOR
Rate for a particular Interest Period shall constitute a single LIBOR
Portion.  The Company promises to pay interest on each Portion at the
rates and times specified in this Section 3.  Each Bank holding a Note
shall have a ratable interest in each Portion evidenced thereby.

     

    3.2.           ABR Portions.  Each
ABR Portion shall bear interest (which the Company promises to pay at the times
herein provided), at the rate per annum equal to the ABR as in effect from time
to time plus the Applicable Margin, as determined from time to time under the
Pricing Schedule set forth in Exhibit B attached hereto and hereby incorporated
by reference, provided that upon the occurrence of an Event of Default hereunder
such Portion shall, upon written notice from the Agent, bear interest (which the
Company promises to pay at the times hereinafter provided), whether before or
after judgment, for the period from the date such Event of Default occurred and
during the continuation thereof, at the rate per annum determined by adding two
percent (2%) to the interest rate which would otherwise be applicable thereto
from time to time.  Interest on the ABR Portions shall be payable in
arrears on the last day of each calendar quarter in each year, upon prepayment
of any ABR Portion and at maturity of the applicable Notes and default interest
shall be due and payable upon demand.

     

    3.3.           LIBOR
Portions.  Each LIBOR Portion shall bear interest (which the
Company promises to pay at the times herein provided) for each Interest Period
selected therefor at a rate per annum equal to the Adjusted LIBOR Rate for such
Interest Period plus the Applicable Margin, as determined from time to time
under the Pricing Schedule set forth in Exhibit B attached hereto, provided that
upon the occurrence of an Event of Default hereunder such Portion shall, upon
written notice from the Agent, bear interest (which the Company promises to pay
at the times hereinafter provided) whether before or after judgment, for the
period from the date such Event of Default occurred and during the continuation
thereof, through the end of the Interest Period then applicable thereto at the
rate per annum determined by adding two percent (2%) to the interest rate
otherwise applicable thereto, and effective at the end of such Interest Period
such LIBOR Portion shall automatically be converted into and added to the
applicable ABR Portion and shall thereafter bear interest at the interest rate
applicable to the applicable ABR Portion after default.  Interest on
each LIBOR Portion shall be due and payable on the last day of each Interest
Period applicable thereto and, at maturity of the applicable Notes, and default
interest shall be due and payable upon demand.  The Company shall
notify the Agent on or before 11:00 a.m. (Kansas City time) on the third
Business Day preceding the end of an Interest Period applicable to a LIBOR
Portion whether such LIBOR Portion (or any portion thereof) is to continue as a
LIBOR Portion, in which event the Company shall notify the Agent of the new
Interest Period selected therefor, and in the event the Company shall fail to so
notify the Agent, such LIBOR Portion shall automatically be converted into and
added to the applicable ABR Portion as of and on the last day of such Interest
Period.  The Agent shall promptly notify each Bank of each notice
received from the Company pursuant to the foregoing
provisions.  Anything contained herein to the contrary
notwithstanding, the obligation of the Banks to create, continue or effect by
conversion any LIBOR Portion shall be conditioned upon the fact that at such
time no Event of Default shall have occurred and be continuing.

     

    3.4.           Computation.  Interest
on the LIBOR Portions and all fees, charges and commissions due hereunder shall
be computed on the basis of a year of three hundred sixty (360) days for the
actual number of days elapsed.  All other interest on the Notes shall
be computed on the basis of a year of 365/366 days for the actual number of days
elapsed unless otherwise specifically provided in this Agreement.

     

    3.5.           Minimum
Amounts.  Each ABR Portion evidenced by Revolving Credit Notes
shall be in a minimum amount of $1,000,000 or such greater amount which is an
integral multiple of

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    $250,000.  Each
LIBOR Portion evidenced by Revolving Credit Notes shall be in a minimum amount
of $5,000,000 or such greater amount which is an integral multiple of
$1,000,000.

     

    3.6.           Manner of Rate
Selection.  The Company shall notify the Agent by
11:00 a.m. (Kansas City time) at least three (3) Business Days prior to the
date upon which it requests that any LIBOR Portion be created or continued or
that any part of an ABR Portion be converted into a LIBOR Portion (such notice
to specify in each instance the amount thereof and the Interest Period selected
therefor) and the Agent shall promptly advise each Bank of each such
notice.  If any request is made to convert a LIBOR Portion into an ABR
Portion, such conversion shall only be made so as to become effective as of the
last day of the Interest Period applicable thereto.  All requests for
the creation, continuance or conversion of Portions under this Agreement shall
be irrevocable.  Such requests may be written or oral and the Agent is
hereby authorized to honor telephonic requests for creations, continuances and
conversions received by it from any person purporting to be a person authorized
to act on behalf of the Company hereunder, the Company hereby indemnifying the
Agent and the Banks from any liability or loss ensuing from so
acting.

     

    3.7.           Lawful Rate.  All
agreements between the Company, the Agent and each of the Banks, whether now
existing or hereafter arising and whether written or oral, are expressly limited
so that in no event whatsoever, whether by reason of demand or acceleration of
the maturity of any of the indebtedness hereunder or otherwise, shall the amount
contracted for, charged, received, reserved, paid or agreed to be paid to the
Agent or each Bank for the use, forbearance, or detention of the funds advanced
hereunder or otherwise, or for the performance or payment of any covenant or
obligation contained in any Loan Document, exceed the highest lawful rate
permissible under applicable law (the “Highest Lawful Rate”), it being the
intent of the Company, the Agent and each of the Banks in the execution hereof
and of the Loan Documents to contract in strict accordance with any applicable
usury laws, if any.  If, as a result of any circumstances whatsoever,
performance by the Company of any provision hereof or of any of such documents,
at the time performance of such provision shall be due, shall involve exceeding
the limits of applicable usury laws or result in the Agent or any Bank having or
being deemed to have contracted for, charged, reserved or received interest (or
amounts deemed to be interest) in excess of the maximum, lawful rate or amount
of interest allowed by applicable law to be so contracted for, charged, reserved
or received by the Agent or such Bank, then the obligation to be performed by
the Company shall be reduced to the legal limit of such performance, and if,
from any such circumstance, the Agent or such Bank shall ever receive interest
or anything of value which might be deemed interest under applicable law which
would exceed the Highest Lawful Rate, such amount which would be unlawful
interest shall be refunded to the Company or, if permitted by applicable law and
such unlawful interest does not exceed the unpaid principal balance of the Notes
and the amounts owing on other obligations of the Company to the Agent or any
Bank under any Loan Document such unlawful interest may be applied to the
reduction of the principal amount owing on the Notes or the amounts owing on
other obligations of the Company to the Agent or any Bank under any Loan
Document.  All interest paid or agreed to be paid to the Agent or any
Bank shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full period of the indebtedness hereunder
until payment in full of the principal of the indebtedness hereunder (including
the period of any renewal or extension thereof) so that the interest on account
of the indebtedness hereunder for such full period shall not exceed the highest
amount permitted by applicable law.  This Section 3.7 shall control
all agreements between the Company, the Agent and the Banks.

     

    3.8.           Pricing
Schedule.  The Company shall be responsible to promptly give
written notice to the Agent of any change in its Moody’s Rating or its Standard
& Poors’ Rating for purposes of the Agent determining the Applicable Margins
pursuant to the Pricing Schedule set forth in Exhibit B attached hereto (the
“Pricing Schedule”).

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    SECTION
4.             Fees,
Prepayments, Terminations and Application of Payments.

     

    4.1.           Facility Fee.  For
the period from the Effective Date to and including the Credit Termination Date
(or July 15, 2010 in the case of the Letter of Credit), or such earlier date on
which the Credit is terminated in whole pursuant to Section 4.6 or any other
provision hereof, the Company shall pay to the Agent for the account of the
Banks, a facility fee with respect to the Revolving Credit (the “Revolving
Credit Facility Fee”) at the rate per annum as determined from time to time
under the Pricing Schedule set forth in Exhibit B attached hereto, multiplied by
the aggregate amount of all of the Revolving Credit Commitments and a facility
fee with respect to the Letter of Credit (the “Letter of Credit Facility Fee”)
at the rate per annum as determined from time to time in the Pricing Schedule
set forth in Exhibit B attached hereto multiplied by the aggregate amount of all
of the Letter of Credit Commitments (all calculated in each case after giving
effect to any reductions thereof as specified in Section 4.6 hereof and as if no
Loans are outstanding hereunder).  Such fees shall be payable in
arrears on the last day of each January, April, July and October and on the
Credit Termination Date (or July 15, 2010 in the case of the Letter of Credit),
unless the Credit is terminated in whole on an earlier date, in which event the
fees for the period from the date of the last payment made pursuant to this
Section 4.1 through the effective date of such termination in whole shall be
paid on the date of such earlier termination in whole.

     

    4.2.           Usage Fee.  For the
period from the Effective Date to and including the Credit Termination Date, or
such earlier date on which the Credit is terminated in whole pursuant to
Section 4.6 or any other provision hereof, the Company shall pay to the
Agent for the account of the Banks a usage fee with respect to the Revolving
Credit (the “Usage Fee”) at the rate per annum as determined from time to time
under the Pricing Schedule set forth in Exhibit B attached hereto, multiplied by
the aggregate amount of all of the Revolving Credit Commitments (calculated
after giving effect to any reductions thereof as specified in Section 4.6 hereof
and as if no Loans are outstanding hereunder) on any date on which the
outstanding Loans for all the Banks are less than thirty-three percent (33%) of
the total Revolving Credit Commitments.  Such fee shall be payable in
arrears on the last day of each January, April, July and October and on the
Credit Termination Date, unless the Credit is terminated in whole on an earlier
date, in which event the fees for the period from the date of the last payment
made pursuant to this Section 4.2 through the effective date of such termination
in whole shall be paid on the date of such earlier termination in
whole.

     

    4.3.           Letter of Credit
Fees.  Quarterly in arrears, on the last day of each January,
April, July and October, , commencing on the first such date occurring after the
date hereof, the Company shall pay to the Administrative Agent, for the ratable
benefit of the Banks in accordance with their Letter of Credit Commitment
Percentages, a letter of credit fee (the “Letter of Credit Fee”) at a rate per
annum as set forth in the Pricing Schedule attached hereto as Exhibit B
(computed on the basis of a year of 360 days and the actual number of days
elapsed) in effect during each day of such quarter, applied to the daily average
amount available for draws under the Letter of Credit during such
quarter.  In addition, the Company shall pay to the L/C Issuer for its
own account the L/C Issuer’s standard drawing, negotiation, amendment, and other
administrative fees for issuing the Letter of Credit as agreed by the Company
and the L/C Issuer from time to time.

     

    4.4.           Agent’s Fee.  The
Company shall pay to and for the sole account of the Agent such fees as the
Company and the Agent may agree upon in writing from time to
time.  Such fees shall be in addition to any fees and charges the
Agent may be entitled to receive hereunder or under the other Loan
Documents.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    4.5.           Prepayments.

     

    (a)               Optional Prepayments of ABR
Portions.  The Company shall have the privilege of prepaying
without premium or penalty and in whole or in part (but if in part, then in a
minimum principal amount of $1,000,000) the ABR Portion of any Loan at any time
upon prior telecopy or telephonic notice from the Company to the Agent on or
before 11:00 a.m. (Kansas City time) on the Business Day immediately preceding
such prepayment.

     

    (b)               Optional Prepayments of LIBOR
Portions.  The Company may prepay any LIBOR Portion, upon
written or telephonic notice (which telephonic notice shall be promptly
confirmed in writing by facsimile communication, telex or telegraph) by no later
than 11:00 a.m. (Kansas City time) on the third Business Day immediately
preceding the date of such prepayment from the Company to the Agent, such
prepayment to be made by the payment of the principal amount to be prepaid and
accrued interest thereon and any compensation required by Section 9.4 hereof, if
applicable; provided,
however, that any such prepayment in part shall be in a principal amount
of no less than $5,000,000 or such greater amount which is an integral multiple
of $1,000,000.

     

    (c)               Mandatory Prepayments of Excess
Borrowings.  If the outstanding principal amount of all
Revolving Credit Loans shall ever exceed the aggregate amount of all Revolving
Credit Commitments in effect from time to time or the outstanding principal
amount of all Letter of Credit Loans shall ever exceed the maximum principal
amount of all Letter of Credit Commitments in effect from time to time for any
reason, the Company shall immediately prepay Revolving Credit Loans and/or
Letter of Credit Loans, as the case may be, in such amount as shall be necessary
to eliminate such excess.

     

    4.6.           Credit
Reductions.  The Company shall have the right at any time upon
ten (10) Business Days’ prior notice to the Agent, which shall promptly give
notice to the Banks, to reduce the Revolving Credit in whole or in part (but if
in part, in a minimum principal amount of $5,000,000 or such greater amount
which is an integral multiple of $5,000,000); provided, however, that the
Company may not reduce any portion of the Revolving Credit which represents
outstanding Revolving Credit Loans.  Each such reduction in part shall
automatically terminate each Bank’s Revolving Credit Commitment by an amount
equal to its Revolving Credit Commitment Percentage of the amount of the
reduction.  The maximum amount of the Letter of Credit Loans which may
be outstanding shall be automatically reduced by the amounts and on the dates
set forth in the Letter of Credit.  Each such reduction in part shall
automatically terminate each Bank’s Letter of Credit Commitment by an amount
equal to its Letter of Credit Commitment Percentage of the amount of the
reduction.  Each Bank’s Letter of Credit Commitment shall also be
reduced by the amount of any payment of outstanding Letter of Credit Loans prior
to the date upon which payment thereof is due.

     

    4.7.           Place and Application of
Payments.  All payments by the Company hereunder shall be made
to the Agent at its office at 1010 Grand Boulevard, Kansas City, Missouri 64106
and in immediately available funds, prior to 2:00 p.m. (Kansas City time) on the
date of such payment.  Subject to Section 11.18 of this Agreement, all
such payments shall be made without setoff or counterclaim and without reduction
for, and free from, any and all present and future levies, imposts, duties,
fees, charges, deductions withholdings, restrictions or conditions of any nature
imposed by any government or any political subdivision or taxing authority
thereof.  Any payments received after 2:00 p.m. (Kansas City time)
shall be deemed received upon the following Business Day.  The Agent
shall remit to each Bank its proportionate share of each payment of principal,
interest and fees, owed to it, received by the Agent by 2:00 p.m. (Kansas City
time) on the same day of its receipt and its proportionate share of each such
payment received by the Agent after 2:00 p.m. (Kansas City time) on the Business
Day following its receipt by the Agent.  In the event the Agent does
not remit any amount to any Bank when required by the preceding sentence, the
Agent shall pay to such Bank interest on such amount until paid at a rate per
annum equal to the Federal Funds Effective Rate.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    Should
the Company be late in making any required payment hereunder, the Company hereby
authorizes the Agent to automatically debit any of its accounts with UMB for any
principal, interest and fees when due under the Notes or this Agreement and to
transfer the amount so debited from such account to the Agent for application as
herein provided.  The Agent shall notify the Company by telephonic
notice confirmed in writing of any such debit.

     

    4.8.           Capital
Adequacy.  If, after the Closing Date, any Bank or the Agent
shall have determined in good faith that the adoption after such date of any
applicable law, rule or regulation regarding capital adequacy, or any change
therein (including, without limitation, any revision in the Final Risk-Based
Capital Guidelines of the Board of Governors of the Federal Reserve System (12
CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the Office of the
Comptroller of the Currency (12 CFR Part 3, Appendix A), or in any other
applicable capital rules heretofore adopted and issued by any governmental
authority), 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 any Bank with any
request or directive regarding capital adequacy (whether or not having the force
of law) of any such authority, central bank or comparable agency, has or would
have the effect of reducing the rate of return on such Bank’s capital, or on the
capital of any corporation controlling such Bank, in each case as a consequence
of its obligations hereunder, to a level below that which such Bank would have
achieved but for such adoption, change or compliance (taking into consideration
such Bank’s policies with respect to capital adequacy) by an amount deemed by
such Bank to be material, then from time to time, within thirty (30) days after
demand by such Bank (with a copy to the Agent), the Company shall pay to such
Bank such additional amount or amounts as will compensate such Bank for such
reduction.

     

    4.9.           Upfront Fees.  On
the Effective Date, the Company shall pay to the Agent for the account of the
Banks an upfront fee (the “Upfront Fee”) for each Bank in the amount of its
Revolving Credit Commitment multiplied by sixty (60) basis points.

     

    
      	
              SECTION
      5.

            	
              Conditions
      Precedent.

            

    

     

    The
obligation of the Banks to make any Revolving Credit Loan pursuant hereto shall
be subject to the following conditions precedent set forth in Section 5.1 and
5.2 below:

     

    5.1.           Initial Extension of
Credit.  On or before the Effective Date:

     

    (a)               the
Company shall have delivered to the Agent for the benefit of the Banks in
sufficient counterparts for distribution to the Banks duly executed originals of
the following:

     

    (i)           the
Revolving Credit Notes;

     

    (ii)           good
standing certificates for the Company and each Subsidiary issued by its state of
organization, issued not more than thirty (30) days before the date of this
Agreement;

     

    (iii)           copies
of the Articles or Certificate of Incorporation, and all amendments thereto, of
the Company and each Subsidiary, certified by the Secretary of State of its
state of incorporation to the extent any of such documents have not previously
been provided to the Agent;

     

    (iv)           copies
of the By-Laws, and all amendments thereto, of the Company and each Subsidiary,
certified as true, correct and complete on the Effective Date, by the Secretary
or Assistant Secretary of the Company or such Subsidiary, as the
case

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    may be to
the extent any of such documents have not previously been provided to the
Agent;

     

    (v)           copies,
certified as true, correct and complete by the Secretary or Assistant Secretary
of the Company of resolutions regarding the transactions contemplated by this
Agreement, duly adopted by the Board of Directors of the Company and reasonably
satisfactory in form and substance to the Agent; and

     

    (vi)           an
incumbency and signature certificate for the Company satisfactory in form and
substance to the Agent;

     

    (b)               Prior
to the initial Loan hereunder, the Agent shall have received the favorable
written opinion of Anderson & Byrd, LLP, Kansas counsel to the Company,
substantially in the form of Exhibit D-1 attached hereto and the favorable
written opinion of Spencer, Scott & Dwyer, P.C., Missouri counsel to the
Company, substantially in the form of Exhibit D-2 attached hereto;

     

    (c)               The
Agent, the Syndication Agent, the Documentation Agent and each of the other
Banks shall have received all fees due and payable to each of them, specifically
including without limitation the Upfront Fees, on the Effective Date in
connection with the execution and delivery of this Agreement and the
transactions contemplated hereby; and

     

    (d)               All
of the conditions set forth in clause (a)(iii) and (iv) above are deemed to have
been satisfied on the Effective Date.

     

    5.2.           Each Extension of Credit Under a
Revolving Credit Note.  As of the time of the making of each
Revolving Credit Loan hereunder (including the initial Loan):

     

    (a)               no
Event of Default shall have occurred and be continuing;

     

    (b)               with
respect to any requested Revolving Credit Loan, after giving effect thereto the
aggregate principal amount of all outstanding Revolving Credit Loans shall not
exceed the aggregate Revolving Credit Commitments; and

     

    (c)               the
request by the Company for any Revolving Credit Loan pursuant hereto shall be
and constitute a warranty to the effect set forth in (a) and (b), above and that
the Compliance Certificate most recently delivered to the Banks is materially
correct.

     

    
      	
              SECTION
      6.

            	
              Representations and
      Warranties.

            

    

     

    As of the
Effective Date, and upon delivery of each Quarterly Compliance Certificate, the
Company represents and warrants to the Agent and the Banks as to itself and,
where the following representations and warranties apply to Subsidiaries, as to
each of its Subsidiaries, as follows:

     

    6.1.           Organization and
Qualification.  The Company is a corporation duly organized and
existing and in good standing under the laws of the State of Kansas, has full
and adequate corporate power to carry on its business as now conducted, and is
duly licensed or qualified in all jurisdictions wherein the nature of its
activities requires such licensing or qualification and in which the failure to
be so licensed or qualified would have a Material Adverse Effect.

     

    6.2.           Subsidiaries.  Each
Subsidiary is duly organized and existing under the laws of the jurisdiction of
its organization, has full and adequate corporate power to carry on its business
as now conducted and is duly licensed or qualified in all jurisdictions wherein
the nature of its business requires such licensing or qualification and the
failure to be so licensed or qualified would have a

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    Material
Adverse Effect.  The only Subsidiaries of the Company as of the
Closing Date are listed on Exhibit C hereto.

     

    6.3.           Financial
Reports.  The Company has heretofore delivered to the Banks a
copy of the Audit Report as of December 31, 2008 of the Company and its
Subsidiaries (the “Audit Report”).  The financial statements contained
in such Audit Report have been prepared in accordance with GAAP on a basis
consistent, except as otherwise noted therein, with that of the previous fiscal
year and fairly present, in all material respects, the financial position of the
Company and its Subsidiaries as of the date thereof, and the results of its
operations for the period covered thereby.  As of December 31, 2008,
the Company and its Subsidiaries had no material contingent liabilities other
than as indicated on said financial statements (including the notes
thereto).

     

    6.4.           No Material Adverse
Change.  Since December 31, 2008, there has been no material
adverse change in the business, operations or financial condition of the Company
and its Subsidiaries taken as a whole that has not been disclosed in writing to
the Banks.

     

    6.5.           Litigation; Tax Returns;
Approvals.  There is no litigation nor governmental proceeding
pending, nor to the knowledge of the Company threatened, against the Company or
any Subsidiary which could reasonably be expected to result in a Material
Adverse Effect.  All federal and state income tax returns and all
other material tax returns for the Company required to be filed have been filed
on a timely basis and all amounts required to be paid as shown by said returns
have been paid, except such amounts, if any, as are being contested in good
faith and by appropriate proceedings.  There are no pending or, to the
best of the Company’s knowledge, threatened objections to or controversies in
respect of the income tax returns of the Company for any fiscal year which could
reasonably be expected to have a Material Adverse Effect.  Except as
have already been obtained, no authorization, consent, license, exemption or
filing or registration with any court or governmental department, agency or
instrumentality, is necessary for the valid execution, delivery or performance
by the Company of the Loan Documents.

     

    6.6.           Regulation
U.  Neither the Company nor any Subsidiary is engaged in the
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System) and no part of the proceeds of any Loan made hereunder
will be used to purchase or carry any margin stock or to extend credit to others
for such a purpose.

     

    6.7.           No Default.  As of
the Closing Date, the Company is materially in compliance with all of the terms
and conditions of this Agreement, and no Event of Default exists under this
Agreement.

     

    6.8.           ERISA.  With
respect to each of the Plans, the Company and its Subsidiaries are in compliance
with ERISA to the extent applicable to them, other than such noncompliance that
would not reasonably be expected to result in a Material Adverse Effect and have
received no notice to the contrary from the PBGC or any other governmental
entity agency.

     

    6.9.           Full
Disclosure.  The written statements and information furnished
to the Agent and the Banks in connection with the negotiation of this Agreement
and the other Loan Documents and the commitments by the Banks to provide the
financing contemplated hereby do not contain any untrue statements of a material
fact or omit a material fact necessary to make the material statements contained
herein or therein not misleading, the Agent and the Banks acknowledging that as
to any projections furnished to the Agent and the Banks, the Company only
represents that the same were prepared on the basis of information and estimates
the Company believed to be reasonable.

     

    6.10.           Corporate Authority and Validity of
Obligations.  The Company has full corporate power and
authority to enter into this Agreement and the other Loan Documents, to make
the

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    Borrowings
herein provided for, to issue its Notes in evidence thereof, and to perform all
of its obligations hereunder and under the other Loan Documents.  The
Loan Documents delivered by the Company have been duly authorized, executed and
delivered by the Company and constitute valid and binding obligations of the
Company enforceable in accordance with their terms except as enforceability may
be limited by bankruptcy, insolvency, or similar laws affecting creditors’
rights generally and general principles of equity.  This Agreement and
the other Loan Documents do not, nor does the performance or observance by the
Company of any of the matters and things herein or therein provided for, (a)
contravene or constitute a default under (i) any provision of law or any
judgment, injunction, order or decree binding upon the Company or any provision
of the charter, articles of incorporation or by-laws of the Company or (ii) any
material covenant, indenture or agreement of or affecting the Company or any of
its Properties, except in the case of this clause (ii) for any such
contravention or default which could not be reasonably expected to result in a
Material Adverse Effect or (b) result in the creation or imposition of any lien,
security interest or other encumbrance on any Property of the
Company.

     

    6.11.           No Default Under Other
Agreements.  Neither the Company nor any Subsidiary is in
default with respect to any note, indenture, loan agreement, mortgage, lease,
deed or other agreement to which it is a party or by which it or its Property is
bound, which default might adversely affect the repayment of the Indebtedness,
obligations and liabilities under the Loan Documents, or any Bank’s or the
Agent’s rights under the Loan Documents or which could reasonably be expected to
have a Material Adverse Effect.

     

    6.12.           Status Under Certain
Laws.  Neither the Company nor any of its Subsidiaries is an
“investment company” or a person directly or indirectly controlled by or acting
on behalf of an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

     

    6.13.           Compliance with
Laws.  The Company and its Subsidiaries each are in compliance
with the requirements of all federal, state and local laws, rules and
regulations applicable to or pertaining to their Properties or business
operations, including, without limitation, the Occupational Safety and Health
Act of 1970, the Americans with Disabilities Act of 1990, and Environmental
Laws, non-compliance with which could reasonably be expected to have a Material
Adverse Effect.  Neither the Company nor any Subsidiary has received
notice to the effect that its operations are not in compliance with any of the
requirements of applicable federal, state or local Environmental Laws, health
and safety statutes and regulations or are the subject of any governmental
investigation evaluating whether any remedial action is needed to respond to a
release of any toxic or hazardous waste or substance into the environment, which
non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

     

    6.14.           Ownership of
Property.  The Company and each of its Subsidiaries has good
record and marketable title in fee simple to, or valid leasehold interests in,
all real property necessary or used in the ordinary conduct of their respective
businesses except for such defects in title or interests as could not,
individually or in the aggregate, have a Material Adverse Effect.

     

    6.15.           Solvency.  The
Company and each of its Subsidiaries existing as of the date of this
Agreement:  (a) own, on a consolidated basis, assets, the fair
saleable value of which are (i) greater than the total amount of their
liabilities (including contingent liabilities) and (ii) greater than the amount
that will be required to pay their liabilities when they become due; (b) have,
on a consolidated basis, capital that is not unreasonably small in relation to
their respective business as presently conducted or after giving effect to any
contemplated transaction; and (c) do not intend to incur and do not believe that
they will incur debts beyond their ability to pay such debts as they become
due.

     

    6.16.           Pari Passu.  All
Loans of the Company incurred under or pursuant to this Agreement shall rank
pari passu with all other senior unsecured Indebtedness of the
Company.

     

    
      
         

      

      
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    SECTION
7.             Covenants.

     

    It is
understood and agreed that so long as any of the Credit is in use or available
under this Agreement or any amount remains unpaid on any Note except to the
extent compliance in any case or cases is waived in writing by the Required
Banks, the Company will be in compliance with all of the following:

     

    7.1.           Maintenance of
Property.  The Company will, and will cause each Subsidiary to,
keep and maintain all of its Properties necessary or useful in its business in
good condition, and make all necessary renewals, replacements, additions and
improvements thereto, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

     

    7.2.           Taxes.  The Company
will, and will cause each Subsidiary to, duly pay and discharge all material
taxes, rates, assessments, fees and governmental charges upon or against the
Company or any Subsidiary or against its Properties in each case before the same
becomes delinquent and before penalties accrue thereon unless and to the extent
that the same is being contested in good faith and by appropriate
proceedings.

     

    7.3.           Maintenance of
Insurance.  The Company will, and will cause each Subsidiary
to, maintain insurance with insurers recognized as financially sound and
reputable by prudent business persons in such forms and amounts and against such
risks as is usually carried by companies engaged in similar business and owning
similar Properties in the same general areas in which the Company or such
Subsidiary operates.  The Company shall provide the Agent with copies
of all insurance policies maintained by it upon the Agent’s
request.

     

    7.4.           Financial
Reports.  The Company will, and will cause each Subsidiary to,
maintain a system of accounting in accordance with sound accounting practice and
will furnish promptly, and in any event within thirty (30) days after the
receipt of a request, to each of the Banks and their duly authorized
representatives such information respecting the business and financial condition
of the Company and its Subsidiaries as may be reasonably requested by the Agent
or any Bank and, without any request, will furnish to each Bank:

     

    (a)               as
soon as available, and in any event within forty-five (45) days after the close
of each fiscal quarter other than the fourth fiscal quarter of the Company
commencing with the fiscal quarter ending March 31, 2010, a copy of the
unaudited consolidated balance sheets, income statements and cash flow
statements for the Company and its Subsidiaries for such quarterly period and
the fiscal year to date and for the corresponding periods of the preceding
fiscal year, all in reasonable detail, prepared by the Company (it being
understood that delivery to the Agent of the Company’s quarterly report on Form
10-Q filed with the Securities and Exchange Commission shall meet the
requirements of this Section 7.4(a)) and certified by the chief financial
officer of the Company;

     

    (b)               as
soon as available, and in any event within ninety (90) days after the close of
each fiscal year of the Company, a copy of the audit report (including an
unqualified opinion of the Company’s auditors) for such year and accompanying
financial statements, including consolidated balance sheets, statements of
stockholder equity, statements of income and statements of cash flow for the
Company and its Subsidiaries showing in comparative form the figures for the
previous fiscal year of the Company and its Subsidiaries, all in reasonable
detail, prepared and certified by PricewaterhouseCoopers LLP or other
independent certified public accountants of nationally recognized standing
selected by the Company and reasonably satisfactory to the Required Banks (it
being understood that delivery to the Agent of the Company’s annual report on
Form 10-K filed with the Securities and Exchange Commission shall meet the
requirements of this Section 7.4(b)); and

     

    
      
         

      

      
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    (c)               no
later than forty-five (45) days after the close of each of the first three
fiscal quarters of each fiscal year, commencing with the fiscal quarter ending
March 31, 2010, and for the fourth fiscal quarter, no later than ninety (90)
days after the close of each fiscal year, a Compliance Certificate in the form
of Exhibit E attached hereto (the “Quarterly Compliance Certificate”) prepared
and signed by the chief financial officer of the Company.

     

    If any of
the information referred to in this Section 7.4 is sent to the Agent, but for
any reason any Bank does not also receive it, the Agent will provide it to such
Bank promptly upon request.

     

    7.5.           Inspection.  Upon
reasonable notice and during normal business hours, the Company shall, and shall
cause each Subsidiary to, permit each of the Banks, by their representatives and
agents, to inspect any of the Properties, corporate books and financial records
of the Company and each Subsidiary, to examine and make copies of the books of
account and other financial records of the Company and each Subsidiary and to
discuss the affairs, finances and accounts of the Company and each Subsidiary
with, and to be advised as to the same by, its officers and employees at such
times and intervals as each Bank may reasonably request.  The Company
shall reimburse the Agent for any reasonable costs and expenses incurred by it
in connection with any such inspections.

     

    7.6.           Consolidation, Merger and Sale of
Assets.  The Company will not, and will not permit any
Subsidiary with assets valued at greater than Fifteen Million Dollars
($15,000,000) to, consolidate with or merge into any Person, or permit any other
Person to merge into it or sell or otherwise dispose of all or substantially all
of their respective Property, except that any Subsidiary may merge with and into
any other Subsidiary and except that any Person engaged in a regulated business
may be merged into the Company or any Subsidiary.  The Company shall
give written notice to the Banks of any such merger contemporaneously with its
consummation.

     

    7.7.           Liens.  The Company
will not and will not permit any Subsidiary with assets valued at greater than
Twenty-Five Million Dollars ($25,000,000) to pledge, mortgage or otherwise
encumber or subject to or permit to exist upon or be subjected to any lien,
charge or security interest of any kind (including any conditional sale or other
title retention agreement and any lease in the nature thereof), on any of its
Properties of any kind or character at any time owned by the Company or any
Subsidiary (collectively “Liens”), other than:

     

    (a)               Liens,
pledges or deposits for workers’ compensation, unemployment insurance, old age
benefits or social security obligations, taxes, assessments, statutory
obligations or other similar charges, good faith deposits made in connection
with tenders, contracts or leases to which the Company or a Subsidiary is a
party or other deposits required to be made in the ordinary course of business,
provided in each case the obligation secured is not overdue or, if overdue, is
being contested in good faith by appropriate proceedings and adequate reserves
have been provided therefor in accordance with GAAP and that the obligation is
not for borrowed money, customer advances, trade payables, or obligations to
agricultural producers;

     

    (b)               Liens
securing an appeal or stay or discharge in the course of any legal proceedings,
provided that the aggregate amount of liabilities of the Company or a Subsidiary
so secured by a pledge of Property permitted under this subsection (b) including
interest and penalties thereon, if any, shall not be in excess of $10,000,000 at
any one time outstanding;

     

    (c)               Liens
not otherwise permitted hereunder in an amount not in excess of $25,000,000 at
any time the same is to be determined;

     

    (d)               Liens
(and any replacements thereof without increase) existing on the date hereof and
disclosed in Exhibit F hereto;

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    (e)               Liens
securing Indebtedness incurred to finance, or which represents, the purchase
price of Property, provided (i) such Liens attach only to the Property financed
with such Indebtedness and (ii) the amount of such secured Indebtedness does not
exceed the purchase price of such Property plus any reasonable related fees and
costs;

     

    (f)               the
filing of financing statements solely as a precautionary measure in connection
with operating leases or other Liens permitted under this
Agreement;

     

    (g)               Liens
with respect to judgments which do not constitute Events of Default pursuant to
this Agreement;

     

    (h)               any
interest of a lessor in any Property subject to any lease entered into by the
Company or a Subsidiary in an amount not in excess of $7,500,000 at any time the
same is to be determined;

     

    (i)               Liens
securing Indebtedness under that certain Indenture of Mortgage and Deed of
Trust, dated as of September 1, 1944, as and to be amended and supplemented,
among the Company, The Bank of New York Mellon Trust Company, N.A. and UMB Bank
& Trust, N.A. (the “Mortgage”);

     

    (j)               any
Lien on Property of any Person existing at the time such Person is merged or
consolidated with or into the Company or a Subsidiary and not created in
contemplation of such event;

     

    (k)               any
Lien existing on any Property prior to the acquisition thereof by the Company or
a Subsidiary and not created in contemplation of such acquisition;

     

    (l)               Liens
incurred in connection with or related to the construction or purchase of
utility Property;

     

    (m)               the
replacement, extension or renewal of any Lien permitted by clauses (e), (j) or
(k) above upon or in the same Property theretofore subject thereto or the
replacement, extension or renewal (without increase in the amount or change in
any direct or contingent obligor) of the Indebtedness secured
thereby;

     

    (n)               Liens
securing the claims or demands of materialmen, mechanics, carriers,
warehousemen, landlords and other like persons for labor, materials, supplies or
rentals incurred in the ordinary course of the Company’s or a Subsidiary’s
business, but only if the payment thereof is not at the time past due or is
being contested in good faith and by appropriate proceedings with adequate
reserves maintained in accordance with GAAP;

     

    (o)               reservations,
exceptions, easements, rights of way, and other similar encumbrances affecting
real property, provided that they do not individually or in the aggregate
detract from the marketability of said properties or materially interfere with
their use in the ordinary course of the Company’s or a Subsidiary’s business as
permitted under the Mortgage; and

     

    (p)               Liens
incurred pursuant to Section 2.4(c) hereof.

     

    7.8.           Notice of Suit or Material Adverse
Change in Business or Default.  The Company shall, as soon as
possible, and in any event within fifteen (15) days after it learns of the
following, give written notice to the Banks of (a) any proceeding(s) being
instituted or threatened to be instituted by or against the Company or any
Subsidiary in any federal, state or local court or before any commission or
other regulatory body (federal, state or local) which could reasonably
be

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

    expected
to have a Material Adverse Effect and (b) the occurrence of any Event of
Default.  Failure of the Company to give any notice required by this
Section 7.8 shall have no effect upon the right of the Agent to declare any
Event of Default which may occur or exist at any time.

     

    7.9.           ERISA.  The Company
will, and will cause each Subsidiary to, promptly pay and discharge all
obligations and liabilities arising under ERISA of a character which if unpaid
or unperformed is likely to result in the imposition of a Lien against any of
its Property, and will promptly notify the Agent of (a) the occurrence of any
reportable event (as defined in ERISA) for which the notice requirement has not
been waived by the PBGC and which is reasonably likely to result in the
termination by the PBGC of any Plan, (b) receipt of any notice from PBGC of its
intention to seek termination of any such Plan or appointment of a trustee
therefor, and (c) its intention to terminate or withdraw from any Plan, other
than a “standard termination” meeting the requirements of Section 4041(b) of
ERISA.  The Company will not, and will not permit any Subsidiary to,
terminate any such Plan or withdraw therefrom unless it shall be in compliance
with all of the terms and conditions of this Agreement after giving effect to
any liability to PBGC resulting from such termination or
withdrawal.

     

    7.10.           Use of
Proceeds.  The Company shall use the proceeds of the Revolving
Credit Loans hereunder for working capital, general corporate purposes and to
back up the Company’s use of commercial paper and the proceeds of the Letter of
Credit Loans for purchase of a share of a coal generating plant being built near
Osceola, Arkansas, and for the payment of related construction
expenses.

     

    7.11.           Compliance with
Laws.  The Company will, and will cause each of its
Subsidiaries to, comply in all material respects with all applicable laws,
rules, regulations and orders, including Environmental Laws, except where the
failure to do so could not reasonably be expected to have a Material Adverse
Effect.

     

    7.12.           Fiscal Year.  The
Company shall not change its fiscal year.

     

    7.13.           Maintenance of
Existence.  The Company shall maintain its corporate existence
except for mergers permitted by Section 7.6 hereof.

     

    7.14.           Maximum Total Indebtedness to Total
Capitalization Ratio.  The Company will maintain as of the last
day of each fiscal quarter of the Company a ratio of Total Indebtedness to Total
Capitalization of not more than 0.625 to 1.  For purposes of this
Section 7.14, “Total Indebtedness” shall mean all Indebtedness of the Company
and its Subsidiaries on a consolidated basis but shall exclude all accounts
payable and expenses incurred in the ordinary course of the Company’s and its
respective Subsidiaries’ businesses and also shall exclude all obligations of
the Company and its Subsidiaries related to the issuance in 2001 of Trust
Preferred Securities by Empire District Electric Trust I; and “Total
Capitalization” shall mean the sum of Total Indebtedness and stockholders’
equity, preferred and preference stock and other securities included on the
consolidated balance sheet of the Company and its Subsidiaries including the
Junior Subordinated Debenture Securities issued in 2001 by the
Company.

     

    7.15.           Minimum Interest Coverage
Ratio.  The Company will maintain an Interest Coverage Ratio of
not less than 2.0 to 1 as of the last day of each fiscal quarter of the
Company.

     

    7.16.           Acquisitions.  During
the term of this Agreement, the Company will not, and will not permit any
Subsidiary to, (x) acquire any assets or equity interests of any other Person or
Persons engaged predominantly in an unregulated business activity unless the
aggregate consideration to be paid by the Company and its Subsidiaries in
connection with any such acquisition or acquisitions is, in the aggregate, less
than Eighty Million Dollars ($80,000,000) or (y) acquire all or part of a
regulated business; provided that in the case of this clause (y) any such
acquisition shall be permitted

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

    with the
consent of the Required Banks (not to be unreasonably withheld) if the Company
is in compliance with all financial covenants of this Agreement at the time of
such proposed acquisition and will be in compliance with such financial
covenants following consummation of such acquisition as evidenced by projected
financial information covering a minimum of an 18 month period after the
acquisition.  Such projections will be delivered to the Banks within a
reasonable time prior to entering into any written commitments for such
acquisition.

     

    7.17.           Patriot Act.  The
Agent 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
“Act”), and the Agent’s policies and practices, the Agent is required to obtain,
verify and record certain information and documentation that identifies the
Company, which information includes the name and address of the Company and such
other information that will allow the Agent to identify the Company in
accordance with the Act.

     

    The
Company shall (a) ensure, and cause each Subsidiary to ensure, that no Person
who owns a controlling interest in or otherwise controls the Company or any
Subsidiary is or shall be listed on the Specially Designated Nationals and
Blocked Person List or other similar lists maintained by the Office of Foreign
Assets Control (“OFAC”), the Department of the Treasury or included in any
Executive Orders, (b) not use or permit the use of the proceeds of the Loans to
violate any of the foreign asset control regulations of OFAC or any enabling
statute or Executive Order relating thereto, and (c) comply, and cause each
Subsidiary to comply, with all applicable Bank Secrecy Act laws and regulations,
as amended.

     

    
      	
              SECTION
      8.

            	
              Events of Default and
      Remedies.

            

    

     

    8.1.           Events of
Default.  Any one or more of the following shall constitute an
Event of Default:

     

    (a)               (i)
Default in the payment when due of any principal of any Note whether at the
stated maturity thereof or at any other time provided in this Agreement, or (ii)
default in the payment when due of any interest on any Note or any fee or other
amount payable pursuant to this Agreement which default shall continue
unremedied for one (1) Business Day.

     

    (b)               Default
in the observance or performance of any covenant set forth in Sections 7.3, 7.5,
7.6, 7.7, 7.10, 7.13, 7.14 and 7.15 hereof;

     

    (c)               Default
in the observance or performance of the covenants set forth in Section 7.4
and such default shall continue for ten (10) days after the earlier of (i) the
date on which such default first became known to a responsible officer of the
Company or (ii) written notice thereof to the Company by the
Agent;

     

    (d)               Default
in the observance or performance of any other covenant, condition, agreement or
provision hereof or any of the other Loan Documents and such default shall
continue for thirty (30) days after the earlier of (i) the date on which such
default first became known to a responsible officer of the Company or (ii)
written notice thereof to the Company by the Agent;

     

    (e)               Default
shall occur under any evidence of Indebtedness in a principal amount exceeding
$10,000,000 issued, assumed or guaranteed by the Company or any Subsidiary, or
under any mortgage, agreement or other similar instrument under which the same
may be issued or secured and such default shall continue for a period of time
sufficient to permit the acceleration of maturity of any Indebtedness evidenced
thereby or outstanding or secured thereunder;

     

    
      
         

      

      
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    (f)               Any
representation or warranty made by the Company herein or in any Loan Document or
in any statement or certificate furnished by it pursuant hereto or thereto,
proves untrue in any material respect as of the date made or deemed made
pursuant to the terms hereof;

     

    (g)               Any
judgment or judgments, writ or writs, or warrant or warrants of attachment, or
any similar process or processes in an aggregate amount in excess of $10,000,000
which is not covered by insurance issued by an insurer that has acknowledged its
liability thereon shall be entered or filed against the Company, or any
Subsidiary or against any of their respective Property or assets and remain
unpaid, unbonded, unstayed and undischarged for a period of sixty (60) days from
the date of its entry;

     

    (h)               (i)
Any reportable event (as defined in Section 4043 of ERISA and for which the
notice requirement has not been waived pursuant to any applicable regulations
promulgated thereunder) which results in the PBGC instituting proceedings to
terminate any Plan of the Company or (ii) the appointment by the appropriate
United States District Court of a trustee to administer or liquidate any such
Plan shall have been made pursuant to Title IV of ERISA and continues for thirty
(30) days after written notice to such effect shall have been given to the
Company by the Agent or (iii) any such Plan shall be terminated other than in a
“standard termination” meeting the requirements of Section 4041(b) of
ERISA;

     

    (i)               The
Company shall (i) have entered involuntarily against it an order for relief
under the Bankruptcy Code of 1978, as amended, (ii) admit in writing its
inability to pay or not pay, its debts generally as they become due (iii) make
an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or
acquiesce in, the appointment of a receiver, custodian, trustee, conservator,
liquidator or similar official for it or any substantial part of its Property
or, (v) file a petition seeking relief or institute any proceeding seeking to
have entered against it an order for relief under the Bankruptcy Code of 1978,
as amended, to adjudicate it insolvent, or seeking dissolution, winding up,
liquidation, reorganization, arrangement, marshalling of assets, adjustment or
composition of its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors;

     

    (j)               (i)  A
custodian, receiver, trustee, conservator, liquidator or similar official shall
be appointed for the Company or any substantial part of its Property, (ii) a
final order of condemnation shall be entered in a court of appropriate
jurisdiction against any substantial amount of the Company’s Property, the loss
of the use of which would have a Materially Adverse Effect, or (iii) a
proceeding described in Section 8.1(i)(iv) shall be instituted against the
Company and such appointment continues undischarged or any such proceeding
continues undismissed or unstayed for a period of sixty (60) days;

     

    (k)               A
Change of Control shall occur; or

     

    (l)               The
revocation or other loss after all available appeals have been taken or
administrative proceedings have been completed of any permit or other
governmental authority the revocation or loss of which would have a Materially
Adverse Effect.

     

    8.2.           Remedies for Non-Bankruptcy
Defaults.  When any Event of Default, other than an Event of
Default described in subsections (i) and (j) of Section 8.1 hereof, has occurred
and is continuing, the Agent, if directed by the Required Banks, shall give
notice to the Company and take any or all of the following
actions:  (a) terminate the remaining Commitments hereunder on the
date (which may be the date thereof) stated in such notice and as of such date
notify the Company and the Beneficiary of the Letter of Credit that the
Expiration Date of the Letter of Credit will not be extended, (b) declare the
principal of and the accrued interest on the Notes to be forthwith due and
payable and thereupon the Notes including both principal and interest, shall be
and become

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

    immediately
due and payable without further demand, presentment, protest or notice of any
kind, and (c) take any action or exercise any remedy under any of the Loan
Documents or exercise any other action, right, power or remedy permitted by
law.  Any Bank may, without prior notice to the Company, exercise the
right of set off with regard to any deposit accounts or other accounts or
investments maintained by the Company with such Bank upon the occurrence and
continuation of an Event of Default if notice of such Event of Default has been
given by the Agent to the Company upon the direction of the Required
Banks.

     

    8.3.           Remedies for Bankruptcy
Defaults.  When any Event of Default described in subsections
(h) or (i) of Section 8.1 hereof has occurred and is continuing, then the Notes
shall immediately become due and payable without presentment, demand, protest or
notice of any kind, and the obligation of the Banks to extend further credit or
extend the Expiration Date of the Letter of Credit  pursuant to any of
the terms hereof or the Letter of Credit shall immediately
terminate.

     

    
      	
              SECTION
      9.

            	
              Change in Circumstances
      Regarding LIBOR Portions.

            

    

     

    9.1.           Change of
Law.  Notwithstanding any other provisions of this Agreement or
any Note to the contrary, if with respect to LIBOR Portions, any Bank shall
determine in good faith that any change in applicable law or regulation or in
the interpretation thereof at any time after the Closing Date makes it unlawful
for such Bank to create or continue to maintain any LIBOR Portion or to give
effect to its obligations to create, continue or convert LIBOR Portions as
contemplated hereby, such Bank shall promptly give notice thereof to the Company
and to the Agent to such effect, and such Bank’s obligation to create, continue
or convert any such affected LIBOR Portions under this Agreement shall terminate
until it is no longer unlawful for such Bank to create or maintain such affected
Portion.  The Company shall prepay the outstanding principal amount of
any such affected LIBOR Portion made to it, together with all interest accrued
thereon and all other amounts due and payable to such Bank under Section 9.4 of
this Agreement, on the earlier of the last day of the Interest Period applicable
thereto and the first day on which it is illegal for such Bank to have such
LIBOR Portion outstanding; provided, however, the
Company may convert the affected LIBOR Portions into an ABR Portion, subject to
all of the terms and conditions of this Agreement.

     

    9.2.           Unavailability of Deposits or
Inability to Ascertain the Adjusted LIBOR
Rate.  Notwithstanding any other provision of this Agreement or
any Note to the contrary, if prior to the commencement of any Interest Period
any Bank shall determine (a) that deposits in the amount of any LIBOR Portion
scheduled to be outstanding are not available to them in the relevant market or
(b) by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Adjusted LIBOR Rate, then
such Banks shall give telephonic or telex notice thereof to the Company, the
Agent and the other Banks (such notice to be confirmed in writing), and the
obligation of the Banks to create, continue or convert any such LIBOR Portion in
such amount and for such Interest Period shall terminate until deposits in such
amount and for the Interest Period selected by the Company shall again be
readily available in the relevant market and adequate and reasonable means exist
for ascertaining the Adjusted LIBOR Rate.  Upon the giving of such
notice, the Company shall elect to either (i) pay or prepay, as the case may be,
such affected Portion or (ii) convert the affected LIBOR Portion into an ABR
Portion, subject to all terms and conditions of this Agreement.

     

    9.3.           Taxes and Increased
Costs.  (a)  With respect to the LIBOR Portions, if
any Bank shall determine in good faith that any change in any applicable law,
treaty, regulation or guideline (including, without limitation, Regulation D of
the Board of Governors of the Federal Reserve System) or any new law, treaty,
regulation or guideline, or any interpretation of any of the foregoing by any
governmental authority charged with the administration thereof or any central
bank or other fiscal, monetary or other authority having jurisdiction over such
Bank or the LIBOR Portions contemplated by this Agreement (whether or not having
the force of law) (“Change in Law”) shall:

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

    (i)           impose,
modify or deem applicable any reserve, special deposit or similar requirements
against assets held by, or deposits in or for the account of, or loans by, or
any other acquisition of funds or disbursements by, such Bank (other than
reserves included in the determination of the Adjusted LIBOR Rate);

     

    (ii)           subject
such Bank, any LIBOR Portion or any Note to any tax (including, without
limitation, any United States interest equalization tax or similar tax however
named applicable to the acquisition or holding of debt obligations and any
interest or penalties with respect thereto), duty, charge, stamp tax, fee,
deduction or withholding in respect of this Agreement, any LIBOR Portion or any
Note except such taxes (x) as may be measured by the overall net income of such
Bank and imposed by the jurisdiction, or any political subdivision or taxing
authority thereof, in which such Bank’s principal executive office is located,
and (y) any U.S. Taxes (as defined in Section 11.18(c) hereof) that are
deductible or otherwise directly payable by the Company, which shall be governed
exclusively by Section 11.18 hereof;

     

    (iii)           change
the basis of taxation of payments of principal and interest due from the Company
to such Bank hereunder or under any Note (other than by a change in taxation of
the overall net income of such Bank); or

     

    (iv)           impose
on such Bank any penalty with respect to the foregoing or any other condition
regarding this Agreement, any LIBOR Portion or any Note;

     

    (v)           and
such Bank shall determine that the result of any of the foregoing is to increase
the cost (whether by incurring a cost or adding to a cost) to such Bank of
making or maintaining any LIBOR Portion hereunder or to reduce the amount of
principal or interest received by such Bank, in either case by an amount
determined by such Bank to be material, then the Company shall pay to such Bank
from time to time as specified by such Bank such additional amounts as such Bank
shall reasonably determine are sufficient to compensate and indemnify it for
such increased cost or reduced amount.  If any Bank makes such a claim
for compensation, it shall provide to the Company a certificate setting forth
such increased cost or reduced amount as a result of any event mentioned herein
specifying such Change in Law, and such certificate shall be conclusive and
binding on the Company as to the amount thereof, absent manifest
error.

     

    (b)               In
the event any Bank requires payment under Section 4.8 or 11.18 hereof, delivers
a certificate pursuant to subsection (a) above or gives notice under Section 9.1
that it will not fund or maintain LIBOR Portions, the Company may require, at
its expense, such Bank to assign (in accordance with Section 11.17 hereof) all
its interests, rights and obligations hereunder (including all of its Commitment
and the Loans at the time owing to it, and the Notes held by it), to one or more
financial institutions specified by the Company (each a “Substitute Bank”),
provided that (i) such assignment shall not conflict with or violate any law,
rule or regulation or order of any court or other governmental agency or
instrumentality, (ii) the Agent shall assist the Company in finding a Substitute
Bank that is reasonably acceptable to the Company and the Agent and (iii) the
Company shall have paid to the assigning Bank all monies then due to it under
the Loan Documents (including pursuant to this Section 9.3 and Sections 4.8 and
11.18) with the Substitute Bank purchasing all accrued but not yet due
indebtedness, obligations and liabilities of the Company owed such assigning
Bank.

     

    9.4.           Funding
Indemnity.  (a) In the event any Bank shall incur any loss,
cost, expense or premium (including, without limitation, any loss, cost, expense
or premium incurred by reason of the

     

    
      
         

      

      
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    liquidation
or re-employment of deposits or other funds acquired by such Bank to fund or
maintain any LIBOR Portion or the relending or reinvesting of such deposits or
amounts paid or prepaid to such Bank) as a result of:

     

    (i)           any
conversion, payment or prepayment of a LIBOR Portion on a date other than the
last day of the then-applicable Interest Period; or

     

    (ii)           any
failure by the Company to borrow, continue or convert any LIBOR Portion on the
date specified in the notice given pursuant to Sections 3.3 or 3.6 hereof, then,
upon the demand of such Bank, the Company shall pay to such Bank such amount as
will reimburse such Bank for such loss, cost or expense.

     

    (b)               If
any Bank makes a claim for compensation under this Section 9.4, it shall provide
to the Company a certificate setting forth the amount of such loss, cost or
expense in a reasonable detail and such certificate shall be conclusive and
binding on the Company as to the amount thereof, absent manifest
error.

     

    9.5.           Discretion of Bank as to Manner of
Funding.  Notwithstanding any provision of this Agreement to
the contrary, each Bank shall be entitled to fund and maintain its funding of
all or any part of its Loans in any manner it sees fit, it being understood
however, that for the purposes of this Agreement, all determinations hereunder
shall be made as if the Banks had actually funded and maintained each LIBOR
Portion during each Interest Period for such LIBOR Portion through the purchase
of deposits in the relevant interbank market having a maturity corresponding to
such Interest Period and bearing an interest rate equal to the Adjusted LIBOR
Rate, for such Interest Period.

     

    
      	
              SECTION
      10.

            	
              The Administrative
      Agent.

            

    

     

    10.1.           Appointment and
Powers.  UMB is hereby appointed by the Banks as Administrative
Agent (the “Agent”) under the Loan Documents, and each of the Banks irrevocably
authorizes the Agent to act as the agent of such Bank.  The Agent
agrees to so act as such upon the express conditions contained in this
Agreement.

     

    10.2.           Powers.  The Agent
shall have and may exercise such powers hereunder as are specifically delegated
to the Agent by the terms of the Loan Documents, together with such powers as
are incidental thereto.  The Agent shall have no implied duties to the
Banks nor any obligation to the Banks to take any action under the Loan
Documents except any action specifically provided by the Loan Documents to be
taken by the Agent, and in no event shall the Agent have any fiduciary
responsibilities to any Bank.

     

    10.3.           General
Immunity.  Neither the Agent nor any of its directors,
officers, agents, representatives, consultants, advisors, counsel or employees
shall be liable to the Banks or any Bank for any action taken or omitted to be
taken by it or them under the Loan Documents or in connection therewith except
for its or their own gross negligence or willful misconduct.

     

    10.4.           No Responsibility for Loans,
Recitals, etc.  The Agent shall not (a) be responsible to the
Banks for any recitals, reports, statements, warranties or representations made
by the Company contained in the Loan Documents or furnished pursuant thereto,
(b) be responsible for any Loans of the other Banks hereunder, or
(c) be bound to ascertain or inquire as to the performance or observance of
any of the terms of the Loan Documents.  In addition, neither the
Agent nor its counsel shall be responsible to the Banks for the enforceability
or validity of any of the Loan Documents.

     

    
      
         

      

      
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    10.5.           Right to
Indemnity.  The Banks hereby indemnify the Agent for any
actions taken in accordance with this Section 10, and the Agent shall be fully
justified in failing or refusing to take any action hereunder unless it shall
first be indemnified to its satisfaction by the Banks pro rata in accordance
with their respective Exposures against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action,
other than any liability which may arise out of the Agent’s gross negligence or
willful misconduct.

     

    10.6.           Action Upon Instructions of Required
Banks.  The Agent agrees, upon the written request of the
Required Banks, to take any action of the type specified in the Loan Documents
as being within the Agent’s rights, duties, powers or discretion.  The
Agent shall in all cases be fully protected in acting, or in refraining from
acting, hereunder in accordance with written instructions signed by the Required
Banks (or all of the Banks, if the Loan Documents specifically require the
consent of all of the Banks), and such instructions and any action taken or
failure to act pursuant thereto shall be binding on all of the Banks and on all
holders of the Notes.  In the absence of a request by the Required
Banks, the Agent shall have authority, in its sole discretion, to take or not to
take any action, unless the Loan Documents specifically require the consent of
the Required Banks or all of the Banks.

     

    10.7.           Employment of Agents and
Counsel.  The Agent may execute any of its duties as Agent
hereunder by or through employees, agents, and attorneys-in-fact and shall not
be answerable to the Banks, except as to money or securities actually received
by it or its authorized agents, for the default or misconduct of any such agents
or attorneys-in-fact selected by it in good faith and with reasonable
care.  The Agent shall be entitled to act upon the advice and opinion
of legal counsel concerning all matters pertaining to the duties of the agencies
hereby created.

     

    10.8.           Reliance on Documents;
Counsel.  The Agent shall be entitled to rely upon any Note,
notice, consent, certificate, affidavit, letter, telegram, statement, paper or
document believed by it to be genuine and correct and to have been signed or
sent by the proper person or persons, and, in respect to legal matters, upon the
opinion of legal counsel selected by the Agent.

     

    10.9.           May Treat Payee as
Owner.  The Agent may deem and treat the payee of any Note as
the owner thereof for all purposes hereof unless and until a written notice of
the assignment or transfer thereof shall have been filed pursuant to Section
11.20 hereof with the Agent.  Any request, authority or consent of any
person, firm or corporation who at the time of making such request or giving
such authority or consent is the holder of any such Note shall be conclusive and
binding on any subsequent holder, transferee or assignee of such Note or of any
Note issued in exchange therefor.

     

    10.10.           Agent’s
Reimbursement.  Each Bank agrees to reimburse the Agent pro
rata in accordance with its Exposure for any reasonable out-of-pocket expenses
(including fees and charges for record inspections) not reimbursed by the
Company (a) for which the Agent is entitled to reimbursement by the Company
under the Loan Documents and (b) for any other reasonable expenses incurred by
the Agent on behalf of the Banks, in connection with the preparation, execution,
delivery, administration and enforcement of the Loan Documents, provided, however, that no
Bank shall be liable for any of the foregoing to the extent any of the foregoing
arise from the gross negligence or willful misconduct of the Agent.

     

    10.11.           Rights as a
Bank.  With respect to its Commitment, Loans made by it, the
Letter of Credit and the Notes issued to it, the Agent shall have the same
rights and powers hereunder as any Bank and may exercise the same as though it
were not the Agent, and the term “Bank” or “Banks” shall, unless the context
otherwise indicates, include the Agent in its individual
capacity.  Any of the Banks, including the Agent as if it were not the
Agent for the Banks, may accept deposits from, lend money to, and generally
engage in any kind of banking or trust business with the Company.

     

    
      
         

      

      
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    10.12.           Bank Credit
Decision.  Each Bank acknowledges that it has, independently
and without reliance upon the Agent, the Syndication Agent, the Documentation
Agent or any other Bank and based on the financial statements referred to in
Section 6.3 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into the Loan
Documents.  Each Bank also acknowledges that it will, independently
and without reliance upon the Agent or any other Bank 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
Documents.  The Agent, the Syndication Agent and the Documentation
Agent shall not have any right, power, obligation, liability, responsibility or
duty under this Agreement other than those applicable to all Banks as such
except as otherwise expressly stated herein.  Without limiting the
foregoing, the Agent, the Syndication Agent and the Documentation Agent shall
not have or be deemed to have any fiduciary duty to or fiduciary relationship
with any Bank.  In addition to the agreement set forth in this Section
10.12, each of the Banks agrees that it has not relied on, and will not rely on,
the Agent the Syndication Agent or the Documentation Agent or any other Bank, in
deciding to take or not to take any action hereunder.

     

    10.13.           Resignation of
Agent.  Subject to the appointment of a successor Agent, the
Agent may resign as Agent for the Banks under this Agreement and the other Loan
Documents at any time upon thirty (30) days’ notice in writing to the
Banks.  Such resignation shall take effect upon appointment of such
successor.  The Required Banks, with the consent of the Company
(unless an Event of Default shall have occurred and be continuing, in which
event the Company’s consent shall not be required) shall have the right to
appoint a successor Agent who shall be entitled to all of the rights of, and
vested with the same powers as, the original Agent under the Loan
Documents.  In the event a successor Agent shall not have been
appointed within the sixty (60) day period following the given of notice by the
Agent, the Agent may appoint its own successor.  Resignation by the
Agent shall not affect or impair the rights of the Agent under Sections 10.5 and
10.10 hereof with respect to all matters preceding such
resignation.  Any successor Agent must be a national banking
association or a bank chartered in any State of the United States, in each case
having capital and surplus of not less than $500,000,000, or one of the
Banks.

     

    10.14.           Duration of
Agency.  The agency established by Section 10.1 hereof shall
continue, and Sections 10.1 through and including this Section 10.14 shall
remain in full force and effect, until the Notes and all other amounts due
hereunder and thereunder shall have been paid in full and the Banks’ commitments
to extend credit to or for the benefit of the Company shall have terminated or
expired.

     

    
      	
              SECTION
      11.

            	
              Miscellaneous.

            

    

     

    11.1.           Amendments and
Waivers.  Any term, covenant, agreement or condition of this
Agreement and the other Loan Documents may be amended only by a written
amendment executed by the Company, the Required Banks and, if the rights or
duties of the Agent are affected thereby, the Agent, or compliance therewith
only may be waived (either generally or in a particular instance and either
retroactively or prospectively), if the Company shall have obtained the consent
in writing of the Required Banks and, if the rights or duties of the Agent are
affected thereby, the Agent, provided, however,
that

     

    (a)               without
the consent in writing of the holders of all outstanding Notes, or all Banks if
no Notes are outstanding, no such amendment or waiver shall (i) change the
amount or postpone the date of payment of any scheduled payment or required
prepayment of principal of the Notes at a time that the Company would not be
able to obtain a Loan or reduce the rate or extend the time of payment of
interest on the Notes, or reduce the amount of principal thereof, or modify any
of the provisions of the Notes with respect to the payment or prepayment
thereof, (ii) amend the definition of Required Banks, (iii) alter, modify
or amend the provisions of this Section 11.1, (iv) change the amount or term of
any of the

     

    
      
         

      

      
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    Banks’
Commitments or the fees required under Section 4 hereof or increase the
aggregate amount of all of the Banks’ Commitments, (v) alter, modify or amend
any Bank’s right hereunder to consent to any action, make any request or give
any notice, or (vi) alter, modify or amend the provisions of Section 5 of this
Agreement; and

     

    (b)               without
the consent of the Agent, no such amendment or waiver shall affect the rights of
the Agent under Section 10 hereof;

     

    (c)               except
to the extent provided in Sections 11.16 and 11.17, no such amendment or waiver
shall amend Section 2.2 hereof without the consent of UMB; and

     

    (d)               except
with the consent of all Banks which have a Letter of Credit Commitment the
expiration date of the Letter of Credit shall not be extended beyond July 15,
2010.

     

    Any such
amendment or waiver shall apply equally to all Banks and the holders of the
Notes and shall be binding upon them, upon each future holder of any Note and
upon the Company, whether or not such Note shall have been marked to indicate
such amendment or waiver.  No such amendment or waiver shall extend to
or affect any obligation not expressly amended or waived.

     

    11.2.           Waiver of
Rights.  No delay or failure on the part of the Agent or any
Bank or on the part of the holder or holders of any Note in the exercise of any
power or right shall operate as a waiver thereof, nor as an acquiescence in any
Event of Default, nor shall any single or partial exercise of any power or right
preclude any other or further exercise thereof, or the exercise of any other
power or right, and the rights and remedies hereunder of the Agent, the Banks
and of the holder or holders of any Notes are cumulative to, and not exclusive
of, any rights or remedies which any of them would otherwise have.

     

    11.3.           Several
Obligations.  The commitments of each of the Banks hereunder
shall be the several obligations of each Bank and the failure on the part of any
one or more of the Banks to perform hereunder shall not affect the obligation of
the other Banks hereunder, provided that nothing herein contained shall relieve
any Bank from any liability for its failure to so perform.  In the
event that any one or more of the Banks shall fail to perform its commitment
hereunder, all payments thereafter received by the Agent on the principal of
Loans hereunder, shall be distributed by the Agent to the Banks making such
additional Loans ratably as among them in accordance with the principal amount
of additional Loans made by them until such additional Loans shall have been
fully paid and satisfied.  All payments on account of interest shall
be applied as among all the Banks ratably in accordance with the amount of
interest owing to each of the Banks as of the date of the receipt of such
interest payment.

     

    11.4.           Non-Business
Day.  If any payment of principal or interest on any Loan shall
fall due on a day which is not a Business Day, interest at the rate such Loan
bears for the period prior to maturity shall continue to accrue on such
principal from the stated due date thereof to and including the next succeeding
Business Day on which the same is payable.

     

    11.5.           Documentary
Taxes.  The Company agrees to pay any documentary or similar
taxes, if any, with respect to the Loan Documents, including interest and
penalties, in the event any such taxes are assessed irrespective of when such
assessment is made and whether or not any credit is then in use or available
hereunder.

     

    11.6.           Representations.  All
representations and warranties made herein or in certificates given pursuant
hereto shall survive the execution and delivery of this Agreement and of the
Notes, and shall continue in full force and effect with respect to the date as
of which they were made and as

     

    
      
         

      

      
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    reaffirmed
by Quarterly Compliance Certificates as long as any credit is in use or
available hereunder.

     

    11.7.           Notices.  Unless
otherwise expressly provided herein, all communications provided for herein
shall be in writing or by telecopy and shall be deemed to have been given or
made when served personally, when confirmation of receipt is received in the
case of notice by telecopy, when actually delivered by a reputable courier
service or five (5) Business Days after the date when deposited in the United
States mail (registered, if to the Company) addressed, if to the Company to 602
S. Joplin Avenue; Joplin, Missouri  64801;
Attention:  Gregory A. Knapp (Telephone number (417) 625-6595,
Telecopy number (417) 625-5153); if to the Agent or UMB at 1010 Grand Boulevard;
Kansas City, Missouri  64106; Attention:  Charles J. Wolf
(Telephone number (816) 860-7130, Telecopy number (816) 860-7143); and, if to
any of the Banks, at the address for each Bank set forth under its signature
hereon; or at such other address as shall be designated by any party hereto in a
written notice to each other party pursuant to this Section 11.7.

     

    11.8.           Costs and Expenses;
Indemnity.    The Company agrees to pay on demand (i)
all reasonable costs and expenses of the Agent incurred in connection with the
negotiation, preparation, execution and delivery of this Agreement, the Notes,
the Letter of Credit and any other instruments and documents to be delivered
hereunder or in connection with the transactions contemplated hereby, including
the reasonable fees and expenses of Spencer Fane Britt & Browne LLP, counsel
to the Agent; (ii) all reasonable costs and expenses of the Agent (including
reasonable attorneys’ fees) incurred in connection with any consents or waivers
hereunder or amendments hereto; and (iii) all reasonable costs and expenses
(including reasonable attorneys’ fees), if any, incurred by the Agent, the Banks
or any other holders of a Note in connection with the enforcement of this
Agreement or the Notes and any other instruments and documents to be delivered
hereunder.  The Company agrees to indemnify and save harmless the
Banks and the Agent from any and all liabilities, losses, costs and expenses
incurred by the Banks or the Agent in connection with any action, suit or
proceeding brought against the Agent, the L/C Issuer or any Bank by any Person
which arises out of the transactions contemplated or provided for hereby, by the
Letter of Credit or by the Notes, or out of any action or inaction by the Agent,
L/C Issuer or any Bank hereunder or thereunder, except for such thereof as is
caused by the gross negligence or willful misconduct of the party
indemnified.

     

    (a)               The
provisions of this Section 11.8 and the protective provisions of
Section 9.4 hereof shall survive payment of the Notes and the termination
of the Banks’ Commitments hereunder.

     

    11.9.           Counterparts.  This
Agreement may be executed in any number of counterparts and all such
counterparts taken together shall be deemed to constitute one and the same
instrument.  This Agreement shall become effective as and when the
Agent, all of the Banks and the Company have executed this Agreement or a
counterpart thereof and delivered, except in the case of the Agent, the same to
the Agent.

     

    11.10.           Successors and Assigns; Governing
Law; Entire Agreement.  This Agreement shall be binding upon
each of the Company, the Agent and the Banks and their respective successors and
assigns, and shall inure to the benefit of the Company, the Agent and each of
the Banks and the benefit of their respective successors and assigns, including
any subsequent holder of any Note (in the case of the Banks and their respective
successors and assigns, to the extent provided in Sections 11.16 and 11.17
hereof).  This Agreement and the rights and duties of the parties
hereto shall be construed and determined in accordance with the laws of the
State of Missouri, except conflict of laws principles.  This Agreement
constitutes the entire understanding of the parties with respect to the subject
matter hereof and any prior agreements, whether written or oral, with respect to
the subject matter hereof are superseded hereby.  The Company may not
assign any of its rights or obligations hereunder without the written consent of
the Banks.

     

    
      
         

      

      
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    11.11.           No Joint
Venture.  Nothing contained in this Agreement shall be deemed
to create a partnership or joint venture among the parties hereto.

     

    11.12.           Severability.  In
the event that any term or provision hereof is determined to be unenforceable or
illegal, it shall be deemed severed herefrom to the extent of the illegality
and/or unenforceability and all other provisions hereof shall remain in full
force and effect.

     

    11.13.           Table of Contents and
Headings.  The table of contents and section headings in this
Agreement are for reference only and shall not affect the construction of any
provision hereof.

     

    11.14.           Sharing of
Payments.  Each Bank agrees with each other Bank that if such
Bank shall receive and retain any payments, whether by set-off or application of
deposit balances or otherwise (“Set-Off”), on any Loan or other amount
outstanding under this Agreement or the other Loan Documents in excess of its
ratable share of payments on all Loans and other amounts then outstanding to the
Banks, then such Bank shall purchase for cash at face value, but without
recourse (except for defects in title), ratably from each of the other Banks
such amount of the Loans held by each such other Bank (or interest therein) as
shall be necessary to cause such Bank to share such excess payment ratably with
all the other Banks; provided,
however, that if any such purchase is made by any Bank, and if such
excess payment or part thereof is thereafter recovered from such purchasing
Bank, the related purchases from the other Banks shall be rescinded ratably and
the purchase price restored as to the portion of such excess payment so
recovered, but without interest.  Each Bank’s ratable share of any
such Set-Off shall be determined by the proportion that the aggregate principal
amount of Loans and other amounts then due and payable to such Bank bears to the
total aggregate principal amount of Loans and other amounts then due and payable
to all the Banks.  This Section 11.14 is subject to the rights of the
Agent set forth in Section 2.3 hereof.

     

    11.15.           Jurisdiction; Venue; Waiver of Jury
Trial.  The Company hereby submits to the nonexclusive
jurisdiction of the United States District Court for the Western District of
Missouri and of any Missouri court sitting in Kansas City, Missouri, for
purposes of all legal proceedings arising out of or relating to this Agreement
or the transactions contemplated hereby.  The Company irrevocably
waives, to the fullest extent permitted by law, any objection which it may now
or hereafter have to the laying of venue of any such proceeding brought in such
a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.  The Company, the Agent and each
Bank hereby irrevocably waives any and all right to trial by jury in any legal
proceeding arising out of or relative to any Loan Document or the transactions
contemplated thereby.

     

    11.16.           Participants.  Each
Bank shall have the right at its own cost to grant participations (to be
evidenced by one or more agreements or certificates of participation) in the
Loans made and Commitments held by such Bank at any time and from time to time
to other financial institutions; provided that (a) no such participation
shall relieve any Bank of any of its obligations under this Agreement
(b) no such participant shall have any direct rights under this Agreement
except as provided in this Section 11.16, and the Agent shall not have any
obligation or responsibility to such participant.  Any agreement
pursuant to which such participation is granted, except with respect to a
participation in which a participant is an Affiliate of a Bank, shall provide
that the granting Bank shall retain the sole right and responsibility to enforce
the obligations of the Company under this Agreement and the other Loan Documents
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of the Loan Documents, except that such agreement may
provide that such Bank will not agree to any modification, amendment or waiver
of the Loan Documents that would reduce the amount of or postpone any fixed date
for payment of any obligation in which such participant has an
interest.  Any party to which such a participation has been granted
shall have the benefits of Section 9.3 and Section 9.4 hereof, up to an amount
not exceeding the amount that would otherwise have been payable to the Bank who
sold the participation interest to such party.  Subject to the
provisions of Section 11.19 hereof, the Company

     

    
      
         

      

      
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    authorizes
each Bank to disclose to any participant or prospective participant under this
Section 11.16 any financial or other information pertaining to the
Company.  Notwithstanding the foregoing, in no event may a
participation be granted to any entity which is not a financial institution
without the express prior written consent of the Company.

     

    11.17.           Assignment
Agreements.

     

    (a)               Assignments.  Each
Bank may, at its own expense, from time to time, assign to other financial
institutions all or part of its rights and obligations under this Agreement
(including without limitation the Indebtedness evidenced by the Notes then owned
by such assigning Bank, together with an equivalent proportion of its obligation
to make loans and advances) pursuant to written agreements executed by such
assigning Bank, such assignee lender or lenders, the Company and the Agent,
which agreements shall specify in each instance the portion of the Indebtedness
evidenced by the Notes which is to be assigned to each such assignee lender and
the portion of the Commitments of the assigning Bank to be assumed by it (the
“Assignment Agreements”); provided, however, that
unless the Agent, the  Company, the assignor Bank and the assignee
lender, in writing, agree to the contrary, (i) except in connection with any
assignment by a Bank to any of its Affiliates, the aggregate amount of the
Exposure of the assigning Bank being assigned to such assignee lender pursuant
to each such assignment (determined as of the effective date of the relevant
Assignment Agreement) shall in no event be less than the lesser of $5,000,000 or
the assignor Bank’s unused Revolving Credit Commitment; (ii) the parties to
each such assignment shall execute and deliver to the Agent, for its acceptance
and recording in the Register pursuant to Section 11.20 hereof, an Assignment
Agreement, together with any Notes subject to such assignment, (iii) the
Agent and (except for an assignment made during the continuance of any Event of
Default) the Company must consent to each such Assignment Agreement, which
consents shall not be unreasonably withheld, to each such assignment to
(provided no such consent is required for any assignment to any Affiliate of the
assigning Bank), and (iv) except in connection with any assignment by a Bank to
any of its Affiliates, the assignee lender must pay to the Agent a processing
and recordation fee of $4,000 and any out-of-pocket attorneys’ fees incurred by
the Agent in connection with such Assignment Agreement.  Upon the
execution of each Assignment Agreement by the assigning Bank thereunder, the
assignee lender thereunder, the Company and the Agent, satisfaction of all of
the conditions set forth above and payment to such assigning Bank by such
assignee lender of the purchase price for the portion of the Exposure being
acquired by it, (i) such assignee lender shall thereupon become a “Bank”
for all purposes of this Agreement with an Exposure in the amounts set forth in
such Assignment Agreement and with all the rights, powers and obligations
afforded a Bank hereunder, (ii) such assigning Bank shall have no further
liability for funding the portion of any of its Commitments assumed by such
other Bank, and (iii) the address for notices to such assignee Bank shall
be as specified in the Assignment Agreement executed by
it.  Concurrently with the execution and delivery of such Assignment
Agreement executed by it, the Company shall execute and deliver new Notes to the
assignee Bank in the amount of its applicable Commitment or Loan and new Notes
to the assigning Bank in the amounts of its applicable Commitment or Loan after
giving effect to the reduction occasioned by such assignment, such new Notes to
constitute “Notes” for all purposes of this
Agreement.  Notwithstanding the foregoing, in no event may any
assignment be made pursuant to this Section 11.17(a) to any entity which is
not a financial institution without the express prior written consent of the
Company.

     

    (b)               Pledges.  Any Bank
may at any time pledge or grant a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Bank, including any
such pledge or grant to a Federal Reserve Bank, and Section 11.17(a) shall not
apply to any such pledge or grant of a security interest; provided that no such
pledge or grant of a security interest shall release a Bank from any of its
obligations hereunder or substitute

     

    
      
         

      

      
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    any such
pledgee or secured party for such Bank as a party hereto; provided further,
however, the right of any such pledgee or grantee (other than any Federal
Reserve Bank) to further transfer all or any portion of the rights pledged or
granted to it, whether by means of foreclosure or otherwise, shall be at all
times subject to the terms of this Agreement.

     

    11.18.           Withholding
Taxes.

     

    (a)               U.S. Withholding Tax
Exemptions.  Each Bank that is not a United States person (as
such term is defined in Section 7701(a)(30) of the Internal Revenue Code of
1986, as amended (the “Code”)) shall submit to the Company and the Agent on or
before the date the initial Borrowing is made hereunder or, if later, the date
such Bank becomes a Bank hereunder, two (2) properly completed and duly executed
copies of (i) either Internal Revenue Service Form W-8 ECI (certifying the
Bank’s status as a beneficial owner and entitlement to complete exemption from
withholding on all amounts to be received by such Bank, including fees, pursuant
to this Agreement and the Loans as effectively connected with the conduct of a
U.S. trade or business) or W-8 BEN (certifying the Bank’s status as beneficial
owner and entitlement to a complete exemption from withholding on all amounts to
be received by such Bank, including fees, pursuant to this Agreement and the
Loans, or any successor form as shall be adopted from time to time by the
Internal Revenue Service;  or (ii) solely if such Bank is claiming
exemption from United States withholding tax under Section 871(h) or
881(c)(3)(A) of the Code with respect to payments of “portfolio interest”,
Internal Revenue Service Form W-8 BEN, and a certificate representing that such
Bank is not a bank for purposes of Section 881(c) of the Code, is not a ten
percent (10%) shareholder (within the meaning of Section 871(h)(3)(B) of the
Code) of the Company and is not a controlled foreign corporation related to the
Company (within the meaning of Section 864(d)(4) of the Code) (or in the case of
any such form, such successor form as shall be adopted from time to time by the
Internal Revenue Service.  Thereafter and from time to time, each such
Bank shall submit to the Company and the Agent such additional properly
completed and duly executed copies of one of such Forms (or such successor forms
as shall be adopted from time to time by the relevant United States taxing
authorities) as may be (i) notified by the Company or Agent to such Bank
and (ii) required under then-current United States law or regulations to
establish an available exemption from United States withholding taxes on
payments in respect of all amounts to be received by such Bank, including fees,
pursuant to this Agreement or the Loans.  Upon the request of the
Company or Agent, each Bank that is a United States person (as such term is
defined in Section 7701(a)(30) of the Code) shall submit to the Company two
accurate and complete signed copies of Internal Revenue Service Form W-9 or any
successor thereto, as appropriate.

     

    (b)               Inability of Bank to Submit
Forms.  If any Bank determines, as a result of any change in
applicable law, regulation or treaty, or in any official application or
interpretation thereof, that it is unable to submit to the Company any form or
certificate that such Bank is obligated to submit pursuant to subsection (a) of
this Section 11.18, or that such Bank is required to withdraw or cancel any such
form or certificate previously submitted or any such form or certificate
otherwise becomes ineffective or inaccurate, such Bank shall promptly notify the
Company and Agent of such fact and the Bank shall to that extent not be
obligated to provide any such form or certificate and will be entitled to
withdraw or cancel any affected form or certificate, as applicable.

     

    (c)               Payment of Additional
Amounts.  If, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof
after the date of this Agreement or, if later, the date a bank becomes a Bank
hereunder, the Company is required by law or regulation to make any deduction,
withholding or backup withholding of any taxes, levies, imposts, duties, fees,
liabilities or similar charges of the United States of America, any possession
or territory of the United States of America (including the

     

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

    Commonwealth
of Puerto Rico) or any area subject to the jurisdiction of the United States of
America (“U.S. Taxes”) from any payments to a Bank in respect of Loans then or
thereafter outstanding, or other amounts owing hereunder, the amount payable by
the Company will be increased to the amount which, after deduction from such
increased amount of all U.S. Taxes required to be withheld or deducted
therefrom, will yield the amount required under this Agreement to be payable
with respect thereto; provided that the Company shall not be required to pay any
additional amount pursuant to this subsection (c) to any Bank that (i) is not,
on the date this Agreement is executed by such Bank or, if later, the date such
Bank became a Bank hereunder, either (x) entitled to submit Form W-8 BEN
relating to such Bank and entitling it to a complete exemption from withholding
on all amounts to be received by such Bank, including fees, pursuant to this
Agreement and the Loans, Form W-8 BEN relating to all amounts to be received by
such Bank, including fees, pursuant to this Agreement and the Loans or Form W-8
BEN relating to such Bank and entitling it to a complete exemption from
withholding on all amounts to be received by such Bank, including fees, pursuant
to this Agreement and the Loans (or, in any such case, such successor forms as
shall be adopted from time to time by the Internal Revenue Service), or (y) a
U.S. person (as such term is defined in Section 7701(a)(30) of the Code), or
(ii) has failed to submit any form or certificate that it was required to file
pursuant to subsection (a) of this Section 11.18 and entitled to file under
applicable law, or (iii) is no longer entitled to submit Form W-8 BEN or Form
W-8 ECI as a result of any change in circumstances other than a change in
applicable law, regulation or treaty or in any official application or the
account of any Bank pursuant to this subsection (c), then such Bank will agree
to use reasonable efforts to change the jurisdiction of its applicable lending
office so as to eliminate or reduce any such additional payment which may
thereafter accrue if such change, in the judgment of such Bank, is not otherwise
disadvantageous to such Bank. Within thirty (30) days after the Company’s
payment of any such U.S. Taxes, the Company shall deliver to the Agent, for the
account of the relevant Bank(s), originals or certified copies of official tax
receipts evidencing such payment thereof or other evidence of payment reasonably
satisfactory to the Agent.  The obligations of the Company under this
subsection (c) shall survive the payment in full of the Loans and the
termination of the Commitments.  If any Bank or the Agent determines
it has received or been granted a refund, credit against, relief or remission
for, or repayment of, any taxes paid or payable by it because of any U.S. Taxes
paid by the Company and evidenced by such a tax receipt, such Bank or Agent
shall, to the extent it can do so without prejudice to the retention of the
amount of such refund, credit, relief, remission or repayment, pay to the
Company such amount as such Bank or Agent determines is attributable to such
deduction or withholding and which will leave such Bank or Agent (after such
payment) in no better or worse position than it would have been in if the
Company had not been required to make such deduction or
withholding.  Nothing in this Agreement shall interfere with the right
of each Bank and the Agent to arrange its tax affairs in whatever manner it
deems fit nor oblige any Bank or the Agent to disclose any information relating
to its tax affairs or any computations in connection with such
taxes.

     

    11.19.           Confidentiality.  The
Agent and each Bank will keep confidential any non-public information concerning
the Company and its Subsidiaries furnished by the Company (which is designated
by the Company as confidential at the time such information is furnished to the
Agent or such Bank) or obtained by the Agent or such Bank through its
inspections pursuant to Section 7.5 hereof and known by such Bank to be
confidential, except that the Agent or any Bank may disclose such information
(a) to regulatory authorities having jurisdiction, (b) pursuant to subpoena or
other legal process, (c) to the Agent’s and such Bank’s counsel and auditors in
connection with matters concerning this Agreement, (d) to the Agent and such
Bank’s consultants in connection with negotiations concerning this Agreement or
the other Loan Documents and (e) to prospective participants and assignees and
participants in the credit extended hereunder, provided that any Persons
described in clauses (d) and (e) shall be bound to comply with the terms of this
Section 11.19.  In the situations described above (except where the
Company is a party or where disclosure is

     

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

    made
during the course of a regulatory examination of a Bank), the Agent or the
relevant Bank shall notify the Company as promptly as practicable of the receipt
of a request for such disclosure and furnish it with a copy of such subpoena or
other legal process (to the extent the Agent or such Bank is legally permitted
to do so).  The provisions of this Section shall survive the payment
of the Notes and the termination of this Agreement.

     

    11.20.           Register.  The
Agent, on behalf of the Company, shall maintain at its address referred to in
Section 11.7 a copy of each assignment and acceptance delivered to and accepted
by it and a register for the recordation of the names and addresses of the Banks
and each Commitment of, and principal amount of the Loans owing to, each Bank
from time to time (the “Register”).  The entries in the Register shall
be conclusive and binding for all purposes, absent manifest error, and the
Company, the Agent and the Banks may treat each Person whose name is recorded in
the Register as a Bank hereunder for all purposes of this
Agreement.  The Register shall be available for inspection by the
Company or any Bank at any reasonable time and from time to time upon reasonable
prior notice.  Upon its receipt of an assignment and acceptance
executed by an assigning Bank, an assignee and the Company, if required, the
Agent shall, if such assignment and acceptance has been completed and is
acceptable to the Agent in form and substance, (a) accept such assignment and
acceptance, (b) record the information contained therein in the Register
and (c) give prompt notice thereof to the Company.

     

    11.21.           SPCs.  Notwithstanding
anything to the contrary contain herein, any Bank except the Agent, (a “Granting
Bank”) may grant to a special purpose funding vehicle (an “SPC”) the option to
fund all or any part of any Loan that such Granting Bank would otherwise be
obligated to fund pursuant to this Agreement; provided, that (i) nothing herein
shall constitute a commitment by any SPC to fund any Loan, (ii) if an SPC elects
not to exercise such option or otherwise fails to fund all or any part of such
Loan, the Granting Bank shall be obligated to fund such Loan pursuant to the
terms hereof, (iii) no SPC shall have any voting rights pursuant to Section 11.1
(all such voting rights shall be retained by the Granting Bank) and (iv) with
respect to notices, payments and other matters hereunder, the Company, the Agent
and the Banks shall not be obligated to deal with an SPC, but may limit their
communications and other dealings relevant to such SPC to the applicable
Granting Bank.  The funding of a Loan by an SPC hereunder shall
utilize the Commitment of the Granting Bank to the same extent that, and as if,
such Loan were funded by such Granting Bank.  Each party hereto hereby
agrees that no SPC shall be liable for any indemnity or payment under this
Agreement for which a Lender would otherwise be liable for so long as, and to
the extent, the Granting Bank provides such indemnity or makes such
payment.  In furtherance of the foregoing, each party hereto hereby
agrees (which agreements shall survive termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPC, it will
not institute against, or join any other Person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any state
thereof.  Notwithstanding anything to the contrary contained in this
Agreement, any SPC may disclose on a confidential basis any non-public
information relating to its funding of Loans to any rating agency, commercial
paper dealer or provider of any surety or guarantee to such SPC.  The
grant of an option pursuant to this Section shall not be deemed either an
assignment or a participation pursuant to Section 11.16 or 11.17, respectively,
and shall not reduce the Commitment of the Granting Bank.  This
Section 11.21 may not be amended without the prior written consent of each
Granting Bank, all or any part of whose Loan is being funded by an SPC at the
time of such amendment.

     

    11.22.           Facsimile
Signatures.  The exchange of copies of this Agreement and of
signature pages by facsimile transmission shall constitute effective execution
and delivery of this Agreement as to the parties and may be used in lieu of the
original Agreement for all purposes.  Signatures of the parties
transmitted by facsimile shall be deemed to be their original signatures for all
purposes.

     

    11.23.           Defaulting
Bank.  Notwithstanding anything stated to the contrary in this
Agreement:

     

    
      
         

      

      
        -38-

        
          

        

      

      
         

      

    

    (a)           The
Company shall have the right to terminate the Commitment of any Defaulting Bank
by written notice to the Agent and the Defaulting Bank at any time within ten
(10) Business Days of the date the Company is informed by the Agent that such
Bank has become a Defaulting Bank.  If the Company terminates the
Commitment of a Defaulting Bank, repayment of any Loans due the Defaulting Bank
shall be made by the Company in the ordinary course of business pursuant hereto
and be subject to Section 2.3 hereof; and

     

    (b)               The
fees otherwise payable to a Bank pursuant to Section 4.1, 4.2 and 4.3 hereof
shall not be payable by Company to the Agent for the benefit of a Defaulting
Bank for any period a Bank is a Defaulting Bank; and

     

    (c)               If
a Defaulting Bank makes any payment required pursuant to subsections (a) or (b)
of the definition of Defaulting Bank together with interest thereon, within
three (3) Business Days following the date it became a Defaulting Bank, the
provisions of this Section 11.23 shall be inapplicable.

     

    11.24.           THIS SECTION IS
MADE PART OF THIS AGREEMENT IN COMPLIANCE WITH MO. REV. STAT. SECTION
432.047.  Oral
agreements or commitments to loan money, extend credit or to forbear from
enforcing repayment of a debt including promises to extend or renew such debt
are not enforceable, regardless of the legal theory upon which it is based that
is in any way related to the Agreement.  To protect the Company and
Banks from misunderstanding or disappointment, any agreements the Company and
the Banks reach covering such matters are contained in this writing, which is
the complete and exclusive statement of the agreement between us, except as we
may later agree in writing to modify it.

     

    

    [THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

     

    [SIGNATURE
PAGES TO FOLLOW]

     

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

    Upon your
acceptance hereof in the manner hereinafter set forth, this Agreement shall be a
contract between us for the purposes hereinabove set forth.

     

    Dated as
of January 26, 2010.

     

    
      	
              THE
      EMPIRE DISTRICT ELECTRIC COMPANY

              By:      /s/ Gregory
      Knapp                                  
              

              Its:     Vice President - Finance and
      CFO             
         

            

    

    

    Accepted
and Agreed to as of the day and year last above written.

    

    
      	
              UMB
      BANK, N.A., individually and as

              Administrative
      Agent

              By:    /s/
      Charles J.
      Wolf                              
            

                      Charles
      J. Wolf

              Its:   Senior
      Vice President

              Address:    1010
      Grand Boulevard

                                  
      Kansas City, MO   64106

              Attention:  Charles
      J. Wolf

              Telephone
      No.:             816-860-7130

              Telecopy
      No.:                816-860-7143

              charles.wolf@umb.com

            	
              BANK
      OF AMERICA, N.A.,

              individually
      and as Syndication Agent

              By: 
      /s/ Eric A.
      Escagne                
                           
      

                    
      Eric A. Escagne

              Its:  Senior
      Vice President

              Address:  MO1-800-13-05

                                
      800 Market Street, 13th
      Floor

                                 St.
      Louis, MO 63101

              Attention:  Eric
      A. Escagne

              Telephone
      No.:               314-466-2126

              Telecopy
      No.:                  314-466-6499

              eric.escagne@baml.com

               

            

    

    

    
      	
              WELLS
      FARGO BANK, N.A., individually and as Documentation Agent

              By:  
      /s/
      Tammy R.
      Henke                        
          

                     Tammy
      R. Henke

              Its:   Vice
      President

              Address:  7500
      College Boulevard, Suite 350

                               
      Overland Park, KS  66210

              Attention:  Tammy
      R. Henke

              Telephone
      No.:             913-234-2903

              Telecopy
      No.:                913-234-2901

              tammy.r.henke@wellsfargo.com

               

            	
              U.S.
      BANK, NATIONAL ASSOCIATION,

              individually

               

               

              By:   /s/ Paul G.
      Vastola                               
         

                     Paul
      G. Vastola

              Its:  Vice
      President, Portfolio Manager

                      Corporate
      Banking – Utility Division

              Address:  461
      Fifth Avenue, 8th
      Floor

                                
      New York, New York 10017

              Attention:
      Paul Vastola

              Telephone
      No.:                     646-935-4541

              Telecopy
      No.:                        646-935-4550

              paul.vastola@usbank.com

               

            

    

    
      
         

      

      
        -40-

        
          

        

      

      
         

      

    

    

    
      	
              ARVEST
      BANK, individually

              By:  /s/
      Veronica M.
      Scheurich               
              

                     Veronica
      M. Scheurich

              Its:  Vice
      President

              Address:  3201
      McClelland Boulevard

                              Joplin,
      MO  64802

              Attention:
      Veronica M. Scheurich

              Telephone
      No.:            417-627-8183

              Telecopy
      No.:              417-627-8170

              vscheurich@arvest.com

               

            	
              REGIONS
      BANK, individually

              By:  
      s/
      Anne D.
      Silvestri          
                         
      

                      Anne
      D. Silvestri

              Its:   Senior
      Vice President

              Address:
      8182 Maryland Avenue. Suite 1100

                             St.
      Louis, MO 63105

              Attention:  Anne
      D. Silvestri

              Telephone
      No.:            
      314-615-2372

              Telecopy
      No.:              
      314-615-2355

              anne.silvestri@regions.com

            
	
              M
      & I MARSHALL & ILSLEY BANK,

              individually

              By:  
      s/
      Mark
      Schaus                                 
           

                      Mark
      Schaus

              Its:   Vice
      President

              Address:   770
      North Water Street

                               Milwaukee,
      WI 53202

              Attention:  Nenita
      Yumang

              Telephone
      No.:           262-938-8675

              Telecopy
      No.:             262-938-8684

              mark.shaus@micorp.com

            	
              PNC
      BANK, NATIONAL ASSOCIATION

              (Formerly
      NATIONAL CITY BANK OF THE MIDWEST), individually

              By:  
      /s/
      David
      Bentzinger            
                              
      

                      David
      Bentzinger

              Its:   Senior
      Vice President

              Address:    120
      S. Central Avenue

                                St.
      Louis, MO 63105

              Attention:  Eric
      Hallgren

              Telephone
      No.:              314-898-1308

              Telecopy
      No.:                314-898-1401

              david.bentzinger@pnc.com

              eric.hallgren@pnc.com

               

               

            
	
              COMERICA
      BANK, individually

              By:  /s/ Mark J.
      Leveille                          
           

                     Mark
      J. Leveille

              Its:  Vice
      President

              Address:
      500 Woodward Avenue–MC 3269

                             Detroit,
      MI 48226

              Attention:
      Mark J. Leveille

              Telephone
      No.:          313-222-3958

              Telecopy
      No.:            313-222-9516

              mjleveille@comerica.com

            	 
      

    

    

    

    
      
         

      

      
        -41-

        
          

        

      

      
         

      

    

    Exhibit
A-1

     

    The
Empire District Electric Company

     

    Revolving
Credit Note

     

    January
26, 2010

     

    For Value Received, the
undersigned, The Empire District Electric Company, a Kansas corporation (the
“Company”), hereby promises to pay to the order of _______________ (the “Bank”)
on the Revolving Credit Termination Date (as defined in the Credit Agreement
hereinafter referred to), at the principal office of UMB Bank, N.A. in Kansas
City, Missouri the aggregate unpaid principal amount of all Revolving Credit
Loans made by the Bank to the Company under the Credit Agreement hereinafter
mentioned and remaining unpaid on the Revolving Credit Termination Date,
together with fees and all other amounts due with interest on the principal
amount of each Revolving Credit Loan from time to time outstanding hereunder at
the rates, and payable in the manner and on the dates specified in said Credit
Agreement.

     

    The Bank
shall record on its books or records or on the schedule to this Note which is a
part hereof the principal amount of each Revolving Credit Loan made by it to the
Company under the Credit Agreement, all payments of principal and interest
thereon and the principal balances from time to time outstanding; provided that
prior to the transfer of this Note all such amounts shall be recorded on a
schedule attached to this Note.  The record thereof, whether shown on
such books or records or on the schedule to this Note, shall be prima facie evidence as to
all such amounts absent manifest error; provided, however, that the
failure of the Bank to record any of the foregoing shall not limit or otherwise
affect the obligation of the Company to repay all Revolving Credit Loans made
under the Credit Agreement, together with accrued interest thereon.

     

    This Note
is one of the Revolving Credit Notes referred to in, and issued under, that
certain Second Amended and Restated Unsecured Credit Agreement dated as of
January 26, 2010, among the Company, UMB Bank, N.A., individually and as
Administrative Agent, and the Banks named therein, as amended hereafter from
time to time (the “Credit Agreement”) and this Note and the holder hereof are
entitled to all of the benefits provided for thereby or referred to
therein.  All defined terms used in this Note, except terms otherwise
defined herein, shall have the same meaning as such terms have in said Credit
Agreement.

     

    Prepayments
may be made, and are sometimes required to be made, on any Loan evidenced hereby
and this Note (and the Revolving Credit Loans evidenced hereby) may be declared
due prior to the expressed maturity thereof, all in the events, on the terms and
in the manner as provided for in said Credit Agreement.

     

    All
agreements between the Company and the Bank, whether now existing or hereafter
arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever, whether by reason of demand or acceleration of
the maturity of any of the indebtedness hereunder or otherwise, shall the amount
contracted for, charged, received, reserved, paid or agreed to be paid to or for
the benefit of the Bank for the use, forbearance, or detention of the funds
advanced hereunder or otherwise, or for the performance or payment of any
covenant or obligation contained in any document executed in connection herewith
(all such documents being hereinafter collectively referred to as the “Loan
Documents”), exceed the maximum lawful rate or amount of interest permissible
under applicable law (the “Highest Lawful Rate”), it being the intent of the
Company and the Bank in the execution hereof and of the Loan Documents to
contract in strict accordance with applicable usury laws.  If, as a
result of any circumstances whatsoever, performance by the Company of any
provision hereof or of any of such documents, at the time performance of such
provision shall be due, shall involve exceeding the limits of applicable usury
laws or result in

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the Bank
having or being deemed to have contracted for, charged, reserved or received
interest (or amounts deemed to be interest) in excess of the Highest Lawful Rate
to be so contracted for, charged, reserved or received by the Bank, then, the
obligation to be performed by the Company shall be reduced to the legal limit of
such performance, and if, from any such circumstance, the Bank shall ever
receive interest or anything which might be deemed interest under applicable law
which would exceed the Highest Lawful Rate, such amount which would be unlawful
interest shall be refunded to the Company or, to the extent (i) permitted by
applicable law and (ii) such unlawful interest does not exceed the unpaid
principal balance of the Note and the amounts owing on other obligations of the
Company to the Bank under any Loan Document applied to the reduction of the
principal amount owing on account of the Notes or the amounts owing on other
obligations of the Company to the Bank under any Loan Document and not to the
payment of interest.  All interest paid, or agreed to be paid, to or
for the benefit of the Bank shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full period of the
indebtedness hereunder until payment in full of the principal of the
indebtedness hereunder (including the period of any renewal or extension
thereof) so that the interest on account of the indebtedness hereunder for such
full period shall not exceed the highest amount permitted by applicable
law.

     

    The
undersigned hereby expressly waives diligence, presentment, demand, protest,
notice of protest, notice of intent to accelerate, notice of acceleration, and
notice of any other kind.

     

    This Note
is governed by and shall be construed in accordance with the internal laws of
the State of Missouri.

     

    
      	 
      	
              THE
      EMPIRE DISTRICT ELECTRIC COMPANY

               

              By:
      ____________________________________

               

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A-2

    

    The
Empire District Electric Company

    

    Letter
of Credit Note

     

    January
26, 2010

    

    For Value Received, the
undersigned, The Empire District Electric Company, a Kansas corporation (the
“Company”), hereby promises to pay to the order of ________________ (the “Bank”)
on July 15, 2010, at the principal office of UMB Bank, N.A. in Kansas City,
Missouri the aggregate unpaid principal amount of all Letter of Credit Loans
made by the Bank to the Company under the Credit Agreement hereinafter mentioned
and remaining unpaid on the Credit Termination Date, together with fees and all
other amounts due with interest on the principal amount of each Letter of Credit
Loan from time to time outstanding hereunder at the rates, and payable in the
manner and on the dates specified in said Credit Agreement.

     

    The Bank
shall record on its books or records or on the schedule to this Note which is a
part hereof the principal amount of each Letter of Credit Loan made by it to the
Company under the Credit Agreement, all payments of principal and interest
thereon and the principal balances from time to time outstanding; provided that
prior to the transfer of this Note all such amounts shall be recorded on a
schedule attached to this Note.  The record thereof, whether shown on
such books or records or on the schedule to this Note, shall be prima facie evidence as to
all such amounts absent manifest error; provided, however, that the
failure of the Bank to record any of the foregoing shall not limit or otherwise
affect the obligation of the Company to repay all Letter of Credit Loans made
under the Credit Agreement, together with accrued interest thereon.

     

    This Note
is one of the Letter of Credit Notes referred to in, and issued under, that
certain Second Amended and Restated Unsecured Credit Agreement dated as of
January 26, 2010, among the Company, UMB Bank, N.A., individually and as
Administrative Agent, and the Banks named therein, as amended hereafter from
time to time (the “Credit Agreement”) and this Note and the holder hereof are
entitled to all of the benefits provided for thereby or referred to
therein.  All defined terms used in this Note, except terms otherwise
defined herein, shall have the same meaning as such terms have in said Credit
Agreement.

     

    Prepayments
may be made, and are sometimes required to be made, on any Loan evidenced hereby
and this Note (and the Letter of Credit Loans evidenced hereby) may be declared
due prior to the expressed maturity thereof, all in the events, on the terms and
in the manner as provided for in said Credit Agreement.

     

    All
agreements between the Company and the Bank, whether now existing or hereafter
arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever, whether by reason of demand or acceleration of
the maturity of any of the indebtedness hereunder or otherwise, shall the amount
contracted for, charged, received, reserved, paid or agreed to be paid to or for
the benefit of the Bank for the use, forbearance, or detention of the funds
advanced hereunder or otherwise, or for the performance or payment of any
covenant or obligation contained in any document executed in connection herewith
(all such documents being hereinafter collectively referred to as the “Loan
Documents”), exceed the maximum lawful rate or amount of interest permissible
under applicable law (the “Highest Lawful Rate”), it being the intent of the
Company and the Bank in the execution hereof and of the Loan Documents to
contract in strict accordance with applicable usury laws.  If, as a
result of any circumstances whatsoever, performance by the Company of any
provision hereof or of any of such documents, at the time performance of such
provision shall be due, shall involve exceeding the limits of applicable usury
laws or result in the Bank having or being deemed to have contracted for,
charged, reserved or received interest (or

     

    
      
         

      

      
        A-2-1

        
          

        

      

      
         

      

    

    amounts
deemed to be interest) in excess of the Highest Lawful Rate to be so contracted
for, charged, reserved or received by the Bank, then, the obligation to be
performed by the Company shall be reduced to the legal limit of such
performance, and if, from any such circumstance, the Bank shall ever receive
interest or anything which might be deemed interest under applicable law which
would exceed the Highest Lawful Rate, such amount which would be unlawful
interest shall be refunded to the Company or, to the extent (i) permitted by
applicable law and (ii) such unlawful interest does not exceed the unpaid
principal balance of the Note and the amounts owing on other obligations of the
Company to the Bank under any Loan Document applied to the reduction of the
principal amount owing on account of the Notes or the amounts owing on other
obligations of the Company to the Bank under any Loan Document and not to the
payment of interest.  All interest paid, or agreed to be paid, to or
for the benefit of the Bank shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full period of the
indebtedness hereunder until payment in full of the principal of the
indebtedness hereunder (including the period of any renewal or extension
thereof) so that the interest on account of the indebtedness hereunder for such
full period shall not exceed the highest amount permitted by applicable
law.

     

    The
undersigned hereby expressly waives diligence, presentment, demand, protest,
notice of protest, notice of intent to accelerate, notice of acceleration, and
notice of any other kind.

     

    This Note
is governed by and shall be construed in accordance with the internal laws of
the State of Missouri.

     

    

    
      	 
      	
              THE
      EMPIRE DISTRICT ELECTRIC COMPANY

               

              By: 
       
         _________________________________                                                            

              Name: 
      _________________________________                                                               

              Title:   
      _________________________________                                                               

               

            

    

    

    

    

    

    
      
         

      

      
        A-2-2

        
          

        

      

      
         

      

    

    Exhibit
B

     

    The
Empire District Electric Company

     

    Pricing
Schedule

    

    
      	
              Basis
      for Pricing

            	
              Level
      I

              A-
      / A3

            	
              Level
      II

              BBB+/Baa1

            	
              Level
      III

              BBB/Baa2

            	
              Level
      IV

              BBB-/Baa3

            	
              Level
      V

              BB+
      / Ba1

            	
              Level
      VI

              <BB+
      / Ba1

            
	
              Applicable
      Margin for ABR Portions

            	
              125.0
      bps

            	
              150.0
      bps

            	
              175.0
      bps

            	
              200.0
      bps

            	
              250.0
      bps

            	
              300.0
      bps

            
	
              Applicable
      Margin for LIBOR Portions

            	
              230.0
      bps

            	
              250.0
      bps

            	
              270.0
      bps

            	
              305.0
      bps

            	
              350.0
      bps

            	
              405.0
      bps

            
	
              Revolving
      Credit

              Facility
      Fee Rate

            	
              37.5
      bps

            	
              44.0
      bps

            	
              50.0
      bps

            	
              62.5
      bps

            	
              75.0
      bps

            	
              125.0
      bps

            
	
              Usage
      Fee Rate

              (<33%
      usage)

            	
              12.5
      bps

            	
              12.5
      bps

            	
              12.5
      bps

            	
              12.5
      bps

            	
              25.0
      bps

            	
              25.0
      bps

            
	
              Letter
      of Credit

              Facility
      Fee Rate

            	
              15.0
      bps

            	
              17.5
      bps

            	
              22.5
      bps

            	
              31.5
      bps

            	
              40.0
      bps

            	
              45.0
      bps

            
	
              Letter
      of Credit Fee Rate

            	
              62.5
      bps

            	
              75.0
      bps

            	
              80.0
      bps

            	
              100.0
      bps

            	
              145.0
      bps

            	
              170.0
      bps

            

    

    

     

    For
calculation of the applicable rate of interest for any applicable period of
time, refer to the definitions of “ABR” and “LIBOR Rate” stated
herein.

     

    For
purposes of utilizing the above schedule:

     

    “Level I
Status” exists at any date if, on such date, the Company’s Moody’s Rating is A3
or better or the Company’s S & P Rating is A- or better.

     

    “Level II
Status” exists at any date if, on such date, (i) the Company has not qualified
for Level I Status and (ii) the Company’s Moody’s Rating is Baa1 or better or
the Company’s S & P Rating is BBB+ or better.

     

    “Level
III Status” exists at any date if, on such date, (i) the Company has not
qualified for Level I or II Status and (ii) the Company’s Moody’s Rating is Baa2
or better or the Company’s S & P Rating is BBB or
better.

     

    “Level IV
Status” exists at any date if, on such date, (i) the Company has not qualified
for Level I, II or III Status and (ii) the Company’s Moody’s Rating is Baa3 or
better or the Company’s S & P Rating is BBB- or
better.

     

    “Level V
Status” exists at any date if, on such date, (i) the Company has not qualified
for Level I, II, III or IV Status and (ii) the Company’s Moody’s Rating is Ba1
or better or the Company’s S & P Rating is BB+ or better.

     

    “Level VI
Status” exists at any date if, on such date, the Company has not qualified for
Level I, II, III, IV or V Status.

     

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    “Moody’s
Rating” means, at any time, the rating issued by Moody’s Investors Service and
then in effect with respect to the Company’s senior unsecured long-term debt
securities without third-party credit enhancement.

     

    “S &
P Rating” means, at any time, the rating issued by Standard & Poor’s and
then in effect with respect to the Company’s senior unsecured long-term debt
securities without third-party credit enhancement.

     

    “Status”
means Level I Status, Level II Status, Level III Status, Level IV Status, Level
V Status or Level VI Status.

     

    The
Applicable Margin and Applicable Fee Rate shall be determined from time to time
in accordance with the foregoing schedule based on the Company’s Status as
determined from its then-current Moody’s Rating and/or S & P Rating; provided, that, if the
Company has neither a Moody’s Rating nor an S & P Rating at closing, Level
VI shall apply until the Company first receives either a Moody’s Rating or an S
& P Rating.  The credit rating in effect on any date for the
purposes of the foregoing schedule is that in effect at the close of business on
such date.  If, at any time, the Company has neither a Moody’s Rating
nor an S & P Rating, Level VI Status shall exist.  If, at any time
the Company has only a Moody’s Rating or an S & P Rating, but not both, the
Status shall be determined by reference to such rating.

     

    If the
Company is split-rated and the differential between ratings is one level, the
higher rating will apply.  If the Company is split-rated and the
differential between ratings is two levels or more, the intermediate ratings at
the midpoint will apply.  If there is no midpoint, the higher of the
two intermediate ratings will apply.

     

    The
Company is responsible for reporting any rating change by S & P or Moody’s
to the Agent promptly following the occurrence of any such change.

     

    

    

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    Exhibit
C

     

    The
Empire District Electric Company

     

    Subsidiaries
of the Company

     

    
      	
              Subsidiary

            	
              State of Organization

            
	 
      	 
      
	
              Empire
      District Industries, Inc.

            	
              Delaware

            
	 	 
	
              EDE
      Property Transfer Corp.

            	
              Delaware

            
	 	 
	
              The
      Empire District Gas Company

            	
              Kansas

            
	 	 
	
              The
      Empire District Electric Company Arkansas, L.L.C.

            	
              Arkansas

            
	 	 
	
              Empire
      District Electric Trust I

            	
              Delaware

            

    

    

    

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    Exhibit
D-1

    The
Empire District Electric Company

     

    Company’s
Kansas Counsel’s Opinion

     

    (To
Be Retyped On Letterhead Of Anderson & Byrd, LLP

    And
Dated As Of Date Of Closing)

     

    January 26,
2010

     

    

    UMB Bank,
N.A., Individually and as

    Administrative
Agent

    1010
Grand Boulevard

    Kansas
City, Missouri  64106

    

    The Banks
From Time to Time Party

    to the
Credit Agreement described below

    

    Ladies
and Gentlemen:

     

    We act as
Kansas counsel to The Empire District Electric Company, a Kansas corporation
(the “Company”). We are delivering this opinion to you pursuant to Section
5.1(b) of the three year $159,000,000 Second Amended and Restated Unsecured
Credit Agreement dated as of January 26, 2010 among the Company, UMB Bank,
N.A., individually and as Administrative Agent, Bank of America, N.A.,
individually and as Syndication Agent, Wells Fargo Bank, N.A., individually and
as Documentation Agent and the other financial institutions party thereto (the
“Credit Agreement”).

     

    We have
examined executed originals of, the instruments and documents identified on
Exhibit A to
this letter (collectively, the “Loan Documents”, individual Loan Documents and
other capitalized terms used below being hereinafter referred to by the
designations appearing on Exhibit A).  We have also reviewed records
of all corporate proceedings necessary to authorize the execution and delivery
of the Loan Documents.  Capitalized terms used herein but not
otherwise defined shall have the meanings set forth in the Credit
Agreement.

     

    We have
also reviewed the restated articles of incorporation, as amended, and by-laws of
the Company (the “Organizational Documents”) and examined such other instruments
and records and inquired into such other factual matters and matters of law as
we deem necessary or pertinent to the formulation of the opinions hereinafter
expressed.

     

    Based on
the foregoing, we are of the opinion that:

     

    1.           The
Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Kansas with power and authority
(corporate and other) to own its properties and conduct its business as
currently conducted.

     

    2.           Each
of the Loan Documents executed by the Company has been duly authorized executed
and delivered by the Company and constitutes a valid and binding agreement of
the Company enforceable in accordance with its terms, except as the same may be
limited by bankruptcy, insolvency, reorganization or other laws affecting the
enforcement of creditor’s rights or by general principles of
equity.

     

    3.           All
approvals of the State Corporation Commission of the State of Kansas which are
required for the lawful execution and delivery of the Loan Documents have been
obtained; any

     

    
      
         

      

      
        D-1-1

        
          

        

      

      
         

      

    

    conditions
in such approvals required to be satisfied prior to the lawful execution and
delivery of the Loan Documents have been duly satisfied; such approvals are in
full force and effect; and no further approval, authorization, consent or other
order of any public board or body in the State of Kansas is legally required for
the lawful execution and delivery of the Loan Documents.

     

    

    Respectfully
submitted,

    

    
      
         

      

      
        D-1-2

        
          

        

      

      
         

      

    

    Exhibit
A

     

    The
Loan Documents

     

    All of
the following Loan Documents are dated as of January 26, 2010.

     

    1.           The
three year $159,000,000 Second Amended and Restated Unsecured Credit Agreement
dated as of January 26, 2010 among the Company, UMB Bank, N.A. (“UMB”),
individually and as Administrative Agent, Bank of America, N.A. (“B of A”),
individually and as Syndication Agent, Wells Fargo Bank, N.A., individually and
as Documentation Agent and the other financial institutions party
thereto.

     

    2.           Revolving
Credit Note of the Company payable to the order of UMB.

     

    3.           Revolving
Credit Note of the Company payable to the order of B of A.

     

    4.           Revolving
Credit Note of the Company payable to the order of Arvest Bank.

     

    5.           Revolving
Credit Note of the Company payable to the order of Regions Bank.

     

    6.           Revolving
Credit Note of the Company payable to the order of Wells Fargo Bank,
N.A.

     

    7.           Revolving
Credit Note of the Company payable to the order of U.S. Bank, National
Association.

     

    

    

    
      
         

      

      
        D-1-3

        
          

        

      

      
         

      

    

    Exhibit
D-2

    The
Empire District Electric Company

     

    Company’s
Missouri Counsel’s Opinion

     

    (To
Be Retyped On Letterhead Of Spencer, Scott & Dwyer, P.C.

    And
Dated As Of Date Of Closing)

     

    January 26,
2010

     

    UMB Bank,
N.A., Individually and as

    Administrative
Agent

    1010
Grand Boulevard

    Kansas
City, Missouri  64106

    

    The Banks
From Time to Time Party

    to the
Credit Agreement described below

    

    Ladies
and Gentlemen:

     

    We act as
counsel to The Empire District Electric Company, a Kansas corporation (the
“Company”).  We are delivering this opinion to you pursuant to Section
5.1(b) of the three year $159,000,000 Second Amended and Restated Unsecured
Credit Agreement dated as of January 26, 2010, among the Company, UMB Bank,
N.A., individually and as Administrative Agent, Bank of America, N.A.,
individually and as Syndication Agent, Wells Fargo Bank, N.A., individually and
as Documentation Agent and the other financial institutions party thereto (the
“Credit Agreement”).

     

    We have
examined executed originals of, the instruments and documents identified on
Exhibit A to this letter (collectively, the “Loan Documents”, individual Loan
Documents and other capitalized terms used below being hereinafter referred to
by the designations appearing on Exhibit A).  We have also reviewed
records of all corporate proceedings necessary to authorize the execution and
delivery of the Loan Documents.  Capitalized terms used herein but not
otherwise defined shall have the meanings set forth in the Credit
Agreement.

     

    We have
also reviewed the restated articles of incorporation, as amended, and by-laws of
the Company (the “Organizational Documents”) and examined such other instruments
and records and inquired into such other factual matters and matters of law as
we deem necessary or pertinent to the formulation of the opinions hereinafter
expressed.

     

    Based on
the foregoing and our knowledge of the affairs of the Company (and, to the
extent indicated below upon the opinion of other counsel hereinafter referred
to), we are of the opinion that:

     

    1.           The
Company has been duly incorporated and is validly existing and in good standing
under the laws of the State of Kansas, with power and authority (corporate and
other) to own its properties and conduct its business as a foreign corporation
in good standing in the States of Arkansas, Missouri and Oklahoma, which are the
only jurisdictions (other than Kansas) in which it owns or leases substantial
properties or in which the conduct of its business requires such
qualification.

     

    2.           None
of the execution, delivery or performance by the Company of its obligations
under any of the Loan Documents will conflict with, violate or result in a
breach of any Missouri law or administrative regulation or any court decree
known to us to be applicable to the Company (it being understood that we need
express no opinion as to matters subject to the jurisdiction of the Public
Service Commission of the State of Missouri, the Corporation Commission of
Oklahoma, the

     

    
      
         

      

      
        D-2-1

        
          

        

      

      
         

      

    

    State
Corporation Commission of the State of Kansas or the Arkansas Public Service
Commission), conflict with or result in a breach of any of the terms, conditions
or provisions of the Organizational Documents, or of any agreement or instrument
known to us  to which the Company is a party or by which the Company
is bound or constitute a default thereunder, or result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any
of the properties or assets of the Company.

     

    3.           We
have no actual knowledge of any legal or arbitral proceedings or any proceedings
by or before any governmental or regulatory authority, now pending or threatened
in writing against the Company that, if adversely determined, would have a
Material Adverse Effect (as such term is defined in the Credit
Agreement).

     

    In
rendering this opinion, we have relied as to the incorporation of the Company
and all other matters governed by Kansas law upon the opinion of Anderson &
Byrd, LLP, rendered to you pursuant to Section 5.1(b) of the Credit
Agreement.

     

    Respectfully
submitted,

    

    
      
         

      

      
        D-2-2

        
          

        

      

      
         

      

    

    Exhibit
A

     

    

     

    The
Loan Documents

     

    All of
the following Loan Documents are dated as of January 26, 2010.

     

    1.           The
three year $159,000,000 Second Amended and Restated Unsecured Credit Agreement
dated as of January 26, 2010, among the Company, UMB Bank, N.A. (“UMB”),
individually and as Administrative Agent, Bank of America, N.A. (“B of A”),
individually and as Syndication Agent, Wells Fargo Bank, N.A., individually and
as Documentation Agent and the other financial institutions party
thereto.

     

    2.           Revolving
Credit Note of the Company payable to the order of UMB.

     

    3.           Revolving
Credit Note of the Company payable to the order of B of A.

     

    4.           Revolving
Credit Note of the Company payable to the order of Arvest Bank.

     

    5.           Revolving
Credit Note of the Company payable to the order of Regions Bank.

     

    6.           Revolving
Credit Note of the Company payable to the order of Wells Fargo Bank,
N.A.

     

    7.           Revolving
Credit Note of the Company payable to the order of U.S. Bank, National
Association.

     

    

    

    
      
         

      

      
        D-2-3

        
          

        

      

      
         

      

    

    

    Exhibit
E

    The
Empire District Electric Company

     

    Quarterly
Compliance Certificate

     

    This
Quarterly Compliance Certificate is furnished to UMB Bank, N.A. and the other
Banks (collectively, the “Banks”) and UMB Bank, N.A. as Administrative Agent
(the “Agent”) for the Banks, pursuant to that certain Second Amended and
Restated Unsecured Credit Agreement dated as of January 26, 2010, by and
among The Empire District Electric Company (the “Company”), the Agent and the
Banks (the “Agreement”).  Unless otherwise defined herein, the terms
used in this Compliance Certificate and Schedule I hereto have the meanings
ascribed thereto in the Agreement.

     

    The
Undersigned Hereby Certifies on Behalf of the Company That:

     

    1.           I
am the duly elected Chief Financial Officer of the Company;

     

    2.           I
have reviewed the terms of the Agreement and I have made, or have caused to be
made under my supervision, a detailed review of the transactions and financial
condition of the Company during the accounting period covered by the attached
financial statements sufficient for me to provide this Quarterly Compliance
Certificate;

     

    3.           The
examinations described in paragraph 2 did not disclose, and I have no knowledge
of, the existence of any condition or event which constitutes an Event of
Default either during or at the end of the accounting period covered by the
Compliance Calculations (defined below) attached hereto, except as set forth
below;

     

    4.           Schedule
I attached hereto sets forth financial computations evidencing the Company’s
compliance with the covenants set forth in Sections 7.14 and 7.15 of the
Agreement (the “Compliance Calculations”), all of which computations are true,
complete and correct; and

     

    5.           As
of the end of the accounting period covered by this Quarterly Compliance
Certificate, the Company hereby confirms that all of the representations and
warranties set forth in Section 6 of the Agreement were true and correct in all
material respects (except for those representations and warranties expressly
limited by their term to specific dates, which representations were true and
correct in all materials respects as of such other dates) except as set forth
below.

     

    Described
below are the exceptions, if any, to paragraphs 3 and 5 above by listing, in
detail, the nature of the condition or event, the period during which it existed
or has existed and the action which the Company has taken, is taking or proposes
to take with respect to each such condition or event:

     

    
      	 
      
	 
      
	 
      

    

    
 

     

    
      
         

      

      
        E-1

        
          

        

      

      
         

      

    

    The
foregoing certifications, together with the Compliance Computations set forth in
Schedule I hereto are made and delivered this _____ day of ________________,
20___.

     

    

    
      	 
      	
              THE
      EMPIRE DISTRICT ELECTRIC COMPANY

              By:                                                              
         
             

              Name:                                                         
       
               

              Title:                      Chief
      Financial Officer

               

            

    

    

    

    

    

    
      
         

      

      
        E-2

        
          

        

      

      
         

      

    

    Schedule
I

    To
Compliance Certificate

     

    The
Empire District Electric Company

     

    

     

    Compliance
Calculations For Second Amended and Restated Credit Agreement

    Dated
January 26, 2010

    Calculations
As Of _________________, 20___

     

    

    

    Section
7.14                      Maximum
Total Indebtedness To Total Capitalization Ratio

    
 

    
      
        	 
      	
                (a)

              	
                Long-term
      Debt

              	 
      	
                $
      __________________

              
	 
      	
                (b)

              	
                Current
      Maturities of Long-term Debt

              	
                plus

              	
                $
      __________________

              
	 
      	
                (c)

              	
                Capital
      Leases

              	
                plus

              	
                $
      __________________

              
	 
      	
                (d)

              	
                Short-term
      Debt (commercial paper
      and notes payable)

              	
                plus

              	
                $
      __________________

              
	 
      	
                (e)

              	
                Other
      Indebtedness

              	
                plus

              	
                $
      __________________

              
	 
      	
                (f)

              	
                Junior
      Subordinated Debentures issued
      in 2001 by the Company

              	
                less

              	
                $
      __________________

              

      

       

      
        	 
      	
                Total
      Indebtedness

              	
                  =

              	
                $
      __________________

              

      

      

      
        	 
      	 
      	 
      	 
      	 
      
	 
      	
                (aa)

              	
                Total
      Indebtedness

              	 
      	
                $
      __________________

              
	 
      	
                (bb)

              	
                Common
      Stockholders’ Equity

              	
                plus

              	
                $
      __________________

              
	 
      	
                (cc)

              	
                Preferred
      Stock

              	
                plus

              	
                $
      __________________

              
	 
      	
                (ee)

              	
                Other
      Securities including Junior Subordinated Debentures
issued in 2001 by
      the Company

              	
                 

                plus

              	
                 

                $
      __________________

              

      

    

    
       

      
        	 
      	
                Total
      Capitalization

              	
                  =

              	
                $
      __________________

              

      

    

    
 

    
      
        	 
      	
                     Total
      Indebtedness     

              	 	
                =

              	
                $
      ___________

              	
                =

              	
                       

              
	 
      	
                    Total
      Capitalization    

              	 	
                   

              	
                $
      ___________

              	 
      	 
      1

      

      

        
          	 
      	
                  Required
      to be no more than 0.625 to 1.

                	 
      

        

        
          	 
      	
                  Compliance
      as of Calculation Date:

                	
                  Yes  _______

                	
                  No  _______

                

        

        
          
             

          

          
            E-3

            
              

            

          

          
             

          

        

    

    

    Section
7.15            Minimum
Interest Coverage Ratio

    
      	 
      	
              (a)

            	
              Net
      Income

            	 
      	
              $
      __________________

            
	 
      	
              (b)

            	
              Interest
      Expense

            	
              plus

            	
              $
      __________________

            
	 
      	
              (c)

            	
              Income
      Taxes

            	
              plus

            	
              $
      __________________

            
	 
      	 
      	
              Depr/Amortization
      from Cash Flow

            	 
      	
              $__________________

            
	 
      	 
      	
              Amortization
      adjustment

            	
               

            	
              $__________________

            
	 
      	
              (d)

            	
              Depreciation
      and Amortization

            	
              plus

            	
              $
      __________________

            
	 
      	
              (e)

            	
              Amortization

            	
              plus

            	
              $
      __________________

            

    

     

    
      	 
      	
              EBITDA

            	
                =

            	
              $
      __________________

            

    

    

    
      	 
      	
              (aa)

            	
              Interest
      on Loans

            	
              $
      __________________

            
	 
      	
              (bb)

            	
              Imputed
      interest on capitalized leases

            	$
      __________________
	 
      	
              (cc)

            	
              Amortization
      of discount of Indebtedness

            	$
      __________________
  
	 
      	
              (dd)

            	
              All
      other interest expense including
      interest on Junior Subordinated
      Debentures

            	 
      

              $
      __________________

            

    

    

    
      	
              Interest
      Charges

            	
                =

            	
              $
      __________________

            

    

     

    
      
        	
                Interest
      Coverage Ratio

              	
                =

              	
                      EBITDA      

              	
                  =

              	
                $
      ___________

              	
                =

              	
                   ____

              
	 
      	 
      	
                Interest
      Charges

              	 
      	
                $
      ___________

              	 
      	 
      

      

    

    
      
        
           

          
            	 
      	
                    Required
      to be no less than 2.0 to 1

                  	 
      

          

          
            	 
      	
                    Compliance
      as of Calculation Date:

                  	
                    Yes  _______

                  	
                    No  _______

                  

          

        

      

    

     

    
      
         

      

      
        E-4

        
          

        

      

      
         

      

    

    Exhibit
F

    The
Empire District Electric Company

     

    Existing
Liens

    

    

    

    

    None

    

    

    
      
         

      

      
        F-1

        
          

        

      

      
         

      

    

    Exhibit
G

    The
Empire District Electric Company

     

    Notice
of Payment Request

     

    [Date]

    

    

    [Name of
Lender]

    [Address]

    

    Attention:

    

    Reference
is made to the Second Amended and Restated Unsecured Credit Agreement, dated as
of January 26, 2010, among The Empire District Electric Company, the Banks
party thereto, and UMB Bank, N.A., as Administrative Agent (the “Credit
Agreement”).  Capitalized terms used herein and not defined herein
have the meanings assigned to them in the Credit Agreement.  [The
Company has failed to pay its Reimbursement Obligation in the amount of
$______________.  Your Letter of Credit Commitment Percentage of the
unpaid Reimbursement Obligation is $___________] or [_____________________ has
been required to return a payment by the Company of a Reimbursement Obligation
in the amount of $_____________.  Your Letter of Credit Commitment
Percentage of the returned Reimbursement Obligation is
$_______________.]

     

     

    
      
        	 
      	
                Very
      truly yours,

              	 
      
	 
      	 
      	 
      
	 
      	
                UMB
      BANK, N.A.

              	 
      
	 
      	
                as
      L/C Issuer

              	 
      
	 
      	 
      	 
      

         

        
          	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:

                	 
      
	 
      	
                  Title:

                	 
      
	 
      	 
      	 
      

        

      

G-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]