Document:

exv10w19

 

Exhibit 10.19

SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

Dated as of June 6, 2006

Among

FERRELLGAS RECEIVABLES, LLC, as Seller,

FERRELLGAS, L.P., as Servicer,

JUPITER SECURITIZATION CORPORATION,

THE FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTY HERETO,

As Financial Institutions,

FIFTH THIRD BANK

and

JPMORGAN CHASE BANK, N.A., as Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. PURCHASE ARRANGEMENTS
	 	 	2	 
	 
	 	 	 	 
	Section 1.1 Purchase Facility
	 	 	 2	 
	Section 1.2 Increases
	 	 	 2	 
	Section 1.3 Decreases
	 	 	 3	 
	Section 1.4 Payment Requirements
	 	 	 3	 
	 
	 	 	 	 
	ARTICLE II. PAYMENTS AND ASSET INTEREST COLLECTIONS
	 	 	3	 
	 
	 	 	 	 
	Section 2.1 Payments
	 	 	 3	 
	Section 2.2 Asset Interest Collections Prior to Amortization
	 	 	 4	 
	Section 2.3 Asset Interest Collections Following Amortization
	 	 	 5	 
	Section 2.4 Application of Asset Interest Collections
	 	 	 5	 
	Section 2.5 Payment Rescission
	 	 	 6	 
	Section 2.6 Maximum Purchaser Interests
	 	 	 6	 
	Section 2.7 Clean-up Call
	 	 	 6	 
	 
	 	 	 	 
	ARTICLE III. CP FUNDING
	 	 	6	 
	 
	 	 	 	 
	Section 3.1 CP Costs
	 	 	 6	 
	Section 3.2 CP Costs Payments
	 	 	 7	 
	Section 3.3 Calculation of CP Costs
	 	 	 7	 
	 
	 	 	 	 
	ARTICLE IV. LIQUIDITY FUNDING
	 	 	7	 
	 
	 	 	 	 
	Section 4.1 Liquidity Funding
	 	 	 7	 
	Section 4.2 Yield Payments
	 	 	7	 
	Section 4.3 Selection and Continuation of Tranche Periods
	 	 	 8	 
	Section 4.4 Liquidity Interest Discount Rates
	 	 	 8	 
	Section 4.5 Suspension of the LIBO Rate
	 	 	 8	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	 
	 	 	 	 
	Section 5.1 Representations and Warranties of the Seller
	 	 	 9	 
	(a) Existence and Power
	 	 	9	 
	(b) Power and Authority; Due Authorization, Execution and Delivery
	 	 	9	 
	(c) No Conflict
	 	 	9	 
	(d) Governmental Authorization
	 	 	10	 
	(e) Actions, Suits
	 	 	10	 
	(f) Binding Effect
	 	 	10	 
	(g) Accuracy of Information
	 	 	10	 
	(h) Use of Proceeds
	 	 	10	 
	(i) Good Title
	 	 	10	 
	(j) Perfection
	 	 	11	 
	(k) Places of Business and Locations of Records
	 	 	11	 
	(l) Asset Interest Collections
	 	 	11	 
	(m) Material Adverse Effect
	 	 	11	 
	(n) Names
	 	 	11	 
	(o) Ownership of Seller
	 	 	11	 
	(p) Not a Regulated Entity
	 	 	12	 
	(q) Compliance with Law
	 	 	12	 
	(r) Compliance with Credit and Collection Policy
	 	 	12	 
	(s) Payments to Originator
	 	 	12	 
	(t) Enforceability of Contracts
	 	 	12	 
	(u) Eligible Receivables
	 	 	12	 
	(v) Net Asset Interest Balance
	 	 	12	 

 

 

	 	 	 	 	 
	 	 	Page
	(w) Accounting
	 	 	13	 
	Section 5.2 Financial Institution Representations and Warranties
	 	 	13	 
	(a) Existence and Power
	 	 	13	 
	(b) No Conflict
	 	 	13	 
	(c) Governmental Authorization
	 	 	13	 
	(d) Binding Effect
	 	 	13	 
	 
	ARTICLE VI. CONDITIONS OF PURCHASES
	 	 	13	 
	 
	Section 6.1 Conditions Precedent to Initial Incremental Purchase
	 	 	13	 
	Section 6.2 Conditions Precedent to All Purchases and Reinvestments
	 	 	13	 
	 
	ARTICLE VII. COVENANTS
	 	 	14	 
	 
	Section 7.1 Financial Reporting
	 	 	14	 
	(a) Annual Financial Statements
	 	 	14	 
	(b) Quarterly Financial Statements
	 	 	15	 
	(c) Receivable Interest Sale Agreement Financial Statements
	 	 	15	 
	Section 7.2 Certificates; Other Information
	 	 	15	 
	(a) Receivable Interest Sale Agreement Certificates
	 	 	15	 
	(b) Compliance Certificate
	 	 	15	 
	Section 7.3 Notices
	 	 	15	 
	Section 7.4 Compliance with Laws
	 	 	16	 
	Section 7.5 Preservation of Existence, Etc.
	 	 	16	 
	Section 7.6 Payment of Obligations
	 	 	16	 
	Section 7.7 Audits
	 	 	17	 
	Section 7.8 Keeping of Records and Books
	 	 	17	 
	Section 7.9 Compliance with Contracts and Credit and Collection Policy
	 	 	17	 
	Section 7.10 Purchasers’ Reliance
	 	 	17	 
	Section 7.11 Performance and Enforcement of Receivable Interest Sale Agreement
	 	 	20	 
	Section 7.12 Collections
	 	 	20	 
	Section 7.13 Ownership
	 	 	20	 
	Section 7.14 Taxes
	 	 	20	 
	Section 7.15 Negative Covenants of the Seller Parties
	 	 	21	 
	(a) Name Change, Offices and Records
	 	 	21	 
	(b) Change in Payment Instructions to Obligors
	 	 	21	 
	(c) Modifications to Contracts and Credit and Collection Policy
	 	 	21	 
	(d) Sales, Adverse Claims
	 	 	21	 
	(e) Net Asset Interest Balance
	 	 	21	 
	(f) Termination Date Determination
	 	 	21	 
	(g) Restricted Junior Payments
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VIII. ADMINISTRATION AND COLLECTION
	 	 	22	 
	 
	 	 	 	 
	Section 8.1 Designation of Servicer
	 	 	22	 
	Section 8.2 Certain Duties of Servicer
	 	 	22	 
	Section 8.3 Collection Notices
	 	 	23	 
	Section 8.4 Responsibilities of Seller
	 	 	23	 
	Section 8.5 Reports
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IX. AMORTIZATION EVENTS
	 	 	24	 
	 
	 	 	 	 
	Section 9.1 Amortization Events
	 	 	24	 
	Section 9.2 Remedies
	 	 	26	 
	 
	 	 	 	 
	ARTICLE X. INDEMNIFICATION
	 	 	26	 
	 
	 	 	 	 
	ii

 

 

	 	 	 	 	 
	 	 	Page
	Section 10.1 Indemnities by the Seller Parties
	 	 	26	 
	Section 10.2 Increased Cost and Reduced Return
	 	 	28	 
	Section 10.3 Other Costs and Expenses
	 	 	29	 
	Section 10.4 Allocations
	 	 	29	 
	 
	 	 	 	 
	ARTICLE XI. THE AGENT
	 	 	30	 
	 
	 	 	 	 
	Section 11.1 Authorization and Action
	 	 	30	 
	Section 11.2 Delegation of Duties
	 	 	30	 
	Section 11.3 Exculpatory Provisions
	 	 	30	 
	Section 11.4 Reliance by Agent
	 	 	31	 
	Section 11.5 Non-Reliance on Agent and Other Purchasers
	 	 	31	 
	Section 11.6 Reimbursement and Indemnification
	 	 	31	 
	Section 11.7 Agent in its Individual Capacity
	 	 	32	 
	Section 11.8 Successor Agent
	 	 	32	 
	 
	 	 	 	 
	ARTICLE XII. ASSIGNMENTS; PARTICIPATIONS
	 	 	32	 
	 
	 	 	 	 
	Section 12.1 Assignments
	 	 	32	 
	Section 12.2 Participations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE XIII. FUNDING AGREEMENT
	 	 	34	 
	 
	 	 	 	 
	Section 13.1 Funding Agreement Fundings
	 	 	34	 
	Section 13.2 Terminating Financial Institutions
	 	 	34	 
	 
	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS
	 	 	35	 
	 
	 	 	 	 
	Section 14.1 Waivers and Amendments
	 	 	35	 
	Section 14.2 Notices
	 	 	36	 
	Section 14.3 Ratable Payments
	 	 	36	 
	Section 14.4 Protection of Ownership Interests of the Purchasers
	 	 	37	 
	Section 14.5 Confidentiality
	 	 	37	 
	Section 14.6 Bankruptcy Petition
	 	 	38	 
	Section 14.7 Limitation of Liability
	 	 	38	 
	Section 14.8 CHOICE OF LAW
	 	 	38	 
	Section 14.9 CONSENT TO JURISDICTION
	 	 	38	 
	Section 14.10 WAIVER OF JURY TRIAL
	 	 	39	 
	Section 14.11 Integration; Binding Effect; Survival of Terms
	 	 	39	 
	Section 14.12 Counterparts; Severability; Section References
	 	 	39	 
	Section 14.13 JPMorgan Chase Roles
	 	 	40	 
	Section 14.14 Characterization
	 	 	40	 
	Section 14.15 Amendment and Restatement
	 	 	40	 

Exhibits and Schedules

	 	 	 
	Exhibit I

	 	Definitions
	Exhibit II

	 	Form of Purchase Notice
	Exhibit III

	 	Principal Places of Business and Chief Executive Offices of
the Seller Parties; Locations of Records; Federal Employer
Identification Number(s)
	Exhibit IV

	 	Form of Compliance Certificate
	Exhibit V

	 	Form of Assignment Agreement
	Exhibit VI

	 	Form of Monthly Report
	Schedule A

	 	Commitments
	Schedule B

	 	Closing Documents
	 
	 	 
	iii

 

 

SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

          THIS SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of June 6, 2006
(“Receivables Purchase Agreement”), is among Ferrellgas Receivables, LLC, a Delaware limited
liability company (“Seller”), Ferrellgas, L.P., a Delaware limited partnership (“Ferrellgas”), as
initial Servicer (the initial Servicer together with Seller, the “Seller Parties” and each a
“Seller Party”), JPMorgan Chase Bank, N.A. (“JPMorgan Chase” and, together with its successors and
assigns hereunder that become Committed Purchasers, the “Financial Institutions”), Jupiter
Securitization Corporation (“Jupiter”), Fifth Third Bank (“Fifth Third”), and JPMorgan Chase Bank,
N.A., as agent for the Purchasers hereunder or any successor agent hereunder (together with its
successors and assigns hereunder, the “Agent”). Unless defined elsewhere herein, capitalized terms
used in this Agreement shall have the meanings assigned to such terms in Exhibit I and, if not
defined therein, the meanings assigned to such terms in the Receivable Interest Sale Agreement
referenced therein.

PRELIMINARY STATEMENTS

     A. The Seller, Ferrellgas, JPMorgan Chase, Jupiter and the Agent have
previously executed and delivered that certain Amended and Restated Receivables
Purchase Agreement dated as of June 7, 2005 (the “Original Purchase Agreement”).

     B. The parties hereto desire to amend and restate (but not extinguish) the
Original Purchase Agreement in its entirety as hereinafter set forth through the
execution of this Second Amended and Restated Receivables Purchase Agreement.

     C. Seller desires to continue transferring and assigning Purchaser Interests to
the Purchasers from time to time. Jupiter may, in its absolute and sole discretion,
continue purchasing Purchaser Interests from Seller from time to time, and Fifth
Third shall purchase Purchaser Interests from Seller from time to time hereafter.
In the event that Jupiter declines to make any purchase, the Financial Institutions
shall, at the request of Seller, purchase Jupiter’s Purchaser Interests from time to
time. In addition, each Financial Institution has agreed to continue providing a
liquidity facility to Jupiter.

     D. JPMorgan Chase Bank, N.A. has been requested and is willing to act as Agent
on behalf of the Purchasers in accordance with the terms hereof.

          NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto, (i) do hereby agree that the Original Purchase Agreement is
amended and restated (but not substituted or extinguished) in its entirety as set forth herein, and
(ii) do hereby further agree as follows:

1

 

ARTICLE I.

PURCHASE ARRANGEMENTS

          Section 1.1 Purchase Facility.

               (a) Upon the terms and subject to the conditions hereof, Seller may, at its option, from time
to time during the period from the date hereof to but not including the Facility Termination Date,
sell and assign Purchaser Interests to the Agent, for the benefit of Fifth Third, and
simultaneously to the Agent for the benefit of one or more of the Purchasers in Jupiter’s Purchaser
Group, whereupon from time to time (i) Fifth Third shall instruct the Agent to purchase on Fifth
Third’s behalf, and (ii) Jupiter may, at its option, instruct the Agent to purchase on Jupiter’s
behalf, or if Jupiter shall decline to purchase, the Agent shall purchase, on behalf of the
Financial Institutions, Purchaser Interests; provided, however, that (A) the Purchase Prices for
the Purchaser Interests sold on any given Business Day shall be ratable in accordance with each
Purchaser Group’s respective Percentage, and (B) in no event shall the aggregate Capital
outstanding hereunder from either Purchaser Group exceed the lesser of (1) such Group’s Group
Purchase Limit and (2) the Commitment Availability for such Purchaser Group. Seller hereby
assigns, transfers and conveys to the Agent, for the ratable benefit of the Purchaser Groups in
accordance with their respective Percentages, and the Agent hereby acquires, all of Seller’s now
owned and existing and hereafter arising or acquired right, title and interest in and to the
Purchaser Interests.

               (b) Seller may, upon at least 5 Business Days’ notice to the Agent (who will promptly forward
a copy of each such notice to the Purchasers) terminate in whole or reduce in part, ratably between
the Purchaser Groups (and, within the Jupiter Group, ratably among the Financial Institutions), the
unused portion of the Purchase Limit and the Group Purchase Limits; provided that each partial
reduction of the Purchase Limit shall be in an amount equal to $5,000,000 or an integral multiple
thereof.

          Section 1.2 Increases. Seller shall provide the Agent with at least one (1) Business
Day’s prior notice in a form set forth as Exhibit II hereto of each Incremental Purchase (a
“Purchase Notice”), and the Agent will promptly forward a copy of each such Purchase Notice to the
Purchasers. Each Purchase Notice shall be subject to Section 6.2 hereof and, except as set forth
below, shall be irrevocable and shall specify the requested Purchase Price (which shall not be less
than $1,000,000) and date of purchase and, in the case of an Incremental Purchase to be funded by a
through the purchase of a Liquidity Interest, the requested Discount Rate and Tranche Period.
Following receipt of a Purchase Notice, Fifth Third shall advise the Agent and Seller if its CP
Availability Period has ended, and the Agent shall determine whether Jupiter agrees to make the
Jupiter Group’s Percentage of the purchase. If Jupiter declines to make the Jupiter Group’s
Percentage of a proposed purchase or if Fifth Third’s CP Availability Period has ended, Seller may
cancel the Purchase Notice as to both Purchaser Groups. In the absence of such a cancellation, (a)
in the case of Jupiter’s decision not to participate in such purchase, the Agent shall notify the
Financial Institutions of its receipt of such Purchase Notice and of Jupiter’s declining to make
the Jupiter Group’s Percentage of such purchase, and the Incremental Purchase of the Jupiter
Group’s Purchaser Interest shall be made by such Financial Institutions, and (b) in the case of the
end of Fifth Third’s CP Availability Period, Fifth Third’s Percentage of such purchase will be
funded as a Fifth Third Liquidity Interest. On the date of

2

 

each Incremental Purchase, upon satisfaction of the applicable conditions precedent set forth
in Article VI, the applicable Purchasers shall initiate a wire transfer to the Facility Account, of
immediately available funds, no later than 12:00 noon (Chicago time), in an amount equal to (i) in
the case of Jupiter or Fifth Third, its Purchaser Group’s Percentage of the aggregate Purchase
Price, or (ii) in the case of a Financial Institution, such Financial Institution’s Pro Rata Share
of the Jupiter Group’s Percentage of the Purchase Price.

          Section 1.3 Decreases. Seller shall provide the Agent (who will promptly forward a
copy of each such notice to the Purchasers) prior written notice (a “Reduction Notice”) in
conformity with the Required Notice Period of any proposed reduction of Aggregate Capital from
Asset Interest Collections. Such Reduction Notice shall designate (i) the date (the “Proposed
Reduction Date”) upon which any such reduction of Aggregate Capital shall occur (which date shall
give effect to the applicable Required Notice Period), (ii) the amount of Aggregate Capital to be
reduced (the “Aggregate Reduction”) which shall be applied ratably to the Purchaser Interests of
each Purchaser in accordance with the amount of Capital (if any) owing to such Purchaser in each
case divided by the Aggregate Capital at such time, and (iii) each Purchaser’s portion of such
Aggregate Reduction. Only one (1) Reduction Notice shall be outstanding at any time.

          Section 1.4 Payment Requirements. All amounts to be paid or deposited by any Seller
Party pursuant to any provision of this Agreement shall be paid or deposited in accordance with the
terms hereof no later than 12:00 noon (Chicago time) on the day when due in immediately available
funds, and if not received before 12:00 noon (Chicago time) shall be deemed to be received on the
next succeeding Business Day. All amounts payable to the Agent or any Purchaser shall be paid to
the Agent, for its own account or for the account of such Purchaser, as applicable, at the Agent’s
principal office in Chicago, Illinois until otherwise notified by the Agent, and the Agent shall
promptly remit Fifth Third’s portion thereof in immediately available funds to such account as
Fifth Third may from time to time specify in writing. All computations of Yield at the LIBO Rate,
per annum fees calculated as part of any CP Costs, per annum fees hereunder and per annum fees
under the Fee Letters shall be made on the basis of a year of 360 days for the actual number of
days elapsed. All computations of Yield at the Base Rate shall be made on the basis of a year of
365 (or, when appropriate, 366) days for the actual number of days elapsed. If any amount
hereunder shall be payable on a day which is not a Business Day, such amount shall be payable on
the next succeeding Business Day.

ARTICLE II.

PAYMENTS AND ASSET INTEREST COLLECTIONS

          Section 2.1 Payments. Notwithstanding any limitation on recourse contained in this
Agreement, Seller shall immediately pay to each Purchaser Group when due on a full recourse basis:
(i) such fees as are set forth in the Fee Letters (which fees, in the case of the Jupiter Group,
shall be sufficient to pay all fees owing to the Financial Institutions), (ii) all CP Costs, (iii)
all amounts payable as Yield, (iv) all amounts payable as Deemed Collections (which shall be
immediately due and payable by Seller and applied to reduce outstanding Aggregate Capital hereunder
in accordance with Sections 2.2 and 2.3 hereof), (v) all amounts required

3

 

pursuant to Section 2.6, (vi) all amounts payable pursuant to Article X, if any, (vii) all
Servicer costs and expenses, including the Servicing Fee, in connection with servicing,
administering and collecting the Pool Receivables, (viii) all Broken Funding Costs, and (ix) all
Default Fees (collectively, the “Recourse Obligations”). If Seller fails to pay any of the
Recourse Obligations when due, Seller agrees to pay, on demand, the Default Fee in respect thereof
until paid. Notwithstanding the foregoing, no provision of this Agreement or any Fee Letter shall
require the payment or permit the collection of any amounts hereunder in excess of the maximum
permitted by applicable law. If at any time Seller receives any Asset Interest Collections or is
deemed to receive any Asset Interest Collections, Seller shall immediately pay such Asset Interest
Collections or Deemed Collections to the Servicer for application in accordance with the terms and
conditions hereof and, at all times prior to such payment, such Asset Interest Collections or
Deemed Collections shall be held in trust by Seller for the exclusive benefit of the Purchasers and
the Agent.

          Section 2.2 Asset Interest Collections Prior to Amortization. Prior to the
Amortization Date, any Asset Interest Collections and Deemed Collections received by the Servicer
and all Asset Interest Collections received by the Servicer shall be set aside and held in trust by
the Servicer for the payment of any accrued and unpaid Aggregate Unpaids or for a Reinvestment as
provided in this Section 2.2. If at any time any Asset Interest Collections are received by the
Servicer prior to the Amortization Date, (a) the Servicer shall set aside the Termination
Percentage (hereinafter defined) of Asset Interest Collections evidenced by the Purchaser Interests
of each Terminating Financial Institution and (b) Seller hereby requests and the applicable
Purchasers (other than any Terminating Financial Institutions) hereby agree to make, simultaneously
with such receipt, a reinvestment (each, a “Reinvestment”) with that portion of the balance of each
and every Asset Interest Collection received by the Servicer that is part of any Purchaser Interest
(other than any Purchaser Interests of Terminating Financial Institutions), such that after giving
effect to such Reinvestment, the amount of Capital of such Purchaser Interest immediately after
such receipt and corresponding Reinvestment shall be equal to the amount of Capital immediately
prior to such receipt. On each Settlement Date prior to the occurrence of the Amortization Date,
the Servicer shall remit to the Agent’s account for the ratable benefit of the Purchaser Groups in
accordance with their respective Percentages, the amounts set aside during the preceding Settlement
Period that have not been subject to a Reinvestment and apply such amounts (if not previously paid
in accordance with Section 2.1) first, to reduce unpaid CP Costs, Yield and other Recourse
Obligations, ratably between the Purchaser Groups in accordance with their respective amounts of
such Recourse Obligations, and second, to reduce the Capital of all Purchaser Interests of
Terminating Financial Institutions, applied ratably to each Terminating Financial Institution
according to its respective Termination Percentage. If such Capital, CP Costs, Yield and other
Recourse Obligations shall be reduced to zero, any additional Asset Interest Collections received
by the Servicer (i) if applicable, shall be remitted to Agent’s account for the ratable benefit of
the Purchaser Groups in accordance with their respective Percentages, no later than 12:00 noon
(Chicago time) to the extent required to fund any Aggregate Reduction on such Settlement Date and
(ii) any balance remaining thereafter shall be remitted from the Servicer to Seller on such
Settlement Date. Each Terminating Financial Institution shall be allocated a ratable portion of
the Jupiter Group’s Percentage of Collections from the date of any assignment by Jupiter to the
Financial Institutions pursuant to a Funding Agreement (the “Termination Date”) until such
Terminating Financing Institution’s

4

 

Capital shall be paid in full. This ratable portion shall be calculated on the Termination
Date of each Terminating Financial Institution as a percentage equal to (i) Capital of such
Terminating Financial Institution outstanding on its Termination Date, divided by (ii) the
aggregate Capital outstanding from the Jupiter Group on such Termination Date (the “Termination
Percentage”). Each Terminating Financial Institution’s Termination Percentage shall remain
constant prior to the Amortization Date. On and after the Amortization Date, each Termination
Percentage shall be disregarded, and all Purchasers’ Capital shall be reduced ratably in accordance
with Section 2.4.

          Section 2.3 Asset Interest Collections Following Amortization. On the Amortization
Date and on each day thereafter, Seller shall remain liable on a full-recourse basis to pay the
Recourse Obligations pursuant to Section 2.1, and the Servicer shall set aside and hold in trust,
for the holder of each Purchaser Interest, all Asset Interest Collections received on such day. On
and after the Amortization Date, the Servicer shall, at any time upon the request from time to time
by (or pursuant to standing instructions from) the Agent or Fifth Third (i) remit to the Agent, for
the ratable account of the Purchasers, the amounts set aside pursuant to the preceding sentence,
and (ii) apply such amounts to reduce the Capital associated with each such Purchaser Interest and
any other Aggregate Unpaids in accordance with Section 2.4.

          Section 2.4 Application of Asset Interest Collections. If there shall be insufficient
funds on deposit for the Servicer to distribute funds in payment in full of the aforementioned
amounts pursuant to Section 2.2 or 2.3 (as applicable), the Servicer shall distribute funds:

     first, to the payment of the Servicer’s reasonable out-of-pocket costs and
expenses in connection with servicing, administering and collecting the Pool
Receivables, including the Servicing Fee, if Seller or one of its Affiliates is not
then acting as the Servicer,

     second, to the reimbursement of the Agent’s and Purchasers’ costs of collection
and enforcement of this Agreement,

     third, ratably to the payment of all accrued and unpaid fees under the Fee
Letters, CP Costs and Yield,

     fourth, (to the extent applicable) to the ratable reduction of the Aggregate
Capital (without regard to any Termination Percentage),

     fifth, for the ratable payment of all other unpaid Recourse Obligations,
provided that to the extent such Recourse Obligations relate to the payment of
Servicer costs and expenses, including the Servicing Fee, when Seller or one of its
Affiliates is acting as the Servicer, such costs and expenses will not be paid until
after the payment in full of all other Recourse Obligations, and

     sixth, after the Aggregate Unpaids have been indefeasibly reduced to zero, to
Seller.

5

 

Asset Interest Collections applied to the payment of Aggregate Unpaids shall be distributed in
accordance with the aforementioned provisions, and, giving effect to each of the priorities set
forth above in this Section 2.4, shall be shared ratably (within each priority) among the Agent and
the Purchasers in accordance with the amount of such Aggregate Unpaids owing to each of them in
respect of each such priority.

          Section 2.5 Payment Rescission. No payment of any of the Aggregate Unpaids shall be
considered paid or applied hereunder to the extent that, at any time, all or any portion of such
payment or application is rescinded by application of law or judicial authority, or must otherwise
be returned or refunded for any reason. Seller shall remain obligated for the amount of any
payment or application so rescinded, returned or refunded, and shall promptly pay to the Agent (for
the account of the applicable Person or Persons who suffered such rescission, return or refund) the
full amount thereof, plus the Default Fee from the date of any such rescission, return or
refunding.

          Section 2.6 Maximum Purchaser Interests. Seller shall ensure that the Purchaser
Interests of the Purchasers shall at no time exceed in the aggregate 100%. If the aggregate of the
Purchaser Interests of the Purchasers exceeds 100%, Seller shall pay to the Agent’s account for the
ratable benefit of the Purchasers in accordance with their Percentages within one (1) Business Day
an amount to be applied to reduce the aggregate Capital, such that after giving effect to such
payments, the aggregate of the Purchaser Interests equals or is less than l00%.

          Section 2.7 Clean-up Call. In addition to Sellers rights pursuant to Section 1.3, the
Servicer shall have the right (after providing written notice to the Agent in accordance with the
Required Notice Period), to direct the Seller at any time following the reduction of the Aggregate
Capital to a level that is less than 10.0% of the original Purchase Limit, repurchase from the
Purchasers all, but not less than all, of the then outstanding Purchaser Interests (a “Clean-up
Call” ). The Agent will promptly forward a copy of each such notice to the Purchasers. The
aggregate purchase price in respect thereof shall be an amount equal to the Aggregate Unpaids
through the date of such repurchase, payable in immediately available funds. Such repurchase shall
be without representation, warranty or recourse of any kind by, on the part of, or against any
Purchaser or the Agent, except that the Agent and the Purchasers shall represent and warrant that
the Purchasers Interests are free and clear of any Adverse Claim created by any of them. Upon such
payment in full of the Aggregate Unpaids following a Clean-up Call, the Commitments and this
Agreement shall terminate and be of no further force and effect, except for provisions which
expressly survive termination.

ARTICLE III.

CP FUNDING

          Section 3.1 CP Costs. Seller shall pay CP Costs with respect to the Capital
associated with each Purchaser Interest (a) of Jupiter for each day that any Capital in respect of
such Purchaser Interest is outstanding and (b) of Fifth Third for each day that any Capital in
respect of such Purchaser Interest is outstanding during a CP Availability Period. Each such
Purchaser Interest funded substantially with Pooled Commercial Paper shall accrue CP Costs each day
on a pro rata basis, based upon the percentage share the Capital in respect of such

6

 

Purchaser Interest represents in relation to all assets held by Jupiter or Fountain Square, as
applicable, and funded substantially with Pooled Commercial Paper.

          Section 3.2 CP Costs Payments. On each applicable Settlement Date, Seller shall pay
to the Agent’s account (for the benefit of Jupiter and Fifth Third) an aggregate amount equal to
all accrued and unpaid CP Costs in respect of the Capital associated with all Purchaser Interests
of Jupiter or Fifth Third, as the case may be, for the immediately preceding Accrual Period in
accordance with Article II.

          Section 3.3 Calculation of CP Costs. On or before the 5th Business Day of each
calendar month hereafter while Jupiter has any Purchaser Interest outstanding and Fifth Third has
funding available from Fountain Square, (a) the Agent shall calculate the aggregate amount of CP
Costs owing to Jupiter for the applicable Accrual Period, and (b) Fifth Third shall calculate the
aggregate amount of CP Costs owing to Fifth Third for the applicable Accrual Period, and Fifth
Third shall notify the Agent of Fifth Third’s CP Costs for such Accrual Period. Within two (2)
Business Days thereafter, the Agent shall notify Seller of the CP Costs for each of Jupiter and
Fifth Third for such Accrual Period.

ARTICLE IV.

LIQUIDITY FUNDING

          Section 4.1 Liquidity Funding. Each Liquidity Interest shall accrue Yield for each
day during its Tranche Period at either the LIBO Rate or the Base Rate in accordance with the terms
and conditions hereof. Until Seller gives notice to the Agent (who will promptly forward a copy of
each such notice to the Committed Purchasers) of another Discount Rate in accordance with Section
4.4 hereof, the initial Discount Rate for any Purchaser Interest transferred by Jupiter to the
Financial Institutions pursuant to a Funding Agreement and for any Fifth Third Liquidity Interest
shall be the Base Rate. If the Financial Institutions acquire by assignment from Jupiter any
Purchaser Interest pursuant to a Funding Agreement, each Purchaser Interest so assigned shall each
be deemed to have a new Tranche Period commencing on the date of any such assignment. If the CP
Availability Period ends, Fifth Third shall promptly notify the Agent and the Seller Parties of
such termination, and each Purchaser Interest of Fifth Third shall be deemed to have a new Tranche
Period commencing on the date the CP Availability Period ended.

          Section 4.2 Yield Payments. On the Settlement Date for each Liquidity Interest,
Seller shall pay to the Agent (for the benefit of the Financial Institutions or Fifth Third, as
applicable) an aggregate amount equal to the accrued and unpaid Yield for the entire Tranche Period
of each such Liquidity Interest in accordance with Article II.

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          Section 4.3 Selection and Continuation of Tranche Periods.

          (a) With consultation from (and approval by) the Agent, Seller shall from time to time request
Tranche Periods for the Liquidity Interests, provided that, at any time any Liquidity Interest is
outstanding, Seller shall always request Tranche Periods from such Purchaser such that at least one
Tranche Period shall end on the date specified in clause (A) of the definition of Settlement Date.

          (b) Seller, on the one hand, and as applicable, the Agent or Fifth Third, on the other hand,
upon notice to and consent by the other received at least three (3) Business Days prior to the end
of a Tranche Period (the “Terminating Tranche”) for any Purchaser Interest, may, effective on the
last day of the Terminating Tranche: (i) divide any such Purchaser Interest into multiple
Purchaser Interests of the same Purchaser Group, (ii) combine any such Purchaser Interest with one
or more other Purchaser Interests of the same Purchaser Group that have a Terminating Tranche
ending on the same day as such Terminating Tranche or (iii) combine any such Purchaser Interest
with a new Purchaser Interests of the same Purchaser Group to be purchased on the day such
Terminating Tranche ends, provided, that in no event may a Purchaser Interest of Jupiter be
combined with a Purchaser Interest of the Financial Institutions or of Fifth Third, and in no event
may a Purchaser Interest of Fifth Third be combined with a Purchaser Interest of anyone in the
Jupiter Group.

          Section 4.4 Liquidity Interest Discount Rates. Seller may select the LIBO Rate or the
Base Rate for each Liquidity Interest. Seller shall by 12:00 noon (Chicago time): (i) at least
three (3) Business Days prior to the expiration of any Terminating Tranche with respect to which
the LIBO Rate is being requested as a new Discount Rate and (ii) at least one (1) Business Day
prior to the expiration of any Terminating Tranche with respect to which the Base Rate is being
requested as a new Discount Rate, give the Agent (who will promptly forward a copy of each such
notice to the applicable Committed Purchasers) irrevocable notice of the new Discount Rate for the
Purchaser Interest associated with such Terminating Tranche. Until Seller gives notice in
accordance with the preceding sentence of another Discount Rate, the initial Discount Rate for any
Purchaser Interest transferred to the Financial Institutions pursuant to a Funding Agreement, and
of any Purchaser Interest of Fifth Third outstanding when the CP Availability Period ends, shall be
the Base Rate.

          Section 4.5 Suspension of the LIBO Rate.

          (a) If any Committed Purchaser notifies Seller that it has determined that funding its
Liquidity Interest at a LIBO Rate would violate any applicable law, rule, regulation, or directive
of any governmental or regulatory authority, whether or not having the force of law, or that (i)
deposits of a type and maturity appropriate to match fund its Liquidity Interests at such LIBO Rate
are not available or (ii) such LIBO Rate does not accurately reflect the cost of acquiring or
maintaining a Liquidity Interest at such LIBO Rate, then the Committed Purchaser(s) in the
applicable Purchaser Group shall suspend the availability of such LIBO Rate and require Seller to
select the Base Rate for any Liquidity Interest accruing Yield at such LIBO Rate.

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          (b) If less than all of the Financial Institutions give a notice to the Agent pursuant to
Section 4.5(a), each Financial Institution which gave such a notice shall be obliged, at the
request of Seller, Jupiter or the Agent, to assign all of its rights and obligations hereunder
to (i) another Financial Institution or (ii) another funding entity nominated by Seller or the
Agent that is acceptable to Jupiter and willing to participate in this Agreement through the
Liquidity Termination Date in the place of such notifying Financial Institution; provided
that (i) the notifying Financial Institution receives payment in full, pursuant to an Assignment
Agreement, of an amount equal to such notifying Financial Institution’s Pro Rata Share of the
Capital and Yield owing to all of the Financial Institutions and all accrued but unpaid fees and
other costs and expenses payable in respect of its Pro Rata Share of the Purchaser Interests of the
Financial Institutions, and (ii) the replacement Financial Institution otherwise satisfies the
requirements of Section 12.1(b).

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

          Section 5.1 Representations and Warranties of the Seller. Each Seller Party hereby
represents and warrants to the Agent and the Purchasers, as to itself, as of the date hereof and as
of the date of each Incremental Purchase and the date of each Reinvestment that:

               (a) Existence and Power. Such Seller Party is duly organized, validly existing and in
good standing under the laws of Delaware, and is duly qualified to do business and is in good
standing as a foreign entity, and has and holds all organizational power and all governmental
licenses, authorizations, consents and approvals required to carry on its business in each
jurisdiction in which its business is conducted except where the failure to so qualify or so hold
could not reasonably be expected to have a Material Adverse Effect.

               (b) Power and Authority; Due Authorization, Execution and Delivery. The execution and
delivery by such Seller Party of this Agreement and each other Transaction Document to which it is
a party, and the performance of its obligations hereunder and thereunder and, Seller’s use of the
proceeds of the purchases made hereunder, are within its organizational powers and authority and
have been duly authorized by all necessary action on its part. This Agreement and each other
Transaction Document to which such Seller Party is a party has been duly executed and delivered by
such Seller Party.

               (c) No Conflict. The execution and delivery by such Seller Party of this Agreement
and each other Transaction Document to which it is a party, and the performance of its obligations
hereunder and thereunder do not contravene or violate (i) its Organization Documents, (ii) any law,
rule or regulation applicable to it, (iii) any restrictions under any agreement, contract or
instrument to which it is a party or by which it or any of its property is bound, or (iv) any
order, writ, judgment, award, injunction or decree binding on or affecting it or its property, and
do not result in the creation or imposition of any Adverse Claim on assets of such Seller Party
(except as created under the Transaction Documents) except, in each case, where such contravention
or violation could not reasonably be expected to have a Material Adverse Effect; and no transaction
contemplated hereby requires compliance with any bulk sales act or similar law.

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               (d) Governmental Authorization. Other than the filing of the financing statements
required hereunder and under the Receivable Interest Sale Agreement, no authorization or approval
or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for the due execution and delivery by such Seller
Party of this Agreement and each other Transaction Document to which it is a party and the
performance of its obligations hereunder and thereunder.

               (e) Actions, Suits. There are no actions, suits or proceedings pending, or to the
best of such Seller Party’s knowledge, threatened, against or affecting such Seller Party, or any
of its properties, in or before any Governmental Authority, which (a) purport to affect or pertain
to this Agreement or any other Transaction Document or any of the transactions contemplated hereby
or thereby; or (b) if determined adversely to Originator, would reasonably be expected to have a
Material Adverse Effect. No injunction, writ, temporary restraining order or any order of any
nature has been issued by any court or other Governmental Authority purporting to enjoin or
restrain the execution, delivery or performance of this Agreement or any other Transaction
Document, or directing that the transactions provided for herein or therein not be consummated as
herein or therein provided.

               (f) Binding Effect. This Agreement and each other Transaction Document to which such
Seller Party is a party constitute the legal, valid and binding obligations of such Seller Party
enforceable against such Seller Party in accordance with their respective terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law).

               (g) Accuracy of Information. All information heretofore furnished by such Seller
Party or any of its Affiliates to the Agent or any Purchaser for purposes of or in connection with
this Agreement, any of the other Transaction Documents or any transaction contemplated hereby or
thereby is, and all such information hereafter furnished by such Seller Party or any of its
Affiliates to the Agent or any Purchaser will be, true and accurate in every material respect on
the date such information is stated or certified and does not and will not contain any untrue
statement of a material fact or omit any material fact required to be stated therein or necessary
to make the statements made therein, in light of the circumstances under which they are made, not
misleading as of the time when made or delivered.

               (h) Use of Proceeds. No proceeds of any purchase hereunder will be used (i) for a
purpose that violates, or would be inconsistent with, Regulation T, U or X promulgated by the Board
of Governors of the Federal Reserve System from time to time or (ii) to acquire any security in any
transaction which is subject to Section 12, 13 or 14 of the Securities Exchange Act of 1934, as
amended.

               (i) Good Title. Immediately prior to each purchase hereunder, Seller shall be the
legal and beneficial owner of the Asset Interest, free and clear of any Adverse Claim, except as
created by the Transaction Documents. There have been duly filed all financing statements or other
similar instruments or documents necessary under the UCC (or any

10

 

comparable law) of all appropriate
jurisdictions to perfect Seller’s ownership interest in the Asset Interest.

               (j) Perfection. This Agreement, together with the filing of the financing statements
contemplated hereby, is effective to, and shall, upon each purchase hereunder, transfer to the
Agent for the benefit of the relevant Purchaser or Purchasers (and the Agent for
the benefit of such Purchaser or Purchasers shall acquire from Seller) a valid and perfected
first priority undivided percentage ownership or security interest in the Asset Interest, free and
clear of any Adverse Claim, except as created by the Transactions Documents. There have been duly
filed all financing statements or other similar instruments or documents necessary under the UCC
(or any comparable law) of all appropriate jurisdictions to perfect the Agent’s (on behalf of the
Purchasers) ownership or security interest in the Asset Interest.

               (k) Places of Business and Locations of Records. The offices where the Seller Parties
keep all of their respective records regarding the Purchaser Interests are located at the
address(es) listed on Exhibit III or such other locations of which the Agent has been notified in
accordance with Section 7.2(a) in jurisdictions where all action required by Section 14.4(a) has
been taken and completed. Seller’s Federal Employer Identification Number is correctly set forth
on Exhibit III.

               (l) Asset Interest Collections. The conditions and requirements set forth in Section
7.12 and in Section 5.12(a) of the Receivable Interest Sale Agreement have at all times been
satisfied and duly performed. Seller has not granted any Person, other than the Servicer, dominion
and control of any Lock-Box or Collection Account, or the right to take dominion and control of any
such Lock-Box or Collection Account at a future time or upon the occurrence of a future event.
Servicer has not granted any Person, other than the Agent, dominion and control of the Servicer’s
Concentration Account, or the right to take dominion and control of the Servicer’s Concentration
Account at a future time or upon the occurrence of a future event. Seller has not granted any
Person, other than the Agent, dominion and control of the Facility Account, or the right to take
dominion and control of the Facility Account at a future time or upon the occurrence of a future
event.

               (m) Material Adverse Effect. (i) The initial Servicer represents and warrants that
since January 31, 2005, no event has occurred that would have a material adverse effect on the
financial condition or operations of the initial Servicer and its Subsidiaries or the ability of
the initial Servicer to perform its obligations under this Agreement, and (ii) Seller represents
and warrants that since the date of this Agreement, no event has occurred that would have a
material adverse effect on (A) the financial condition or operations of Seller, (B) the ability of
Seller to perform its obligations under the Transaction Documents, or (C) the collectibility of the
Pool Receivables generally or any material portion of the Pool Receivables.

               (n) Names. In the past five (5) years, Seller has not used any legal names, trade
names or assumed names other than the name in which it has executed this Agreement.

               (o) Ownership of Seller. Originator owns, directly or indirectly, 100% of the issued
and outstanding Equity Interests of Seller, free and clear of any Adverse Claim.

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Such Equity
Interests are validly issued, fully paid and nonassessable, and there are no options, warrants or
other rights to acquire securities of Seller.

               (p) Not a Regulated Entity. Such Seller Party is not an “investment company” within
the meaning of the Investment Company Act of 1940, as amended, or any successor statute. Such
Seller Party is not subject to regulation under the Public Utility Holding Company Act of 1935, the
Federal Power Act, the Interstate Commerce Act, any state public
utilities code, or any other Federal or state statute or regulation limiting its ability to
incur Indebtedness or to sell interests in the Pool Receivables or the Asset Interest.

               (q) Compliance with Law. Such Seller Party has complied with all applicable laws,
rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be
subject, except where the failure to so comply could not reasonably be expected to have a Material
Adverse Effect. Each Pool Receivable, together with the Contract related thereto, does not
contravene any laws, rules or regulations applicable thereto (including, without
limitation, laws, rules and regulations relating to truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices and privacy), and no
part of such Contract is in violation of any such law, rule or regulation, except where such
contravention or violation could not reasonably be expected to have a Material Adverse Effect.

               (r) Compliance with Credit and Collection Policy. Such Seller Party has complied in
all material respects with the Credit and Collection Policy with regard to each Pool Receivable and
the related Contract, and has not made any change to such Credit and Collection Policy, except such
material change as to which the Agent has been notified in accordance with Section 7.2(c) and has
consented.

               (s) Payments to Originator. Seller has given reasonably equivalent value to
Originator in consideration for the Asset Interest and such transfer was not made for or on account
of an antecedent debt. The transfer by Originator of the Asset Interest under the Receivable
Interest Sale Agreement is not voidable under any section of the Bankruptcy Reform Act of 1978 (11
U.S.C. §§ 101 et seq.), as amended.

               (t) Enforceability of Contracts. Each Contract with respect to each Pool Receivable
is effective to create, and has created, a legal, valid and binding obligation of the related
Obligor to pay the Outstanding Balance of the Pool Receivable created thereunder and any accrued
interest thereon, enforceable against the Obligor in accordance with its terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law).

               (u) Eligible Receivables. Each Receivable included in the Asset Interest is an
Eligible Receivable.

               (v) Net Asset Interest Balance. Seller has determined that, immediately after giving
effect to each purchase hereunder, the Net Asset Interest Balance will at least equal 1.2 times the
Aggregate Capital then outstanding.

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               (w) Accounting. The manner in which such Seller Party accounts for the transactions
contemplated by this Agreement and the Receivable Interest Sale Agreement does not jeopardize the
true sale analysis.

          Section 5.2 Financial Institution Representations and Warranties. Each Financial
Institution hereby represents and warrants to the Agent and Jupiter that:

               (a) Existence and Power. Such Financial Institution is a corporation or a banking
association duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization, and has all power to perform its obligations
hereunder.

               (b) No Conflict. The execution and delivery by such Financial Institution of this
Agreement and the performance of its obligations hereunder are within its powers, have been duly
authorized by all necessary action, do not contravene or violate (i) its certificate or articles of
incorporation or association or by-laws, (ii) any law, rule or regulation applicable to it, (iii)
any restrictions under any agreement, contract or instrument to which it is a party or any of its
property is bound, or (iv) any order, writ, judgment, award, injunction or decree binding on or
affecting it or its property, and do not result in the creation or imposition of any Adverse Claim
on its assets. This Agreement has been duly authorized, executed and delivered by such Financial
Institution.

               (c) Governmental Authorization. No authorization or approval or other action by, and
no notice to or filing with, any governmental authority or regulatory body is required for the due
execution and delivery by such Financial Institution of this Agreement and the performance of its
obligations hereunder.

               (d) Binding Effect. This Agreement constitutes the legal, valid and binding
obligation of such Financial Institution enforceable against such Financial Institution in
accordance with its terms, except as such enforcement may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws relating to or limiting creditors’ rights
generally and by general principles of equity (regardless of whether such enforcement is sought in
a proceeding in equity or at law).

ARTICLE VI.

CONDITIONS OF PURCHASES

          Section 6.1 Conditions Precedent to Initial Incremental Purchase. The Original
Purchase Agreement shall be amended and restated in its entirety as set forth herein subject to the
conditions precedent that (a) the Agent shall have received on or before the date hereof those
documents listed on Schedule B and (b) the Agent and Fifth Third shall have received all fees and
expenses required to be paid on such date pursuant to the terms of this Agreement and the Fee
Letters.

          Section 6.2 Conditions Precedent to All Purchases and Reinvestments. Each purchase of
a Purchaser Interest (other than pursuant to a Funding Agreement) and each Reinvestment shall be
subject to the further conditions precedent that (a) the Servicer shall have delivered to the Agent
on or prior to the date of such purchase or Reinvestment, in form and

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substance satisfactory to the
Agent, all Monthly Reports and interim reports as and when due under Section 8.5; (b) the Facility
Termination Date shall not have occurred; (c) the Agent and Fifth Third shall have received such
other approvals, opinions or documents as it may reasonably request and (d) on the date of each
such Incremental Purchase or Reinvestment, the following statements shall be true (and acceptance
of the proceeds of such Incremental Purchase or
Reinvestment shall be deemed a representation and warranty by Seller that such statements are
then true):

               (i) the representations and warranties set forth in Section 5.1 are true and correct on
and as of the date of such Incremental Purchase or Reinvestment as though made on and as of
such date;

               (ii) no event has occurred and is continuing, or would result from such Incremental
Purchase or Reinvestment, that will constitute an Amortization Event, and no event has
occurred and is continuing, or would result from such Incremental Purchase or Reinvestment,
that would constitute a Potential Amortization Event; and

               (iii) the Aggregate Capital does not exceed the Purchase Limit and the aggregate
Purchaser Interests do not exceed 100%.

It is expressly understood that each Reinvestment shall, unless otherwise directed by the Agent or
any Purchaser, occur automatically on each day that the Servicer shall receive any Asset Interest
Collections without the requirement that any further action be taken on the part of any Person and
notwithstanding the failure of Seller to satisfy any of the foregoing conditions precedent in
respect of such Reinvestment. The failure of Seller to satisfy any of the foregoing conditions
precedent in respect of any Reinvestment shall give rise to a right of the Agent and Fifth Third,
which right may be exercised at any time on demand of the Agent or Fifth Third, as applicable, to
rescind the related purchase and direct Seller to pay to the Purchaser Groups, ratably in
accordance with their respective Percentages, an aggregate amount equal to the Asset Interest
Collections prior to the Amortization Date that shall have been applied to the affected
Reinvestment.

ARTICLE VII.

COVENANTS

          Until the date on which the Aggregate Unpaids have been indefeasibly paid in full and this
Agreement terminates in accordance with its terms, each Seller Party hereby covenants, as to
itself, as set forth below:

          Section 7.1 Financial Reporting. Seller shall deliver to the Agent, in form and
detail satisfactory to the Agent:

               (a) Annual Financial Statements. As soon as available, but not later than 100 days
after the end of each fiscal year of Seller, an unaudited balance sheet of Seller as at the end of
such year and the related statements of income or operations, members’ equity and cash flows for
such year, setting forth in each case in comparative form the figures for the previous fiscal year,
and certified by a Responsible Officer as fairly presenting, in accordance

14

 

with GAAP, applied, if
applicable, on a basis consistent with prior years, the financial position and the results of
operations of Seller;

               (b) Quarterly Financial Statements. As soon as available, but not later than 45 days
after the end of each of the first three fiscal quarters of each fiscal year of Seller, a copy of
the unaudited balance sheet of Seller as of the end of such quarter and the related statements of
income, members’ equity and cash flows for the period commencing on the first day and ending on the
last day of such quarter, and certified by a Responsible Officer as fairly presenting, in
accordance with GAAP (subject to ordinary, good faith year-end audit adjustments), the financial
position and the results of operations of Seller; and

               (c) Receivable Interest Sale Agreement Financial Statements. When and as required
under the Receivable Interest Sale Agreement, each of the financial statements required to be
delivered under Section 5.1 thereof.

          Section 7.2  Certificates; Other Information. Such Seller Party shall furnish to the
Agent:

               (a) Receivable Interest Sale Agreement Certificates. When and as required under the
Receivable Interest Sale Agreement, each of the certificates and other reports and information
required to be delivered under Section 5.2 thereof; and

               (b) Compliance Certificate. Concurrently with the delivery of the financial
statements referred to in Sections 7.1(a) and (b), a Compliance Certificate
executed by a Responsible Officer of Seller with respect to the periods covered by such financial
statements together with supporting calculations and such other supporting detail as the Agent
shall require.

          Section 7.3 Notices. Such Seller Party shall promptly notify the Agent:

               (a) of the occurrence of any Amortization Event or Potential Amortization Event;

               (b) of any matter described in Section 5.3(a)-(d), (f) or (g) of the Receivable Interest Sale
Agreement;

               (c) at least thirty (30) days prior to the effectiveness of any material change in or material
amendment to the Credit and Collection Policy, a copy of the Credit and Collection Policy then in
effect and a notice (A) indicating such change or amendment, and (B) if such proposed change or
amendment would be reasonably likely to adversely affect the collectibility of the Pool Receivables
or decrease the credit quality of any newly created Pool Receivables, requesting the Agent’s and
Fifth Third’s consent thereto;

               (d) of any material change in accounting policies or financial reporting practices by
Originator or any of its consolidated Subsidiaries;

               (e) if any of the representations and warranties in Article V ceases to be true and correct;

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               (f) of the occurrence of any event or condition that has had, or could reasonably be expected
to have, a Material Adverse Effect; and

               (g) of the occurrence of the “Termination Date” under and as defined in the Receivable
Interest Sale Agreement.

Each notice under this Section shall be accompanied by a written statement by a Responsible Officer
of such Seller Party setting forth details of the occurrence referred to therein, and stating what
action such Seller Party or any affected Affiliate proposes to take with respect thereto and at
what time. Each notice under Section 7.3(a) shall describe with particularity any and all
clauses or provisions of this Agreement or other Transaction Document that have been breached or
violated.

          Section 7.4 Compliance with Laws. Such Seller Party shall comply with all
Requirements of Law of any Governmental Authority having jurisdiction over it or its business
(including the Federal Fair Labor Standards Act), except such as may be contested in good faith or
as to which a bona fide dispute may exist or the failure of which to comply with could not
reasonably be expected to have a Material Adverse Effect.

          Section 7.5 Preservation of Existence, Etc. Such Seller Party shall:

               (a) preserve and maintain in full force and effect its legal existence and good standing under
the laws of its state or jurisdiction of organization except in connection with transactions
permitted by the Credit Agreement;

               (b) preserve and maintain in full force and effect all governmental rights, privileges,
qualifications, permits, licenses and franchises necessary or desirable in the normal conduct of
its business except in connection with transactions permitted by the Credit Agreement, except where
the failure to so preserve or maintain such governmental rights, privileges, qualifications,
permits, licenses and franchises could not reasonably be expected to have a Material Adverse
Effect;

               (c) preserve its business organization and goodwill, except where the failure to so preserve
its business organization or goodwill could not reasonably be expected to have a Material Adverse
Effect; and

               (d) preserve or renew all of its registered patents, trademarks, trade names and service
marks, the non-preservation of which could reasonably be expected to have a Material Adverse
Effect.

          Section 7.6 Payment of Obligations. Such Seller Party shall pay and discharge as the
same shall become due and payable (except to the extent the failure to so pay and discharge could
not reasonably be expected to have a Material Adverse Effect), all of its obligations and
liabilities, including:

               (a) all tax liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by

16

 

appropriate proceedings
and adequate reserves in accordance with GAAP are being maintained by such Seller Party; and

               (b) all lawful claims which, if unpaid, would by law become a Adverse Claim upon its property,
unless such claims are being contested in good faith by appropriate proceedings and adequate
reserves in accordance with GAAP are being maintained by such Seller Party.

          Section 7.7 Audits. Such Seller Party will furnish to the Agent, for delivery to the
Purchasers, from time to time such information with respect to it and the Pool Receivables as the
Agent may reasonably request. Such Seller Party will, from time to time during regular business
hours as requested by Buyer (or its assigns), upon reasonable notice and at the sole cost of such
Seller Party, permit the Agent and the Purchasers or their respective agents or representatives (i)
to examine and make copies of and abstracts from all Records in the possession or under the control
of such Seller Party relating to the Pool Receivables and the Related Security, including, without
limitation, the related Contracts, and (ii) to visit the offices and properties of such Seller
Party for the purpose of examining such materials described in clause (i) above, and to discuss
matters relating to such Seller Party’s financial condition or the Pool Receivables and the Related
Security or such Seller Party’s performance under any of the Transaction Documents or Originator’s
performance under the Contracts and, in each case, with any of the officers or employees of such
Seller Party having knowledge of such matters.

          Section 7.8 Keeping of Records and Books. The Servicer will maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate
records evidencing Receivables in the event of the destruction of the originals thereof), and keep
and maintain all documents, books, records and other information reasonably necessary or advisable
for the collection of all Receivables (including, without limitation, records adequate to permit
the immediate identification of each new Receivable and all Asset Interest Collections of and
adjustments to each existing Receivable). The Servicer will give the Agent notice of any material
change in the administrative and operating procedures referred to in the previous sentence. Such
Seller Party will on or prior to the date hereof, mark its master data processing records and other
books and records relating to the Purchaser Interests with a legend, acceptable to the Agent,
describing the Purchaser Interests.

          Section 7.9 Compliance with Contracts and Credit and Collection Policy. Such Seller
Party will timely and fully (i) perform and comply with all provisions, covenants and other
promises required to be observed by it under the Contracts related to the Pool Receivables, except
where the failure to so comply could not reasonably be expected to have a material adverse impact
on the overall collectibility of the Pool Receivables, and (ii) comply in all respects with the
Credit and Collection Policy in regard to each Pool Receivable and the related Contract, except
where the failure to so comply could not reasonably be expected to have a material adverse impact
on the overall collectibility of the Pool Receivables.

          Section 7.10 Purchasers’ Reliance. Seller acknowledges that the Purchasers are
entering into the transactions contemplated by this Agreement in reliance upon Seller’s identity as
a legal entity that is separate from Originator. Therefore, from and after the date of execution
and delivery of this Agreement, Seller shall take all reasonable steps, including, without

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limitation, all steps that the Agent or any Purchaser may from time to time reasonably request, to
maintain Seller’s identity as a separate legal entity and to make it manifest to third parties that
Seller is an entity with assets and liabilities distinct from those of Originator and any
Affiliates
thereof and not just a division of Originator or any such Affiliate. Without limiting the
generality of the foregoing and in addition to the other covenants set forth herein, Seller will:

               (A) conduct its own business in its own name and require that all full-time employees of
Seller, if any, identify themselves as such and not as employees of Originator (including, without
limitation, by means of providing appropriate employees with business or identification cards
identifying such employees as Seller’s employees);

               (B) compensate all employees, consultants and agents directly, from Seller’s own funds, for
services provided to Seller by such employees, consultants and agents and, to the extent any
employee, consultant or agent of Seller is also an employee, consultant or agent of Originator or
any Affiliate thereof, allocate the compensation of such employee, consultant or agent between
Seller and Originator or such Affiliate, as applicable, on a basis that reflects the services
rendered to Seller and Originator or such Affiliate, as applicable;

               (C) clearly identify its offices (by signage or otherwise) as its offices and allocate to
Seller on a reasonable basis the costs of any space shared with the Originator;

               (D) have a separate telephone number, which will be answered only in its name and separate
stationery, invoices and checks in its own name;

               (E) conduct all transactions with Originator and the Servicer (including, without limitation,
any delegation of its obligations hereunder as Servicer) strictly on an arm’s-length basis,
allocate all overhead expenses (including, without limitation, telephone and other utility charges)
for items shared between Seller and Originator on the basis of actual use to the extent practicable
and, to the extent such allocation is not practicable, on a basis reasonably related to actual use;

               (F) at all times have a Board of Directors consisting of at least three members, at least one
member of which is an Independent Director;

               (G) observe all formalities as a distinct entity, and ensure that all actions relating to (A)
the dissolution or liquidation of Seller or (B) the initiation of, participation in, acquiescence
in or consent to any bankruptcy, insolvency, reorganization or similar proceeding involving Seller,
are duly authorized by unanimous vote of its Board of Directors (including the Independent
Director);

               (H) maintain Seller’s books and records separate from those of Originator and any Affiliate
thereof and otherwise readily identifiable as its own assets rather than assets of Originator and
any Affiliate thereof;

               (I) prepare its financial statements separately from those of Originator and insure that any
consolidated financial statements of Originator or any Affiliate thereof that include Seller and
that are filed with the Securities and Exchange Commission or any other

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governmental agency have
notes clearly stating that Seller is a separate entity and that its assets will be available first
and foremost to satisfy the claims of the creditors of Seller;

               (J) except as herein specifically otherwise provided, maintain the funds or other assets of
Seller separate from, and not commingled with, those of Originator or any Affiliate thereof and
only maintain bank accounts or other depository accounts to which Seller alone is the account
party, into which Seller alone makes deposits and from which Seller alone (or the Agent on behalf
of the Purchasers hereunder) has the power to make withdrawals;

               (K) pay all of Seller’s operating expenses from Seller’s own assets (except for certain
payments by Originator or other Persons pursuant to allocation arrangements that comply with the
requirements of this Section 7.10);

               (L) operate its business and activities such that: it does not engage in any business or
activity of any kind, or enter into any transaction or indenture, mortgage, instrument, agreement,
contract, lease or other undertaking, other than the transactions contemplated and authorized by
this Agreement and the Receivable Interest Sale Agreement; and does not create, incur, guarantee,
assume or suffer to exist any indebtedness or other liabilities, whether direct or contingent,
other than (1) as a result of the endorsement of negotiable instruments for deposit or collection
or similar transactions in the ordinary course of business, (2) the incurrence of obligations under
this Agreement, (3) the incurrence of obligations, as expressly contemplated in the Receivable
Interest Sale Agreement, to make payment to Originator thereunder for the purchase of Receivables
from Originator under the Receivable Interest Sale Agreement, and (4) the incurrence of operating
expenses in the ordinary course of business of the type otherwise contemplated by this Agreement;

               (M) maintain its charter in conformity with this Agreement, such that it does not amend,
restate, supplement or otherwise modify its Organization Documents in any respect that would impair
its ability to comply with the terms or provisions of any of the Transaction Documents, including,
without limitation, this Section 7.10;

               (N) maintain the effectiveness of, and continue to perform under the Receivable Interest Sale
Agreement, such that it does not amend, restate, supplement, cancel, terminate or otherwise modify
the Receivable Interest Sale Agreement, or give any consent, waiver, directive or approval
thereunder or waive any default, action, omission or breach under the Receivable Interest Sale
Agreement or otherwise grant any indulgence thereunder, without (in each case) the prior written
consent of the Agent and Fifth Third;

               (O) maintain its legal separateness such that it does not merge or consolidate with or into,
or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of
transactions, and except as otherwise contemplated herein) all or substantially all of its assets
(whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets of,
any Person, nor at any time create, have, acquire, maintain or hold any interest in any Subsidiary;

               (P) maintain at all times adequate capital with which to conduct its business and to meet its
obligations as they come due; and

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               (Q) take such other actions as are necessary on its part to ensure that the facts and
assumptions set forth in the opinion issued by Bracewell & Giuliani LLP as counsel
for the Seller Parties, in connection with the closing or initial Incremental Purchase under
this Agreement and relating to substantive consolidation issues, and in the certificates
accompanying such opinion, remain true and correct in all material respects at all times.

          Section 7.11 Performance and Enforcement of Receivable Interest Sale Agreement.
Seller will, and will require the Originator to, perform each of their respective obligations and
undertakings under and pursuant to the Receivable Interest Sale Agreement, will purchase
Receivables thereunder in strict compliance with the terms thereof and will vigorously enforce the
rights and remedies accorded to Seller under the Receivable Interest Sale Agreement. Seller will
take all actions to perfect and enforce its rights and interests (and the rights and interests of
the Agent and the Purchasers as assignees of Seller) under the Receivable Interest Sale Agreement
as the Agent or Fifth Third may from time to time reasonably request, including, without
limitation, making claims to which it may be entitled under any indemnity, reimbursement or similar
provision contained in the Receivable Interest Sale Agreement.

          Section 7.12 Collections. Each Seller Party will cause all Collections on the Pool
Receivables to be concentrated no less often than weekly into the Servicer’s Concentration Account.
The Servicer will sweep the Buyer’s Percentage of all such Collections from the Servicer’s
Concentration Account no less than daily into the Facility Account and immediately thereafter
transferred to the Originator’s Account; provided, however, that upon written request of the Agent
or Fifth Third, each of the Seller Parties will cause all such Collections to be concentrated each
Business Day into the Servicer’s Concentration Account. Servicer will cause the Servicer’s
Concentration Account to be subject at all times to a Blocked Account Agreement that is in full
force and effect. Seller will cause the Facility Account to be subject at all times to a Blocked
Account Agreement that is in full force and effect.

          Section 7.13 Ownership. Seller will take all necessary action to (i) vest legal and
equitable title to the Asset Interest irrevocably in Seller, free and clear of any Adverse Claims
other than Adverse Claims in favor of the Agent and the Purchasers (including, without limitation,
the filing of all financing statements or other similar instruments or documents necessary under
the UCC (or any comparable law) of all appropriate jurisdictions to perfect Seller’s interest in
the Asset Interest and such other action to perfect, protect or more fully evidence the interest of
Seller therein as the Agent or Fifth Third may reasonably request), and (ii) establish and
maintain, in favor of the Agent, for the benefit of the Purchasers, a valid and perfected first
priority undivided percentage ownership interest (and/or a valid and perfected first priority
security interest) in the Asset Interest to the full extent contemplated herein, free and clear of
any Adverse Claims other than Adverse Claims in favor of the Agent for the benefit of the
Purchasers (including, without limitation, the filing of all financing statements or other similar
instruments or documents necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect the Agent’s (for the benefit of the Purchasers) interest in the Asset
Interest and such other action to perfect, protect or more fully evidence the interest of the Agent
for the benefit of the Purchasers as the Agent or Fifth Third may reasonably request).

          Section 7.14 Taxes. Such Seller Party will file all tax returns and reports required
by law to be filed by it and will promptly pay all taxes and governmental charges at any

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time
owing, except any such taxes which are not yet delinquent or are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance with
GAAP will have been set aside on its books. Seller will pay when due any taxes payable in
connection with the Pool Receivables, exclusive of taxes on or measured by income or gross receipts
of the Agent or any Purchaser.

          Section 7.15 Negative Covenants of the Seller Parties. Until the date on which the
Aggregate Unpaids have been indefeasibly paid in full and this Agreement terminates in accordance
with its terms, each Seller Party hereby covenants, as to itself, that:

               (a) Name Change, Offices and Records. Such Seller Party will not change its name,
identity or legal structure (within the meaning of Article 9 of any applicable enactment of the
UCC) or relocate its chief executive office or any office where Records are kept unless it will
have: (i) given the Agent at least 15 days’ prior written notice thereof and (ii) delivered to the
Agent all financing statements, instruments and other documents requested by the Agent or Fifth
Third in connection with such change or relocation.

               (b) Change in Payment Instructions to Obligors. Such Seller Party will not authorize
any Obligor to make payment to any Lock-Box or Collection Account other than one which is swept
into the Servicer’s Concentration Account in accordance with Section 7.12.

               (c) Modifications to Contracts and Credit and Collection Policy. Such Seller Party
will not make any change to the Credit and Collection Policy that could adversely affect the
collectibility of the Pool Receivables or decrease the credit quality of any newly created Pool
Receivables. Except as otherwise permitted pursuant to Article VIII hereof, such Seller
Party will not extend, amend or otherwise modify the terms of any Pool Receivable or any Contract
related thereto other than in accordance with the Credit and Collection Policy.

               (d) Sales, Adverse Claims. Such Seller Party will not sell, assign (by operation of
law or otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer
to exist any Adverse Claim upon (including, without limitation, the filing of any financing
statement) or with respect to, the Asset Interest, the Facility Account or the Servicer’s
Concentration Account, or assign any right to receive income with respect thereto (other than, in
each case, the creation of the interests therein in favor of the Agent, for the benefit of the
Purchasers, provided for herein), and such Seller Party will defend the right, title and interest
of the Agent, for the benefit of the Purchasers, in, to and under any of the foregoing property,
against all claims of third parties claiming through or under such Seller Party.

               (e) Net Asset Interest Balance. At no time prior to the Amortization Date will Seller
permit the Net Asset Interest Balance to be less than 1.2 times the Aggregate Capital outstanding.

               (f) Termination Date Determination. Seller will not designate the Termination Date
(as defined in the Receivable Interest Sale Agreement), or send any written notice to Originator in
respect thereof, without the prior written consent of the Agent and Fifth

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Third, except with respect to the automatic occurrence of
such Termination Date arising in accordance with the proviso set forth in Section 7.2(i) of the
Receivable Interest Sale Agreement.

               (g) Restricted Junior Payments. From and after the occurrence of any Amortization
Event, Seller will not make any Restricted Junior Payment if, after giving effect thereto, Seller
would fail to meet its obligations set forth in Section 7.10(P).

ARTICLE VIII.

ADMINISTRATION AND COLLECTION

          Section 8.1 Designation of Servicer. The servicing, administration and collection of
the Pool Receivables shall be conducted by such Person (the “Servicer") so designated from time to
time in accordance with Article VI of the Receivable Interest Sale Agreement and this Article VIII.
Ferrellgas is hereby designated as, and hereby agrees to perform the duties and obligations of,
the Servicer pursuant to the terms of this Agreement. The Agent and Fifth Third, acting jointly,
may designate as Servicer any Person to succeed Ferrellgas or any successor Servicer; provided,
however, that unless an Amortization Event (or another event of the type described in the
definition of “Amortization Date” has occurred), replacement of the Servicer shall not result in
the occurrence of the Amortization Date.

          Section 8.2 Certain Duties of Servicer.

               (a) The Servicer shall administer the Asset Interest Collections in accordance with the
procedures described herein and in Article II. The Servicer shall set aside and hold in trust for
the account of Seller and the Purchasers their respective shares of the Asset Interest Collections
in accordance with Article II. The Servicer shall, upon the request of the and Agent and Fifth
Third, acting jointly, segregate, in a manner acceptable to the Agent and Fifth Third all cash,
checks and other instruments received by it from time to time constituting Asset Interest
Collections from the general funds of the Servicer or Seller prior to the remittance thereof in
accordance with Article II. If the Servicer shall be required to segregate Asset Interest
Collections pursuant to the preceding sentence, the Servicer shall segregate and deposit with a
bank designated by the Agent and Fifth Third such allocable share of Asset Interest Collections of
Receivables set aside for the Purchasers on the first Business Day following receipt by the
Servicer of such Asset Interest Collections, duly endorsed or with duly executed instruments of
transfer.

               (b) The Servicer may, in accordance with the Credit and Collection Policy, extend the maturity
of any Receivable or adjust the Outstanding Balance of any Receivable as the Servicer determines to
be appropriate to maximize Asset Interest Collections thereof; provided, however, that such
extension or adjustment shall not alter the status of such Receivable as a Delinquent Receivable,
Defaulted Receivable or Charged-Off Receivable or limit the rights of the Agent or the Purchasers
under this Agreement. Notwithstanding anything to the contrary contained herein, from and after
the occurrence of an Amortization Event, the
Agent (acting in consultation with Fifth Third) shall have the absolute and unlimited right to
direct the Servicer to commence or settle any legal action with respect to any Pool Receivable or
to foreclose upon or repossess any Related Security.

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               (c) The Servicer shall hold in trust for Seller and the Purchasers all Records that (i)
evidence or relate to the Asset Interest or (ii) are otherwise necessary or desirable to collect
the Asset Interest and shall, as soon as practicable upon demand of the Agent following the
occurrence of an Amortization Event, deliver or make available to the Agent, for the benefit of the
Purchasers, all such Records, at a place selected by the Agent. The Servicer shall, from time to
time at the request of any Purchaser, furnish to the Purchasers (promptly after any such request) a
calculation of the amounts set aside for the Purchasers pursuant to Article II.

               (d) Any payment by an Obligor in respect of any indebtedness owed by it to Originator or
Seller shall, except as otherwise specified by such Obligor or otherwise required by contract or
law and unless otherwise instructed by the Agent, be applied as a Collection of any Pool Receivable
of such Obligor (starting with the oldest such Pool Receivable) to the extent of any amounts then
due and payable thereunder before being applied to any other receivable or other obligation of such
Obligor.

          Section 8.3 Collection Notices. The Agent is authorized at any time to date and to
deliver to Wells Fargo Bank the Collection Notices; provided, however, that nothing herein shall be
deemed to give the Agent or any Purchaser any claim to, Adverse Claim on or right to retain any
amounts deposited into the Servicer’s Concentration Account or the Facility Account which do not
constitute Asset Interest Collections and provided, further, that unless an Amortization Event (or
another event of the type described in the definition of “Amortization Date” has occurred),
delivery of the Collection Notices shall not result in the occurrence of the Amortization Date.
Effective when the Agent delivers such notices, Servicer hereby transfers to the Agent, for the
benefit of the Purchasers, the exclusive control of the Servicer’s Concentration Account, and
Seller hereby transfers to the Agent, for the benefit of the Purchasers, the exclusive ownership
and control of the Facility Account. Each of the Seller Parties hereby authorizes the Agent, and
agrees that the Agent shall be entitled: (i) at any time after delivery of the Collections
Notices, to endorse such Seller Party’s name on checks and other instruments representing Asset
Interest Collections, (ii) at any time after the earlier to occur of an Amortization Event or
replacement of the Servicer, to enforce the Pool Receivables and the Related Security, and (iii) at
any time after delivery of the Collections Notices, to take such action as shall be necessary or
desirable to cause all cash, checks and other instruments constituting Asset Interest Collections
to come into the possession of the Agent rather than such Seller Party.

          Section 8.4 Responsibilities of Seller. Anything herein to the contrary
notwithstanding, the exercise by the Agent and the Purchasers of their rights hereunder shall not
release the Servicer, Originator or Seller from any of their duties or obligations with respect to
any Receivables or under the related Contracts. The Purchasers shall have no obligation or
liability with respect to any Receivables or related Contracts, nor shall any of them be obligated
to perform the obligations of Seller.

          Section 8.5 Reports. The Servicer shall prepare and forward to the Agent (i) on the
18th day of each month hereafter or if any such day is not a Business Day, on the next succeeding
Business Day (each, a “Monthly Reporting Date”), a Monthly Report and (ii) at such times as the
Agent or Fifth Third shall reasonably request, a listing by Obligor of all Pool Receivables
together with an aging of all Pool Receivables. Additionally, at such more frequent

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times as the
Agent or Fifth Third shall reasonably request, upon five (5) days’ notice, the Servicer will
furnish (x) a report calculating the amount of Eligible Receivables as of such date based on the
information available to determine sales, credits, charge-offs and collections since the most
recent Monthly Report, or (y) such other form of report in form and substance reasonably
satisfactory to the Agent and Fifth Third with respect to the amount of Eligible Receivables based
on available information. At any time that the Agent or Fifth Third shall request upon not less
than five (5) days’ notice, the Servicer shall prepare and forward to the Agent an interim report
setting forth all of the items covered in a Monthly Report, as of the date of such request, and in
the same format as a Monthly Report.

ARTICLE IX.

AMORTIZATION EVENTS

          Section 9.1 Amortization Events. The occurrence of any one or more of the following
events shall constitute an Amortization Event:

               (a) (i) Except as provided in paragraph 9.1(e), any Seller Party shall fail to make any
payment or deposit required hereunder when due and, for any such payment or deposit which is not in
respect of Capital, such failure continues for two (2) Business Days, or (ii) any Seller Party
shall fail to perform or observe any term, covenant or agreement hereunder (other than as referred
to in clause (i) of this paragraph (a) and paragraph 9.1(e)) and such failure shall continue for
five (5) consecutive Business Days.

               (b) Any representation, warranty, certification or statement made by any Seller Party in this
Agreement, any other Transaction Document to which it is a party or in any other document delivered
pursuant hereto or thereto shall prove to have been incorrect in any material respect when made or
deemed made.

               (c) Failure of Seller to pay any Indebtedness when due; or the default by Seller in the
performance of any term, provision or condition contained in any agreement under which any such
Indebtedness was created or is governed, the effect of which is to cause, or to permit the holder
or holders of such Indebtedness to cause, such Indebtedness to become due prior to its stated
maturity; or any such Indebtedness of Seller shall be declared to be due and payable or required to
be prepaid (other than by a regularly scheduled payment) prior to the date of maturity thereof.

               (d) (i) Seller shall generally not pay its debts as such debts become due or shall admit in
writing its inability to pay its debts generally or shall make a general assignment for the benefit
of creditors; or (ii) any proceeding shall be instituted by or against any Seller Party or any of
its Subsidiaries seeking to adjudicate it bankrupt or insolvent, or seeking liquidation, winding
up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee or other similar official for it or any substantial part of its property or (iii)
any Seller or any of its Subsidiaries shall take any action to authorize any of the actions set
forth in clauses (i) or (ii) above in this subsection (d).

24

 

               (e) Seller shall fail to comply with the terms of Section 2.6 hereof, or, on any day, the
Aggregate Capital shall exceed the Purchase Limit on such day.

               (f) As of the last day of any Measurement Period:

               (i) the average of the Delinquency Trigger Ratios for the three Measurement
Periods then most recently ended shall exceed (A) 11.00% for each period of three
consecutive Measurement Periods ending in May through and including October of any
year, or (B) 9.10% for each period of three consecutive Measurement Periods ending
in November through and including April of any year,

               (ii) the average of the Charged-Off Trigger Ratios for the three Measurement
Periods then most recently ended shall exceed 0.90%, or

               (iii) the average of the Dilution Trigger Ratios for the three Measurement
Periods shall exceed (A) 2.75% for the three Measurement Periods ending in July,
August, September or October of any year, or (B) 2.40% for the three Measurement
Periods ending in November, December, January, February, March, April, May or June
of any year.

               (g) A Change of Control shall occur.

               (h) One or more final judgments for the payment of money shall be entered against Seller on
claims not covered by insurance or as to which the insurance carrier has denied its responsibility,
and such judgment shall continue unsatisfied and in effect for fifteen (15) consecutive days
without a stay of execution.

               (i) The occurrence of any Termination Event or the Termination Date under and as defined in
the Receivable Interest Sale Agreement shall occur under the Receivable Interest Sale Agreement.

               (j) This Agreement shall terminate in whole or in part (except in accordance with its terms),
or shall cease to be effective or to be the legally valid, binding and enforceable obligation of
Seller, or any Obligor shall directly or indirectly contest in any manner such effectiveness,
validity, binding nature or enforceability, or the Agent for the benefit of the Purchasers shall
cease to have a valid and perfected first priority security interest in the Asset Interest.

               (k) (i) As of the last day of any Measurement Period ending in June through and including
November, the average of the three Measurement Periods then most recently ended for the Outstanding
Balance of all Receivables included in the Purchaser Interests (regardless of whether they are
Eligible Receivables on the date of determination) as to which
any payment, or part thereof, remains unpaid for 91 days or more from the original due date
for such payment shall exceed 25.00% of the Outstanding Balance of all Receivables as of such day,
or (ii) as of the last day of any Measurement Period ending in December through and including May,
the average of the three Measurement Periods then most recently ended for the Outstanding Balance
of all Receivables included in the Purchaser Interests (regardless of whether they are

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Eligible
Receivables on the date of determination) as to which any payment, or part thereof, remains unpaid
for 91 days or more from the original due date for such payment shall exceed 16.50% of the
Outstanding Balance of all Receivables as of such day.

          Section 9.2 Remedies. Upon the occurrence and during the continuation of an
Amortization Event, the Agent may, or upon the direction of the Required Committed Purchasers, the
Agent shall, take any of the following actions: (i) replace the Person then acting as Servicer (if
not previously replaced), (ii) declare the Amortization Date to have occurred, whereupon the
Amortization Date shall forthwith occur, without demand, protest or further notice of any kind, all
of which are hereby expressly waived by each Seller Party; provided, however, that upon the
occurrence of an Amortization Event described in Section 9.1(d), or of an actual or deemed entry of
an order for relief with respect to any Seller Party under the Federal Bankruptcy Code, the
Amortization Date shall automatically occur, without demand, protest or any notice of any kind, all
of which are hereby expressly waived by each Seller Party, (iii) to the fullest extent permitted by
applicable law, declare that the Default Fee shall accrue with respect to any of the Aggregate
Unpaids outstanding at such time, and (iv) notify Obligors of the Purchasers’ interest in the Pool
Receivables. The aforementioned rights and remedies shall be without limitation, and shall be in
addition to all other rights and remedies of the Agent and the Purchasers otherwise available under
any other provision of this Agreement, by operation of law, at equity or otherwise, all of which
are hereby expressly preserved, including, without limitation, all rights and remedies provided
under the UCC, all of which rights shall be cumulative.

ARTICLE X.

INDEMNIFICATION

     Section 10.1 Indemnities by the Seller Parties. Without limiting any other rights
that the Agent or any Purchaser may have hereunder or under applicable law, (A) Seller hereby
agrees to indemnify (and pay upon demand to) the Agent and each Purchaser and their respective
assigns, officers, directors, agents and employees (each an
“Indemnified Party”) from and against
any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts
payable, including reasonable attorneys’ fees (which attorneys may be employees of the Agent or
such Purchaser) and disbursements (all of the foregoing being collectively referred to as
“Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of
this Agreement or the acquisition, either directly or indirectly, by a Purchaser of an interest in
the Pool Receivables, and (B) the Servicer hereby agrees to indemnify (and pay upon demand to) each
Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of
the Servicer’s activities as Servicer hereunder excluding, however, in all of the foregoing
instances under the preceding clauses (A) and (B):

     (a) Indemnified Amounts to the extent a final judgment of a court of competent
jurisdiction holds that such Indemnified Amounts resulted from gross
negligence or willful misconduct on the part of the Indemnified Party seeking
indemnification;

     (b) Indemnified Amounts to the extent the same includes losses in respect of
Receivables that are uncollectible on account of the insolvency, bankruptcy or lack
of creditworthiness of the related Obligor; or

26

 

     (c) taxes imposed by the jurisdiction in which such Indemnified Party’s
principal executive office is located, on or measured by the overall net income of
such Indemnified Party to the extent that the computation of such taxes is
consistent with the characterization for income tax purposes of the acquisition by
the Purchasers of Purchaser Interests as a loan or loans by the Purchasers to Seller
secured by the Asset Interest;

provided, however, that nothing contained in this sentence shall limit the liability of any Seller
Party or limit the recourse of the Purchasers to any Seller Party for amounts otherwise
specifically provided to be paid by such Seller Party under the terms of this Agreement. Without
limiting the generality of the foregoing indemnification, Seller shall indemnify the Agent and the
Purchasers for Indemnified Amounts (including, without limitation, losses in respect of
uncollectible receivables, regardless of whether reimbursement therefor would constitute recourse
to Seller or the Servicer) relating to or resulting from:

               (i) any representation or warranty made by any Seller Party or Originator (or any
officers of any such Person) under or in connection with this Agreement, any other
Transaction Document or any other information or report delivered by any such Person
pursuant hereto or thereto, which shall have been false or incorrect when made or deemed
made;

               (ii) the failure by Seller, the Servicer or Originator to comply with any applicable
law, rule or regulation with respect to any Receivable or Contract related thereto, or the
nonconformity of any Receivable or Contract included therein with any such applicable law,
rule or regulation or any failure of Originator to keep or perform any of its obligations,
express or implied, with respect to any Contract;

               (iii) any failure of Seller, the Servicer or Originator to perform its duties,
covenants or other obligations in accordance with the provisions of this Agreement or any
other Transaction Document;

               (iv) any products liability, personal injury or damage suit, or other similar claim
arising out of or in connection with merchandise, insurance or services that are the subject
of any Contract or any Receivable;

               (v) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable (including, without limitation, a
defense based on such Receivable or the related Contract not being a legal, valid and
binding obligation of such Obligor enforceable against it in accordance with its terms), or
any other claim resulting from the sale of the merchandise or service
related to such Receivable or the furnishing or failure to furnish such merchandise or
services;

               (vi) the commingling of Asset Interest Collections at any time with other funds;

               (vii) any investigation, litigation or proceeding related to or arising from this
Agreement or any other Transaction Document, the transactions

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contemplated hereby, the use
of the proceeds of an Incremental Purchase or a Reinvestment, the ownership of the Purchaser
Interests or any other investigation, litigation or proceeding relating to Seller, the
Servicer or Originator in which any Indemnified Party becomes involved as a result of any of
the transactions contemplated hereby;

               (viii) any inability to litigate any claim against any Obligor in respect of any
Receivable as a result of such Obligor being immune from civil and commercial law and suit
on the grounds of sovereignty or otherwise from any legal action, suit or proceeding;

               (ix) any Amortization Event described in Section 9.1(d);

               (x) any failure of Seller to acquire and maintain legal and equitable title to, and
ownership of all or any portion of the Asset Interest from Originator, free and clear of any
Adverse Claim (other than as created hereunder); or any failure of Seller to give reasonably
equivalent value to Originator under the Receivable Interest Sale Agreement in consideration
of the transfer by Originator of any portion of the Asset Interest, or any attempt by any
Person to void such transfer under statutory provisions or common law or equitable action;

               (xi) any failure to vest and maintain vested in the Agent for the benefit of the
Purchasers, or to transfer to the Agent for the benefit of the Purchasers, legal and
equitable title to, and ownership of, a first priority perfected undivided percentage
ownership interest (to the extent of the Purchaser Interests contemplated hereunder) or
security interest in the Asset Interest, free and clear of any Adverse Claim (except as
created by the Transaction Documents);

               (xii) the failure to have filed, or any delay in filing, financing statements or other
similar instruments or documents under the UCC of any applicable jurisdiction or other
applicable laws with respect to the Asset Interest, and the proceeds of any thereof, whether
at the time of any Incremental Purchase or Reinvestment or at any subsequent time;

               (xiii) any action or omission by any Seller Party which reduces or impairs the rights
of the Agent or the Purchasers with respect to any Receivable or the value of any such
Receivable;

               (xiv) any attempt by any Person to void any Incremental Purchase or Reinvestment
hereunder under statutory provisions or common law or equitable action; and

               (xv) the failure of any Pool Receivable included in the calculation of the Net Asset
Interest Balance to be an Eligible Receivable at the time so included.

          Section 10.2 Increased Cost and Reduced Return. If after the date hereof, any Funding
Source shall be charged any fee, expense or increased cost on account of the adoption of

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any
applicable law, rule or regulation (including any applicable law, rule or regulation regarding
capital adequacy), or any change in any of the foregoing, or any change in the interpretation or
administration thereof any governmental authority, any central bank or any comparable agency
charged with the interpretation or administration thereof, or compliance with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency (a “Regulatory Change”): (i) that subjects any Funding Source to any charge or
withholding on or with respect to any Funding Agreement or a Funding Source’s obligations under a
Funding Agreement, or on or with respect to the Pool Receivables, or changes the basis of taxation
of payments to any Funding Source of any amounts payable under any Funding Agreement (except for
changes in the rate of tax on the overall net income of a Funding Source or taxes excluded by
Section 10.1) or (ii) that imposes, modifies or deems applicable any reserve, assessment, insurance
charge, special deposit or similar requirement against assets of, deposits with or for the account
of a Funding Source, or credit extended by a Funding Source pursuant to a Funding Agreement or
(iii) that imposes any other condition the result of which is to increase the cost to a Funding
Source of performing its obligations under a Funding Agreement, or to reduce the rate of return on
a Funding Source’s capital as a consequence of its obligations under a Funding Agreement, or to
reduce the amount of any sum received or receivable by a Funding Source under a Funding Agreement
or to require any payment calculated by reference to the amount of interests or loans held or
interest received by it, then, upon demand by the Agent, Seller shall pay to the Agent, for the
benefit of the relevant Funding Source, such amounts charged to such Funding Source or such amounts
to otherwise compensate such Funding Source for such increased cost or such reduction.

          Section 10.3 Other Costs and Expenses. Seller shall pay to the Agent and Fifth Third
on demand all costs and out-of-pocket expenses in connection with the preparation, execution,
delivery and administration of this Agreement, the transactions contemplated hereby and the other
documents to be delivered hereunder, including without limitation, the cost of the Agent’s (but not
Fifth Third’s) auditors auditing the books, records and procedures of Seller, reasonable fees and
out-of-pocket expenses of shared legal counsel for Fifth Third and the Agent with respect thereto
and with respect to advising Fifth Third and the Agent as to their respective rights and remedies
under this Agreement. Seller shall pay to the Agent and to each Purchaser on demand any and all
costs and expenses of the Agent and the Purchasers, if any, including the reasonable fees and
expenses of counsel in connection with the enforcement of this Agreement and the other documents
delivered hereunder and in connection with any restructuring or workout of this Agreement or such
documents, or the administration of this Agreement following an Amortization Event. Seller shall
reimburse Jupiter and Fifth Third on demand for all other costs and expenses incurred by Jupiter or
Fountain Square, as applicable (“Other Costs”),
including, without limitation, the cost of auditing such Conduit’s books by certified public
accountants, the cost of rating the Commercial Paper by independent financial rating agencies, and
the reasonable fees and out-of-pocket expenses of counsel for such Conduit or any counsel for any
shareholder of such Conduit with respect to advising such Conduit or such shareholder as to matters
relating to such Conduit’s operations.

          Section 10.4 Allocations. Each Conduit shall allocate the liability for Other Costs
among Seller and other Persons with whom such Conduit has entered into agreements to purchase
interests in receivables (“Other Sellers”). If any Other Costs are attributable to Seller and not
attributable to any Other Seller, Seller shall be solely liable for such Other Costs.

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However, if
Other Costs are attributable to Other Sellers and not attributable to Seller, such Other Sellers
shall be solely liable for such Other Costs. All allocations to be made pursuant to the foregoing
provisions of this Article X shall be made by each Conduit in its sole discretion and shall be
binding on Seller and the Servicer.

ARTICLE XI.

THE AGENT

          Section 11.1 Authorization and Action. Each Purchaser hereby designates and appoints
JPMorgan Chase to act as its agent hereunder and under each other Transaction Document, and
authorizes the Agent to take such actions as agent on its behalf and to exercise such powers as are
delegated to the Agent by the terms of this Agreement and the other Transaction Documents together
with such powers as are reasonably incidental thereto. The Agent hereby agrees to deliver a copy
of each notice, certificate or report received by it from the Seller Parties to the applicable
Purchasers promptly after receipt thereof. The Agent shall not have any duties or
responsibilities, except those expressly set forth herein or in any other Transaction Document, or
any fiduciary relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities on the part of the Agent shall be read into
this Agreement or any other Transaction Document or otherwise exist for the Agent. In performing
its functions and duties hereunder and under the other Transaction Documents, the Agent shall act
solely as agent for the Purchasers and does not assume nor shall be deemed to have assumed any
obligation or relationship of trust or agency with or for any Seller Party or any of such Seller
Party’s successors or assigns. The Agent shall not be required to take any action that exposes the
Agent to personal liability or that is contrary to this Agreement, any other Transaction Document
or applicable law. The appointment and authority of the Agent hereunder shall terminate upon the
indefeasible payment in full of all Aggregate Unpaids. Each Purchaser hereby authorizes the Agent
to file UCC financing statements and execute the Blocked Account Agreement on behalf of such
Purchaser (the terms of which shall be binding on such Purchaser).

          Section 11.2 Delegation of Duties. The Agent may execute any of its duties under
this Agreement and each other Transaction Document by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent
shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.

          Section 11.3 Exculpatory Provisions. Neither the Agent nor any of its directors,
officers, agents or employees shall be (i) liable for any action lawfully taken or omitted to be
taken by it or them under or in connection with this Agreement or any other Transaction Document
(except for its, their or such Person’s own gross negligence or willful misconduct), or (ii)
responsible in any manner to any of the Purchasers for any recitals, statements, representations or
warranties made by any Seller Party contained in this Agreement, any other Transaction Document or
any certificate, report, statement or other document referred to or provided for in, or received
under or in connection with, this Agreement, or any other Transaction Document or for the value,
validity, effectiveness, genuineness, enforceability or

30

 

sufficiency of this Agreement, or any other
Transaction Document or any other document furnished in connection herewith or therewith, or for
any failure of any Seller Party to perform its obligations hereunder or thereunder, or for the
satisfaction of any condition specified in Article VI, or for the perfection, priority, condition,
value or sufficiency of any collateral pledged in connection herewith. The Agent shall not be
under any obligation to any Purchaser to ascertain or to inquire as to the observance or
performance of any of the agreements or covenants contained in, or conditions of, this Agreement or
any other Transaction Document, or to inspect the properties, books or records of the Seller
Parties. The Agent shall not be deemed to have knowledge of any Amortization Event or Potential
Amortization Event unless the Agent has received notice from Seller or a Purchaser.

          Section 11.4 Reliance by Agent. The Agent shall in all cases be entitled to rely,
and shall be fully protected in relying, upon any document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation, counsel to Seller),
independent accountants and other experts selected by the Agent. The Agent shall in all cases be
fully justified in failing or refusing to take any action under this Agreement or any other
Transaction Document unless it shall first receive such advice or concurrence of the Conduits or
the Required Committed Purchasers or all of the Purchasers, as applicable, as it deems appropriate
and it shall first be indemnified to its satisfaction by the Purchasers, provided that unless and
until the Agent shall have received such advice, the Agent may take or refrain from taking any
action, as the Agent shall deem advisable and in the best interests of the Purchasers. The Agent
shall in all cases be fully protected in acting, or in refraining from acting, in accordance with a
request of the Required Committed Purchasers or all of the Purchasers, as applicable, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all the
Purchasers.

          Section 11.5 Non-Reliance on Agent and Other Purchasers. Each Purchaser expressly
acknowledges that neither the Agent, nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by
the Agent hereafter taken, including, without limitation, any review of the affairs of any Seller
Party, shall be deemed to constitute any representation or warranty by the Agent. Each Purchaser
represents and warrants to the Agent that it has and will, independently and without reliance upon
the Agent or any other Purchaser and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of Seller and made its own decision
to enter into this Agreement, the other Transaction Documents and all other documents related
hereto or thereto.

          Section 11.6 Reimbursement and Indemnification. The Committed Purchasers agree to
reimburse and indemnify the Agent and its officers, directors, employees, representatives and
agents ratably according to their respective Commitments, to the extent not paid or reimbursed by
the Seller Parties (i) for any amounts for which the Agent, acting in its capacity as Agent, is
entitled to reimbursement by the Seller Parties hereunder and (ii) for any other expenses incurred
by the Agent, in its capacity as Agent and acting on behalf of the Purchasers, in connection with
the administration and enforcement of this Agreement and the other Transaction Documents.

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          Section 11.7 Agent in its Individual Capacity. Each of the Agent, the Committed
Purchasers and their respective Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with Seller or any Affiliate of Seller as though it were not the
Agent or a Purchaser (as applicable) hereunder. With respect to the acquisition of Purchaser
Interests pursuant to this Agreement, the Agent shall have the same rights and powers under this
Agreement in its individual capacity as any Purchaser and may exercise the same as though it were
not the Agent, and the terms “Financial Institution” and “Financial Institutions” shall include
JPMorgan and the terms “Committed Purchaser,” “Committed Purchasers,” “Purchaser” and “Purchasers”
shall include JPMorgan Chase and Fifth Third.

          Section 11.8 Successor Agent. The Agent may, upon five days’ notice to Seller and
the Purchasers, and the Agent will, upon the direction of all of the Purchasers (other than the
Agent, in its individual capacity) resign as Agent. If the Agent shall resign, then the Required
Committed Purchasers during such five-day period shall appoint from among the Purchasers a
successor agent. If for any reason no successor Agent is appointed by the Required Committed
Purchasers during such five-day period, then effective upon the termination of such five day
period, the Purchasers shall perform all of the duties of the Agent hereunder and under the other
Transaction Documents and Seller and the Servicer (as applicable) shall make all payments in
respect of the Aggregate Unpaids directly to the applicable Purchasers and for all purposes shall
deal directly with the Purchasers. After the effectiveness of any retiring Agent’s resignation
hereunder as Agent, the retiring Agent shall be discharged from its duties and obligations
hereunder and under the other Transaction Documents and the provisions of this Article XI and
Article X shall continue in effect for its benefit with respect to any actions taken or omitted to
be taken by it while it was Agent under this Agreement and under the other Transaction Documents.

ARTICLE XII.

ASSIGNMENTS; PARTICIPATIONS

          Section 12.1 Assignments.

          (a) Fifth Third, each of the Seller Parties and each Financial Institution hereby agree and
consent to the complete or partial assignment by Jupiter of all or any portion of its rights under,
interest in, title to and obligations under this Agreement to the Financial Institutions pursuant
to a Funding Agreement or to any other commercial paper conduit that issues commercial paper which
is rated A-1 or better by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and P-1
by Moody’s Investor Service, Inc., and upon such assignment, Jupiter shall be released from its
obligations so assigned. Further, Fifth Third, Seller and each Financial Institution hereby agree
that any assignee of Jupiter of this Agreement or all or any of
the Purchaser Interests of Jupiter shall have all of the rights and benefits under this
Agreement as if the term “Jupiter” explicitly referred to such party, and no such assignment shall
in any way impair the rights and benefits of Jupiter hereunder. Each of the Seller Parties and the
members of the Jupiter Group hereby agrees and consents to the complete or partial assignment by
Fifth Third of all or any portion of its rights under, interest in, title to and obligations under
this Agreement to Fountain Square. Neither Seller nor the Servicer shall have the right to assign
its rights or obligations under this Agreement without the prior written consent of the Agent and
all of the Purchasers.

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          (b) Any Financial Institution may at any time and from time to time assign to one or more
Persons (“Purchasing Financial Institutions”) all or any part of its rights and obligations under
this Agreement pursuant to an assignment agreement, substantially in the form set forth in
Exhibit VII hereto (the “Assignment
Agreement”) executed by such Purchasing Financial
Institution and such selling Financial Institution. The consent of Jupiter shall be required prior
to the effectiveness of any such assignment (such consent not to be unreasonably withheld or
delayed). Each assignee of a Financial Institution must have a short-term debt rating of A-1 or
better by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and P-1 by Moody’s
Investor Service, Inc. and must agree to deliver to the Agent, promptly following any request
therefor by the Agent or Jupiter, an enforceability opinion in form and substance satisfactory to
the Agent and Jupiter. Upon delivery of the executed Assignment Agreement to the Agent, such
selling Financial Institution shall be released from its obligations hereunder to the extent of
such assignment. Thereafter the Purchasing Financial Institution shall for all purposes be a
Financial Institution party to this Agreement and shall have all the rights and obligations of a
Financial Institution under this Agreement to the same extent as if it were an original party
hereto and no further consent or action by Seller, the Purchasers, the Agent or Fifth Third shall
be required.

          (c) Each of the Financial Institutions agrees that in the event that it shall cease to have a
short-term debt rating of A-1 or better by Standard & Poor’s, a division of The McGraw-Hill
Companies, Inc., and P-1 by Moody’s Investor Service, Inc. (an
“Affected Financial Institution”),
such Affected Financial Institution shall be obliged, at the request of Jupiter or the Agent, to
assign all of its rights and obligations hereunder to (x) another Financial Institution or (y)
another funding entity nominated by the Agent and acceptable to Jupiter, and willing to participate
in this Agreement through the Liquidity Termination Date in the place of such Affected Financial
Institution; provided that the Affected Financial Institution receives payment in full, pursuant to
an Assignment Agreement, of an amount equal to such Financial Institution’s Pro Rata Share of the
Aggregate Capital and Yield owing to the Financial Institutions and all accrued but unpaid fees and
other costs and expenses payable in respect of its Pro Rata Share of the Purchaser Interests of the
Financial Institutions.

          Section 12.2 Participations.

          (a) Any Financial Institution may, in the ordinary course of its business at any time sell to
one or more Persons (each, a “Participant”) participating interests in its Pro Rata Share of the
Purchaser Interests of the Financial Institutions, its obligations under any Funding Agreement to
which it is a party or any other interest of such Financial Institution hereunder. Notwithstanding
any such sale by a Financial Institution of a participating interest to
a Participant, such Financial Institution’s rights and obligations under this Agreement shall
remain unchanged, such Financial Institution shall remain solely responsible for the performance of
its obligations hereunder, and the Seller Parties, Jupiter, the Agent and Fifth Third shall
continue to deal solely and directly with such Financial Institution in connection with such
Financial Institution’s rights and obligations under this Agreement. Each Financial Institution
agrees that any agreement between such Financial Institution and any such Participant in respect of
such participating interest shall not restrict such Financial Institution’s right to agree to any
amendment, supplement, waiver or modification to this Agreement, except for any amendment,
supplement, waiver or modification described in Section 14.l(b)(i).

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          (b) Fifth Third may, in the ordinary course of its business at any time sell to one or more
Participants, including without limitation Fountain Square, participating interests in its
Purchaser Interests or any other interest of Fifth Third hereunder. Notwithstanding any such sale
by Fifth Third of a participating interest to a Participant, Fifth Third’s rights and obligations
under this Agreement shall remain unchanged, Fifth Third shall remain solely responsible for the
performance of its obligations hereunder, and Seller, the Agents and the other Purchasers shall
continue to deal solely and directly with Fifth Third in connection with Fifth Third’s rights and
obligations under this Agreement. Fifth Third agrees that any agreement between Fifth Third and
any such Participant in respect of such participating interest shall not restrict Fifth Third’s
right to agree to any amendment, supplement, waiver or modification to this Agreement, except for
any amendment, supplement, waiver or modification described in Section 14.l(b)(i).

ARTICLE XIII.

FUNDING AGREEMENT

          Section 13.1 Funding Agreement Fundings. The parties hereto acknowledge that each
Conduit may assign all or any portion of its Purchaser Interests to the Financial Institutions in
its Purchaser Group at any time pursuant to a Funding Agreement to finance or refinance the
necessary portion of its Purchaser Interests through a funding under such Funding Agreement to the
extent available. The fundings under such Funding Agreement will accrue Yield in accordance with
Section 4.1. Regardless of whether a funding of Purchaser Interests by such Financial Institutions
constitutes the direct purchase of a Purchaser Interest hereunder, an assignment under a Funding
Agreement of a Purchaser Interest originally funded by such Conduit or the sale of one or more
participations or other interests under a Funding Agreement in such Purchaser Interest, each
Financial Institution participating in a funding of a Purchaser Interest pursuant to a Funding
Agreement shall have the rights and obligations of a “Purchaser” hereunder with the same force and
effect as if it had done so directly.

          Section 13.2 Terminating Financial Institutions.

               (a) Each Financial Institution hereby agrees to deliver written notice to the Agent not more
than 30 Business Days and not less than 5 Business Days prior to the Liquidity Termination Date
indicating whether such Financial Institution intends to renew its Commitment hereunder. If any
Financial Institution fails to deliver such notice on or prior to the date that is 5 Business Days
prior to the Liquidity Termination Date, such Financial Institution will be deemed to have declined
to renew its Commitment (each Financial Institution which has declined or has been deemed to have
declined to renew its Commitment hereunder, a “Non-
Renewing Financial Institution”). The Agent shall promptly notify Jupiter of each
Non-Renewing Financial Institution and Jupiter, in its sole discretion, may (A) to the extent of
Commitment Availability, declare that such Non-Renewing Financial Institution’s Commitment shall,
to such extent, automatically terminate on a date specified by Jupiter on or before the Liquidity
Termination Date or (B) upon one (1) Business Days’ notice to such Non-Renewing Financial
Institution assign to such Non-Renewing Financial Institution on a date specified by Jupiter such
Non-Renewing Financial Institution’s Pro Rata Share of the aggregate Purchaser Interests then held
by Jupiter, subject to, and in accordance with, Section 13.1. In addition, Jupiter may, in its
sole discretion, at any time (x) to the extent of Commitment Availability, declare that any
Affected Financial Institution’s Commitment shall automatically terminate on a

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date specified by
Jupiter or (y) assign to any Affected Financial Institution on a date specified by Jupiter such
Affected Financial Institution’s Pro Rata Share of the aggregate Purchaser Interests then held by
Jupiter, subject to, and in accordance with, Section 13.1 (each Affected Financial Institution or
each Non-Renewing Financial Institution is hereinafter referred to as a “Terminating Financial
Institution”). The parties hereto expressly acknowledge that any declaration of the termination of
any Commitment, any assignment pursuant to this Section 13.2 and the order of priority of any such
termination or assignment among Terminating Financial Institutions shall be made by Jupiter in its
sole and absolute discretion.

               (b) Upon any assignment to a Terminating Financial Institution as provided in this Section
13.2, any remaining Commitment of such Terminating Financial Institution shall automatically
terminate. Upon reduction to zero of the Capital of all of the Purchaser Interests of a
Terminating Financial Institution (after application of Asset Interest Collections thereto pursuant
to Sections 2.2 and 2.3) all rights and obligations of such Terminating Financial Institution
hereunder shall be terminated and such Terminating Financial Institution shall no longer be a
“Financial Institution” hereunder; provided, however, that the provisions of Article X shall
continue in effect for its benefit with respect to Purchaser Interests held by such Terminating
Financial Institution prior to its termination as a Financial Institution.

ARTICLE XIV.

MISCELLANEOUS

          Section 14.1 Waivers and Amendments.

               (a) No failure or delay on the part of the Agent or any Purchaser in exercising any power,
right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other further exercise thereof or
the exercise of any other power, right or remedy. The rights and remedies herein provided shall be
cumulative and nonexclusive of any rights or remedies provided by law. Any waiver of this
Agreement shall be effective only in the specific instance and for the specific purpose for which
given.

               (b) No provision of this Agreement may be amended, supplemented, modified or waived except in
writing in accordance with the provisions of this Section 14.1(b). Seller, Jupiter and the Agent,
at the direction of the Required Committed Purchasers, may enter
into written modifications or waivers of any provisions of this Agreement, provided, however,
that no such modification or waiver shall:

               (i) without the consent of each affected Purchaser, (A) extend the Liquidity
Termination Date or the date of any payment or deposit of Asset Interest Collections by
Seller or the Servicer, (B) reduce the rate or extend the time of payment of Yield or any CP
Costs (or any component of Yield or CP Costs), (C) reduce any fee payable to the Agent for
the benefit of the Purchasers, (D) except pursuant to Article XII hereof, change the amount
of the Capital of any Purchaser, any Financial Institution’s Pro Rata Share (except pursuant
to a Funding Agreement) or any Committed Purchaser’s Commitment, (E) amend, modify or waive
any provision of the definition of Required Committed Purchasers or this Section 14.1(b),
(F) consent to or permit the assignment or

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transfer by Seller of any of its rights and
obligations under this Agreement, (G) change the definition of “Eligible Receivable” or
“Purchase Price,” or (H) amend or modify any defined term (or any defined term used directly
or indirectly in such defined term) used in clauses (A) through (G) above in a manner that
would circumvent the intention of the restrictions set forth in such clauses; or

               (ii) without the written consent of the then Agent, amend, modify or waive any
provision of this Agreement if the effect thereof is to affect the rights or duties of such
Agent.

Notwithstanding the foregoing, (i) without the consent of any Committed Purchaser but with the
consent of Seller, the Agent may amend this Agreement solely to add additional Persons as Committed
Purchasers hereunder and (ii) the Agent, Jupiter and the Required Committed Purchasers may enter
into amendments to modify any of the terms or provisions of Article XI, Article XII, Section 14.13
or any other provision of this Agreement without the consent of the Seller Parties, provided that
such amendment has no negative impact upon either of the Seller Parties. Any modification or
waiver made in accordance with this Section 14.1 shall apply to each of the Purchasers equally and
shall be binding upon the Seller Parties, the Purchasers and the Agent.

          Section 14.2 Notices. Except as provided in this Section 14.2, all communications
and notices provided for hereunder shall be in writing (including bank wire, telecopy or electronic
facsimile transmission or similar writing) and shall be given to the other parties hereto at their
respective addresses or telecopy numbers set forth on the signature pages hereof or at such other
address or telecopy number as such Person may hereafter specify for the purpose of notice to each
of the other parties hereto. Each such notice or other communication shall be effective (i) if
given by telecopy, upon the receipt thereof, (ii) if given by mail, three (3) Business Days after
the time such communication is deposited in the mail with first class postage prepaid or (iii) if
given by any other means, when received at the address specified in this Section 14.2. Seller
hereby authorizes the Agent and each of the Purchasers to effect purchases and Tranche Period and
Discount Rate selections based on telephonic notices made by any Person whom the Agent or such
Purchaser in good faith believes to be acting on behalf of Seller. Seller agrees to deliver
promptly to the Agent a written confirmation of each telephonic notice signed by an authorized
officer of Seller; provided, however, the absence of such confirmation shall not affect the
validity of such notice. If the written confirmation differs from the action
taken by the Agent or any Purchaser, as the case may be, the records of the Agent or such
Purchaser, as applicable, shall govern absent manifest error.

          Section 14.3 Ratable Payments. If any Purchaser, whether by setoff or otherwise, has
payment made to it with respect to any portion of the Aggregate Unpaids owing to such Purchaser
(other than payments received pursuant to Section 10.2 or 10.3) in a greater proportion than that
received by any other Purchaser entitled to receive a ratable share of such Aggregate Unpaids, such
Purchaser agrees, promptly upon demand, to purchase for cash without recourse or warranty a portion
of such Aggregate Unpaids held by the other Purchasers so that after such purchase each Purchaser
will hold its ratable proportion of such Aggregate Unpaids; provided that if all or any portion of
such
excess amount is thereafter recovered from such

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Purchaser, such purchase shall be rescinded
and the purchase price restored to the extent of such recovery, but without interest.

          Section 14.4 Protection of Ownership Interests of the Purchasers.

               (a) Seller agrees that from time to time, at its expense, it will promptly execute and deliver
all instruments and documents, and take all actions, that may be necessary or desirable, or that
the Agent or Fifth Third may request, to perfect, protect or more fully evidence the Purchaser
Interests, or to enable the Agent or the Purchasers to exercise and enforce their rights and
remedies hereunder. At any time after the occurrence of an Amortization Event, the Agent may, or
the Agent may direct Seller or the Servicer to, notify the Obligors of Pool Receivables, at
Seller’s expense, of the ownership or security interests of the Purchasers under this Agreement and
may also direct that payments of all amounts due or that become due under any or all Receivables be
made directly to the Agent or its designee. Seller or the Servicer (as applicable) shall, at any
Purchaser’s request, withhold the identity of such Purchaser in any such notification.

               (b) If any Seller Party fails to perform any of its obligations hereunder: (i) the Agent or
any Purchaser may (but shall not be required to) perform, or cause performance of, such
obligations, and the Agent’s or such Purchaser’s costs and expenses incurred in connection
therewith shall be payable by Seller as provided in Section 10.3, (ii) each Seller Party
irrevocably authorizes the Agent at any time and from time to time in the sole discretion of the
Agent, and appoints the Agent as its attorney-in-fact, to act on behalf of such Seller Party (A) to
execute on behalf of Seller as debtor and to file financing statements necessary or desirable in
the Agent’s sole discretion to perfect and to maintain the perfection and priority of the interest
of the Purchasers in the Pool Receivables and (B) to file a carbon, photographic or other
reproduction of this Agreement or any financing statement with respect to the Asset Interest as a
financing statement in such offices as the Agent in its sole discretion deems necessary or
desirable to perfect and to maintain the perfection and priority of the interests of the Purchasers
in the Asset Interest. The appointment in the preceding clause (ii) is coupled with an interest
and is irrevocable.

          Section 14.5 Confidentiality.

               (a) Each Seller Party and each Purchaser shall maintain and shall cause each of its employees
and officers to maintain the confidentiality of the Fee Letters and the
other confidential or proprietary information with respect to the Agent and any Conduit and
their respective businesses obtained by it or them in connection with the structuring, negotiating
and execution of the transactions contemplated herein, except that such Seller Party and such
Purchaser and its officers and employees may disclose such information to such Seller Party’s and
such Purchaser’s external accountants and attorneys and as required by any applicable law or order
of any judicial or administrative proceeding.

               (b) Anything herein to the contrary notwithstanding, each Seller Party hereby consents to the
disclosure of any nonpublic information with respect to it (i) to the Agent or the Purchasers by
each other, (ii) by the Agent or the Purchasers to any prospective or actual assignee or
participant of any of them and (iii) by the Agent or Fifth Third to any rating agency,

37

 

Commercial
Paper dealer or provider of a surety, guaranty or credit or liquidity enhancement to its Conduit or
any entity organized for the purpose of purchasing, or making loans secured by, financial assets
for which JPMorgan Chase or Fifth Third acts as the administrative agent and to any officers,
directors, employees, outside accountants and attorneys of any of the foregoing, provided each such
Person is informed of the confidential nature of such information. In addition, the Purchasers and
the Agent may disclose any such nonpublic information pursuant to any law, rule, regulation,
direction, request or order of any judicial, administrative or regulatory authority or proceedings
(whether or not having the force or effect of law).

               (c) Notwithstanding any other express or implied agreement to the contrary, the parties hereto
agree that each of them and each of their employees, representatives, and other agents may disclose
to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the
transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to any of them relating to such tax treatment and tax structure, except where
confidentiality is reasonably necessary to comply with U.S. federal or state securities laws. For
purposes of this paragraph, the terms “tax treatment” and “tax structure” have the meanings
specified in Treasury Regulation section 1.6011-4(c).

          Section 14.6 Bankruptcy Petition. Each of the Seller Parties, the Agent and the
Committed Purchasers hereby covenants and agrees that, prior to the date that is one year and one
day after the payment in full of all outstanding senior indebtedness of a Conduit, it will not
institute against, or join any other Person in instituting against, such Conduit any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.

          Section 14.7 Limitation of Liability. Except with respect to any claim arising out
of the willful misconduct or gross negligence of the Agent or any Purchaser, no claim may be made
by any Seller Party or any other Person against the Agent or any Purchaser or their respective
Affiliates, directors, officers, employees, attorneys or agents for any special, indirect,
consequential or punitive damages in respect of any claim for breach of contract or any other
theory of liability arising out of or related to the transactions contemplated by this Agreement,
or any act, omission or event occurring in connection therewith; and each Seller Party hereby
waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued
and whether or not known or suspected to exist in its favor.

     Section 14.8 CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

     Section 14.9 CONSENT TO JURISDICTION. EACH SELLER PARTY HEREBY IRREVOCABLY SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT AND EACH SELLER PARTY HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES

38

 

ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS
AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT OR ANY PURCHASER TO BRING
PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL
PROCEEDING BY ANY SELLER PARTY AGAINST THE AGENT OR ANY PURCHASER OR ANY AFFILIATE OF THE AGENT OR
ANY PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS
AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

          Section 14.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN
ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY
DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED
HEREUNDER OR THEREUNDER.

          Section 14.11 Integration; Binding Effect; Survival of Terms.

               (a) This Agreement and each other Transaction Document contain the final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter hereof superseding all prior oral or written understandings.

               (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns (including any trustee in bankruptcy). This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until terminated in accordance
with its terms; provided, however, that the rights and remedies with respect to (i) any breach of
any representation and warranty made by any Seller Party pursuant to Article V, (ii) the
indemnification and payment provisions of Article X, and Sections 14.5 and 14.6 shall be continuing
and shall survive any termination of this Agreement.

          Section 14.12 Counterparts; Severability; Section References. This Agreement may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same Agreement. Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. Unless otherwise expressly
indicated, all references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean
articles and sections of, and schedules and exhibits to, this Agreement.

39

 

          Section 14.13 JPMorgan Chase Roles. Each of the Purchasers acknowledges that
JPMorgan Chase acts, or may in the future act, (i) as administrative agent for any Purchaser, (ii)
as issuing and paying agent for the Commercial Paper of Jupiter, (iii) to provide credit or
liquidity enhancement for the timely payment for Jupiter’s Commercial Paper and (iv) to provide
other services from time to time for Jupiter or any Financial Institution (collectively, the
“JPMorgan Chase Roles”). Without limiting the generality of this Section 14.13, each Purchaser
hereby acknowledges and consents to any and all JPMorgan Chase Roles (except no Purchaser may be
required to accept JPMorgan Chase in a JPMorgan Chase Role for such Purchaser without such
Purchaser’s written consent, other than the transactions contemplated by this Agreement) and agrees
that in connection with any JPMorgan Chase Role, JPMorgan Chase may take, or refrain from taking,
any action that it, in its discretion, deems appropriate, including, without limitation, in its
role as administrative agent for Jupiter, and the giving of notice to the Agent of a mandatory
purchase (pursuant to a Funding Agreement).

          Section 14.14 Characterization.

               (a) It is the intention of the parties hereto that each purchase hereunder shall constitute
and be treated as an absolute and irrevocable sale, which purchase shall provide the applicable
Purchaser with the full benefits of ownership of the applicable Purchaser Interest. Except as
specifically provided in this Agreement, each sale of a Purchaser Interest hereunder is made
without recourse to Seller; provided, however, that (i) Seller shall be liable to each Purchaser
and the Agent for all representations, warranties, covenants and indemnities made by Seller
pursuant to the terms of this Agreement, and (ii) such sale does not constitute and is not intended
to result in an assumption by any Purchaser or the Agent or any assignee thereof of any obligation
of Seller or Originator or any other person arising in connection with the Asset Interest or any
other obligations of Seller or Originator.

               (b) In addition to any ownership interest which the Agent may from time to time acquire
pursuant hereto, to secure the prompt and complete payment of the Aggregate Unpaids, Seller hereby
grants to the Agent for the ratable benefit of the Purchasers a valid and perfected security
interest in all of Seller’s right, title and interest, now existing or hereafter arising, in (i)
the Asset Interest, (ii) the Facility Account, (iii) Seller’s rights and remedies under the
Receivable Interest Sale Agreement, and (iv) all proceeds of any thereof prior to all other liens
on and security interests therein. The Agent and the Purchasers shall have, in addition to the
rights and remedies that they may have under this Agreement, all other rights and
remedies provided to a secured creditor under the UCC and other applicable law, which rights
and remedies shall be cumulative.

          Section 14.15 Amendment and Restatement. This Agreement is an amendment and
restatement of the Original Purchase Agreement and supersedes the Original Purchase Agreement in
its entirety; provided, however, that the execution and delivery of this Agreement shall
not effect a novation of the Original Purchase Agreement but shall be, to the fullest extent
applicable, in modification, renewal, confirmation and extension of such Original Purchase
Agreement.  

(Remainder of this page intentionally left blank)

40

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
by their duly authorized officers as of the date hereof.

FERRELLGAS RECEIVABLES, LLC

	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	 
	 	 	 	 	 
	Name:

	 	 	 	Kevin T. Kelly	 	 
	Title:	 	 	 	Senior Vice President and Chief Financial Officer
	Address:

	 	 	 	One Liberty Plaza	 	 
	 

	 	 	 	Liberty, MO 64068	 	 
	 

	 	 	 	Attention: Cathy Brown	 	 
	 

	 	 	 	Phone: (816) 407-2403	 	 
	 

	 	 	 	Fax: (816) 792-6887	 	 

FERRELLGAS, L.P.

By: Ferrellgas, Inc., its General Partner

	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	 
	 	 	 	 	 
	Name:

	 	 	 	Kevin T. Kelly	 	 
	Title:	 	 	 	Senior Vice President and Chief Financial Officer
	Address:

	 	 	 	7500 College Blvd., Suite 1000	 	 
	 

	 	 	 	Overland Park, Kansas 66210	 	 
	Attention:

	 	 	 	James R. VanWinkle	 	 
	Phone:

	 	 	 	(913) 661-1528	 	 
	Fax:

	 	 	 	(913) 661-1537	 	 

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JUPITER SECURITIZATION CORPORATION

By: JPMorgan Chase Bank, N.A., as attorney-in-fact

	 	 	 
	By:
	 	 
	 

	 	 
	 

	 	     William W. Wood
	 

	 	     Vice President

	 	 	 	 	 
	Address:	 	c/o JPMorgan Chase Bank, N.A., as Agent
	 	 	Asset Backed Conduit Finance
	 	 	10 South Dearborn, Floor 13
	 	 	Chicago, IL 60603-2003
	 

	 	Attention:
	 	ABF Portfolio Management
	 

	 	Fax:
	 	(312) 732-1844
	 

	 	E-mail:
	 	abf.portfolio.management@jpmorgan.com

JPMORGAN CHASE BANK, N.A.,
Individually as a Financial Institution and as Agent

	 	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name:	 	 	 	William W. Wood	 	 
	Title:	 	 	 	Vice President	 	 
	 
	Address:	 	 	 	JPMorgan Chase Bank, N.A.	 	 
	 	 	 	 	Asset Backed Conduit Finance	 	 
	 	 	 	 	10 South Dearborn, Floor 13	 	 
	 	 	 	 	Chicago, IL 60603-2003	 	 
	 	 	 	 	Attention:	 	ABF Portfolio Management
	 	 	 	 	Fax:	 	(312) 732-1844
	 	 	 	 	E-mail:	 	abf.portfolio.management@jpmorgan.com

42

 

FIFTH THIRD BANK

	 	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name:	 	 	 	Robert O. Finley	 	 
	Title:	 	 	 	Vice President	 	 
	 
	Address:	 	 	 	Fifth Third Bank	 	 
	 	 	 	 	38 Fountain Square Plaza	 	 
	 	 	 	 	MD 109047	 	 
	 	 	 	 	Cincinnati, OH 45263	 	 
	 

	 	 	 	Attention:
	 	Judy Huls	 	 
	 

	 	 	 	Fax:
	 	(513) 534-0875	 	 

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EXHIBIT I

DEFINITIONS

          As used in this Agreement:

          (a) Capitalized terms used and not otherwise defined herein shall have the meanings attributed
thereto in the Receivable Interest Sale Agreement (hereinafter defined); and

          (b) The following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          “Accrual Period” means each calendar month, provided that the initial Accrual Period hereunder
means the period from (and including) the date of the initial purchase hereunder to (and including)
the last day of the calendar month thereafter.

          “Adverse Claim” means a lien, security interest, charge or encumbrance, or other right or
claim in, of or on any Person’s assets or properties in favor of any other Person.

          “Affected Financial Institution” has the meaning specified in Section 12.1(c).

          “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person or any
Subsidiary of such Person. A Person shall be deemed to control another Person if the controlling
Person owns 10% or more of any class of voting securities of the controlled Person or possesses,
directly or indirectly, the power to direct or cause the direction of the management or policies of
the controlled Person, whether through ownership of stock, by contract or otherwise.

          “Agent” has the meaning set forth in the preamble to this Agreement.

          “Agent’s Fee Letter” means the letter agreement dated as of the date hereof between Seller and
the Agent, as the same may be amended, restated or otherwise modified and in effect from time to
time.

          “Aggregate Capital” means, on any date of determination, the aggregate amount of Capital of
all Purchaser Interests outstanding on such date.

          “Aggregate Reduction” has the meaning specified in Section 1.3.

          “Aggregate Unpaids” means, at any time, an amount equal to the sum of all accrued and unpaid
fees under the Fee Letters, CP Costs, Yield, Aggregate Capital and all other unpaid Recourse
Obligations (whether due or accrued) at such time.

          “Agreement” means this Second Amended and Restated Receivables Purchase Agreement dated as of
June 6, 2006 among, Seller, Ferrellgas, the Purchasers and the Agent, as it may be amended,
restated or otherwise modified and in effect from time to time.

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          “Amortization Date” means the earliest to occur of (i) the day on which any of the conditions
precedent set forth in Section 6.2 are not satisfied, (ii) the Business Day immediately prior to
the occurrence of an Amortization Event set forth in Section 9.1(d)(ii), (iii) the Business Day
specified in a written notice from the Agent following the occurrence of any other Amortization
Event, and (iv) the date which is 5 Business Days after the Agent’s receipt of written notice from
Seller that it wishes to terminate the facility evidenced by this Agreement.

          “Amortization Event” has the meaning specified in Article IX.

          “Applicable Margin” means the Applicable Margin (as defined in the Credit Agreement) for
Eurodollar Rate Loans (as defined in the Credit Agreement).

          “Asset Interest” means, on any date of determination, the sum of the Receivables Interest and
the Contributed Interest (each, as defined in the Receivable Interest Sale Agreement).

          “Asset Interest Collections” means, on any date of determination, the Buyer’s Percentage of
all Collections.

          “Assignment Agreement” has the meaning set forth in Section 12.1(b).

          “Authorized Officer” means, with respect to any Person, its president, controller, treasurer
or chief financial officer.

          “Base Rate” means a rate per annum equal to the corporate base rate, prime rate or base rate
of interest, as applicable, announced by JPMorgan from time to time, changing when and as such rate
changes.

          “Blocked Account Agreement” means an agreement among Servicer or Seller, as applicable, the
Agent and Wells Fargo Bank, N.A. with respect to the Servicer’s Concentration Account or the
Facility Account in form and substance reasonably satisfactory to the parties thereto.

          “Broken Funding Costs” means for any Purchaser Interest which: (i) has its Capital reduced
without compliance by Seller with the notice requirements hereunder or (ii) does not become subject
to an Aggregate Reduction following the delivery of any Reduction Notice or (iii) is assigned under
a Funding Agreement or terminated prior to the date on which it was originally scheduled to end; an
amount equal to the excess, if any, of (A) the CP Costs or Yield (as applicable) that would have
accrued during the remainder of the Tranche Periods or the tranche periods for Commercial Paper
determined by the Agent to relate to such Purchaser Interest (as applicable) subsequent to the date
of such reduction, assignment or termination (or in respect of clause (ii) above, the date such
Aggregate Reduction was designated to occur pursuant to the Reduction Notice) of the Capital of
such Purchaser Interest if such reduction, assignment or termination had not occurred or such
Reduction Notice had not been delivered, over (B) the
sum of (x) to the extent all or a portion of such Capital is allocated to another Purchaser
Interest, the amount of CP Costs or Yield actually accrued during the remainder of such period on
such Capital for the new Purchaser Interest, and (y) to the extent such Capital is not allocated to
another Purchaser Interest, the income, if any, actually received during the remainder of such

45

 

period by the holder of such Purchaser Interest from investing the portion of such Capital not so
allocated. In the event that the amount referred to in clause (B) exceeds the amount referred to
in clause (A), the relevant Purchaser or Purchasers agree to pay to Seller the amount of such
excess. All Broken Funding Costs shall be due and payable hereunder upon demand.

          “Business Day” means any day on which banks are not authorized or required to close in New
York, New York or Chicago, Illinois and The Depository Trust Company of New York is open for
business, and, if the applicable Business Day relates to any computation or payment to be made with
respect to the LIBO Rate, any day on which dealings in dollar deposits are carried on in the London
interbank market.

          “Capital” of any Purchaser Interest means, at any time, (A) the Purchase Price of such
Purchaser Interest, minus (B) the sum of the aggregate amount of Asset Interest Collections and
other payments received by the Agent which in each case are applied to reduce such Capital in
accordance with the terms and conditions of this Agreement; provided that such Capital shall be
restored (in accordance with Section 2.5) in the amount of any Asset Interest Collections or other
payments so received and applied if at any time the distribution of such Asset Interest Collections
or payments are rescinded, returned or refunded for any reason.

          “Change of Control” means (a) a Change of Control under and as defined in the Receivable
Interest Sale Agreement, or (b) Ferrellgas ceases to own 100% of the outstanding Equity Interests
of Seller.

          “Charged-Off Receivable” means a Receivable: (i) as to which the Obligor thereof has taken
any action, or suffered any event to occur, of the type described in Section 9.1(d) (as if
references to Seller Party therein refer to such Obligor); (ii) as to which the Obligor thereof, if
a natural person, is deceased, (iii) which, consistent with the Credit and Collection Policy, would
be written off Seller’s books as uncollectible, (iv) which has been identified by Seller as
uncollectible or (v) as to which any payment, or part thereof, remains unpaid for more than 180
days from the original invoice date for such payment.

          “Charged-Off Trigger Ratio” means, as of any Cut-Off Date, the ratio (expressed as a
percentage) computed by dividing (x) the total amount of Receivables that became Charged-Off
Receivables during the Measurement Period ending on such Cut-Off Date, by (y) the aggregate monthly
sales for the 6 months ending on such Cut-Off Date.

          “Collection Account” means each concentration account, depositary account, lock-box account or
similar account in which any Asset Interest Collections are collected or deposited.

          “Collection Notice” means a notice in the form attached to the Blocked Account Agreements from
the Agent to Wells Fargo Bank, N.A. terminating the Servicer’s
authority to make withdrawals from the Servicer’s Concentration Account or Seller’s authority
to make withdrawals from the Facility Account.

          “Commercial Paper” means promissory notes of a Conduit issued by such Conduit in the
commercial paper market.

46

 

          “Commitment” means for Fifth Third and each Financial Institution, as the case may be, its
commitment to purchase Purchaser Interests from Seller in the aggregate amount set forth on
Schedule A hereto.

          “Commitment Availability” mean, as to each Purchaser Group, at any time the positive
difference (if any) between (a) the aggregate amount of the Commitments at such time of the members
of such Purchaser Group, minus (b) such Purchaser Group’s Capital outstanding at such time.

          “Committed Purchasers” means Fifth Third and each of the Financial Institutions.

          “Conduit” means Jupiter or Fountain Square.

          “Contingent Obligation” of a Person means any agreement, undertaking or arrangement by which
such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the
payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss,
including, without limitation, any comfort letter, operating agreement, take-or-pay contract or
application for a letter of credit.

          “CP Availability Period” means each day on which Fountain Square is providing funding to Fifth
Third through the issuance of Fountain Square’s Commercial Paper.

          “CP Costs” means, for each day, the sum of (i) discount or yield accrued on Pooled Commercial
Paper of any Conduit on such day, plus (ii) any and all accrued commissions in respect of placement
agents and Commercial Paper dealers, and issuing and paying agent fees incurred, in respect of any
Pooled Commercial Paper of any Conduit for such day, plus (iii) other costs associated with funding
small or odd-lot amounts with respect to all receivable purchase facilities which are funded by
Pooled Commercial Paper for any Conduit for such day, minus (iv) any accrual of income net of
expenses received on such day from investment of collections received under all receivable purchase
facilities funded substantially with Pooled Commercial Paper of any Conduit, minus (v) any payment
received on such day net of expenses in respect of Broken Funding Costs related to the prepayment
of any Purchaser Interest of Jupiter or Fifth Third pursuant to the terms of any receivable
purchase facilities funded substantially with Pooled Commercial Paper. In addition to the
foregoing costs, if Seller shall request any Incremental Purchase by any Conduit during any period
of time determined by Jupiter or Fifth Third in its sole discretion to result in incrementally
higher CP Costs applicable to such Incremental Purchase, the Capital associated with any such
Incremental Purchase shall, during such period, be deemed to be funded by the applicable Conduit in
a special pool (which may include capital associated with other receivable purchase facilities) for
purposes of determining such additional
CP Costs applicable only to such special pool and charged each day during such period against
such Capital.

          “Credit and Collection Policy” means Originator’s credit and collection policies and practices
relating to Contracts and Receivables existing on the date hereof and summarized

47

 

in Exhibit IV to
the Receivable Interest Sale Agreement, as modified from time to time in accordance with this
Agreement.

          “Cut-Off Date” means the last day of each calendar month.

          “Deemed Collections” means the aggregate of all amounts Seller shall have been deemed to have
received as an Asset Interest Collection of a Receivable. Seller shall be deemed to have received
an Asset Interest Collection in full of a Receivable if at any time (i) the Outstanding Balance of
any such Receivable is either (x) reduced as a result of any defective or rejected goods or
services, any discount or any adjustment or otherwise by Seller (other than cash Asset Interest
Collections on account of the Receivables) or (y) reduced or canceled as a result of a setoff in
respect of any claim by any Person (whether such claim arises out of the same or a related
transaction or an unrelated transaction) or (ii) any of the representations or warranties in
Article V are no longer true with respect to any Receivable.

          “Default Fee” means with respect to any amount due and payable by Seller in respect of any
Aggregate Unpaids, an amount equal to the greater of (i) $1000 and (ii) interest on any such unpaid
Aggregate Unpaids at a rate per annum equal to 2% above the Base Rate.

          “Delinquency Trigger Ratio” means, as of any Cut-Off Date, the ratio (expressed as a
percentage) computed by dividing (i) the aggregate Outstanding Balance of all Receivables that are
Delinquent Receivables as of such Cut-Off Date, by (ii) the aggregate Outstanding Balance of all
Receivables as of such Cut-Off Date.

          “Delinquent Receivable” means a Receivable as to which any payment, or part thereof, remains
unpaid for more than 60 days from the original invoice date but not more than 90 days from the
original invoice date for such payment.

          “Dilution Trigger Ratio” means a percentage equal to a fraction, the numerator of which is the
total amount of decreases in Outstanding Balances of the Receivables due to Dilutions during the
most recent Measurement Period, and the denominator of which is the amount of sales generated by
the Originators during the Measurement Period one month prior to the most recent Measurement
Period.

          “Dilutions” means, at any time, the aggregate amount of reductions or cancellations described
in clause (i) of the definition of “Deemed Collections”.

          “Discount Rate” means, the LIBO Rate or the Base Rate, as applicable, with respect to each
Purchaser Interest of the Financial Institutions and, after the CP Availability Period for Fifth
Third, Fifth Third.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time.

          “Facility Account” means the account in the name of the Seller at Wells Fargo Bank and
designated in writing by the Seller to the Agent as being the “Facility Account.”

48

 

          “Facility Termination Date” means the earlier of (i) the Liquidity Termination Date and (ii)
the Amortization Date.

          “Federal Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as
amended and any successor statute thereto.

          “Federal Funds Effective Rate” means, for any period, a fluctuating interest rate per annum
for each day during such period equal to (a) 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 (or, if such day is not a Business Day, for the preceding Business Day) by
the Federal Reserve Bank of New York in the Composite Closing Quotations for U.S. Government
Securities; or (b) if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 10:30 a.m. (Chicago time) for such day on such
transactions received by the Agent from three federal funds brokers of recognized standing selected
by it.

          “Fee Letter” means each of the Agent’s Fee Letter and the Purchasers’ Fee Letter.

          “Ferrellgas” has the meaning set forth in the preamble in this Agreement.

          “Fifth Third Liquidity Interest” means any Purchaser Interest of Fifth Third on any day
outside the CP Availability Period.

          “Financial Institutions” has the meaning set forth in the preamble in this Agreement.

          “Fountain Square” means Fountain Square Commercial Funding Corp., a Delaware corporation;
provided, however, that in the event that purchases or Reinvestments by Fifth Third are funded by a
conduit other than Fountain Square, all references herein to “Fountain Square” or its Commercial
Paper shall automatically be deemed to be references to such other conduit and its commercial
paper.

          “Funding Agreement” means any agreement or instrument executed by any Funding Source with or
for the benefit of Jupiter or Fifth Third.

          “Funding Source” means (a) with respect to Jupiter (i) any Financial Institution or (ii) any
insurance company, bank or other funding entity providing liquidity, credit enhancement or back-up
purchase support or facilities to Jupiter, and (b) with respect to Fifth Third, (i) Fountain
Square, and (ii) any insurance company, bank or other funding entity providing liquidity, credit
enhancement or back-up purchase support or facilities to Fifth Third for purposes of this Agreement
or to Fountain Square’s Commercial Paper which is allocated to this Agreement.

          “GAAP” means generally accepted accounting principles in effect in the United States of
America as of the date of this Agreement.

49

 

          “Group Purchase Limit” means, for each Purchaser Group, (a) in the case of the Jupiter
Purchaser Group, the sum of the Commitments of the Financial Institutions in such Purchaser Group,
adjusted as necessary to give effect to the termination of the Commitment of any Terminating
Financial Institution in such Purchaser Group pursuant to Article XII and (b) in the case
of Fifth Third, Fifth Third’s Commitment,.

          “Incremental Purchase” means a purchase of one or more Purchaser Interests which increases the
total outstanding Aggregate Capital hereunder.

          “Indebtedness” of a Person means such Person’s (i) obligations for borrowed money, (ii)
obligations representing the deferred purchase price of property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade), (iii) obligations, whether or not assumed, secured by liens or payable out of the proceeds
or production from property now or hereafter owned or acquired by such Person, (iv) obligations
which are evidenced by notes, acceptances, or other instruments, (v) capitalized lease obligations,
(vi) net liabilities under interest rate swap, exchange or cap agreements, (vii) Contingent
Obligations and (viii) liabilities in respect of unfunded vested benefits under plans covered by
Title IV of ERISA.

          “Independent Director” shall mean a member of the Board of Directors of Seller who is not at
such time, and has not been at any time during the preceding five (5) years, (A) a director,
officer, employee or affiliate of Originator or any of its respective Subsidiaries or Affiliates
(other than Seller), or (B) the beneficial owner (at the time of such individual’s appointment as
an Independent Director or at any time thereafter while serving as an Independent Director) of any
of the outstanding common shares of Seller, Originator, or any of their respective Subsidiaries or
Affiliates, having general voting rights.

          “JPMorgan Chase” means JPMorgan Chase Bank, N.A. in its individual capacity and its
successors.

          “Jupiter Group” means, collectively, Jupiter and the Financial Institutions.

          “LIBO Rate” means the rate per annum equal to the sum of (i) (a) the applicable British
Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters
Screen FRBD as of 12:00 noon (London time) two Business Days prior to the first day of the relevant
Tranche Period, and having a maturity equal to such Tranche Period, provided that, (i) if Reuters
Screen FRBD is not available to the Agent for any reason, the applicable LIBO Rate for the relevant
Tranche Period shall instead be the applicable British Bankers’ Association Interest Settlement
Rate for deposits in U.S. dollars as reported by any other generally recognized financial
information service as of 12:00 noon (London time) two Business Days prior to the first day of such
Tranche Period, and having a maturity equal to such Tranche Period, and (ii) if no such British
Bankers’ Association Interest Settlement Rate is available to the Agent, the applicable LIBO Rate
for the relevant Tranche Period shall instead be the rate determined by the Agent to be the rate at
which JPMorgan Chase offers to place deposits
in U.S. dollars with first-class banks in the London interbank market at approximately 12:00
noon (London time) two Business Days prior to the first day of such Tranche Period, in the
approximate amount to be funded at the LIBO Rate and having a maturity equal to such Tranche

50

 

Period, divided by (b) one minus the maximum aggregate reserve requirement (including all basic,
supplemental, marginal or other reserves) which is imposed against the Agent in respect of
Eurocurrency liabilities, as defined in Regulation D of the Board of Governors of the Federal
Reserve System as in effect from time to time (expressed as a decimal), applicable to such Tranche
Period plus (ii) the Applicable Margin. The LIBO Rate shall be rounded, if necessary, to the next
higher 1/16 of 1%.

          “Liquidity Interest” means a Purchaser Interest of a Financial Institution or a Fifth Third
Liquidity Interest.

          “Liquidity Termination Date” means June 5, 2007.

          “Lock-Box” means each locked postal box with respect to which a bank has been granted
exclusive access for the purpose of retrieving and processing payments made on the Pool
Receivables.

          “Material Adverse Effect” means a material adverse effect on (i) the financial condition or
operations of any Seller Party and its Subsidiaries, (ii) the ability of any Seller Party to
perform its obligations under this Agreement, (iii) the legality, validity or enforceability of
this Agreement or any other Transaction Document, (iv) any Purchaser’s interest in the Pool
Receivables generally or in any significant portion of the Pool Receivables, the Related Security
or the Asset Interest Collections with respect thereto, or (v) the collectibility of the Pool
Receivables generally or of any material portion of the Pool Receivables.

          “Measurement Period” means a calendar month.

          “Monthly Report” means a report, in substantially the form of Exhibit VI hereto (appropriately
completed), furnished by the Servicer to the Agent pursuant to Section 8.5.

          “Monthly Reporting Date” has the meaning set forth in Section 8.5.

          “Net Asset Interest Balance” means, at any time, the Buyer’s Percentage of the aggregate
Outstanding Balance of all Pool Receivables that are Eligible Receivables at such time.

          “Non-Renewing Financial Institution” has the meaning set forth in Section 13.2(a).

          “Original Purchase Agreement” has the meaning set forth in the Preliminary Statements.

          “Originator” means Ferrellgas, in its capacity as seller under the Receivable Interest Sale
Agreement.

          “Participant” has the meaning set forth in Section 12.2.

51

 

          “Percentage” means, for each Purchaser Group, the ratio of the aggregate amount of the
Commitments of the Committed Purchasers in such Purchaser Group to the Aggregate Commitments of all
Committed Purchasers in both Purchaser Groups.

          “Person” means an individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, joint venture or other
entity, or a government or any political subdivision or agency thereof.

          “Pooled Commercial Paper” means Commercial Paper notes of a Conduit subject to any particular
pooling arrangement by such Conduit, but excluding Commercial Paper issued by such Conduit for a
tenor and in an amount specifically requested by any Person in connection with any agreement
effected by such Conduit.

          “Potential Amortization Event” means an event which, with the passage of time or the giving of
notice, or both, would constitute an Amortization Event.

          “Pro Rata Share” means, for each Financial Institution, a percentage equal to (a) the
Commitment of such Financial Institution divided by (b) the aggregate amount of all Commitments of
all Financial Institutions hereunder, adjusted as necessary to give effect to the application of
the terms of the applicable Funding Agreement or any assignments pursuant to Article XII.

          “Proposed Reduction Date” has the meaning set forth in Section 1.3.

          “Purchase Limit” means, on any date, the amount set forth opposite such date in the table
below:

	 	 	 	 	 
	May 31-September 30
	 	$	85,000,000	 
	October 1-31
	 	$	100,000,000	 
	November 1-30
	 	$	110,000,000	 
	December 1-February 14
	 	$	160,000,000	 
	February 15-28
	 	$	155,000,000	 
	March 1-7
	 	$	150,000,000	 
	March 8-14
	 	$	144,000,000	 
	March 15-21
	 	$	138,000,000	 
	March 22-28
	 	$	132,000,000	 
	March 29-April 4
	 	$	126,000,000	 
	April 5-18
	 	$	120,000,000	 
	April 19-May 2
	 	$	110,000,000	 
	May 3-16
	 	$	100,000,000	 
	May 17-30
	 	$	92,500,000	 

          “Purchase Notice” has the meaning set forth in Section 1.2.

          “Purchase Price” means, with respect to any Incremental Purchase of a Purchaser Interest, the
amount paid to Seller for such Purchaser Interest which shall not exceed

52

 

the least of (i) the
amount requested by Seller in the applicable Purchase Notice, (ii) the unused
portion of the Purchase Limit on the applicable purchase date and (iii) the excess, if any, of
80% of the Net Asset Interest Balance on the applicable purchase date over the aggregate
outstanding amount of Aggregate Capital determined as of the date of the most recent Monthly
Report, taking into account such proposed Incremental Purchase.

          “Purchaser Group” means each of (a) the Jupiter Group, and (b) Fifth Third.

          “Purchaser Interest” means, at any time, a portion of an aggregate undivided 100% ownership
interest in the Asset Interest associated with a designated amount of Capital, selected pursuant to
the terms and conditions hereof.

          “Purchasers” means Jupiter and the Committed Purchasers.

          “Purchasers’ Fee Letter” means the letter agreement dated as of the date hereof among Seller,
Fifth Third and the Agent (on behalf of the Jupiter Group), as the same may be amended, restated or
otherwise modified and in effect from time to time.

          “Purchasing Financial Institution” has the meaning set forth in Section 12.1(b).

          “Receivable Interest Sale Agreement” means that certain Amended and Restated Receivable
Interest Sale Agreement, dated as of June 7, 2005, between Originator and Seller, as the same may
be amended, restated or otherwise modified from time to time.

          “Recourse Obligations” shall have the meaning set forth in Section 2.1.

          “Reduction Notice” has the meaning set forth in Section 1.3.

          “Regulatory Change” has the meaning set forth in Section 10.2(a).

          “Reinvestment” has the meaning set forth in Section 2.2.

          “Required Committed Purchasers” means, at any time, Committed Purchasers with Commitments in
excess of 66-2/3% of the Purchase Limit.

          “Required Notice Period” means two (2) Business Days.

          “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any shares of any class of capital stock of Seller now or hereafter outstanding,
except a dividend payable solely in shares of that class of stock or in any junior class of stock
of Seller, (ii) any redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of capital stock of Seller
now or hereafter outstanding, (iii) any payment or prepayment of principal of, premium, if any, or
interest, fees or other charges on or with respect to, and any redemption, purchase, retirement,
defeasance, sinking fund or similar payment and any claim for rescission with respect to the
Subordinated Loans (as defined in the Receivable Interest Sale Agreement),
(iv) any payment made to redeem, purchase, repurchase or retire, or to obtain the surrender
of, any outstanding warrants, options or other rights to acquire shares of any class of capital
stock of

53

 

     Seller now or hereafter outstanding, and (v) any payment of management fees by Seller
(except for reasonable management fees to the Originator or its Affiliates in reimbursement of
actual management services performed).

          “Seller” has the meaning set forth in the preamble to this Agreement.

          “Seller Parties” has the meaning set forth in the preamble to this Agreement.

          “Servicer” means at any time the Person (which may be the Agent) then authorized pursuant to
Article VIII to service, administer and collect Receivables.

          “Settlement Date” means (A) the second Business Day after each Monthly Reporting Date, and (B)
the last day of the relevant Tranche Period in respect of each Purchaser Interest of the Financial
Institutions.

          “Settlement Period” means (A) in respect of each Purchaser Interest of Jupiter and each
Purchaser Interest of Fifth Third during the CP Availability Period, the immediately preceding
Accrual Period, and (B) in respect of each Liquidity Interest, the entire Tranche Period of such
Liquidity Interest.

          “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, association, limited liability company, joint venture
or similar business organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise expressly provided,
all references herein to a “Subsidiary” shall mean a Subsidiary of Seller.

          “Termination Date” has the meaning set forth in Section 2.2.

          “Termination Percentage” has the meaning set forth in Section 2.2.

          “Terminating Financial Institution” has the meaning set forth in Section 13.2(a).

          “Terminating Tranche” has the meaning set forth in Section 4.3(b).

          “Tranche Period” means, with respect to any Purchaser Interest held by a Financial
Institution:

     (a) if Yield for such Purchaser Interest is calculated on the basis of the LIBO
Rate, a period of one, two, three or six months, or such other period as may be
mutually agreeable to the Agent and Seller, commencing on a Business Day selected by
Seller or the Agent pursuant to this Agreement. Such Tranche Period shall end on
the day in the applicable succeeding calendar month which corresponds numerically to
the beginning day of such Tranche Period, provided, however, that if there is no
such numerically corresponding day in such

54

 

succeeding month, such Tranche Period shall end on the last Business Day of
such succeeding month; or

     (b) if Yield for such Purchaser Interest is calculated on the basis of the Base
Rate, a period commencing on a Business Day selected by Seller, provided no such
period shall exceed one month.

If any Tranche Period would end on a day which is not a Business Day, such Tranche Period shall end
on the next succeeding Business Day, provided, however, that in the case of Tranche Periods
corresponding to the LIBO Rate, if such next succeeding Business Day falls in a new month, such
Tranche Period shall end on the immediately preceding Business Day. In the case of any Tranche
Period for any Purchaser Interest which commences before the Amortization Date and would otherwise
end on a date occurring after the Amortization Date, such Tranche Period shall end on the
Amortization Date. The duration of each Tranche Period which commences after the Amortization Date
shall be of such duration as selected by the Agent.

          “Transaction Documents” means, collectively, this Agreement, each Purchase Notice, the
Receivable Interest Sale Agreement, the Fee Letters, the Subordinated Note (as defined in the
Receivable Interest Sale Agreement) and all other instruments, documents and agreements executed
and delivered in connection herewith.

          “UCC” means the Uniform Commercial Code as from time to time in effect in the specified
jurisdiction.

          “Yield” means for each respective Tranche Period relating to Purchaser Interests of the
Financial Institutions, an amount equal to the product of the applicable Discount Rate for each
Purchaser Interest multiplied by the Capital of such Purchaser Interest for each day elapsed during
such Tranche Period, annualized on a 360 day basis in the case of Yield computed at a LIBO Rate and
on a 365 (or, when appropriate, 366) day basis in the case of Yield computed at the Base Rate.

          (c) All accounting terms not specifically defined herein shall be construed in accordance with
GAAP.

          (d) All terms used in Article 9 of the UCC in the State of New York, and not specifically
defined herein, are used herein as defined in such Article 9.

55

 

EXHIBIT II

FORM OF PURCHASE NOTICE

[Date]

JPMorgan Chase Bank, N.A., as Agent

Asset Backed Conduit Finance

10 South Dearborn, Floor 13

Chicago, IL 60603-2003

Attention:      ABF Portfolio Management

          Re: PURCHASE NOTICE

Ladies and Gentlemen:

          Reference is hereby made to the Second Amended and Restated Receivables Purchase Agreement,
dated as of June 6, 2006, by and among Ferrellgas Receivables, LLC, a Delaware limited liability
company (“Seller”), Ferrellgas, L.P., a Delaware limited partnership, as Servicer, the Financial
Institutions, Jupiter Securitization Corporation (“Jupiter”), Fifth Third Bank (“Fifth Third”) and
JPMorgan Chase Bank, N.A., as Agent (the “Receivables Purchase Agreement”). Capitalized terms used
herein shall have the meanings assigned to such terms in the Receivables Purchase Agreement.

          The Agent is hereby notified of the following Incremental Purchase:

	 	 	 
	Aggregate Purchase Price :
	 	$                                                            
	 
	 	 
	Purchase Price for Jupiter Purchaser
Group:
	 	  50%:     $                                        
	 
	 	 
	Purchase Price for Fifth Third:
	 	  50%:     $                                        
	 
	 	 
	Date of Purchase:
	 	                                                            
	 
	 	 
	Requested Discount Rate:
	 	[LIBO Rate] [Base Rate] [Pooled Commercial Paper rate]

          Please credit the Purchase Price in immediately available funds to our Facility Account and
then wire-transfer the Purchase Price in immediately available funds on the above-specified date of
purchase to:

56

 

[Account Name]

[Account No.]

[Bank Name & Address]

[ABA #]

Reference:

Telephone advice to: [Name] @ tel. no. (     )                                        

          Please advise [Name] at telephone no. (     )                                          if Jupiter shall not be making
this purchase or if the CP Availability Period for Fifth Third has ended.

          In connection with the Incremental Purchase to be made on the above listed “Date of Purchase”
(the “Purchase Date”), the Seller hereby certifies that the following statements are true on the
date hereof, and will be true on the Purchase Date (before and after giving effect to the proposed
Incremental Purchase):

          (i) the representations and warranties of the Seller set forth in Section 5.1 of the
Receivables Purchase Agreement are true and correct in all material respects on and as of the
Purchase Date as though made on and as of such date;

          (ii) no event has occurred and is continuing, or would result from the proposed Incremental
Purchase, that will constitute an Amortization Event or a Potential Amortization Event;

          (iii) the Facility Termination Date has not occurred, the Aggregate Capital does not exceed
the Purchase Limit and the aggregate Purchaser Interests do not exceed 100%; and

          (iv) the amount of Aggregate Capital is $                     after giving effect to the Incremental
Purchase to be made on the Purchase Date.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	FERRELLGAS RECEIVABLES, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

57

 

EXHIBIT III

PRINCIPAL PLACES OF BUSINESS AND CHIEF EXECUTIVE OFFICES OF THE

SELLER PARTIES; LOCATIONS OF RECORDS; FEDERAL EMPLOYER

IDENTIFICATION NUMBERS

Places of Business:

	 	 	 	 	 
	 

	 	Seller:
	 	Principal Place of Business and Chief Executive Office
	 

	 	 	 	One Liberty Plaza
	 

	 	 	 	Liberty, Missouri, 64068
	 
	 	 	 	 
	 

	 	Servicer:
	 	Principal Place of Business and Chief Executive Office
	 

	 	 	 	7500 College Blvd., Suite 1000
	 

	 	 	 	Overland Park, Kansas 66210

Locations of Records:

	 	 	 	 	 
	 

	 	Seller:
	 	Seller’s and Servicer’s addresses above
	 
	 	 	 	 
	 

	 	Servicer:
	 	Seller’s and Servicer’s addresses above

Federal Employer Identification Numbers:

	 	 	 	 	 
	 

	 	Seller:
	 	43-1698481
	 
	 	 	 	 
	 

	 	Servicer:
	 	43-1698481

58

 

EXHIBIT IV

FORM OF COMPLIANCE CERTIFICATE

To: JPMorgan Chase Bank, N.A., as Agent

          This Compliance Certificate is furnished pursuant to that certain Second Amended and Restated
Receivables Purchase Agreement dated as of June 6, 2006, among Ferrellgas Receivables, LLC (the
“Seller”), Ferrellgas, L.P. (the “Servicer”), the Purchasers party thereto and JPMorgan Chase Bank,
N.A., as agent for such Purchasers (the “Agreement”).

          THE UNDERSIGNED HEREBY CERTIFIES THAT:

          1. I am the duly elected                                          of Seller.

          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 conditions of Seller and its Subsidiaries
during the accounting period covered by the attached financial statements.

          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 Amortization Event or Potential
Amortization Event, as each such term is defined under the Agreement, during or at the end of the
accounting period covered by the attached financial statements or as of the date of this
Certificate, except as set forth in paragraph 5 below.

          4. Schedule I attached hereto sets forth financial data and computations evidencing the
compliance with certain covenants of the Agreement, all of which data and computations are true,
complete and correct.

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

59

 

The foregoing certifications, together with the computations set forth in Schedule I hereto and
the financial statements delivered with this Certificate in support hereof, are made and delivered
this ___ day of                     , ___.

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

60

 

SCHEDULE I TO COMPLIANCE CERTIFICATE

          A. Schedule of Compliance as of [Date] with Section 9.1(f) of the Agreement. Unless otherwise
defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in
the Agreement.

          This schedule relates to the month ended:                                         

61

 

EXHIBIT V

FORM OF ASSIGNMENT AGREEMENT

     THIS ASSIGNMENT AGREEMENT (this “Assignment Agreement”) is entered into as of the ___day of
                    , ___, by and between                                          (“Assignor”) and                                         
(“Assignee”).

PRELIMINARY STATEMENTS

          A. This Assignment Agreement is being executed and delivered in accordance with Section
12.1(b) of that certain Second Amended and Restated Receivables Purchase Agreement dated as of June
6, 2006 by and among Ferrellgas Receivables, LLC, Ferrellgas, L.P., as Servicer, Jupiter
Securitization Corporation, Fifth Third Bank, JPMorgan Chase Bank, N.A., as Agent, and the
Financial Institutions party thereto (as amended, modified or restated from time to time, the
“Purchase Agreement”). Capitalized terms used and not otherwise defined herein are used with the
meanings set forth or incorporated by reference in the Purchase Agreement.

          B. Assignor is a Financial Institution party to the Purchase Agreement, and Assignee wishes to
become a Financial Institution thereunder; and

          C. Assignor is selling and assigning to Assignee an undivided                     % (the “Transferred
Percentage”) interest in all of Assignor’s rights and obligations under the Purchase Agreement and
the Transaction Documents, including, without limitation, Assignor’s Commitment and (if applicable)
the Capital of Assignor’s Purchaser Interests as set forth herein.

AGREEMENT

          The parties hereto hereby agree as follows:

          1. The sale, transfer and assignment effected by this Assignment Agreement shall become
effective (the “Effective Date”) two (2) Business Days (or such other date selected by the Agent in
its sole discretion) following the date on which a notice substantially in the form of Schedule II
to this Assignment Agreement (“Effective Notice”) is delivered by the Agent to the applicable
Conduit, Assignor and Assignee. From and after the Effective Date, Assignee shall be a Financial
Institution party to the Purchase Agreement for all purposes thereof as if Assignee were an
original party thereto and Assignee agrees to be bound by all of the terms and provisions contained
therein.

          2. If Assignor has no outstanding Capital under the Purchase Agreement, on the Effective Date,
Assignor shall be deemed to have hereby transferred and assigned to Assignee, without recourse,
representation or warranty (except as provided in paragraph 6 below), and the Assignee shall be
deemed to have hereby irrevocably taken, received and assumed from Assignor, the Transferred
Percentage of Assignor’s Commitment and all rights and obligations associated therewith under the
terms of the Purchase Agreement, including,

62

 

without limitation, the Transferred Percentage of Assignor’s future funding obligations under
Section 4.1 of the Purchase Agreement.

          3. If Assignor has any outstanding Capital under the Purchase Agreement, at or before 12:00
noon, local time of Assignor, on the Effective Date Assignee shall pay to Assignor, in immediately
available funds, an amount equal to the sum of (i) the Transferred Percentage of the outstanding
Capital of Assignor’s Purchaser Interests (such amount, being hereinafter referred to as the
“Assignee’s Capital”); (ii) all accrued but unpaid (whether or not then due) Yield attributable to
Assignee’s Capital; and (iii) accruing but unpaid fees and other costs and expenses payable in
respect of Assignee’s Capital for the period commencing upon each date such unpaid amounts commence
accruing, to and including the Effective Date (the “Assignee’s Acquisition Cost”); whereupon,
Assignor shall be deemed to have sold, transferred and assigned to Assignee, without recourse,
representation or warranty (except as provided in paragraph 6 below), and Assignee shall be deemed
to have hereby irrevocably taken, received and assumed from Assignor, the Transferred Percentage of
Assignor’s Commitment and the Capital of Assignor’s Purchaser Interests (if applicable) and all
related rights and obligations under the Purchase Agreement and the Transaction Documents,
including, without limitation, the Transferred Percentage of Assignor’s future funding obligations
under Section 4.1 of the Purchase Agreement.

          4. Concurrently with the execution and delivery hereof, Assignor shall provide to Assignee
copies of all documents requested by Assignee which were delivered to Assignor pursuant to the
Purchase Agreement.

          5. Each of the parties to this Assignment Agreement agrees that at any time and from time to
time upon the written request of any other party, it shall execute and deliver such further
documents and do such further acts and things as such other party may reasonably request in order
to effect the purposes of this Assignment Agreement.

          6. By executing and delivering this Assignment Agreement, Assignor and Assignee confirm to and
agree with each other, the Agent and the Financial Institutions as follows: (a) other than the
representation and warranty that it has not created any Adverse Claim upon any interest being
transferred hereunder, Assignor makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made by any other Person in or in
connection with the Purchase Agreement or the Transaction Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of Assignee, the Purchase Agreement or
any other instrument or document furnished pursuant thereto or the perfection, priority, condition,
value or sufficiency of any collateral; (b) Assignor makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the Seller, any Obligor, any
Affiliate of the Seller or the performance or observance by the Seller, any Obligor, any Affiliate
of the Seller of any of their respective obligations under the Transaction Documents or any other
instrument or document furnished pursuant thereto or in connection therewith; (c) Assignee confirms
that it has received a copy of the Purchase Agreement and copies of such other Transaction
Documents, and other documents and information as it has requested and deemed appropriate to make
its own credit analysis and decision to enter into this Assignment Agreement; (d) Assignee shall,
independently and without reliance upon the Agent, any Conduit, the Seller or any other Financial
Institution or Purchaser

63

 

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 Purchase Agreement and
the Transaction Documents; (e) Assignee appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers under the Transaction Documents as are delegated to
the Agent by the terms thereof, together with such powers as are reasonably incidental thereto; and
(f) Assignee agrees that it shall perform in accordance with their terms all of the obligations
which, by the terms of the Purchase Agreement and the other Transaction Documents, are required to
be performed by it as a Financial Institution or, when applicable, as a Purchaser.

          7. Each party hereto represents and warrants to and agrees with the Agent that it is aware of
and shall comply with the provisions of the Purchase Agreement, including, without limitation,
Sections 4.1 and 14.6 thereof.

          8. Schedule I hereto sets forth the revised Commitment of Assignor and the Commitment of
Assignee, as well as administrative information with respect to Assignee.

          9. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

          10. Assignee hereby covenants and agrees that, prior to the date which is one year and one day
after the payment in full of all senior indebtedness for borrowed money of any Conduit, it shall
not institute against, or join any other Person in instituting against, such Conduit any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar
proceeding under the laws of the United States or any state of the United States.

          IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed by
their respective duly authorized officers of the date hereof.

	 	 	 	 	 	 	 
	 	 	[ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	[ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 

64

 

SCHEDULE I TO ASSIGNMENT AGREEMENT

LIST OF LENDING OFFICES, ADDRESSES

FOR NOTICES AND COMMITMENT AMOUNTS

Date:                                         ,                     

Transferred Percentage:                                         %

	 	 	 	 	 	 	 	 	 
	 	 	A-1	 	A-2	 	B-1	 	B-2
	 	 	Commitment	 	Commitment	 	 	 	 
	 	 	(prior to giving	 	(after giving	 	 	 	 
	 	 	effect to the	 	effect to the	 	 	 	Ratable Share
	 	 	Assignment	 	Assignment	 	Outstanding	 	of Outstanding
	Assignor	 	Agreement)	 	Agreement)	 	Capital (if any)	 	Capital
	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	A-2	 	B-1	 	B-2
	 	 	 	 	Commitment	 	 	 	 
	 	 	 	 	(after giving	 	 	 	 
	 	 	 	 	effect to the	 	 	 	Ratable Share
	 	 	 	 	Assignment	 	Outstanding	 	of Outstanding
	Assignee	 	 	 	Agreement)	 	Capital (if any)	 	Capital
	 
	 	 	 	 	 	 	 	 

	 	 	 
	Address for Notices
	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	Attention:
	 	 
	Phone:
	 	 
	Fax:
	 	 

65

 

SCHEDULE II TO ASSIGNMENT AGREEMENT

EFFECTIVE NOTICE

	 	 	 
	TO:

	 	                                                            , Assignor
	 

	 	                                                            
	 

	 	                                                            
	 
	 	 
	TO:

	 	                                                            , Assignee
	 

	 	                                                            
	 

	 	                                                            
	 

	 	                                                            

          The undersigned, as Agent under the Second Amended and Restated Receivables Purchase Agreement
dated as of June 6, 2006 by and among Ferrellgas Receivables, LLC, a Delaware limited liability
company (“Seller”), between Ferrellgas, L.P., a Delaware limited partnership, as Servicer, Jupiter
Securitization Corporation, Fifth Third Bank, JPMorgan Chase Bank, N.A., as Agent, and the
Financial Institutions party thereto, hereby acknowledges receipt of executed counterparts of a
completed Assignment Agreement dated as of                     , ___between                                         , as
Assignor, and                                         , as Assignee. Terms defined in such Assignment Agreement are used
herein as therein defined.

          1. Pursuant to such Assignment Agreement, you are advised that the Effective Date shall be
                    , ___.

          2. By its signature below, [each of] Conduit [and Seller] hereby consents to the Assignment
Agreement as required by Section 12.1(b) of the Receivables Purchase Agreement.

          [3. Pursuant to such Assignment Agreement, the Assignee is required to pay $                     to
Assignor at or before 12:00 noon (local time of Assignor) on the Effective Date in immediately
available funds.]

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,
individually and as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

66

 

	 	 	 	 	 	 	 
	 	 	[CONDUIT]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Authorized Signatory	 	 

	 	 	 	 	 
	[The foregoing is hereby consented to:	 	 
	 
	 	 	 	 
	FERRELLGAS RECEIVABLES, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

67

 

EXHIBIT VI

FORM OF MONTHLY REPORT

Monthly Report as of [Date]

For [date]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Originator—specific data:

	 
	I.

	 	 	 	Receivables Rollforward	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	Ferrellgas, L.P.

	 

	 	 	 	Beginning Receivables	 	 	 	 	 	 
	 

	 	 	 	Add: Invoices	 	 	 	 	 	 
	 

	 	 	 	Finance Charges
	 	 	 	 	 	 
	 

	 	 	 	Debit Memos
	 	 	 	 	 	 	 	 
	 

	 	 	 	Less: Cash Collections	 	 	 	 	 	 	 	 
	 

	 	 	 	Credit Memos (Note 1)
	 	 	 	 	 	 	 	 
	 

	 	 	 	Charge-offs
	 	 	 	 	 	 	 	 
	 

	 	 	 	Total Receivables
	 	 	 	 	 	 	 	0 
	 
	II.

	 	 	 	Summary Aging Schedule	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	Ferrellgas, L.P.

	 

	 	 	 	Current	 	 	 	 	 	 	 	 
	 

	 	 	 	30-60 days from invoice (all )	 	 	 	 	 	 	 	 
	 

	 	 	 	61-90 days from invoice	 	 	 	 	 	 	 	 
	 

	 	 	 	> 91 days from invoice	 	 	 	 	 	 	 	 
	 

	 	 	 	Total Receivables
	 	 	 	 	 	 	 	0 
	 
	III.

	 	 	 	Ending G/L Balance	 	 	 	 	 	 	 	 
	 
	IV.

	 	 	 	Eligible Receivables	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	Ferrellgas, L.P.

	 

	 	 	 	Total Receivables (Note 2)
	 	 
	 	 
	 	 	 	0 
	 

	 	 	 	 
	 	“Eligible Receivable” definition (Note 3):
	 	 
	 	 	 	 
	 

	 	 	 	Less: Non — U.S. Receivables
	 	(i)	 	 	 	 	 	 
	 

	 	 	 	Receivables of Affiliates

	 	(i)	 	 	 	 	 	 
	 

	 	 	 	Government Receivables > 2% of Outstanding Balance

	 	(i)	 	 	 	 	 	 
	 

	 	 	 	Obligors of Defaulted Receivables (10%) (Note 4)

	 	(ii)	 	 	 	 	 	 
	 

	 	 	 	Defaulted Receivables > 60 days from invoice

	 	(iii)
	 	 	 	 	 	0 
	 

	 	 	 	30-60 day receivables > 25% of bucket

	 	 	 	 	 	 	 	n/a 
	 

	 	 	 	Rec.w/ terms > 30

	 	(iv)	 	 	 	 	 	 
	 

	 	 	 	Originator Obligations not fully performed

	 	(xvi)	 	 	 	 	 	 
	 

	 	 	 	Bankrupt Obligors

	 	(xvi)	 	 	 	 	 	 
	 

	 	 	 	Other Ineligible

	 	(v-xv & xvii)	 	 	 	 	 	 
	 

	 	 	 	Customer Deposits

	 	(vii)	 	 	 	 	 	 
	 

	 	 	 	Excess Concentrations (from Section VII below)

	 	(xviii)
	 	 	 	 	 	0 
	 

	 	 	 	Pool Receivables Balance
	 	 	 	 	 	 	 	0 
	 

	 	 	 	Less: $9,000,000 May — November / $1,000,000 any other time
	 	 	 	 	 	 	 	 
	 

	 	 	 	Pool Receivables Ending Balance
	 	 	 	 	 	 	 	0 
	 
	V.

	 	 	 	Capital Availability	 	 	 	 	 	 	 	 
	 
	 

	 	A)
	 	Purchaser’s Interest on Last Day of Settlement Report Period	 	 	 	 	 	 	 	 
	 

	 	 	 	Pool Receivables	 	 	 	 	 	 	 	$0 
	 

	 	 	 	Reserve Percentage x Pool Receivables
	 	 	 	20.00% 	 	— 
	 

	 	 	 	Pool Receivables — Required Reserves
	 	 	 	 	 	 	 	$0 
	 

	 	 	 	Max Capital Outstanding on Last Day of Settlement Period	 	 	 	 	 	 	 	 
	 

	 	 	 	Actual Capital Outstanding on Last Day of Settlement Period (Jupiter Securitization Corp.)	 	 	 	 	 	 	 	 
	 

	 	 	 	Actual Capital Outstanding on Last Day of Settlement Period (Fifth Third Bank)	 	 	 	 	 	 	 	 
	 

	 	 	 	Asset Interest (sum of the Receivables Interest and the Contributed Interest)
	 	 	 	 	 	 	 	$0 
	 

	 	 	 	Purchaser Interest (cannot exceed 100%)	 	 	 	 	 	 	 	 
	 
	 

	 	B)
	 	Purchaser’s Interest on Submission Date of Settlement Report	 	 	 	 	 	 	 	 
	 

	 	 	 	Pool Receivables
	 	 	 	 	 	 	 	$0 
	 

	 	 	 	Less: Reserve Percentage x Pool Receivables
	 	 	 	20.00% 	 	— 
	 

	 	 	 	Available for Funding
	 	 	 	 	 	 	 	$0 
	 
	 

	 	 	 	Max Capital Outstanding on Submission Date of Settlement Report	 	 	 	 	 	 	 	 
	 

	 	 	 	Actual Capital Outstanding on Submission Date of Settlement Report (Jupiter Securitization Corp.)	 	 	 	 	 	 	 	 
	 

	 	 	 	Actual Capital Outstanding on Submission Date of Settlement Report (Fifth Third Bank)	 	 	 	 	 	 	 	 
	 

	 	 	 	Asset Interest (sum of the Receivables Interest and the Contributed Interest)
	 	 	 	 	 	 	 	$0 
	 

	 	 	 	Purchaser Interest (cannot exceed 100%)	 	 	 	 	 	 	 	 

68

 

Monthly Report, page 2 of 2

	 	 	 	 	 	 	 	 	 	 	 
	VII.

	 	Compliance
	 	 	 	 	 	 	 	
	 
	

	 	 
	 	 	 	 	 	 	 	3-Month Rolling Average:

	 	 	3-Month Average
Delinquency Trigger Ratio (less than: 11.0% May — Oct / 9.1 % May — Nov ) (Note 5)	 	 	 	 	 	 
	 

	 	 	 	Current month delinquency ratio
	 	#DIV/01
	 	 
	 

	 	 	 	One month prior delinquency ratio	 	 	 	 	 	 
	 

	 	 	 	Two month prior delinquency ratio	 	 	 	 	 	 
	 
	 	 	3-Month Average Charged-off Trigger Ratio (less than 0.90%) (Note 6)	 	 	 	 	 	 
	 

	 	 	 	Current month default ratio	 	 	 	 	 	 
	 

	 	 	 	One month prior default ratio	 	 	 	 	 	 
	 

	 	 	 	Two month prior default ratio	 	 	 	 	 	 
	 
	 	 	3-Month Average Dilution Trigger Ratio (less than 2.40% Nov — June / 2.75% July — October) (Note 7)	 	 	 	 	 	 
	 

	 	 	 	Current month dilution ratio	 	 	 	 	 	 
	 

	 	 	 	One month prior dilution ratio	 	 	 	 	 	 
	 

	 	 	 	Two month prior dilution ratio	 	 	 	 	 	 
	 
	 	 	3-Month Average >
90 day from invoice trigger ratio (less than 25% June —
Nov/ 16.5% Dec — May) (Note 9)	 	 	 	 	 	 
	 

	 	 	 	Current month ratio
	 	#DIV/01
	 	 
	 

	 	 	 	One month prior ratio	 	 	 	 	 	 
	 

	 	 	 	Two month prior ratio	 	 	 	 	 	 
	 
	 	 	Purchaser’s Interest Calculation on Submission Date of Settlement Report Must Be <100%	 	 	 	 	 	 
	 

	 	 	 	Calculation
	 	 	0.00	%	 	 
	 

	 	 	 	Paydown Requirement
	 	FALSE
	 	 
	 

	 	 	 	Paydown Submitted	 	 	 	 	 	 
	 

	 	 	 	New Purchaser’ Interest/ In Compliance	 	 	 	 	 	 
	 
	 

	 	Occurrence of any other Termination Event (Section 7.1)
	 	 No	 	 	 	 	 	 
	 
	VIII.

	 	Obligor Concentration Limits	 	 	 	 	 	 	 	 
	 

	 	 	 	      	 	      	 	      	 	 	 	      	 	 	 
	 	 	Obligor	 	 	 	 	 	 	 	 	 	 
	 	 	Name	 	 	 	 	 	 	 	 	 	 
	 	 	(Note 8)	 	— 5 Largest Central Remit Accounts :	 	2% Concentration Limit	 	Ferrellgas, L.P.	 	Excess Concentrations
	1

	 	Schwans
	 	 	 	$ —
	 	 	 	 	 	 	$0	 
	2

	 	Altman Specialty Plants
	 	 	 	$ —
	 	 	 	 	 	 	$0	 
	3

	 	Pepsi
	 	 	 	$ —
	 	 	 	 	 	 	$0	 
	4

	 	Yellow Freight
	 	 	 	$ —
	 	 	 	 	 	 	$0	 
	5

	 	R&L Carriers
	 	 	 	$ —
	 	 	 	 	 	 	$0	 
	 

	 	 	 	TOTAL
	 	 	 	 	 	0 	 	 	$0	 

 

			
	Notes: 	 	
	 
	1.	 	Credit memos should be completely reported in the “current” bucket and not aged.
	 
	2.	 	Total Receivables in Section IV., is equal to the lesser of Total Receivables in Section I,
II or the Ending G/L Balance in Section III.
	 
	3.	 	Eligibility criteria refers to the specified section in the “Eligible Receivable” definition
referenced in the Receivables Interest Sale Agreement.
	 
	4.	 	A Receivable of which the Obligor is the Obligor of any Defaulted Receivable which in the
aggregate
constitute more than 10% of all Receivables of such Obligor.
	 
	5.	 	The Delinquency Trigger Ratio is defined as: Outstanding Balance of all Delinquent
Receivables (receivables 61 -90 days from invoice)/
the current month’s Outstanding Balance of all Receivables (per the aging).
	 
	6.	 	Charged-off Trigger Ratio is defined as: (Charged-off Receivables) / Total monthly sales 6
months prior.
	 
	7.	 	Dilution Trigger Ratio is defined as: current month Dilution (Credits less Debits + other
Dilution) / total sales the prior month.
	 
	8.	 	The Concentration Limit for an individual obligor is 2% of the Outstanding Balance of
Eligible Receivables.
	 
	9.	 	The greater than 90 days from invoice trigger is: the three month rolling average of the
receivables greater than 90 days from invoice / Total Receivables.

The undersigned hereby represents and warrants that the foregoing is a true and accurate
accounting with respect to the outstandings as of [date] in accordance with the Second Amended
and Restated Receivables Purchase Agreement dated as of June 6, 2006 and that all Representations
and Warranties are restated and reaffirmed.

	 	 	 	 	 	 	 
	 

	 	Signed by:	 	 	 	 
	 	 	Title:	 	Senior Vice President & Chief Financial Officer

69

 

SCHEDULE A

COMMITMENTS

	 	 	 
	Committed Purchaser	 	Commitment
	JPMorgan Chase Bank, N.A.

	 	The commitment amount shall be on any date, the amount set forth opposite such date below:

	 	 	 	 	 
	May 31-September 30
	 	$	42,500,000	 
	October 1-31
	 	$	50,000,000	 
	November 1-30
	 	$	55,000,000	 
	December 1-February 14
	 	$	80,000,000	 
	February 15-28
	 	$	77,500,000	 
	March 1-7
	 	$	75,000,000	 
	March 8-14
	 	$	72,000,000	 
	March 15-21
	 	$	69,000,000	 
	March 22-28
	 	$	66,000,000	 
	March 29-April 4
	 	$	63,000,000	 
	April 5-18
	 	$	60,000,000	 
	April 19-May 2
	 	$	55,000,000	 
	May 3-16
	 	$	50,000,000	 
	May 17-30
	 	$	46,250,000	 

	 	 	 
	Fifth Third Bank

	 	The commitment amount shall be on any date, the amount set forth opposite such date below:

	 	 	 	 	 
	May 31-September 30
	 	$	42,500,000	 
	October 1-31
	 	$	50,000,000	 
	November 1-30
	 	$	55,000,000	 
	December 1-February 14
	 	$	80,000,000	 
	February 15-28
	 	$	77,500,000	 
	March 1-7
	 	$	75,000,000	 
	March 8-14
	 	$	72,000,000	 
	March 15-21
	 	$	69,000,000	 
	March 22-28
	 	$	66,000,000	 
	March 29-April 4
	 	$	63,000,000	 
	April 5-18
	 	$	60,000,000	 
	April 19-May 2
	 	$	55,000,000	 
	May 3-16
	 	$	50,000,000	 
	May 17-30
	 	$	46,250,000	 

70

 

SCHEDULE B

DOCUMENTS TO BE DELIVERED TO THE AGENT ON OR PRIOR TO THE

INITIAL PURCHASE

	1.	 	Amendment No. 1 to Second Amended and Restated Receivable Interest Sale Agreement and
Subordinated Note.
	 
	2.	 	Executed copies of this Agreement, duly executed by the parties thereto.
	 
	3.	 	Copy of the Resolutions of the Board of Directors of Seller certified by its Secretary
authorizing Seller’s execution, delivery and performance of this Agreement and the other
documents to be delivered by it hereunder.
	 
	4.	 	Copy of the Resolutions of the Board of Directors of the General Partner and the Servicer
certified by its Secretary authorizing the Servicer’s execution, delivery and performance of
this Agreement and the other documents to be delivered by it hereunder.
	 
	5.	 	Organization Documents of Seller and certified by the Secretary of State of Delaware on or
within thirty (30) days prior to the initial Incremental Purchase.
	 
	6.	 	Good Standing Certificate for Seller issued by the Secretaries of State of:

	 	a.	 	Delaware
	 	b.	 	Missouri

	7.	 	A certificate of the Secretary of Seller certifying the names and signatures of the officers
authorized on its behalf to execute this Agreement and any other documents to be delivered by
it hereunder.

	8.	 	A certificate of the Secretary of Servicer and the General Partner certifying the names and
signatures of the officers authorized on its behalf to execute this Agreement and any other
documents to be delivered by it hereunder.

	9.	 	Evidence that UCC financing statements, have been filed in all jurisdictions as may be
necessary or, in the opinion of the Agent, desirable, under the UCC of all appropriate
jurisdictions or any comparable law in order to perfect the ownership interests contemplated
by this Agreement.

	10.	 	Time stamped receipt copies of proper UCC termination statements, if any, necessary to
release all security interests and other rights of any Person in the Asset Interest previously
granted by Seller.

	11.	 	A favorable opinion of legal counsel for the Seller Parties reasonably acceptable to the
Agent which addresses such matters as the Agent may reasonably request:

	12.	 	The Agent’s Fee Letter.

71

 

	13.	 	The Purchasers’ Fee Letter.

	14.	 	A Monthly Report as of April 30, 2006.

	15.	 	Reliance letters in respect of the bankruptcy opinions delivered under the Receivables
Interest Sale Agreement and bring-down/reliance letters in respect of the corporate/UCC
opinion delivered under the Receivables Interest Sale Agreement.

72<PAGE>

                      AIG SUNAMERICA LIFE ASSURANCE COMPANY

                    OPTIONAL PAYMENT ENHANCEMENT ENDORSEMENT

Notwithstanding any provision in the Contract or Certificate ("Contract") to the
contrary, this Optional Payment Enhancement Endorsement (the "Endorsement")
becomes a part of the Contract to which it is attached. Should any provision in
this Endorsement conflict with the Contract, the provisions of this Endorsement
will prevail.

Subject to the terms and conditions set forth below, this Endorsement credits
additional amounts to your Contract Value based on certain Purchase Payment(s)
made to your Contract. This Endorsement may not be elected with other
Endorsements containing different Withdrawal Charges or schedules.

                                   DEFINITIONS

For purposes of this Endorsement, the following definitions apply. Terms not
defined in this Endorsement shall have the same meaning given to them in the
Contract.

CONTRACT ANNIVERSARY

Each consecutive one year period starting on the Contract Date.

PAYMENT ENHANCEMENT

A Payment Enhancement is an amount allocated to Your Contract Value by Us, and
which is based on the amount of Your Purchase Payment as of the Purchase Payment
Date. Payment Enhancements are not considered Purchase Payments.

PAYMENT ENHANCEMENT RATE

The applicable percentage of the Purchase Payment that is used to calculate the
amount of Payment Enhancement to be allocated to Your Contract Value on the
Purchase Payment Date.

PURCHASE PAYMENT DATE

The date on which a particular Purchase Payment is made.

                          PAYMENT ENHANCEMENT SCHEDULE

We will allocate applicable Payment Enhancements to Your Contract Value
according to the following schedule:

<TABLE>
<CAPTION>
Purchase Payment Date                                                          Payment Enhancement Rate
---------------------                                                          ------------------------
<S>                                                                            <C>
[before 1st Contract Anniversary]                                                      [4.00%]
[On or after 1st Contract Anniversary but before 2nd Contract Anniversary]             [4.00%]
[On or after 2nd Contract Anniversary but before 3rd Contract Anniversary]             [4.00%]
[On or after 3rd Contract Anniversary but before 4th Contract Anniversary]             [4.00%]
[On or after 4th Contract Anniversary]                                                 [0.00%]
</TABLE>

ALLOCATION OF PAYMENT ENHANCEMENTS

We will allocate any Payment Enhancement to available Variable Portfolio(s)
and/or Fixed Account Option(s) in the same proportion as the Purchase Payment to
which it applies is allocated.

PAYMENT ENHANCEMENT FEE ("FEE")

                                       1
<PAGE>

The Fee associated with this Endorsement is assessed as an additional Separate
Account Charge that varies depending on the Contract Year as follows:

<TABLE>
<CAPTION>
Contract Year                                 Payment Enhancement Fee
------------                                  -----------------------
<S>                                           <C>
[Years 1-9]                                           [0.40%]
[Years 10+]                                           [0.00%]
</TABLE>

The expenses for this annuity may be higher than the expenses for an annuity
without the Payment Enhancements.

                          PAYMENT ENHANCEMENT DEDUCTION

During the Right To Examine/Right To Cancel period, if You can cancel Your
Contract and this Endorsement and if Your Contract requires:

      1.    The return of Contract Value, We will refund the Contract Value as
            of the business day during which the Contract is received by Us
            reduced by the lesser of: (a) the value of all Payment Enhancements
            as of the date on which We receive Your request to cancel Your
            Contract; or (b) the value of all Payment Enhancements We allocated
            to Your Contract Value; or

      2.    The return of Purchase Payment(s), We will refund the Purchase
            Payment(s).

      We reserve the right to allocate Your Payment Enhancement to a Variable
      Portfolio with a cash management objective until the end of the Right To
      Examine/Right To Cancel period.

                                WITHDRAWAL CHARGE

The Withdrawal Charge chart in the Withdrawal Charge section of the Contract is
replaced as follows:

<TABLE>
<CAPTION>
    Number of Full Years Elapsed
Between Purchase Payment Contribution                         Withdrawal Charge as a
       And Date of Withdrawal                        Percentage of Withdrawn Purchase Payment
-------------------------------------                ----------------------------------------
<S>                                                  <C>
                0                                                     9%
                1                                                     8%
                2                                                     8%
                3                                                     7%
                4                                                     6%
                5                                                     5%
                6                                                     4%
                7                                                     3%
                8                                                     2%
                9+                                                    0%
</TABLE>

                                       2
<PAGE>

Signed for the Company to be effective as of the Contract Date.

/s/Christine A. Nixon                              /s/Jana W. Greer
---------------------                              -------------------
 Christine A. Nixon                                  Jana W. Greer
    Secretary                                          President

                                       3

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